Agenda - Council - 04/25/2023 - Laserfiche WebLink

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Alternative #1: Motion to adopt Resolution #23-078 accepting bids and awarding a construction contract for Improvement Project #23-12, HY-10 Ramsey Improvements. Alternative #2: Motion of other. Funding Source: The low bid for construction costs is $1,398,953.30, which is almost 30-percent less than the engineer's estimate of $ 1,813,624.25. Proposed project funding sources include; • TIF 14 Bonds (street and sidewalk costs) • Stormwater Funds (stormwater management costs) • Sanitary Sewer Funds (sanitary sewer costs) • Watermain Funds (watermain costs) The recommended funding source for streets/sidewalks per Finance Director Lund and the City's financial consultant, Ehlers, is to bond for the approximate $7M in improvements needed in The COR area, which consists of the HY-10 Ramsey Improvements and The COR Infrastructure Improvements. Issuing a Tax Increment bond requires increment to be available in the amount of 20% of the bond. The city does not currently have $7M in the TIF 14 district and the issuance of debt allows the city the flexibility to keep the current TIF 14 funds (approximately $2M for other improvements in the future). The issuance of debt is a cleaner process as it avoids the need for the set-up of internal loans from other funding sources, tracking these loans with not only pay back when increment becomes available, but also tracking interest. Bond numbers will be run once the true costs of the improvements are known. As previously approved, Bolton & Menk will provide construction staking and administrative assistance services during construction for the not to exceed fee of $34,881. City staff will inspect construction and process pay requests. Recommendation: Staff recommends alternative #1. Staff has confirmed that the owner of the property south of Bunker Lake Boulevard supports the extension of Ferret Street to Bunker Lake Boulevard and will dedicate the required right-of-way and easements to the City to allow the project to be constructed in 2023. If the City decides to award the project to the low bidder, Bolton & Menk recommends awarding the contract to Douglas -Kerr Underground, L.L.C. in the amount of $1,398,953.30. See attached Bid Results and Recommendation memo. Outcome/Action: Motion to adopt Resolution #23-078 accepting bids and awarding a construction contract for Improvement Project #23-12, HY-10 Ramsey Improvements. Attachments Resolution 23-078 EDA case 05-13-21 EDA case 12-09-21