HomeMy WebLinkAbout#10 - CSAH 19-Hudson Intersection Award Contract STAFF REPORT
DATE: June 4, 2019
REGULAR
AGENDA ITEM: CSAH 19 and Hudson Boulevard Intersection Improvements – Accept Bids,
Approve Cooperative Agreement and Award Contract
SUBMITTED BY: Jack Griffin, City Engineer
REVIEWED BY: Kristina Handt, City Administrator Sarah Sonsalla, City Attorney
Chad Isakson, Project Engineer
ISSUE BEFORE COUNCIL: Should the City Council accept bids, approve a cooperative agreement with
Washington County and award a contract for the CSAH-19 and Hudson Boulevard Intersection
Improvements?
BACKGROUND: On April 16, 2019 the City Council approved the plans and specifications for the
CSAH-19 and Hudson Boulevard Intersection Improvements and authorized staff to advertise the Project
for bids. The Project was advertised on QuestCDN.com and in the Oakdale-Lake Elmo Review in
accordance with the Minnesota Competitive Bidding requirements.
The improvements include the installation of a traffic light at CSAH-19 and Hudson Boulevard with
dedicated left and right turn lanes constructed along each of the Hudson Boulevard approaches. The turn
lane and geometric roadway improvements require the reconstruction of Hudson Boulevard from 1,000 feet
west of Keats Avenue to 900 feet east of Keats Avenue. The improvements include the addition of storm
sewer improvements and a stormwater infiltration basin. The scope of improvements remains consistent
with the preliminary plans that were presented to the City Council on December 4, 2018.
PROPOSAL DETAILS/ANALYSIS: Bids were received, publicly opened, and read aloud on Tuesday,
May 14, 2019. The City’s design consultant has prepared and attached a Tabulation of Bids and a letter of
recommendation for the award of the contract. The City received 4 bids for this project, with Max
Steininger, Inc. providing the lowest bid in the amount of $1,790,088.96.
Contractor references for Max Steininger, Inc. were reviewed and verified. The City Engineer and his
consultant are therefore recommending that the Council award the contract to the lowest responsible bidder,
Max Steininger, Inc. as outlined in the attached letter.
The project was developed as a joint project with Washington County and includes county improvements.
A Cooperative Agreement has been prepared to outline the roles and responsibilities, cost split, and general
terms and conditions for the project. The format of the agreement and cost split is based on Washington
County’s cost participation policy which includes a 50/50 cost split of the installation of the traffic light
and a percentage of soft costs based on a percentage split of city improvements vs county improvements
proposed on the project.
As a part of this award Staff is requesting Council to provide the City Administrator authorization to enter
into a material testing contract in the not-to-exceed amount of $20,000. Additionally, staff is recommending
that the City Council approve a supplemental task order with KLJ to provide construction services in an
amount not to exceed $78,250. Each of these items are budgeted in the total cost figures presented below
and are necessary to complete the project.
FISCAL IMPACT: Approval of this resolution commits the council to enter into a construction contract
for the project. The estimated total cost for the CSAH-19 and Hudson Boulevard Intersection
Improvements is $2,760,100. The City’s share of the improvements is estimated to be $2,251,300 and
Washington County’s cost share is estimated to be $508,800.
The City intends to finance its share of the improvement costs through a combination of existing state aid
funds, in the approximate amount of $917,000, an advance request from future state aid funds, in the
approximate amount of $1,070,900, and the general fund, in the approximate amount of $263,400. The City
Council passed a resolution requesting the state aid fund advance on April 16, 2019 and the request was
granted.
RECOMMENDATION: Staff is recommending that the City Council approve a resolution accepting bids
and awarding a contract to Max Steininger, Inc. in the amount of $1,790,088.96 and approving the
Cooperative Agreement with Washington County for the CSAH-19 and Hudson Boulevard Intersection
Improvements. The recommended motions for this action is as follows:
“Move to approve Resolution No. 2019–042, accepting bids and awarding a contract to Max Steininger
in the amount of $1,790,088.96 and approving the Cooperative Agreement with Washington County
for the CSAH 19 and Hudson Boulevard Intersection Improvements.”
