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Award Upper Bee Branch Creek - Structures Copyright 2014 City of Dubuque Action Items # 2. ITEM TITLE: Award Upper Bee Branch Creek - Structures SUMMARY: City Manager recommending award of the construction contract for the Upper Bee Branch Creek — Structures Project as submitted by the low bidder Tricon General Construction, Inc. RESOLUTION Awarding Public Improvement Contract for the Upper Bee Branch Creek — Structures Project SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt Resolution(s) ATTACHMENTS: Description Type ❑ Upper Bee Branch Creek-Structures-MVM Memo City Manager Memo ❑ Staff Memo Staff Memo ❑ Resolution Resolutions ❑ Attachment Supporting Documentation THE CITY OF Dubuque U E I erica .i Masterpiece on the Mississippi 2007-2012-2013 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Awarding of the Upper Bee Branch Creek - Structures Project DATE: May 14, 2015 City Engineer Gus Psihoyos is recommending award of the construction contract for the Upper Bee Branch Creek — Structures Project as submitted by the low bidder Tricon General Construction, Inc., in the amount of $5,714,880, which is 4.23% over the engineers estimate. The improvements associated with this contract are generally associated with the construction of major structures, the most visible being the Rhomberg Avenue and the 22nd Street bridges. The work includes the construction of the 18-foot wide by 8-foot tall underground box culverts where the Bee Branch storm sewer will be rerouted from Washington Street, under 24th Street, and discharge into the proposed creek. It includes reconstruction of a portion of the 10-foot wide by 6-foot tall storm sewer that directs stormwater from the storm sewer line that runs up 24th Street to Windsor Avenue. The work includes the construction of the structure at 24th Street where the stormwater will discharge from the Bee Branch stormsewer into the Bee Branch Creek, as well as, the structure at Garfield Avenue where the creek will flow under Garfield Avenue and ultimately through the railroad property into the Lower Bee Branch Creek. The project as bid is $231,980.00 over the Engineer's estimate. The project will be funded by the Fiscal Year 2016 appropriation in the amount of $43,359,000 for the Bee Branch Creek Restoration Project — Phase 4 and Phase 7 of the Bee Branch Watershed Flood Mitigation Project. In accordance with the adopted Fiscal Year 2016 budget, the Upper Bee Branch Creek Restoration Project will be funded through the issuance of debt. The two Sales Tax Increment Revenue Bonds and the State Revolving Funds Loan will be retired utilizing the schedule of annual payments of sales tax increment from the state. If contract #1 "Upper Bee Branch Creek — Channel, Streets and Utilities" is awarded, I concur with the recommendation to award the Upper Bee Branch Creek — Structures Project and respectfully request Mayor and City Council approval. Z C� �w 64.,^ Mic ael C. Van Milligen MCVM:sv Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Teri Goodmann, Assistant City Manager Gus Psihoyos, City Engineer 2 THF CDubuque DUUB__&__ FE I I I III I. Masterpiece ori the Mississippi 2,m,-.2012 2014 TO: Michael C. Van Milligen, City Manager FROM: Gus Psihoyos, City Engineer DATE: May 14, 2015 SUBJECT: Awarding of the Upper Bee Branch Creek— Structures Project (CIP#7201654 & 3401654) INTRODUCTION The enclosed resolution authorizes the award of the construction contract for the Upper Bee Branch Creek— Structures Project. BACKGROUND Since 1999 there has been six Presidential Disaster Declarations which included the Bee Branch Creek Watershed. The Drainage Basin Master Plan, completed and adopted by the City Council in 2001, established that there are more than 1,100 properties at risk of flood damage as a result of the flash flooding. Based on a subsequent study in 2009 by the Federal Emergency Management Agency (FEMA), there are 1,373 properties in the flood prone area. In addition to homes, there are over 70 businesses in the at-risk area with over$500 million in annual sales. Eighty -five percent (85 %) of the impacted properties have buildings that are potentially eligible for listing on the National Register of Historic Places, the official list of the Nation's historic places worthy of preservation. In fact, fifty-seven percent (57%) of the buildings are more than 100 years old. The flood prone area in the Bee Branch Watershed encompasses historic neighborhoods offering some of the community's most affordable workforce housing. Most residents are working families, many are elderly -- those least likely to recover from repetitive flood loss. Repetitive flood damage leads to disinvestment; from 2004 to 2009, while commercial property values grew by 39% citywide, they fell by 6% in the Bee Branch Watershed flood prone area. Since 2001, the City has implemented many of the improvements outlined in the Drainage Basin Master Plan. But since 2001 several intense, storm events have occurred in the Dubuque metropolitan area so that revisiting the predicted hydrology and hydraulic behavior of the Bee Branch Watershed was appropriate. Over a twelve year period starting in 1999, there have been three 100-year storms, two 50-year storms, one 25-year storm, and one 10-year storm. Finally, it is important to consider