HomeMy WebLinkAbout06-11-18 City Commission Packet Materials - C3. Notice of Award to Knife River Belgrade for Tamarack Reconstruction
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Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Brit Fontenot, Director of Economic Development
SUBJECT: Recommended Bid Award to Knife River - Belgrade, Montana,
Schedules 1 – 4 and Bid Alternates A101 and A102 for the
Reconstruction of East Tamarack Street within the Northeast
Urban Renewal District for an Approved Project Using Northeast
Urban Renewal District Bond Proceeds and for a Portion of the
Front Street Interceptor Project (WWIF11) Located under East
Tamarack Street and Financed with a Loan from the State
Revolving Loan Fund (SRF).
MEETING DATE: June 11, 2018
AGENDA ITEM TYPE: Consent
RECOMMENDATION:
Authorize the City Manager to Sign a Notice of Award to Knife River - Belgrade
for the total bid schedules 1 – 4 and bid alternate A101 and A102 in the amount of
$1,627,588 for the East Tamarack Street reconstruction, conduit installation and sewer
upgrades associated with the Front Street Interceptor project (WWIF11), and all final
contract documents.
BACKGROUND:
Improvements to East Tamarack Street referenced in this memo are part of the
Northeast Urban Renewal Districts plans to complete as many of the five approved
projects as possible with the remaining bond funding. In 2017/2018, East Peach Street
was reconstructed as one of the approved and bonded projects. Please reference the
following documents for additional background information on the District bond:
1) November 21, 2016 City Commission Packet Material - Resolution 4732
November 21, 2016 City Commission meeting minutes
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2) December 19, 2016 City Commission Packet Material - Resolution 4734
December 19, 2016 City Commission meeting minutes
3) April 3, 2017 City Commission Packet Material - Resolution 4794
April 3, 2017 City Commission meeting minutes
Approved Resolution 4734 lists bond eligible projects as:
1) Reconstruction of East Tamarack Street;
2) Reconstruction of East Peach Street;
3) Reconstruction of North Ida Avenue;
4) Reconstruction of Front Street; and
5) Reconstruction of East Aspen Street and construction of a pedestrian bridge.
The Front Street Interceptor Project is identified on the City’s FY 19 Capital
Improvement Plan. (Attachment 1) Once complete, the sewer upgrade will facilitate
multiple developments upstream of the undersized sewer pipes currently located under
East Tamarack Street and along Front Street. In an effort to gain efficiencies and save
limited infrastructure dollars and preserve and extend the life of City assets, Economic
Development is working alongside the Public Works Department to facilitate the
necessary sewer upgrades while East Tamarack Street is under construction as part of a
Northeast Urban Renewal District bonded street reconstruction and conduit installation
project.
Attached to this memo are; 1) a copy of the signed bid tabulation sheet dated May
15, 2018, 2) a copy of the signed KLJ Recommendation of Contract Award letter dated
May 24, 2018 and 3) the unsigned Notice of Award dated June 11, 2018 for the above
referenced project. (Attachments 2 – 4)
Bids for the above-referenced project were opened on May 11, 2018. Two bids
were submitted. After the bids were opened and evaluated, it was determined that
Knife River of Belgrade, Montana, is the lowest, most responsible bidder in the amount
of $1,627,588 for the East Tamarack Street reconstruction, conduit installation and
sewer upgrades associated with the Front Street Interceptor project (WWIF11).
The Northeast Urban Renewal District Board met in a special session on May 22,
2018 to consider the bids and recommends to the City Commission that the bid be
awarded as proposed. (Attachment 5)
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The project generally involves reconstructing East Tamarack Street from
approximately 270 feet east of North Rouse to the intersection of East Tamarack Street
and East Front Street ($544,946). Additionally, the street reconstruction includes
replacement or improvement of existing sanitary sewer main ($627,440), stormwater
facility improvements ($54,007) as well as fiber optic conduit installation ($135,945).
Mobilization is expected to cost $265,250. For a map of the project area please see
Attachment 6.
UNRESOLVED ISSUES:
None
ALTERNATIVES:
Do not award the bid.
FISCAL EFFECTS:
The total East Tamarack Street reconstruction project, which includes the East
Tamarack Street reconstruction, conduit installation and sewer upgrades associated
with the Front Street Interceptor project (WWIF11), was bid at $1,627,588.
