Need help with pattern knitting directions for a tote

Hi I just received a pattern for The Sheep Tote by Bev Galeskas and was
going to town until I reached this:

First off you knit the bottom back and forth for 25 rows on size 11 circular
needles #24 got that part done and then it says to knit one more row and do
not turn.
Rotate work and knit up 13 sts across the end....I assume this means to pick
up stitches which I know how to do on straight knitting but not with a
circular needle that is not connected yet......do I need to use another
needle or what....you end up knitting the rest of the bag in the round.

I love the pattern and am making the small size tote for my niece.

I also know how to make hats knitting in the round and switching to double
points for the top but this pattern has me stumped so hope someone here can
help

Thanks
Donna