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Home My WebLink AboutCity Council Packet 11-24-2020 SpecialCity Council 1 of 1 November 24, 2020 CITY OF PLYMOUTH AGENDA Special City Council November 24, 2020, 5:30 PM 1. CALL TO ORDER 1.1 Instructions to participate in the Virtual Council Meeting 2. TOPICS 2.1 Discuss contractor selection methods for public improvement projects PowerPoint Presentation 2.2 Set future Study Sessions December January February 3. ADJOURN 1 Special City Council November 24, 2020 Agenda Number:1.1 To:Dave Callister, City Manager Prepared by:Sandy Engdahl, City Clerk Reviewed by:Laurie Hokkanen, Administrative Services Director Item:Instructions to participate in the Virtual Council Meeting 1. Action Requested: The Mayor provides instructions for the public to observe the meeting by phone or online. 2. Background: Council meetings will be conducted virtually (via Zoom webinar/conference call) due to the state of local emergency for the COVID 19 pandemic. To observe/listen to the meeting, please register in advance at: https://us02web.zoom.us/webinar/register/WN_TmnEWUhVQc6usIPhKgCGEw No public comments are taken at study sessions. Comments can be emailed to the Mayor and City Council at council@plymouthmn.gov or to the City Manager at dcallister@plymouthmn.gov. Contact City Clerk Sandy Engdahl at sengdahl@plymouthmn.gov with additional questions. 3. Budget Impact: N/A 4. Attachments: 2 Special City Council November 24, 2020 Agenda Number:2.1 To:Dave Callister, City Manager Prepared by:Michael Thompson, Public Works Director Reviewed by:Michael Thompson, Public Works Director Item:Discuss contractor selection methods for public improvement projects 1. Action Requested: No action required. 2. Background: The Council requested information on contractor selection methods as a result of delays on the Vicksburg Lane pavement improvement project this year. Although the delay was namely the result of a lack of due diligence in the design (lack of understanding of the true nature of the underlying pavement and soil conditions) there was interest from Council regarding delivering accelerated projects or exploring contractor selection methods focused more on best value. This work session will provide an overview of various contractor selection methods, incentives, and other approaches that could be considered for contractor selection and project delivery. Also, Matt Thompson (no relation) will be in attendance to provide the "contractor perspective" so the Council has an opportunity to hear from an industry professional with a depth of contracting experience and knowledge. Matt currently works for Ramsey Companies and has experience as a project manager at contracting firms such as Eureka Construction, Ames, and Lunda. 3. Budget Impact: N/A 4. Attachments: PowerPoint Presentation 3 Council Workshop Nov. 24, 2020 Construction Contracting Discussion 4 Outline•Introductions•Impetus for this work session•Contractor selection options:1. Low Bid (current practice)2. A+B Bidding3. Best Value•Financial impacts for non-low bid•Project closure•Incentives/disincentives 1.Current practice2.Potential options•Contractor perspective•Summary and direction 5 Impetus for Work Session •Frustrations with the Vicksburg Lane pavement reclaim project •Conditions didn’t match preliminary engineering testing by geotechnical firm •In hindsight the frequency of testing for soil borings should have been increased along with ground penetrating radar of all lanes (more due diligence) •Would a different contractor selection method have been more beneficial? Probably not. •Let’s talk about selecting contractors…. 