how additional flood mitigation efforts undertaken by the City since 2001 fit with the overall effort to mitigate flooding. Therefore, work began to update/amend the Drainage Basin Master Plan. On November 18, 2013 the City Council passed Resolution 335-13 adopting the 2013 Drainage Basin Master Plan Amendment. The 2013 Amendment did not replace the 2001 Drainage Basin Master Plan. Instead, it built upon its foundation. The amended Drainage Basin Master Plan outlined several improvements throughout the Bee Branch watershed to mitigate the effects of future flooding and disasters. Collectively, the improvements form the basis of the Bee Branch Watershed Flood Mitigation Project outlined in Table 1 below. Table 1. Twelve phases of the Bee Branch Watershed Flood Mitigation Project Phase Description 1 Carter Road Detention Basin Complete 2 West 32nd Street Detention Basin Complete 3 Historic Millwork District Complete 4 Lower Bee Branch Creek Restoration Complete 5 Flood Mitigation Gate Replacement 6 Impervious Surface Reduction (Green Alleys) Under Construction 7 Upper Bee Branch Creek Restoration Complete 8 22nd Street Storm Sewer Improvements 9 Flood Mitigation Maintenance Facility 10 North End Storm Sewer Improvements 11 Water Plant Flood Protection 12 17th Street Storm Sewer Improvements With a total estimated cost of $179 million, the Bee Branch Watershed Flood Mitigation Project will prevent an estimated $582 million in damages over the 100-year design life of the project. That represents a return on investment of roughly $3 for each $1 spent. On November 18, 2013 the City Council adopted Resolution 336-13, approving the City's application for $98,494,178 in state sales tax increment funding for the Bee Branch Watershed Flood Mitigation Project. In addition, the City Council passed Resolution 337-13 establishing that the City would provide up to $76,678,802 of local monies to be used to meet the match requirement for the City's receipt of the $98.5 million in state sales tax increment funding. The local match was to be provided from three sources: the Stormwater Utility fee, grants that the City already has acquired, and assessments associated with the construction of pervious (green) alleys. The local match also includes $13 million in City expenditures associated with the completion of the first three phases of the 12-Phase Project. The Bee Branch Watershed Flood Mitigation Project represents a multi-phased, fiscally responsible investment. It reflects a holistic approach to mitigate flooding as it will also improve water quality, stimulate investment, and enhance the quality of life of watershed residents. 2 On December 4, 2013, the Iowa Flood Mitigation Board voted to approve the City's use of $98,494,178 for the Bee Branch Watershed Flood Mitigation Project. This funding will allow much of the protection to be provided over the next six years, instead of over the next 20 years (only some of the 240 alleys will take up to 20 years). On February 3, 2014 the City Council adopted Resolution 31-14 authorizing the execution of an agreement with the State of Iowa Flood Mitigation Board and authorizing the City's use of sales tax increment funding for the Bee Branch Watershed Flood Mitigation Project. The City will be seeking an amendment at the April 13, 2015 Flood Board Meeting to help to minimize borrowing. On March 5, 2014 the City Council passed Ordinance 16-14 establishing the stormwater utility fee rate structure necessary to fund the various phases and improvements associated with the Bee Branch Watershed Flood Mitigation Project. The result was that the lowering of rates previously established by Ordinance 21-12 in Fiscal Years 2015, 2016, 2017, 2018, 2019, 2020, and 2021. A comparison the current Stormwater Utility rates established via Ordinance 16-14 to the previously adopted rates established via Ordinance 21-12 are outlined in Table 2 below. Table 2. Comparison of the current Stormwater Utility rates established via Ordinance 16-14 to the previously adopted rates established via Ordinance 21-12. FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Rates Established by $8.00 $8.50 $9.00 $9.00 $9.00 $9.00 $9.00 $9.00 Ordinance 21-12 _ Current Rates Established by $5.98 $6.38 $6.81 $7.27 $7.76 $8.29 $8.85 $9.00 Ordinance 16-14 DISCUSSION The Upper Bee Branch Creek Restoration Project (Phase 7 of the Bee Branch Watershed Flood Mitigation Project) will be constructed through multiple contracts. The Upper Bee Branch Creek — Structures Project is one of the first two contracts. The improvements associated with this contract are generally associated with the construction of major structures, the most visible being the Rhomberg Avenue and the 22nd Street bridges. The work includes the construction of the 18-foot wide by 8-foot tall underground box culverts where the Bee Branch storm sewer will be rerouted from Washington Street, under 24th Street, and discharge into the proposed creek. It includes reconstruction of a portion of the 10-foot wide by 6-foot tall storm sewer that directs stormwater from the storm sewer line that runs up 24th Street to Windsor Avenue. The work includes the construction of the structure at 24th Street where the stormwater will 3 discharge from the Bee Branch stormsewer into the Bee Branch Creek, as well as, the structure at Garfield Avenue