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Home My WebLink AboutItem 06.lJuly 2, 2014 0 Item No. AWARD BID TO PEMBER COMPANIES FOR THE CONSTRUCTION OF DOWNTOWN PARKING LOT IMPROVEMENTS July 7, 2014 City Council Meeting Proposed Action Staff recommends adoption of the following motion: Move to award a bid in the amount of $428,336.55 for the construction of Downtown Parking Lot and Holyoke Avenue Parking Lot improvements to Pember Companies. Passage of this motion will result in the improvement of City -owned public parking lots adjacent to Pioneer Plaza and along Holyoke Avenue adjacent to the Art Center and a new public sidewalk along Howland Avenue between 207th Street and 208" Street. Overview The City Council approved a Redevelopment Incentive Grant Agreement with the Dakota County CDA on April 7th of this year to construct Downtown Parking Improvements. The City Council previously approved a Joint Powers Agreement with the CDA to provide up to $396,270 in CDA TIF funds for this project. The total amount available for the entire project from these funding sources is $584,270. The total estimated actual construction costs for parking improvements in these agreements is $426,760. As the letter dated July 1, 2014 from WSB indicates, many paving contractors are extremely busy this year and have projects that have been delayed by the wet spring. As a result, only one bid was received in the amount of $428,336.55 from Pember Companies This bid amount is $1,576.55 over of the project estimate or .3 of 1 %. There are sufficient contingency funds in the project to fund this additional cost. Pember Companies was the contractor that constructed Market Plaza in 2008. It is anticipated that re -bidding the project again this year will not result in lower bids being received and would likely cause the project to have to be delayed until 2015. Staff recommends awarding the bid to Pember Companies in the amount of $428,336.55. Primary Issues to Consider What is the breakdown on how CDA TIF funds and CDA RIG funds would be utilized for this project? (See attached Addendum B to the Joint Powers Agreement with the Dakota County CDA) Supporting Information • Bid Summary and Recommendation Letter from WSB dated July 1, 2014. David L. Olson Community & Economic Development Director Financial Impact :$428,336.55 Budgeted: Y/N Y Source: CDA TIF and RIG Grant Funds WSB h .40004W. Inc. Engineering ■ Planning ■ Environmental ■ Construction July 1s', 2014 Attn: Dave Olson City of Lakeville Community & Economic Development 20195 Holyoke Avenue Lakeville, Minnesota 55044 701 Xenia Avenue South Suite 300 Minneapolis, MN 55416 Tel: 763-541-4800 Fax: 763-541-1700 Re: Recommendation to accept bid for the Lakeville Downtown Parking Lot and Holyoke Avenue Improvement Project A total of 1 bid was received for this park improvement project resulting in a bid from Pember Companies, a reputable company that has worked in the City of Lakeville previously. WSB & Associates, Inc. reviewed the submitted bid and there was one line item error that increased the base bid amount by $18,600.00 WSB contacted other prime bidders to determine the cause for lack of interest in bidding this project. Many contractors are very busy at the moment and considered this a small project with a high amount of supervision so they provided numbers to be a sub-contractor/supplier instead. It is anticipated that declining the one bid would result in delaying the project to 2015 and could result in the same or higher bids than what was received. We recommend that the City execute a contract with Pember Companies for a total of $428,336.55 to include the Base Bid plus all of the Add Alternate bid items. We also recommend setting aside a minimum construction contingency of 5% of the construction budget to allow for any unknowns on the site that may require changes to the construction. The fmal corrected bid amounts for the low bidder are as follows: Minneapolis ■ St. Cloud Equal Opportunity Employer Pember Companies Downtown Parking Lot Base Bid Total: $308,139.55 Holyoke Avenue Base Bid Total: $83,868.00 Add Alternate Total: $36,329.00 Base Bid + Add Alternates Total: $428,336.55 Minneapolis ■ St. Cloud Equal Opportunity Employer Page 2 It has been a pleasure working with the