Staff is also recommending that the City Council authorize the City Administrator to enter into a material
testing contract in the not-to-exceed amount of $20,000 and authorize a supplemental task order with KLJ
to provide construction services in an amount not to exceed $78,250. The recommended motion for this
action is as follows:
“Move to authorize the City Administrator to enter into a material testing contract in the not-to-exceed
amount of $20,000; and to approve a supplemental task order with KLJ to provide construction
services in an amount not to exceed $78,250.”
ATTACHMENTS:
1. Resolution Accepting Bids and Awarding a Contract and approving the Cooperative Agreement
with Washington County for the CSAH-19 and Hudson Boulevard Intersection Improvements.
2. Engineer’s Letter of Award Recommendation and Tabulation of Bids.
3. Cooperative Agreement.
4. Project Schedule.
CITY OF LAKE ELMO
WASHINGTON COUNTY
STATE OF MINNESOTA
RESOLUTION NO. 2019-042
A RESOLUTION ACCEPTING BIDS AND AWARDING A CONTRACT
AND APPROVING A COOPERATIVE AGREEMENT WITH
WASHINGTON COUNTY FOR THE CSAH-19 AND HUDSON
BOULEVARD INTERSECTION IMPROVEMENTS
WHEREAS, pursuant to an advertisement for bids for the CSAH-19 and Hudson
Boulevard Intersection Improvements, bids were received, opened, and tabulated according to
law, and bids were received complying with the advertisement; and
WHEREAS, bids were tabulated, checked and summarized to verify that all
requirements of the submittal were met; and
WHEREAS, the project engineer reviewed the bids and has provided a letter
recommending the award of the contract to the lowest responsible bidder, Max Steininger, Inc.,
for the amount of $1,790,088.96; and
WHEREAS, items included in the project will be paid by Washington County consistent
with the County’s Cost Participation Policy; and
WHEREAS, the City has prepared a Cooperative Agreement with Washington County to
address the cost sharing in the project including terms for payment, and this Agreement is made
pursuant to statutory authority contained in Minnesota Statute 162.17 sub.1 and Minnesota
Statute 471.59.
NOW, THEREFORE, BE IT RESOLVED,
1. That the Mayor and City Clerk are hereby authorized and directed to enter into a Contract
in the accordance with the above ordered Project, in the amount of the Contractor’s
lowest responsible bid, and according to the plans and specifications thereof approved by
the City Council.
2. The City Clerk is hereby authorized and directed to return forthwith to all bidders the
deposits made with their bids, except that the deposits of the successful bidder and the
next two lowest bidders shall be retained until a contract has been signed.
3. That the Cooperative Agreement between the City of Lake Elmo and Washington County
is hereby approved, and the Mayor and City Administrator are hereby authorized to
execute the agreement on behalf of the City of Lake Elmo.
ADOPTED BY THE LAKE ELMO CITY COUNCIL ON THE FOURTH DAY OF JUNE,
2019.
CITY OF LAKE ELMO
By: __________________________
Mike Pearson
(Seal) Mayor
ATTEST:
________________________________
Julie Johnson
City Clerk
Page 1 of 5
COOPERATIVE AGREEMENT BETWEEN THE CITY OF
LAKE ELMO AND WASHINGTON COUNTY FOR CONSTRUCTION COST OF COUNTY STATE AID
HIGHWAY (CSAH) 19 AND HUDSON BOULEVARD INTERSECTION IMPROVEMENTS
THIS AGREEMENT, by and between the City of Lake Elmo, a municipal corporation, herein after
referred to as the "City", and Washington County, a political subdivision of the State of Minnesota,
hereinafter referred to as the "County.”
WITNESSETH:
WHEREAS, the City intends to make improvements to Hudson Boulevard from 1,000-feet west of
County State Aid Highway (CSAH) 19 to 910-feet east of CSAH 19 and install a traffic signal at the
intersection of CSAH 19 and Hudson Boulevard (the “Project”); and
WHEREAS, items included in the Project require County cost participation in accordance with the
Washington County Cost Participation Policy #8001 for Cooperative Highway Improvement Projects;
and
WHEREAS, the City desires to use local funds and State Aid for these improvements; and
WHEREAS, the County also desires to use local funds and State Aid for these improvements; and
WHEREAS, a cooperative effort between the City and County is the appropriate method to facilitate the
construction of these transportation improvements; and
WHEREAS, this Agreement is made pursuant to statutory authority contained in Minnesota Statutes
Section 162.17, subdivision 1 and Minnesota Statutes Section 471.59.