The cost breakdown includes the East Front Street reconstruction at $544,946,
stormwater facility improvements at $54,007 as well as fiber optic conduit installation at
$135,945. These costs will be borne by the District and will be paid for from the
Northeast Urban Renewal District Bond. Sanitary sewer upgrades associated with the
Front Street Interceptor project (WWIF11) totaling $627,440 will be paid with
Wastewater Impact Fees.
The Front Street Interceptor Wastewater Impact Fee Project (WWIF11) is
included in the City Manager’s Recommended Budget with a total project cost of
$2,185,000. This bid awards a portion of the project construction in the amount of
$627,440. This project is intended to be financed with a loan from the State Revolving
Loan Fund (SRF).
The final contract documents will be available online and retained in the City
Clerk’s office upon final execution.
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ATTACHMENTS:
1) CIP Project Description of the Front Street Interceptor Project;
2) Bid Tabulation;
3) Award Recommendation;
4) Notice of Award;
5) Draft Minutes of the May 22, 2018 Northeast Urban Renewal District Special
Meeting to review the bids; and
6) Map of the proposed project area.
Report compiled on: June 1, 2018
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May 24, 2018
Mr. Brit Fontenot
Director of Economic Development/NURB Staff Liaison
City of Bozeman
121 N. Rouse Ave.
Bozeman, MT 59771
Re: East Tamarack Street Reconstruction – Recommendation of Contract Award
Mr. Fontenot:
Bids were publicly opened and read aloud for the East Tamarack Street Reconstruction Project on
May 11, 2018. A total of two (2) bids were received. These bids were checked for mathematical
accuracy and no discrepancies were found. Knife River – Belgrade was the lowest responsive Bidder
with a Total Base Bid of $1,491,643.00. Additionally, Knife River – Belgrade offered the lowest bid for
the additive bid alternates for communication conduit Work. The total bid for the Additive Bid
Alternates is $135,945.00.
KLJ is familiar with Knife River ‐ Belgrade and consider them to be qualified to perform the proposed
Work of the subject Project. We therefore recommend that the Northeast Urban Renewal Board
(NURB) award the Contract to Knife River ‐ Belgrade in the amount of their Total Base Bid.
Additionally, KLJ understands that the NURB has voted to approve inclusion of the alternate bid Work
for the communication conduit; therefore, we also recommend that the NURB include Knife River –
Belgrade’s additive alternate bid total in their award of contract. Please note that KLJ is coordinating
with Knife River – Belgrade to determine if alternative methods for measurement and payment of
the dewatering and conduit installation Work items could be provided that may allow this Work to
be performed at a reduced cost. If a mutually agreeable method is negotiated, KLJ would recommend
that the NURB issue a Contract Change Order to reflect these changes immediately after contract
execution.
Please find enclosed a copy of the Bid Tabulation along with five (5) copies of the Notice of Award.
Once the Notice of Award has been signed, please return all five copies to KLJ. Once received, we
will forward the Notice of Award along with the remaining Contract Documents to Knife River ‐
Belgrade for execution.
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If you should have any questions or concerns, please don’t hesitate to call me at (406) 582‐6222.
Sincerely,
KLJ
Shane Strong, PE
Project Manager
Enclosure(s): Certified Bid Tabulation; Notice of Award (5 copies)
Project #: 16417100
cc: KLJ file
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EJCDC C-510 Notice of Award Prepared by the Engineers Joint Contract Documents Committee and endorsed by the Construction Specifications Institute. Page 1 of 1
Notice of Award
Date: June 11, 2018
Project: EAST TAMARACK STREET RECONSTRUCTION
Owner: CITY OF BOZEMAN, MT Owner's Contract No.: N/A
Contract: EAST TAMARACK STREET RECONSTRUCTION Engineer's Project No.: 16417100
Bidder: KNIFE RIVER - BELGRADE
Bidder's Address: 21730 Frontage Road, Belgrade, MT 59714
406.388.6832
You are notified that your Bid dated May 11, 2018 for the above Contract has been considered. You are the
Successful Bidder and are awarded a Contract for the East Tamarack Street Reconstruction Project.
The Contract Price of your Contract is ONE MILLION, SIX-HUNDRED TWENTY-SEVEN THOUSAND, FIVE HUNDRED EIGHTY-EIGHT AND 00/100 Dollars ($ 1,627,588).
Five (5) copies of the proposed Contract Documents (except Drawings) accompany this Notice of Award.
TBD sets of the Drawings will be delivered separately or otherwise made available to you immediately.