City on this project and I eagerly look forward to seeing this project move ahead into construction. If you have any questions or concerns, please call me at (763)231-4848. Sincerely, WSB & Associates, Inc. Candace C. Amberg, RLA Senior Landscape Architect Addendum B Addendum to Joint Powers Agreement between Dakota County Community Development Agency ("CDA") and Housing and Redevelopment Authority ("HRA") in and for the City of Lakeville, Minnesota. Addendum B, dated December 13, 2012, is hereby amended. May 13, 2014 Activity to be undertaken jointly: Acquisition and renovation of two downtown parking lots substantially as depicted on the map attached hereto (the "Parking Lots"). 2. Responsible parties: The CDA will convey to the HRA and the HRA will acquire from the CDA certain property (the "CDA Property") and Outlot A (described below). The HRA will convey the CDA Property to the City of Lakeville ("City"). The City will complete the improvement of the Parking Lots and operate and maintain the Parking Lot on an ongoing basis. The City has confirmed that following the conveyance of the CDA Property to the HRA, Pioneer Plaza and Windsor Plaza will continue to be in compliance with all applicable zoning laws and ordinances. 3. Estimated sources and uses of funds: SOURCES OF FUNDS CDA Tax Increment District No. 2 ("TIF Funds") - $396,270 CDA Redevelopment Incentive Grant ("RIG Grant") - $188,000 USE OF FUNDS: The HRA agrees that it will use the funds described above solely for the following estimated costs associated with the Parking Lots: Acquisition of south half of Outlot A, Hewitt Investment 1St Addition ("Outlot A") - $92,000 Reconstruction of the Parking Lots - $426,760 Engineering/Design/Legal/Contingency - $65,510 TOTAL - $584,270 The HRA expects that the TIF Funds and RIG Grant are sufficient to pay all costs associated with the Project, but the HRA covenants and agrees that to the extent that the actual costs exceed the TIF Funds and RIG Grant, the HRA will cause the Parking Lot to be completed with other funds available to the HRA. S-1 9167822v4 Joint Powers Agreement Disbursement of any TIF Funds pursuant to this Addendum shall be made only after the CDA has received documentation (including but not limited to copies of invoices) and a Disbursement Request in the form attached hereto from the HRA that such expenditures have been made for the items and purposes as allowed in this Addendum, and the CDA has reasonably determined that the expenditures are consistent with the terms of this Agreement. 4. Stipulation of any required encumbrances on property to be acquired pursuant to this Agreement: This property must be owned and maintained in a manner consistent with TIF Funds eligible uses as determined by the CDA. The activity undertaken pursuant to this Addendum must be consistent with the Redevelopment Project Plan for Project No. 1 eligible uses as determined by the HRA. The deed pursuant to which the CDA will convey the CDA Property to the HRA will contain (a) restrictive covenants requiring that the CDA Property continue to be used as a public parking lot and that it continue to be publicly owned except as otherwise provided under subsection (b); and (b) the right of the City to convey the CDA Property to a non- governmental entity in the future for uses other than a public parking lot, subject to an option in favor of the CDA to repurchase the CDA Property for the same price paid by the HRA, exercisable in the event the City chooses to convey the CDA Property to a non- governmental person in the future. 5. Disposition of any property acquired at termination of the Agreement: See above. Dakota County Community Development Agency By: Executive Director Housing and Redevelopment Authority in and for the City of Lakeville, Minnesota By: Executive Director S-2 Joint Powers Agreement 9167822v4 Downtown Parking Lot Projects LU 4 C —V.- _- 2 09TH ST W ? UPPER 2199TH ST J f fiyy4 Disclaimer: Map and parcel data are believed to be accurate, but accuracy is not guaranteed. This is not a Map Scale legal document and should not be substituted for a title search, appraisal, survey, or for zoning 1 inch = 159 feet verification. Dakota County assumes no legal responsibility for the information contained in this data. 5/9/2014