NOW THEREFORE, IT IS HEREBY MUTUALLY AGREED AS FOLLOWS:
A. PURPOSE
The purpose of this Agreement is set forth in the above whereas clauses which are all incorporated
by reference as if fully set forth herein and shall consist of this Agreement, Exhibit A (Location Map)
and Exhibit B (Estimated Construction Cost and Cost Splits).
B. PLANS AND SPECIFICATION PREPARATION
1. The City shall be responsible for the preparation of all the plans and specifications for the
Project, including but not limited to, compliance with all applicable standards and policies and
obtaining all approvals required in formulating the bid specifications for all County and City
components of this Project.
2. The following County project number has been assigned to the Project: SAP 082-619-028
(CSAH 19).
3. The following City project number has been assigned to the Project: SAP 206-120-001.
Page 2 of 5
C. RIGHT OF WAY AND EASEMENTS
1. The City shall acquire all permanent rights of way, permanent easements, and temporary slope
easements, which will be acquired in the name of the City.
2. Any rights of way, permanent easements, and temporary slope easements that cannot be
obtained through negotiation may, at the City’s discretion, be acquired by the City through
eminent domain proceedings.
D. ADVERTISEMENT AND AWARD OF CONTRACT
After plans and specifications have been approved by the City, all permits and approvals obtained,
and acquisition of necessary rights-of-way and easements, the City shall advertise for construction
bids and, at the sole discretion of the City, award the contract to the lowest responsible bidder.
E. CONSTRUCTION ADMINISTRATION, OBSERVATION, AND TESTING
The City shall be responsible for the construction administration, inspection, and for the observation
and testing for all construction items, except those items provided directly by the County.
F. COST PARTICIPATION ITEMS AND ESTIMATED COSTS
The County’s cost participation is set forth in Table 1 of this section and is broken down into five
categories which are: 1) Construction; 2) Design Engineering; 3) Construction Engineering/Contract
Administration; 4) Right of Way; 5) County-Furnished Material.
1. Construction
Construction costs shall be the cost to construct the Project. The City has prepared a statement
of estimated quantities and cost splits hereto attached as Exhibit B. The County shall pay to the
City its share of the total cost as shown in Exhibit B and set forth in Table 1 of this section.
2. Design Engineering
Design engineering costs shall be professional design engineering services, project
coordination, preparation of plans and specification, stakeholder engagement, geotechnical
studies, and other administrative functions necessary for the Project. Based on the County’s
share of the construction cost, the County shall pay the prorated cost of design engineering for
the entire Project as set forth in Table 1 of this section.
3. Construction Engineering/Contract Administration
Construction engineering/contract administration costs shall be construction observation,
construction testing, construction administration, staking, conducting and recording the pre-bid,
pre-construction and weekly construction meetings, reviewing monthly pay estimates, labor
compliance, and other administrative functions necessary for the Project. Based on the
County’s share of the construction costs, the County shall pay the prorated cost of construction
engineering/contract administration as set forth in Table 1 of this section.
4. Right of Way
Right of Way costs shall be permanent right-of-way, permanent utility and/or drainage
easements, temporary easements, title work costs, appraisal costs, relocation specialist costs,
relocation costs, and condemnation commissioner costs. No right-of-way cost share is required
for the County.
5. County-Furnished Material
County-furnished material costs shall be items such as light poles, traffic signal control
equipment, and street name signs which are separately procured outside of the construction
contract and installed within the Project limits. The City shall pay its share of the final County-
furnished material cost. The estimated amount is set forth in Table 1 of this section.
Page 3 of 5
6. The costs and shares attributable to the County and payable to the City as shown in Table 1
above are merely estimated and a final reconciliation of costs as set forth in paragraph G below
shall be done at the end of the Project. Actual County costs and shares are based on the
following:
a. Construction shall be based on the contractor's unit prices and final quantities at Project
completion including all contract changes.
b. Design engineering shall be based on the contractor’s unit prices at the time of contract
award.
c. Construction engineering/contract administration shall be based on the contractor’s unit
prices at the time of contract award.
d. Right of way shall be based on the final costs to acquire right of way.
e. County-furnished material shall be based on the final costs to acquire County-furnished
material.
