Consider Award of Contract for City Improvement Project 12-00; 2012 Street Maintenance Program

During development of the 2012 Street Maintenance Program (SMP) there were discussions taking place at the Council level focused on a long term road maintenance policy for the City.  With the limited funding currently available for all the needed street maintenance activities, it was extremely difficult implementing a program to address all the needs.

On February 14, 2012, during presentation of a City Council case to consider a long term road maintenance policy, there was discussion with respect to the SMP program, which focused on the notion that a long term funding solution would be forthcoming relatively soon with respect to future road maintenance.  It was discussed that the 2012 SMP should only include sealcoats, and consideration should be given to potentially eliminating all associated assessments.  There were several reasons why the idea of eliminating assessments for the year were considered; the current sealcoat assessment rate would be only 15%, there was concern expressed by the Council on how to retroactively respond to resident complaints associated with the shift in road maintenance funding, elimination of the public hearing (429 assessment process) would save time and money, and it would remove the ability for residents to counter-petition the improvements.

Based upon this preliminary feedback staff presented a case to the Public Works Committee on February 21, 2012 seeking direction on how best to proceed with the 2012 SMP.  It was the consensus of the Committee to initiate a program that contained sealcoats only, and that the program should be tailored in a way that assessments would be eliminated.  Staff prepared a program meeting those goals and presented the information to the City Council on March 13, 2012.  Council approved the program and directed staff to prepare the plans and specifications for construction.  An informational open house was held with impacted residents on April 9, 2012, where staff explained the project and process, solicit feedback on items of concern within the project area, and responded to questions.  On May 22, 2012 the City Council approved the plans and specifications, and authorized the project for bid.

During final preparation and inspection of the various areas it was determined that the roadways within the ROLLING GREEN area, as previously identified for a sealcoat application, were in such a condition that this type of improvement would provide no benefit and is not a prudent use of funding.  Staff referenced this fact to the Council on May 22nd, prior to authorizing the project for bids, and replaced this area with streets within the FERRUM ADDITION.

The final 2012 SMP is comprised of approximately 21 miles of sealcoats at an estimated cost of $600,000 (see attached map), and will be funded by TIF #4, the City's general fund, municipal state aid (MSA), and developers' first sealcoat escrows from development agreements.  Staff has also included various parking lots in a few parks and at water tower #1, and those items are proposed to be funded through the parks maintenance and paving funds, and the water utility fund.

Additional storm sewer improvements were also necessary in these areas prior to implementation, and were awarded as a separate contract under City Improvement Project #12-24; 2012 Storm Sewer Projects.  These improvements will be completed prior to initiating the planned sealcoats.Bids were opened on Friday June 22nd, and are attached to this case for Council review.

Staff recommends that the City Council approve Resolution 12-06-XXX, awarding a contract for City Improvement Project 12-00; 2012 Street Maintenance Program, to Allied Blacktop in the amount of $514,110.74. The attached resolution will be updated with the bid information at the time of execution.

The project is estimated at $600,000 and proposed to be funded as follows:

MSA	$86,000
TIF #4	$267,000
General Fund	$228,000
1st Sealcoat Escrows	$11,700
Parks Maintenance	$2,600
Parks Paving	$4,300
Water Utility	$400
Total	$600,000

Motion to approve Resolution 12-06-XXX, awarding a contract for City Improvement Project 12-00; 2012 Street Maintenance Program, to Allied Blacktop in the amount of $514,110.74.