You must comply with the following conditions precedent within [15] days of the date you receive this
Notice of Award.
1. Deliver to the Owner five (5) fully executed counterparts of the Contract Documents.
2. Deliver with the executed Contract Documents the Contract Security Bonds as specified in the Instructions to Bidders, General Conditions, Supplementary Conditions and Special Provisions.
3. Other conditions precedent: Deliver the required Certificate(s) of Insurance as specified in the Supplementary Conditions and
Special Provisions.
Failure to comply with these conditions within the time specified will entitle Owner to consider you in default, annul this Notice of Award, and declare your Bid security forfeited.
Within ten days after you comply with the above conditions, Owner will return to you one fully executed counterpart of the Contract Documents.
Owner By: Authorized Signature
Title
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NURB Meeting – May 22, 2018 1
Northeast Urban Renewal Board (NURB) Special Meeting Tuesday, May 22, 2018 The Northeast Urban Renewal Board met in special meeting at 6:30 p.m. on Tuesday, May 22,
2018, in the Conference Room, Professional Building, 20 East Olive Street, Bozeman, Montana.
Present: Absent:
Voting Members:
John Usher, Chair Bobbi Clem Dan Doehring
Robert Pavlic Jeanne Wesley-Wiese Non-Voting Members: Ethan Barlow Dalton Brink
Nolan Campbell Commissioner Liaison: I-Ho Pomeroy
Staff: Shane Strong, KLJ Engineering (via telecon from 7:00 to 7:35 p.m.) Brit Fontenot, Economic Development Director Robin Sullivan, Recording Secretary
Guests: Call to Order – Chair John Usher called the meeting to order at 6:37 p.m.
Changes to the Agenda – No changes were made to the agenda.
Public Comment – No comment was received under this agenda item. Discussion/Action Items – Review of bids for East Tamarack Street project; review and possible revision of work plan and budget for Fiscal Year 2018-19. Brit Fontenot stated that bids for the East Tamarack Street project were opened on Friday, May 11; and a copy of the bid tab was distributed to the Board prior to this meeting. He noted that the tabulation reflects the low bid,
from Knife River, was significantly higher than the engineer’s estimate and exceeds the amount budgeted for this project. He reminded the Board that it is responsible for the street and storm water portions of the project while the City is responsible for the sewer portion of the project. He
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NURB Meeting – May 22, 2018 2
has talked to the City’s Engineering Department about the costs for the sewer portion of the project and, while they recognize the costs are higher than anticipated, they are considering acceptance of the bid, particularly in light of the fact that the hospital is waiting for it to be
completed so it can continue with development. Their concerns generally revolve around the single line item for dewatering and are considering options for trying to reduce that cost. Brit Fontenot asked the Board to concentrate on the street portion of the project and the additive
alternates, which are for the installation of fiber conduit under the sidewalk along the north side of the street. He noted that the bid, which was based on boring for the entire length of the installation plus six vaults to allow future connection to fiber optics, is for a total of $135,945. He stated that, based on the current bid amounts, the shortfall in budgeting is $66,000.
Brit Fontenot stated that, in an effort to reduce the costs of this portion of the project, he has asked the subcontractor to determine if any portion of the conduit installation can be done through open trenching and, if so, to provide an alternate cost. As of this meeting, he has not received that information so the potential for decreasing the costs is unknown. He then asked
the Board to discuss the value of having fiber conduit installed as a portion of this street project and how the additional costs may be covered. Robin Sullivan distributed a copy of the Fiscal Year 2018-19 budget as approved by the Board at its May 8 meeting along with notes on the financial status of the fund at this time. She noted
that the current balance in the tax increment financing fund and bond fund combined is $570,855; property tax revenues are projected at $57,000 from the second half taxes; and the second “half” bond proceeds of $583,000 will be deposited in early July. Anticipated costs remaining for this year include $100,000 for completion of East Peach Street and approximately
$19,000 in outstanding engineering costs. She then indicated that the total estimated cost of this project, including construction and engineering, is $909,998, which is significantly higher than the $760,000 budgeted.
Brit Fontenot noted that Knife River will be doing the work on North Rouse Avenue; and they would be able to help with the transition between those improvements and the ones on East Tamarack Street. John Usher stated he feels the additive alternate for the fiber conduit should be accepted so that
fiber can be installed to this area. He voiced an interest in lowering the cost of that installation if possible, noting Brit Fontenot’s assertion that open trenching in the area where the sidewalk will be constructed could help to reduce costs. Additionally, echoing a Brit Fontenot statement from earlier, he noted that if it is not done at this time, the costs of installing the conduit will only be
higher. Responding to Bob Pavlic, Shane Strong confirmed that the sewer main in this project is a part of the Front Street interceptor sewer project, which provides an up sized sewer main to accommodate development around the hospital.
