Adopt Resolution #19-162 Accepting Bids and Awarding Contract for Improvement Project #19-00, 2019 Cracksealing Improvements

Purpose:
The purpose of this case is to adopt Resolution #19-162 accepting bids and awarding a contract for Improvement Project #19-00, 2019 Cracksealing Improvements.

Background:
Crackseal improvements are completed on numerous public street segments annually to cost-effectively maximize the life of the bituminous pavement. Cracksealing protects pavement by preventing stormwater runoff from seeping through cracks in the pavement and joints between the pavement and concrete curb and gutter and utility castings, reducing future pavement damage due to wet subgrade soils, especially during freeze-thaw cycles.
 
The City’s typical maintenance schedule for public streets includes:

• Crackseal 3 years after construction, reconstruction, or overlays.
• Crackseal and sealcoat 7 years after construction, reconstruction, overlays, and sealcoats.
• Overlay 20 years after construction, reconstruction, or overlays.
• Reconstruct 60 years after construction or reconstruction.

 
While this is the typical maintenance schedule, it is important to note that Staff reviews the condition of all streets annually and adjusts the schedule of maintenance operations based on actual pavement conditions.
 
Plans and specifications for the 2019 Cracksealing Improvements were prepared in-house as part of Staff’s normal duties.
 
A total of 24.20 miles of public streets are proposed to receive crackseal improvements in 2019.  These street segments were selected based on their maintenance history, age, and Pavement and Surface Evaluation Rating (PASER). Per the City’s typical maintenance schedule, these street segments are generally composed of streets that were constructed, reconstructed or received overlay improvements 3 years ago, or were last sealcoated 7 years ago.
 
One-Year Suspension of Sealcoat Program
The purpose of sealcoating is to protect existing bituminous pavement from damage caused by stormwater runoff, ultraviolet rays from the sun, and petroleum deposits left by vehicles. The City of Ramsey has generally sealcoated between 13 and 23 miles of City streets each year, and has done so for many years.  This year, Staff and the Public Works Committee recommended suspending the sealcoat program for one year for the following reasons.
 
Over the last two to three years, City staff has received higher than normal numbers of complaints about loose rock along gutters and in the boulevards of properties fronting streets that were sealcoated.  Staff has been researching this issue in an attempt to reduce the loose rock complaints.  Last year, the City completed our annual sealcoat project earlier in the summer with the thought that completing the work during warmer weather might help the rock to better embed itself in the oil.  As of this spring, this does not appear to have helped.
 
This spring, Staff observed damage to underlying pavement on several streets that were sealcoated within the last two to three years.  Staff also heard from numerous other cities throughout the Twin Cities metro area, including several in the northwest metro, about similar observations this spring on their sealcoat projects.  Some of the worst damage occurred within Business Park 95 (bordered by Bunker Lake Boulevard, Sunfish Lake Boulevard, and the BNSF Railroad) and within the Alpine Acres residential development (north of Alpine Drive and west of Nowthen Boulevard).  These streets include a mix of local streets and higher volume collector streets.
 
The City of Andover stopped sealcoating their streets years ago. The City of Coon Rapids is in the process of transitioning from sealcoating all streets to sealcoating only local residential streets and fog sealing higher-volume collector streets.  Staff from Coon Rapids believe the higher traffic volumes lead to surface stripping and that fog sealing provides similar benefits to seal coating at reduced costs.
 
Staff will spend the next several months observing the condition of recently sealcoated streets to make sure further degradation does not occur.  Staff also plans to observe the practices and findings of the cities of Coon Rapids and Saint Michael’s fog sealing programs, as well as practices of other cities trying alternative treatments to sealcoating.

Bids
On July 5, 2019 three (3) sealed bids were received and were publicly opened.  The bids were generally competitive and complied with the advertisement for bids. A summary of the bids is below and in the attached resolution.
 

CONTRACTOR	TOTAL BID
Northwest Asphalt and Maintenance	$222,993.55
Allied Blacktop Company	$267,557.65
Fahrner Asphalt Sealers, LLC	$617,408.87
Engineers Estimate	$267,929.82

Northwest Asphalt and Maintenance of Thief River Falls, Minnesota submitted the lowest responsible bid of $222,993.55 for constructing the project in accordance with the approved plans and specifications and advertisement for bids.

Following award of Contract, a Notice of Award will be issued to Northwest Asphalt and Maintenance to initiate execution of a contract and issuance of the required bonds and insurance.  The City Attorney will verify that the contract, bonds and insurance are in proper legal form prior to execution of the contract.  Once the contract is executed, staff will issue a Notice to proceed so construction can begin.

A preconstruction meeting will be held before construction begins.

Advertisements for bids were published in the Anoka Union Herald and in Finance and Commerce on June 14 and June 21, 2019 as required by State Statutes.

Observations:
The engineer's estimate based on final plans as approved by Council was $244,807.49. During the bid process an error was found in the engineer's estimate. The final engineers estimate is $267,929.82.

Alternatives:
Alternative #1  Adopt Resolution #19-162 accepting bids and awarding a contract for Improvement Project #19-00, 2019 Cracksealing Improvements, to   Northwest Asphalt and Maintenance  for the base bid in the amount of $222,993.55.

Alternative #2  Reject bids and do not award contract for cracksealing.

Estimated costs for the proposed 2019 cracksealing improvements total $267,929.82.  This includes 14% indirect costs for administrative, engineering, legal and financing.
 
Based on bids recently received for street reconstruction projects, Staff anticipated bid prices for the 2019 crackseal improvements may be up to 25% higher than 2018 bids.  Staff therefore increased the average 2018 unit bid price for bituminous crack sealing material by 23% for the purpose of estimating 2019 project costs.  Staff anticipated that our estimate will be towards the high side of the bids.

The City annually budgets $500,000 for crack seal and sealcoat projects.  As previously discussed, City Staff and the Public Works Committee recommended suspending the sealcoat program for one year, but continuing with crackseal improvements.

Staff recommends alternative #1.

Motion to adopt Resolution #19-162 accepting bids and awarding a contract for construction for Improvement Project #19-00, 2019 Cracksealing Improvements, to  Northwest Asphalt and Maintenance  for the base bid in the amount of $222,993.55.