6 Contractor Selection Options 1. Low Bid •Current city practice for street projects •Selects lowest price •Bid must be responsive by meeting criteria laid out in bid documents •Bid must be responsible per Statute 16C.285, Subdivision 3 and fill out City’s responsible bidder evaluation i.List similar projects, excessive change orders, schedule met, litigation, filing against a bond, fines, convictions •Most common method used by cities use for local street improvements projects 7 Contractor Selection Options 2. A + B Bidding •Instead of selection solely on lowest price, the contractor is selected based on the lowest score of adding the ( A = Contract price) + ( B = User cost) •The “User cost” could be a daily road user cost or lane rental cost thus the contractor with the least user impacts then reflects most positively on its adjusted bid score •Hypothetical: If Ja y ’s Contracting and Roger’s Excavating both submit a similar contract price, however Roger’s Excavating has a higher user cost, then Jay’s Contracting wins the contract (see example on next slide) •Commonly used on trunk highway projects 8 Example of A + B Bidding City pre-determines the inconvenience to users (drivers) is $5,000 per day, and a full lane closure is an additional $500 per day inconvenience. Two bids are submitted as follows: Jay’s Contracting Roger’s Excavating Bid Price $2,100,000 $1,900,000 Construction days 80 120 Lane closure days 20 50 Bid winner is lowest of (Bid Price A) + (User Costs B) Jay’s = ($2,100,000)+[(80x$5,000)+(20x$500)] = 2,510,000 Roger’s = ($1,900,000)+[(120x$5,000)+(50x$500)] = 2,525,000 Jay’s is awarded the contract at its bid price of $2,100,000. 9 Contractor Selection Options 3. Best Value •Contractor selection based on price and performance a)Price b)Performance (10 pts) I.Experience/past performance on similar projects II.Experience/past performance of key personnel III.Timeliness of performance on past projects IV.Availability of personnel to perform work V.Availability of major construction equipment •Pass/fail: Minimum performance score of 7.5 out of 10 pts required and contractor with lowest price and a passing performance score is awarded the bid •Similarities to City’s current bidder qualifications 10 Comparing Options Pros Cons 1.Low Bid - Cheapest - May not be highest -Simple performing contractor - More projects 2. A + B Bid - Recognizes user costs -May not be lowest bid (time = travel delays) - Paying a premium in recognizing user costs 3. Best Value -Eliminates low quality -Bid challenges contractors -Higher cost -More reliability -Quality superintendent 11 Going Away from Low Bid Has Impacts •Street Improvements Projects i.CIP from 2021-2030 = $87 million ii.Assuming 5% premium for reflecting user costs in selecting contractors would then equate to a reduced investment of $4.3 million over the 10-year CIP period iii.This approaches a full year of revenue from the street reconstruction levy and franchise fees iv.Equates to an entire neighborhood reconstruction project v.Strategic selection of projects for new methods: Highest volume roads, critical safety access routes, business impacts, high visibility 12 Roadway Closures / Flexibility •Pricing and schedule benefits… without extra costs •Reduces traffic control costs •Provides more efficient use of area for the contractor to work •Can help accelerate the schedule without additional costs •However, is a inconvenience to users •Council open to consideration on some projects? •Provide wider construction window… however once actual work begins, a calendar limit for completion 13 Incentives and Disincentives •Current practice i.City establishes the substantial completion date ii.If completion date is not met then liquidated damages of $2,500 are applied daily for example (disincentives rare) iii.City doesn’t currently include incentives in its contracts for street projects iv.Exception was the major 494/Rockford Road Interchange Project: An incentive of $140,000 (max.) was written into the contract; $10,000 bonus for each day completed early. The incentive was effective and the Contractor finished the new bridge two weeks early and earned the full $140,000. 