Adopt Resolution #23-155 Accepting Bids and Awarding Contract for Street Maintenance Project #23-22, 2023 Spray Patching Contracted Services

Purpose:
The purpose of this case is to adopt Resolution #23-155 accepting bids and awarding a construction contract for Street Maintenance Project #23-22, 2023 Spray Patching Contracted Services.
 
Background:
Many miles of City streets have significant numbers of potholes deeper than 2-inches and/or numerous areas where the upper 2-inches or less of pavement are missing, generally termed surface stripping. This is resulting in poor and unsafe conditions for drivers and pedestrians. The number of streets exhibiting these severe pavement distresses have grown significantly in recent years, resulting in Public Works staff spending more and more time patching potholes and less time completing other core duties. In 2023, the number of streets with significant numbers of deep potholes and surface stripping have increased to the point that Public Works staff are able to maintain only a small portion of them. This is due in part to last winter’s severe weather conditions, but also due to the age and composition of the pavement sections, as well as not receiving regular proactive maintenance treatments over the life of the pavement sections. 
 
In April, Staff finalized the attached overall pavement repair plan showing all streets proposed to receive temporary 2-inch mill and overlays, temporary deep pothole patching, and temporary spray patching to most cost-effectively maintain pavement sections on the worst streets until they can be reconstructed.
 
Deep pothole patching involves removing all debris and water from potholes deeper than 2-inches using compressed air, applying bituminous tack coat on existing bituminous pavement surfaces within the potholes, placing hot asphalt mix in the potholes, then compacting the hot mix.
 
Spray patching involves using a spray patching truck to clean debris and water out of potholes 2-inches deep or shallower using compressed air, then applying a bituminous spray patch mix within the shallow potholes.
 
On April 25, 2023, the City Council adopted Resolution #23-089 approving plans and specifications and authorizing advertisements for bids for Improvement Project #23-14, 2023 Critical Mill and Overlay Improvements. The intent of this project, which is complete, was to temporarily repair distressed pavement sections in 21 of the most critical areas by completing 2-inch mill and overlay improvements. That same evening, the City Council directed the City Engineer to solicit quotes for contracted pavement patching services to immediately patch as many of the highest priority potholes as practical. This project, which was designated project #23-15, Priority Pothole Patching, was completed in early June.
 
On April 25, 2023, the Ramsey City Council also directed the City Engineer to prepare plans for enlisting contracted services to patch all remaining streets shown on the overall pavement repair plan and to present said plans to the City Council on May 9, 2023, to authorize bids. Attached are two figures showing the remaining streets that Staff identified as requiring temporary pavement repairs in the form of deep pothole patching (Figure 1) and spray patching (Figure 2). Approximately 19.6 miles of City streets are identified in Figure 1 as needing deep pothole patching, and approximately 20.8 miles of City streets are identified in Figure 2 as needing spray patching. Some overlap exists between the figures since some streets will require both deep pothole patching and spray patching. These figures were used to develop Pavement Maintenance Project #23-16 intended to help hold these streets together until they receive reconstruction or overlay improvements per the current Pavement Management Program (PMP) or until they can be added to the PMP in the future.  
 
On June 8, 2023, a total of two (2) bids were received, opened, and tabulated for Pavement Maintenance Project #23-16 but only one (1) bid was found to comply with the approved plans and specifications and advertisement for bids.  This bid was submitted by Asphalt Surface Technologies Corp. in the amount of $2,418,600.00 for construction of the improvements in accordance with the approved plans and specifications and advertisement for bids. After bids were opened Staff had a discussion with the low bidder who indicated their interpretation of the contract documents resulted in a bid that was higher than it needed to be. Upon discussing this with the City Council, the bid was rejected and staff was directed to split Project #23-16 into two separate projects with one project including only deep pothole patching and one project including only spray patching. 
 
Staff prepared new contract documents and advertised bids the following day for the two new projects that are designated as Street Maintenance Project #23-21, Deep Pothole Patching Contracted Services, and Street Maintenance Project #23-22, Spray Patching Contracted Services.  Bids were advertised in the Anoka Union Herald on Friday, June 16, and Friday, June 23, 2023.
 
On July 7, 2023, one (1) bid was received, publicly opened, and tabulated for Street Maintenance Project #23-22, Spray Patching Contracted Services. The bid was found to comply with the approved plans and specifications and advertisement for bids, and is tabulated below.
 

Contractor	Bid
Asphalt Surface Technologies Corp.	$ 1,284,300.00
Engineer’s Estimate	$ 750,000.00

 
The lowest responsible bid was submitted by Asphalt Surface Technologies Corp. of Saint Cloud, Minnesota, in the amount of $1,284,300.00 for the total bid for construction of the improvements in accordance with the approved plans and specifications and advertisement for bids.  This amount is 71-percent over the engineer’s estimate.

Advertisements for bids were published in the Anoka Union Herald on Friday, June 16, and Friday, June 23, 2023.   

Observations:
Contracting this patching work out will allow Staff to complete other core duties that have been neglected for two or more years, and will allow these streets to be repaired as quickly as possible. 
 
Alternatives:
Alternative #1: Adopt Resolution #23-155 accepting bids and awarding a construction contract for Street Maintenance Project #23-22, 2023 Spray Patching Contracted Services.
 
Alternative #2: Motion of other.  

The adopted 2023 budget included $375,000 to temporarily repair the bituminous pavement on numerous public street segments in support of the City’s Pavement Management Program, with another $375,000 reserved for temporary pavement repairs in 2024. Approximately $475,000 has been expended on projects #23-14 and #23-15 therefore Staff recommends utilizing as much of these funds as practical in 2023.
 
Proposed funding sources for this project include any funds remaining from the $750,000 budgeted for pavement repair contracted services after final payments have been issued for projects #23-14 and #23-15.  Other potential funding sources include the Public Improvement Revolving (PIR) Fund, the Pavement Management fund, and/or Municipal State Aid (MSA) Funds, as applicable.    

Staff recommends alternative #1 if Council wants all identified shallow potholes spray patched in 2023.  Otherwise, Staff recommends rejecting the bid and re-bidding the project with a significantly reduced scope to attract more bidders and reduce overall pavement patching costs in 2023.
 
Staff will continue to hold discussions with pavement patching contractors to identify ways to reduce project costs for pavement patching contracted services projects in the future.  

Adopt Resolution #23-155 accepting bids and awarding a construction contract for Street Maintenance Project #23-22, 2023 Spray Patching Contracted Services.