Adopt Resolution #16-07-133 Accepting Bids and Awarding Contract for Improvement Project #16-00 Division A1, Crackseal and Sealcoat Improvements

Purpose:
The purpose of this case is to adopt Resolution #16-07-133 accepting bids and awarding a construction contract for Improvement Project #16-00 Division A1, Crackseal and Sealcoat Improvements.

Background:
As part of the city's long-term Street Maintenance Program, numerous miles of city streets receive crackseal and sealcoat improvements each year to help maximize their life expectancy. Cracksealing streets helps prevent stormwater runoff from seeping through cracks in the pavement and through joints between the pavement and concrete curb and gutter and/or utility castings, thereby reducing future pavement damage due to wet subgrade soils, especially as a result of freeze-thaw cycles. Sealcoating streets helps protect pavement from the negative effects of stormwater runoff, ultraviolet rays from the sun, and oil based by-products that are deposited on pavement surfaces by vehicles.


In 2016 a total of $500,000 was budgeted for non-assessable street maintenance program activities including crackseal and sealcoat improvements.  The City Council previously awarded one construction contract to Pearson Bros. Inc. in the amount of $260,521.76 to crackseal and sealcoat 10.87 miles of City streets in 2016.  The total project cost, including construction costs plus 14% for indirect costs covering administrative, engineering, finance and legal fees, is therefore estimated to be $296,995.  And approximately $18,000 is proposed to be spent from the $500,000 budgeted for non-assessable street maintenance program activities to complete temporary pavement repairs to concrete streets within The COR (a permanent concrete pavement rehabilitation project is being researched).  Therefore, approximately $185,005 remains to fund a second 2016 crackseal and sealcoat improvement project.
 
On June 28^th, 2016, the City Council approved plans and specifications and authorized advertising for bids for a second 2016 crackseal and sealcoat project on an additional 5.47 miles of city streets.  To meet open bidding law requirements, the soonest bids could be opened was Friday, July 22^nd, the day after City Council cases are published.  This case was therefore published without bid opening results or staff’s recommendation on Thursday, July 21^st. The case was then pulled down, updated, and posted again to the City’s web site on July 22^nd after bids were opened.
 
A total of two (2) bids were received and were publicly opened on July 22nd.  Both bids were extremely favorable, complied with the advertisement for bids, and were checked for errors and omissions, of which there were none.  Below is a summary of the bid results, which is also included in the attached resolution.
 
 

CONTRACTOR	TOTAL BID
Allied Blacktop Co.	$139,684.30
Pearson Bros., Inc.	$141,004.59
Engineer’s Estimate	$190,682.46

 
Allied Blacktop Co. of Maple Grove, Minnesota, submitted the lowest responsible bid in the amount of $139,684.30 for the total bid for construction of said improvements in accordance with the approved plans and specifications and advertisement for bids.  Upon adoption, the attached resolution accepts this bid and authorizes and directs the Mayor and City Administrator to enter into a contract with said bidder for the construction of said improvements.

Advertisements for bids were published in the City’s official newspaper, the Anoka County Union Herald, and in Finance and Commerce, on July 1st and July 8th.

Observations:
Streets proposed to receive sealcoat improvements under Division A1 of the 2016 Street Maintenance Program were selected by City staff based on various criteria including their Pavement and Surface Evaluation Rating (PASER), previous maintenance histories, project scope, and other less tangible criteria.
 
The first 2016 crackseal and sealcoat project, which was awarded to Pearson Bros., Inc., uses Dresser trap rock in lieu of granite rock chips, the City’s previous sealcoat rock standard.  This second 2016 crackseal and sealcoat project also uses Dresser trap rock so all street sealcoating in 2016 will be completed using Dresser trap rock.  Staff will evaluate the performance of Dresser trap rock over a number of years to determine which sealcoat rock works best and should therefore be specified on future sealcoat projects.
 
Construction of this project is proposed to commence in August with completion occurring no later than September 2^nd.
 
Alternatives:
Alternative #1 - Motion to adopt Resolution #16-07-133 accepting bids and awarding a construction contract for Improvement Project #16-00 Division A1, Crackseal and Sealcoat Improvements.

Alternative #2 - Motion to deny adoption of Resolution #16-07-133 at this time.

A total of $500,000 was budgeted for 2016 crackseal and sealcoat improvements.  No special assessments are proposed to fund any of this work.
 
The lowest responsible bid for construction costs as submitted by Allied Blacktop Co. is $139,684.30. After adding 14% to their bid for indirect project costs, the estimated total project cost is $159,240.10.  Upon totaling estimated project costs for the first crackseal and sealcoat project ($296,995), this second crackseal and sealcoat project ($159,240), and the temporary pavement repairs to concrete streets within The COR ($18,000), a total of $474,235 is proposed to be spent from the $500,000 budgeted for 2016.  This leaves an estimated $25,765 available to be spent in 2016, and the City Council has made it clear that the entire $500,000 is to be spent each year.
 
City staff is beginning the process of developing the next 5 year (2020 – 2024) street maintenance program and has identified numerous streets which are the best candidates for mill and overlay or reconstruction projects during the 5 year program.  However, many of these streets are located in areas of the City which are known to have poor soils, or were built before modern standards were in place meaning their pavement sections are largely unknown and may be inadequate for milling or pavement reclaiming operations.  Staff therefore recommends spending the remaining $25,765 to complete pavement corings and soil borings along these streets to ensure we are programming the proper pavement maintenance treatments.  Any remaining funds would then be spent on additional spray patching work this fall to augment the work completed this spring.  While the remaining funds could be spent strictly on additional spray patching, staff recommends using the funds to obtain pavement corings and soil borings first to ensure the City spends its funds as cost-effectively as possible on future street maintenance projects.

Staff recommends Alternative #1.  Staff also recommends spending the remaining funds from the $500,000 budgeted amount to obtain pavement corings and soil borings on streets identified as the best candidates for the 2020 – 2024 street maintenance program.

Adopt Resolution #16-07-133 accepting bids and awarding a construction contract for Improvement Project #16-00 Division A1, Crackseal and Sealcoat Improvements.