Consideration of Adopting Resolution 13-07-125 Accepting Bids and Authorizing Award of Contract for IP 13-00; 2013 Pavement Maintenance Program

As part of the city's ongoing Pavement Maintenance Program, numerous city streets are sealcoated each year. Sealcoating protects pavement sections from the rain and sun which lead to oxidizing of the pavement and the removal of oil, causing the pavement to become brittle and crack. Engineering and Public Works staff therefore prepared plans and specifications for this year's sealcoating project, IP 13-00; 2013 Pavement Maintenance Program, which includes numerous city streets and parking lots throughout the city that are proposed to be sealcoated. The specific streets and parking lots that are proposed to be sealcoated in 2013 are identified in the plans and specifications as “Program A” improvements. Exhibits A through F attached show the streets that are included in Program A.

The plans and specifications also include provisions for paving the wear course lift on streets within Ramsey Town Center 8th, 9th, and 10th Additions. This work is identified in the plans and specifications as “Program B” improvements, which are shown in attached Exhibit G. Bids for installing the wear course on the private streets in RTC 9th Addition were bid as an alternate bid to allow the City Council to easily evaluate these costs when deciding whether to authorize improvements on these private streets as part of the 2013 Pavement Maintenance Program project.

On June 25, 2013, the City Council accepted the plans and specifications and authorized advertisements for bids for Program A and Program B of the 2013 Pavement Maintenance Program. Copies of the plans and specifications as bid will be available for review at the Council meeting.

No notifications were required for this case.

The engineer’s estimate for all improvements identified in Program A and Program B of the 2013 Pavement Maintenance Program was $665,500. This includes estimated costs for the Program A (sealcoat) improvements of $412,500, as well as estimated costs for the Program B (wear course) improvements totaling $253,000. These estimated costs include 4% contingency costs for unknowns, and 15% indirect costs for administrative, engineering, financing, and legal costs.

Bids were opened at 10 am on Friday, July 19th. A total of 5 bids were received. All bids were checked for errors and omissions.

The low bid for the Program A improvements was received from Allied Blacktop Co. of Maple Grove, Minnesota in the amount of $338,072.73

The low bid for the Program B improvements was received from North Metro Asphalt of Ham Lake, Minnesota in the amount of $153,095.00

The low bid for the Program B improvements (Alternate Bid) was also received from North Metro Asphalt of Ham Lake, Minnesota in the amount of $34,191.00




Alternatives -

Alternative #1 - Motion to adopt resolution 13-07-125 Accepting Bids and Authorizing Award of Contract for IP 13-00; 2013 Pavement Maintenance Program, to Allied Blacktop Co. of Maple Grove, Minnesota in the amount of $338,072.73 for the Program A improvements, and to North Metro Asphalt of Ham Lake, Minnesota in the amount of $153,095.00 for the Program B improvements, excluding the alternate bid for RTC 9th Addition.

Alternative #2 - Motion to adopt resolution 13-07-125 Accepting Bids and Authorizing Award of Contract for IP 13-00; 2013 Pavement Maintenance Program, to Allied Blacktop Co.  of Maple Grove, Minnesota in the amount of $338,072.73 for the Program A improvements, and to North Metro Asphalt of Ham Lake, Minnesota in the amount of $187,286 for the Program B improvements, including the alternate bid for RTC 9th Addition.

Alternative #3 - Motion denying adoption of resolution 13-07-125 at this time.

Alternative #4 - Motion of other.

Staff recommends that Council accept alternative action #1 if Council does not support the use funds from the general levy to pave the wear course on the private streets of RTC 9th Addition.

Staff recommends that Council accept alternative action #2 if Council supports using funds from the general levy to pave the wear course on the private streets of RTC 9th Addition. This option should be chosen if Council wishes to protect the base course pavement on the private streets from further degradation while waiting for this development to build out.

The 2013 budget includes $1,327,500 in the general fund for street maintenance, which is where the funds for the Program A improvements are proposed to be paid from. In 2011 and 2012, $400,000 was budgeted for sealcoating, which roughly equals the engineer’s estimate for the 2013 Program A improvements. Whatever is left in the street maintenance fund after the Program A improvements are funded and offset against unearned engineering revenue as forecasted in the adopted 2013 General Fund budget can then be applied toward the reconstruction of other streets or other projects completed in 2013 as approved by Council.

Nothing was budgeted in 2013 for the Program B improvements. However, as was discussed during the June 11th HRA meeting, the remaining escrows for RTC 8th and 10th Additions, which total over $179,000, are proposed to pay for construction of the Program B (wear course) improvements to RTC 8th and 10th Additions. Upon researching options for paying for the Program B improvements for RTC 9th Addition, staff recommends using the street maintenance fund as there are no remaining escrows for RTC 9th Addition.

Council is being asked to adopt resolution 13-07-125 Accepting Bids and Authorizing Award of Contract for IP 13-00; 2013 Pavement Maintenance Program, to Allied Blacktop Co. of Maple Grove, Minnesota in the amount of $338,072.73 for the Program A improvements, and to North Metro Asphalt of Ham Lake, Minnesota in the amount of $187,286.00 for the Program B improvements including the approved alternate bid for wear course for RTC 9th Addition.