G. PAYMENT
1. Construction
a. After the City has awarded the construction contract, the City shall update Exhibit B to
conform the Exhibit to the amounts in the awarded bid and shall invoice the County 10
percent of the County's estimated construction cost based on the updated Exhibit B.
b. During construction, the City shall submit to the County partial estimates of work performed
by the contractor. The County shall pay to the City its share of the partial estimate as
determined in section F of this Agreement.
c. Upon substantial completion of the work the City shall submit to the County a final invoice
and final reconciliation of costs. The reconciliation will add or subtract contract amendments
to the County’s Project components, adjustments for liquidated damages pursuant to section
I of this Agreement, and previous Project cost payments made by the County to the City.
2. The costs set forth in Table 1 in section F above for design engineering, construction
engineering/contract administration, right of way, and County-furnished material shall be
invoiced separately by the City from the invoice for construction and paid by the County on a
reimbursable basis.
3. In the event that the County paid more in advance than the actual cost of the County’s portion of
the Project, the City shall refund without interest the amount to the County.
4. The County shall pay 100 percent of an invoice amount within thirty (30) days of receipt.
H. CONTRACT CHANGES
Any modifications or additions to the final approved plans and/or specifications of the County’s
portion of the Project shall be made part of the construction contract through a written
TABLE 1 – ESTIMATED COSTS
Washington County Cost Summary
ITEM TOTAL COST COUNTY
SHARE
COUNTY
COST
Construction $1,879,593 18% $335,790
Design Engineering $316,161 18% $63,469
Construction Engineering/Contract Administration $286,200 18% $51,516
Right of Way $162,000 0% $0
County-Furnished Material $116,125 50% $58,062
TOTAL ESTIMATED COST $2,760,079 $508,837
Page 4 of 5
amendment to the construction contract, but only after concurrence by the County’s designated
project manager, and the cost for such changes shall be appropriated as set forth in section F of
this Agreement. County concurrence shall be received upon request and may not be
unreasonably conditioned, withheld, or delayed.
I. LIQUIDATED DAMAGES
Any liquidated damages assessed the contractor in connection with the work performed on the
Project shall be shared by the City and the County in the following proportion: The respective total
share of construction work to the total construction cost without any deduction for liquidated
damages.
J. CONDITIONS
The City shall not assess or otherwise recover any portion of its cost for this Project through special
assessment of County-owned property.
K. CIVIL RIGHTS AND NON-DISCRIMINATION
The provisions of Minnesota Statutes Section 181.59 and of any applicable ordinance relating to
civil rights and discrimination shall be considered part of this Agreement as if fully set further herein,
and shall be part of any Agreement entered into by the parties with any contractor subcontractor, or
material suppliers.
L. WORKERS COMPENSATION
It is hereby understood and agreed that any and all employees of the County and all other persons
employed by the County in the performance of construction and/or construction engineering work or
services required or provided for under this Agreement shall not be considered employees of the
City and that any and all claims that may or might arise under the Worker’s Compensation Act of
the State of Minnesota on behalf of said employees while so engaged and any and all claims made
by any third parties as a consequence of any act or omission on the part of said County employees
while so engaged on any of the construction and/or construction engineering work or services to be
rendered herein shall in no way be the obligation or responsibility of the City.
M. INDEMNIFICATION
1. The County agrees that it will defend, indemnify and hold harmless the City against any and all
liability, loss, damages, costs and expenses which the City may hereafter sustain, incur or be
required to pay by reason of any negligent act by the County, its agents, officers or employees
during the performance of this Agreement.
2. The City agrees that it will defend, indemnify and hold harmless the County against any and all
liability, loss, damages, costs and expenses which the County may hereafter sustain, incur or be
required to pay by reason of any negligent act by the City, its agents, officers or employees
during the performance of this agreement.
3. To the fullest extent permitted by law, actions by the parties to this Agreement are intended to
be and shall be construed as a “cooperative activity” and it is the intent of the parties that they
shall be deemed a “single governmental unit” for the purposes of liability, as set forth in
Minnesota Statutes Section 471.59, subdivision 1a (b). The parties to this Agreement are not
liable for the acts or omissions of another party to this Agreement except to the extent they have
agreed in writing to be responsible for the acts or omissions of the other parties as provided for
in Minnesota Statutes Section 471.59, subdivision 1a.