14 Incentives and Disincentives •Potential Considerations for the Right Projects i.Incentive for each day completed early up to a maximum ii.No excuse completion date bonus a.Lump sum payment on date identified in contract b.Could be date earlier than completion date if time is of the essence (major roadways) iii.Incentive for minimizing change orders iv.Payment for performance 15 Contractor Perspective •Matt Thompson, P.E. with Ramsey Companies; Eureka Construction, Ames, Lunda, and self owned company •What draws contractors to bid projects? •Is flexibility in schedule important for contractors? Is it reflected in bid pricing? •What do you like or dislike about various city contracts and/or selection processes? •Thoughts on different contractor selection methods and/or incentives and bonuses? •Other? 16 Summary •Continue low bid selection process unless critical corridor and impacts (Vicksburg 2022?) •Consider full closures to accelerate schedule and reduce costs •Add reasonable daily incentive for each day completed early up to a maximum amount to encourage early completion on the right type of project (Vicksburg 2022?) •Talk with contractors to understand current market conditions to help inform schedule and incentives before finalizing contract specifications 17 Summary •If project costs increase due to contractor selection method or incentives then revenue increases may be needed to deliver current 10 year CIP •Revenues can come from franchise fees or tax levy. The municipal state aid revenue source makes up the remainder but not controlled by the City (gas taxes) •No recommendations. This is only information for the City Council to consider and discuss. •Staff is available for questions. Thank you! 18 Levy $2.7M 32% ROW permits $149K 2% Other $102K 1% MSA $3.0M 35% Franchise Fees $2.5M 30% 2020 STREET RECONSTRUCTION FUND REVENUE 19 Questions or Feedback? 20 Special City Council November 24, 2020 Agenda Number:2.2 To:Dave Callister, City Manager Prepared by:Sandy Engdahl, City Clerk Reviewed by:Laurie Hokkanen, Administrative Services Director Item:Set future Study Sessions 1. Action Requested: Schedule Study Sessions and/or add topics as desired. Calendars are attached to assist with scheduling. 2. Background: Pending Study Session Topics (at least three Council members have approved the following study items on the list): None at this time Other Council requests for Study Session Topics: None at this time Staff requests for Study Session Topics: -Discuss 2021 Legislative Priorities (suggest adding to December 1 agenda) - Miscellaneous 2020 budget item updates (suggest adding to December 1 agenda) - Solar options for City facilities (suggest January 26 at 5:30 p.m.) 3. Budget Impact: N/A 4. Attachments: December January February 21 SUN MON TUE WED THU FRI SAT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 29 29 30 31 December 2020 3400 Plymouth Boulevard Plymouth, MN 55447 OFFICIAL CITY CALENDAR 763-509-5080 plymouthmn.gov 7:00 PM PLANNING COMMISSION MEETING Council Chambers 7:00 PM REGULAR COUNCIL MEETING Council Chambers SUN TUES MON WED THUR FRI SAT 7:00 PM ENVIRONMENTAL QUALITY COMMITTEE MEETING Council Chambers 7:00 PM CHARTER COMMISSION MEETING Medicine Lake Room 7:00 PM PLANNING COMMISSION MEETING Council Chambers CHRISTMAS DAY CITY OFFICES CLOSED CHRISTMAS EVE CITY OFFICES CLOSED AT NOON 2:00 PM-5:00 PM Old Fashioned Christmas Plymouth Creek Park 5:00 PM SPECIAL COUNCIL MEETING Board and Commission Interviews Medicine Lake Room 22 SUN MON TUE WED THU FRI SAT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 MARTIN LUTHER KING JR. BIRTHDAY CITY OFFICES CLOSED 19 20 21 22 23 24 25 26 27 28 29 30 January 2021 3400 Plymouth Boulevard OFFICIAL CITY CALENDAR 763-509-5080 plymouthmn.gov SUN TUES MON WED THUR FRI SAT CHANGES ARE NOTED IN RED 5:30 PM SPECIAL COUNCIL MEETING Chickens and Bees Council Chambers 7:00 PM REGULAR COUNCIL MEETING Council Chambers NEW YEAR’S DAY CITY OFFICES CLOSED 7:00 PM REGULAR COUNCIL MEETING Council Chambers 31 23 SUN MON TUE WED THU FRI SAT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SUN TUES MON WED THUR FRI SAT February 2021 3400 Plymouth Boulevard Plymouth, MN 55447 OFFICIAL CITY CALENDAR 763-509-5080 plymouthmn.gov 7:00 PM REGULAR COUNCIL MEETING Council Chambers PRESIDENTS DAY CITY OFFICES CLOSED 7:00 PM REGULAR COUNCIL MEETING Council Chambers 24