Further responding to questions, Shane Strong stated he has asked Steve Baeth at Knife River for an estimate that includes trenching for the conduit rather than boring wherever possible. As of this meeting, he has not had any response and will try to get that information in the morning.
Responding to Dan Doehring, Brit Fontenot stated that the conduit will extend from the east terminus of this project to the Fairgrounds, where it will be connected to the existing fiber
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backbone. He stressed that this project is for the installation of the conduit and vaults only; the fiber will be pulled and connections to the vaults made at a later date. Services can then be extended to individual businesses and residences.
Responding to questions from Jeanne Wesley-Wiese, discussion among board members led to the conclusion that fiber optic is becoming the standard in current technology data transmission.
Bob Pavlic observed that, while he supports the project, it seems very costly. Responding to questions from Jeanne Wesley-Wiese, Brit Fontenot stated that installation of the empty conduit is to facilitate expanding the City’s network and will include seven conduits inside one larger pipe. He noted that those conduits can be leased to service providers, and noted
there is a lot of interest in expanding fiber services throughout the community. As initially suggested by Brit Fontenot, John Usher reiterated that if the conduit is installed as a part of this project, it will then be owned by the City and not any single service provider. The
Board then discussed the breadth of potential projects in the area that will result in demands for this type of service. Bob Pavlic stated this area of the community is undergoing a change because of development demands. He noted that the existing single-family district has been lost and is being replaced
by multi-family housing and commercial development rather than additional single-family development. Through discussion, board members voiced their opinions on whether they feel installation of
fiber conduit as a part of this street project is worth the additional cost. Each board member responded that they feel it is. Responding to Jeanne Wesley-Wiese, Brit Fontenot stated that the existing single-family
housing will remain as it is. Shane Strong stated he is seeking a better alternative for identifying the costs of dewatering rather than the unit price that has been bid. He suggested that might include paying a per day or per hour price. He will be in contact with Knife River to determine if those costs can be
adjusted to more accurately reflect actual costs. John Usher noted that when the centrifuge was installed on East Tamarack Street in conjunction with the North Wallace Avenue improvements, a lot of water was pumped out of the
hole and, in fact, a temporary water holding tank was installed to the east of his property for the duration of the project to filter the silt. Responding to Ethan Barlow, Shane Strong stated that after the notice of award, he anticipates it will take three weeks to get bonds, contract documents executed, and a notice to proceed
issued. The notice to proceed will then trigger the 120-day construction period, which he expects will begin in mid-June. He then reminded the Board that the dewatering costs apply to the sewer project only and have no impact on the costs to the tax increment financing district.
Ethan Barlow stated that dewatering costs can fluctuate greatly over the life of a four-month project and mentioned that the time of year (late spring/early summer) has an impact on this as well.
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Shane Strong recognized that the costs of the sewer portion of this project are higher than the City Engineering Department had anticipated and will take $700,000 of the $2 million budgeted for the entire Front Street interceptor sewer.
Brit Fontenot reminded the Board that the spreadsheet showing the projects and budgeted amounts for Fiscal Year 2018-19 is the document that will be included in the City’s budget. He stated that the Board has the latitude to expend the monies needed to cover any of the projects
on that list but may not expend any more than the total amount it has available in its funds. Responding to questions about the action to be taken on this item, staff stressed it is important to tie the sewer and street improvements together. As a result, they proposed that the motion include a contingency that the City Engineering Department also recommend award of the
sewer portion of the project. It was moved by John Usher, seconded by Bob Pavlic, that the Board recommend award of the bid for the street and storm water improvements and the additive bid alternates for the
installation of conduit and vaults totaling $135,945, contingent upon City Engineering accepting the sewer portion of the bid submitted by Knife River. The motion carried on a 5-0 vote. FYI/Discussion (formerly Neighborhood News). Bobbi Clem announced that the
neighborhood stroll in the Mill District will be held on June 1. Adjournment – 7:38 p.m. There being no further business to come before the Board at this
time, Chair Usher adjourned the meeting.
John Usher, Chair Northeast Urban Renewal Board
City of Bozeman
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