4. Each party’s liability shall be governed by the provisions of Minnesota Statutes Chapter 466 and
other applicable law. The parties agree that liability under this Agreement is controlled by
Minnesota Statutes Section 471.59, subdivision 1a and that the total liability for the parties shall not
exceed the limits on governmental liability for a single unit of government as specified in Minnesota
Statutes Section 466.04, subdivision 1(a).
Page 5 of 5
N. DATA PRACTICES
All data collected, created, received, maintained, disseminated, or used for any purposes in the
course of this Agreement is governed by the Minnesota Government Data Practices Act, Minnesota
Statutes Section 13.01, et seq. or any other applicable state statutes and state rules adopted to
implement the Act, as well as state statutes and federal regulations on data privacy.
IN TESTIMONY WHEREOF the parties have duly executed this agreement by their duly authorized
officers.
WASHINGTON COUNTY CITY OF LAKE ELMO
Chair Date Mayor Date
Board of Commissioners
Molly O’Rourke Date City Administrator Date
County Administrator
Approved as to form: Approved as to form:
Assistant County Attorney Date City Attorney Date
May 29, 2019
Mr. Jack Griffin
City Engineer
City of Lake Elmo
3880 Laverne Ave. N.
Lake Elmo, MN 55042
Re: Lake Elmo, MN
Hudson Boulevard at CSAH 19 Intersection Improvements
City Project No. 2017.154
State Aid Project No. 206-120-001 (Hudson Blvd.)
State Aid Project No. 082-619-028 (CSAH 19)
Dear Mr. Griffin:
On Tuesday May 14, 2019, four (4) bids were received for the above-referenced project. The bids ranged
from a high of $ 2,819,791.13 to a low of $ 1,790,088.96. The low bid was submitted by Max Steininger,
Ind. of Eagan, MN in the amount of $ 1,790,088.96.
Contractor Total Bid
1 Max Steininger Inc. $ 1,790,088.96 **
2 Miller Excavating Inc. $ 1,957,161.60
3 Valley Paving Inc. $ 2,068,025.74
4 Dresel Contracting Inc. $ 2,819,791.13 **
Engineer’s Estimate $ 1,569,686.35
** Denotes corrected figure
Based on Max Steininger’s bond materials provided by the contractor, we have determined that Max
Steininger Inc. presently has the financial ability to complete the project as bid. KLJ makes no
representation or warranty as to the actual financial viability of the contractor or its ability to complete
its work.
Max Steininger, Inc. has completed roadway projects including the I-35E & Hwy 36 Exit Ramp for
MnDOT, Highway 55 in Rosemount, for Dakota County, South Robert Trail in Dakota County, among
many others. KLJ concludes that Max Steininger, Inc. has the experience and ability to complete the
CSAH 19 at Hudson Blvd. Project, and recommends the project be awarded to Max Steininger, Inc. in the
amount of $1,790,088.96.
Please contact me If you need any additional information or wish to discuss further. I can be reached at
651-726-5012, or via email at john.crawford@kljeng.com.
Sincerely,
KLJ
John Crawford
Project Manager
PROJECT SCHEDULE
CITY OF LAKE ELMO
CSAH 19 & HUDSON BOULEVARD
INTERSECTION IMPROVEMENTS
PROJECT NO. 2017.154
FOCUS ENGINEERING, inc.
Cara Geheren, P.E. 651.300.4261
Jack Griffin, P.E. 651.300.4264
Ryan Stempski, P.E. 651.300.4267
Chad Isakson, P.E. 651.300.4283
DECEMBER 19, 2017 County retains KLJ to prepare preliminary design.
DECEMBER 4, 2018 Presentation of Preliminary Design. Council approves preliminary geometric
design and authorizes Final Design.
APRIL 17, 2019 Council approves Plans and Specifications and orders Advertisement for Bids
MAY 14, 2019 Receive Contractor Bids.
JUNE 4, 2019 Council Orders Improvements; accepts Bids and awards Contract.
JUNE 26, 2019 Conduct Pre‐Construction Meeting and issue Notice to Proceed.
OCTOBER, 2019 Substantial Completion.
NOVEMBER, 2019 Final Completion.