Adopt Resolution #26-101 Approving Plans and Authorizing Bids for 2026 Pavement Skim Patching, Maintenance Project #26-53

Purpose:
The purpose of this case is to adopt Resolution #26-101 approving plans and authorizing advertisement for bids for 2026 Pavement Skim Patching, Maintenance Project #26-53.

Background:
In 2023, the number of public streets with numerous deep potholes and surface stripping increased to the point that Public Works staff were only able to maintain a small percentage of the streets in-house. The poor pavement conditions were due in small part to the previous winter’s severe weather conditions, but more significantly the poor pavement conditions were due to advanced pavement age and minimal pavement section composition, as well as due to not receiving regular proactive maintenance treatments over the life of the pavement sections. In 2023, the city spent almost $1.3M on contracted pavement patching services.

Since 2023, the city has expended over $10,000,000 per year on pavement overlay and street reconstruction improvement projects, and on pavement maintenance projects including crack seal, pavement rejuvenation, and pavement skim and spray patching projects. In addition, public works staff continue to patch potholes, as well as mill and overlay pavement segments where pavement stripping is generally confined to tire tracks. This work has helped to significantly reduce the scope and severity of potholes, pavement stripping and other forms of pavement damage on city streets.

Based on staff’s observations of all contracted skim patching work to date, the patching appears to have a useful life of 4 years or more. To date, this product has held up very well to plowing, traffic and weather.

This spring, staff inspected and identified public street segments within 7 residential areas that would benefit greatly from pavement skim patching due to existing poor pavement conditions and the fact that the majority of these streets are not programmed in the Capital Improvement Plan (CIP) for reconstruction until 2032 or later, with 2 of the street segments not programmed for reconstruction in the CIP at all. All identified street segments total 3.36 miles in length. Attached is a figure showing the street segments located within the 7 areas.

Many streets identified for skim patching in 2026 have deep potholes (deeper than 2-inches) that will require hand patching before skim patching operations commence. Below is a summary of the proposed skim patching process, which is generally the same process followed since 2023.

• City staff will patch deep potholes and sweep streets first
• Contractor will blow debris and water from all potholes and street surfaces using compressed air.
• Contractor will apply bituminous tack coat to potholes, fill with hot mix, then compact the mix.
• Contractor will apply bituminous tack coat to existing pavement surfaces and patches.
• Contractor will skim patch both sides of streets except outer 2 feet to maintain positive drainage.
• Contractor will compact skim patching with rubber-tired rollers.
• City will sweep patched streets full width.

City staff will patch all other public paved street segments in-house as needed and as time allows.

Preliminary Schedule Remaining

• May 12, 2026 City Council approve plans, authorize bidding
• June 15, 2026 Bid opening
• June 23, 2026 City Council awards contract to the lowest responsible bidder
• July 1, 2026 Contractor may begin improvements
• July 31, 2026 Contractor completes improvements

If City Council approves plans and specifications and authorizes advertisement for bids, bids will be advertised on Friday, May 15, and again on Friday, May 22, 2026, in the City’s official newspaper, the Anoka Union Herald. Plans are also advertised on the QuestCDN website, which directly notifies contractors interested in bidding these types of projects.

Observations:
IP 26-10 and IP 26-09 engineer’s estimates are based off of final plans and actual bid prices. IP 26-11 estimate is a CIP level estimate based off of costs per mile.

Alternatives:
Motion to adopt Resolution #26-101 approving plans and authorizing advertisement for bids for 2026 Pavement Skim Patching, Maintenance Project #26-53.

The city budgeted $650,000 in 2026 for contracted street maintenance services including; crack sealing, pavement rejuvenation, and refreshing pavement markings.

The preliminary estimated costs for pavement maintenance improvements are:
• IP 26-09 Crack Seal $159,951.90
• IP 26-10 Pavement Rejuvenation $327,922.41
• IP 26-11 MSA Pavement Markings $18,000.00

• Total Pavement Maintenance Costs $505,874.31
• Remaining Budgeted Funds $144,125.69

The proposed 2026 Pavement Skim Patching project is estimated to cost $252,000, which is $107,874.31 over the estimated available budgeted funding amount.

Staff originally discussed soliciting quotes for areas 1, 2, 3, and requesting alternate quotes for streets within areas 4 and 5 to allow the city to custom size the project, to spend down as much available funding as possible. However, during discussions with the Public Works Committee on April 21st, staff was directed to work with the Finance Director to identify available funding to allow as much skim patching of the 7 areas as possible, to prevent falling further behind on skim patching and Pavement Management Program projects.

In May of 2025 special legislation passed allowing the city to reimburse itself from expenses in the COR area paid for by other city funds. Cash flows have been updated to include principal and interest payments that will be paid back annually by the increment generated in the COR area. Because of this, the PIR fund has projected year-end balances of $4,592,891.28 for 2025 and $4,409,734.62 for 2026. These funds are therefore able to fund all $107,874.31 of the estimated excess funding amount.

The Finance Director identified the PIR Fund as the best available funding source to allow all identified skim patching to occur in 2026, and to offset increased skim patching budget costs moving forward.

Per State statute, projects with costs of $175,000 or more are required to be advertised for bids.

City Staff proposes to administer and inspect construction in-house, as part of their normal duties.

Staff recommends adopting Resolution #26-101 approving plans and authorizing advertisement for bids for 2026 Pavement Skim Patching, Maintenance Project #26-53.

The Public Works Committee recommended approving plans and authorizing advertisement for bids 2026 Pavement Skim Patching, Maintenance Project #26-53 during their regular meeting on April 21st. The Public Works Committee also recommended increasing the annual budget amount for pavement maintenance work from $650,000 to $700,000, which is proposed to be accommodated by transferring $50,000 in funds from the PIR fund to the pavement maintenance budget.

Motion to adopt Resolution #26-101 approving plans and authorizing advertisement for bids for 2026 Pavement Skim Patching, Maintenance Project #26-53.