2. Reconsider Award of Bid-Holly Lane Water Quality Project.CITY OF
CHANHASSEN
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900 • FAX (612) 937 -5739
TO: Don Ashworth, City Manager
FROM: Phillip Elkin, Water Resources Coordinator
DATE: September 22, 1997
SUBJ: Award of Bids for Holly Lane Water Quality Project
UPDATE
Because of the time and effort already spent on this project and it's direct benefit to the water quality of Christmas Lake, Staff is
recommending that Council accept the bids and order the project. We believe a maintenance agreement will work with this project
because of it's design. This project will include a gate valve to divert water away from their yard (the homeowners main concern is
introducing too much water onto their property which may cause flooding) if flooding is a threat. The area is already been classified as
wetlands, so future development is extremely improbable.
The following letter from BRW is a summary of the Bids received for the Holly Lane Water Quality Project. Before deciding to accept
the bids, there are several important issues to be considered.
This project began in 1995 in response to flooding occurring in yards along Holly Lane. Holly Lane is located on the North edge of
Chanhassen with homes on the North side of the Street in Shorewood. Current conditions have close to 20 acres from Powers Blvd.,
Chanhassen and Shorewood flowing down the Street and exiting directly into Christmas Lake. The City's Water Resources Coordinator
became involved when a homeowner on the north side of the street in Shorewood, volunteered their front yard for a water quality and
storage site.
At first this was an ideal project for the SWMP program; a cooperative effort with homeowners improving existing low quality wetlands
and providing water treatment and water storage in a developed area. Also, because this was identified as a water quality project, none
of the benefiting homeowner were to be assessed. The Minnehaha Creek Watershed District has also expressed interested in funding a
portion of this project.
After two years working with The homeowners are now comfortable with the design, but do not want to grant a drainage easement over
this area ( approx. % of their lot). I proposed a maintenance agreement or contract in lieu of an easement, in which the homeowner
would grant the City access to for purposes. According to City Attorney, Roger Knutson, without a drainage easement, future or present
homeowners can sue the City to have the pipe system removed. He recommend not proceeding with the project without the easement.
There is another site where the City's water quality and storage needs can be met, but the owners have not been approached on the
possibility of doing the project on their land.
The City is left with the following options:
I . Reject the bids and cancel project until petitioned by neighborhood for street improvements.
2. Order the project constructing only the new storm sewer pipe in Chanhassen (63% of the current bid). Continue to pursue storage
and water quality upstream of the improvements as a separate project.
3. Reject bid, but continue to pursue project changing the design for upstream storage.
4. Proceed with project without easement.
5. Obtain Easement through condemnation. (Because this property is in Shorewood this may be difficult. Also we would prefer to do
these projects as a partnership toward water quality, not an infringement)
G9cng \phillipW dmd1i IylnAward.cc
SEP -19 - 1997 10:17 BRW
September 18, 1997
B R W INC. Mr. Phillip Elkin
Water Resources Coordinator.
City of Chanhassen
690 Coulter Drive
Chanhassen, MN 55317.
Re: Holly Lane Ponding Improvements
City Project SWMP I2I
612 370 1379 P.01/02
Dear Phillip:
Planning On Thursday, September 18, 1997 bids were received and opened ibr the above -
TranSpoi lation referenced project. Bids were received from five (5) contractors as follows:
Engineering
Urbanfh,yiNp Contra ctflT. Bid Corrected. Bid
Thresher Square
I ,
Dave Perkins Contracting; Inc.
$134,970.00
7010 Third `atrcer So.
2.
G &L Contracting, Inc.
$1.48,415.70
N!i „neap " "ti.
3;
Ryan Contracting, Inc.
$151,529.50
M.N S.W 5
4;
Jay Bros., Inc.
$183,023.46 $1$3,025.26
612/370 -07M
5 1
Northdale Construction
$183,546,47 $187,280.42
F,x 612/370-1378
Engineer's Estimate $130,000.00
Denver
Milw 9 ukce '
Minneapolis All bids were submitted with proper bid guarantees in the amount of ten percent
Nowprk (10 %) of the total bid as required by the Project Manual. A bid tabulation was
Orlando performed to verify the total bid amounts and minor errors were,found in two bids.
Phoenix The errors were discovered in the two highest bids therefor did not alter the low bid
I'orrland amount or contractor ranking order. A copy of the bid tabulation is attached for your .
San Diego information.
The low bid amount is approximately $5,000.00 or 4 %° than the Engineer's
Estimate. The bids may be high due to the proximity of the. project period to. the end
of the construction • season 'and the time constraints 'required for the project
completion.
After discussions with City Staff it has become apparent that the scope of the project
must be reduced due to the inability to acquire a permanent drainage easement for
SEP -19 -1997 10:18 BRW 612 370 1378 P.02i02
Mr. Phillip Elkin
September 18, 1997
Page 2
the ponding portion. of the project. The residents who own the land needed for
.ponding purposes originally supported the project however'have since decided not
to grant an easement for.the improvements. The elimination of the work associated
with the water quality ponding would reduce the contract amount by approximately
$50,000.00. The elimination of this portion of the project would significantly impact
the water quality benefits that will be realized by the City as a result of the work.
The ' remaining work items will improve ditch. and culvert capacities in the
neighborhood but will provide no improvement of water quality entering Christmas
Lake. The City Council should consider the costs and benefits ' of the "revised"
project scope in their decision on whether to award the contract.
If the council decides to award 'the .contract, the scope reduction could be
accomplished by either a change order prior ,to award or by negotiating with the
Contractor ' following award of the entire contract amount bid. We would
recommend that the contract amount be modified by change order prior to award if
the council wishes to proceed with the project.
We have not worked with Dave Perkins Contracting, Inc. directly for several years
however we believe that the contractor is capable of completing the work required
by this project,
The project schedule outlinod below is contingent upon contract award by the City
Council on September 22, 1997.
Start Construction October, 6, 1997 .
Complete. Construction November. - 15, 1997
Please call me at 373 -6479 if you have any questions or need additional information.
Sincerely,
BRW, Inc.
Greg S rown, -PE
Proje t Engineer
GS..B
Enclosures
cc: Charles Folch, Chanhassen
Jon Horn, BRW
Nick Landwer/BRW
File 33888 005 9901
TOTAL P.02