Adopt Resolution #20-105 Accepting Bids and Awarding Contract for 2020 Crack Sealing Improvements, Improvement Project #20-00

Purpose:
The purpose of this case is to adopt Resolution #20-105 accepting bids and awarding a construction contract for 2020 Crack Sealing Improvements, Improvement Project #20-00.
 
Background:
Crack seal improvements are completed annually on between 13 and 23 miles of public street segments to cost-effectively maximize the life of the bituminous pavement.  Crack sealing protects pavement by preventing stormwater runoff from seeping through cracks in the pavement and joints between the pavement and concrete curb and gutter and utility castings, reducing future pavement damage due to wet subgrade soils, especially during freeze-thaw cycles.
 
The City’s current pavement maintenance schedule calls for public streets to be crack sealed the third, seventh, and fourteenth year following construction, reconstruction, and overlay improvements.  However, while this is the typical maintenance schedule it is important to note that Staff reviews the condition of all streets annually and adjusts the schedule of maintenance operations based on actual pavement conditions.
 
A total of 15.74 miles of public street segments are proposed to receive crack seal improvements in 2020.  These street segments were selected based on age, pavement maintenance history, and Pavement and Surface Evaluation Rating (PASER) values.  Crack seal improvements are typically performed on pavement sections with PASER ratings of 7 or higher.  Staff also attempts to select street segments that are in relatively close proximity to each other in an attempt to receive lower bid prices for mobilization and traffic control bid items.
 
Plans and specifications for the 2020 Crack Sealing Improvements were prepared in-house as part of Staff’s normal duties.  A copy of the plans are attached to this case.
 
Also attached is a figure showing which streets are proposed to receive crack seal improvements to the entire pavement surface (red lines) versus streets that are only proposed to receive crack seal improvements along the seam between the pavement and concrete gutter (blue lines).  This is an area of special concern since gutters convey large volumes of stormwater runoff and the seam between the pavement and gutter runs parallel to the direction of flow.  Therefore, any time this seam opens up it can allow significant volumes of water to infiltrate into and beneath the pavement section.
 
Work is anticipated to occur between mid-June and mid-August.  The work generally takes two to three weeks to complete after the Contractor commits crews to the project.  Staff will maintain a project webpage, and will update it as new information is made available.  Letters will not be mailed to notify the public of the 2020 crack seal improvements since the work occurs quickly and has little to no impact on the traveling public or abutting properties. 

Bids were advertised in the Anoka Union Herald and in Finance and Commerce on April 17 and April 24, 2020.  

Observations:
Similar to all improvement projects over the past two years, bids were solicited, accepted and managed on-line via the City’s website using QuestCDN.  This proved especially useful during the current pandemic since it did not limit the ability for contractors to submit bids, for the City to receive and accept bids, and allowed on-line participation during the bid opening.
 
On May 15, 2020, five (5) bids were received and publicly opened.  All bids complied with the advertisement for bids.  The four lowest bids were generally competitive with the engineer’s estimate landing roughly in the middle of these bids.  A summary of the five bids received is below and in the attached resolution.
 

CONTRACTOR	TOTAL BID
Allied Blacktop Company	$99,134.42
Northwest Asphalt & Maintenance	$119,457.50
American Pavement Solutions, Inc.	$127,903.25
Asphalt Surface Technologies Corp.	$187,762.76
Fahrner Asphalt Sealers, LLC	$354,987.04
Engineer’s Estimate	$157,505.60

 
Allied Blacktop Company of Maple Grove, Minnesota, submitted the lowest responsible total bid of $99,134.42 in accordance with the approved plans and specifications and advertisement for bids, which is $58,371.18 (37.06%) less than the engineer’s estimate of $157,505.60.
 
Since 2015, the City of Ramsey has annually budgeted $500,000 for crack seal and sealcoat improvements. Resolution #20-038, which is attached for reference, indefinitely suspended annual sealcoat improvements and reallocated $150,000 of the budgeted $500,000 to complete 2020 crack seal improvements.  Based on available information, Staff anticipated that bid prices for the 2020 crack seal improvements would be similar to the 2019 crack seal bid prices.  In an attempt to ensure the entire allocation of $150,000 could be spent if bids came in lower than estimated, excess street segments were added to the project with the thought being that some could be omitted, if needed.
 
Staff will discuss optional uses for the unspent funds with the Public Works Committee in June.  Some options include allocating the unspent funds through the 2021 budget process, working with the awarded contractor to increase the scope of the 2020 Crack Sealing Improvements project, bidding a second 2020 crack seal project, or allocating the funds to additional pavement patching.  These options, and potentially others, will be discussed in detail on June 16, at which time the Committee will be asked to provide a recommendation to the City Council. 
 
Alternatives:
Alternative #1 - Motion to adopt Resolution #20-105 accepting bids and awarding a construction contract for 2020 Crack Sealing Improvements, Improvement Project #20-00.    

This work will be funded entirely from the $500,000 that was budgeted for annual crack seal and sealcoat improvement per Resolution #20-038.   

Staff recommends Alternative #1.

Adopt Resolution #20-105 accepting bids and awarding a construction contract for 2020 Crack Sealing Improvements, Improvement Project #20-00.