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Item No: 7D Meeting Date: March 24 2014 MOUNDS T$ Type of Business: Council Busine v A Administrator Review: City of Mounds View Staff Report To: Honorable Mayor and City Council From: Nick DeBar, Director of Public Works Item Title/Subject: Resolution 8229, Awarding a Construction Contract to Northwest Asphalt, Inc. for the 2014 Street and Utility Improvement Project — Area G Background: Detailed background information for the Street and Utility Program and the Area G project is included as a reference at the end of this report. Much of this information was presented to the Council in previous staff reports associated with prior approvals for the project. Discussion: The City Council approved bidding documents (plans/specs) and authorized advertisement for bids for Area G of the Street and Utility Improvement Program on February 10, 2014 (Res. 8213). The advertisement was published in the February 13 and 20 editions of the Sun -Focus and Finance & Commerce (regional trade publication). Nine bid proposals were received and publicly read aloud on March 12, 2014. Bids have been tabulated, checked for mathematical errors, and corrected in accordance with the contract requirements by the City's consulting engineer, Stantec. Bid amounts ranged from $2,062,949.38 to $2,454,379.60 for the 1.8 -mile project. The low bid was submitted by Northwest Asphalt, Inc. of Shakopee, Minnesota — the same general contractor that has performed construction for the past five project areas (B/C, D, E, and F) over the past four years. The bidding environment continues to be very good for this type of work. There was $104,769 difference (5%) between the two lowest bids and overall difference between the low and high was 19%. Public Works and Stantec have discussed the bid proposal with Northwest and all parties are comfortable with the bid and scope of work. Attached to this report is a recommendation letter from Stantec summarizing the bids. Given the satisfactory performance on the past four construction projects, Public Works and Stantec highly recommend awarding the construction contract to Northwest Asphalt for $2,062,949.38. This amount is an estimated construction cost and actual construction costs will vary due to variations in quantities of the 124 individual unit price bid items in the contract. Although most work will fit into one of these bid items, there is always a possibility of addition costs related to unknown conditions that might not fit into a bid item. For this reason, a construction contingency of 3%, or $62,000, is recommended to deal with these unknowns in a timely manner without delaying construction operations. Stantec has provided a fee estimate to provide engineering services for the construction phase of the project, which includes administration, engineering, inspection, surveying, and closeout for the project. Compensation will be actual hours worked plus reimbursable expenses for a maximum estimated fee of $180,000. Public Works also solicited a fee proposal from Braun Intertec Corporation to provide geotechnical engineering and material testing during construction. Braun Intertec proposes an estimated fee of $21,494 for the soils, concrete, and bituminous testing services. These services are customary for street and utility construction and required by State Aid for MSA streets (Ardan Avenue) which accounts for roughly half the fee. Public Works recommends