where the creek will flow under Garfield Avenue and ultimately through the railroad property into the Lower Bee Branch Creek. Attachment A illustrates the more noteworthy elements of the Upper Bee Branch Creek— Structures Project contract. It is important to note that Upper Bee Branch Creek— Structures Project depends on other major work first being completed by the Upper Bee Branch Creek— Channels, Streets and Utilities Project. BID RESULTS The City of Dubuque received the following bids for the Upper Bee Branch Creek— Structures Project is as follows: Contractor Bid Results Tricon General Construction, Inc. $ 5,714,880.00 Portzen Construction $ 6,497,900.00 Taylor Construction $ 7,857,800.00 Tricon General Construction, Inc. of Dubuque, Iowa, submitted the low bid in the amount of $5,714,880.00. This amount is 4.23% above the estimate of probable cost. The primary reason for the overage is the overtime necessary to complete the project on schedule. BUDGET IMPACT The summary of cost for the Upper Bee Branch Creek— Structures Project is summarized as follows: Estimate Award Construction Contract $5,482,900.00 $5,714,880.00 Contingency 274,145.00 274,145.00 Construction Engineering & Inspection 863,557.00 863,557.00 Total Project Cost $6.620,602.00 1q,852 82.00 The project as bid is $231,980.00 over the Engineer's estimate. The project will be funded by the Fiscal Year 2016 appropriation in the amount of $43,359,000 for the Bee Branch Creek Restoration Project— Phase 4 and Phase 7 of the Bee Branch Watershed Flood Mitigation Project [CIP#7201654]. 4 The $98,494,178 in sales tax increment funding from the state as part of the State Flood Mitigation Program will not be disbursed in one lump sum nor will it be disbursed as the City incurs expenses. Instead, the City is to receive the funding over a twenty-year period starting in 2014. The legislation enacting the program recognized that the issuance of debt might be required in order to immediately realize the flood mitigation improvements. In fact, a new type of revenue bond was born, a sales tax increment revenue bond that the City will issue this month. In accordance with the adopted Fiscal Year 2016 budget, the Upper Bee Branch Creek Restoration Project will be funded through the issuance of debt. The two Sales Tax Increment Revenue Bonds and the State Revolving Funds Loan not to exceed $34,000,000 will be retired utilizing the schedule of annual payments of sales tax increment from the state. If the improvements were to be funded without issuing additional debt, the Upper Bee Branch Creek Restoration Project would not be complete until Fiscal Year 2038. RECOMMENDATION If Upper Bee Branch Creek— Channels, Structures and Utilities Project is awarded by the City Council, I recommend that the contract for the Upper Bee Branch Creek— Structures Project be awarded to Tricon General Construction, Inc. of Dubuque, Iowa in the amount of $5,714,880.00. If the Upper Bee Branch Creek— Channels, Structures and Utilities is not awarded, I recommend that all bids be rejected. REQUESTED ACTION I respectfully request that if the Upper Bee Branch Creek— Channels, Structures and Utilities is awarded that the City Council adopts the attached resolution awarding the Upper Bee Branch Creek— Structures Project to Tricon General Construction, Inc. in the amount of$5,714,880.00. j Attach. Prepared by Deron Muehring, Civil Engineer II Cc: Barry Lindahl, City Attorney Maureen Quann, Assistant City Attorney Teri Goodmann, Assistant City Manager Jenny Larson, Budget Director Ken TeKippe, Finance Director Marie Ware, Leisure Services Manager Don Vogt, Public Works Director Laura Carstens, Planning Services Manager Steve Brown, Project Manager Deron Muehring, Civil Engineer II Randy Gehl, Public Information Officer Kristin Hill, Bee Branch Communications Specialist 5 RESOLUTION NO. 177-15 AWARDING PUBLIC IMPROVEMENT CONTRACT FOR THE UPPER BEE BRANCH CREEK — STRUCTURES PROJECT Whereas, sealed proposals have been submitted by contractors for the the Upper Bee Branch Creek — Structures Project (the Project) pursuant to Resolution No. 109-15 and Notice to Bidders published in a newspaper published in the City of Dubuque, Iowa on the 10th day of April, 2015. Whereas, said sealed proposals were opened and read on the 30th day of April, 2015, and it has been determined that Tricon General Construction, Inc. of Dubuque, Iowa, with a bid in the amount of $5,714,880.00, is the lowest responsive, responsible bidder for the Project. Whereas, awarding of this contract will be contingent upon awarding of the Upper Bee Branch Creek Channel, Streets & Utilities Project by the Dubuque City Council; upon the Economic Development Administration bid award concurrence and Iowa Department of Natural Resources State Revolving Fund bid award approval for the Upper Bee Branch Creek — Channel, Streets & Utilities Project. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: That a Public Improvement Contract for the Project is hereby awarded to Tricon General Construction, Inc. and the City Manager is hereby directed to execute a Public Improvement Contract on behalf of the City of Dubuque for the Project. Passed, approved and adopted this 18th day of May, 2015. Lynn V. Sutton, Mayor Pro Tem Attest: Kevi ;S. Firnstahl, +CMCCity Clerk 71 IW .n. il • � has � �.. � �✓' �—moi- , I� l