Consideration of Adopting Resolution 14-06-116 Accepting Bids and Awarding a Contract for IP 14-01; 2014 Street Maintenance Program Phase 2.

Purpose:
The purpose of this case is to accept bids and award a contract for Improvement Project 14-01; 2014 Street Maintenance Program Phase 2.

Background:
On April 29^th the City Council accepted bids and awarded contracts for Division A and B of the 2014 Street Maintenance Program. At that time it was discussed that the bids were very favorable and that the difference between the engineer’s estimate and the low bids was approximately $116,000. Council then directed staff to develop a list of streets that would be the best candidates for sealcoating in 2014 utilizing the unused amount of $116,000.

On May 13^th City staff presented a list of streets to Council that included approximately 6 miles of streets that could be sealcoated as Phase 2 of the 2014 Street Maintenance Program (SMP). Staff recommended advertising the project using a base and alternate bid approach to ensure that the entire $116,000 could be spent.  The City Council accepted plans and specifications and authorized advertisements for bids using the base and alternate approach.  Attached to this case is an overall project map showing the locations of the streets that were bid as Phase 2 of the 2014 Street Maintenance Program.  Also attached are three maps (L, M, and N) showing the Phase 2 streets in more detail.  Maps M (Highpoint) and N (Golden Eagle) include the base bid streets, and map L (Riverwood) shows the alternate bid streets.
 
On June 13^th bids were received and publicly opened and read aloud.  A lone bid was received from Allied Blacktop Company, the contractor that recently completed the sealcoating improvements for the 2014 Street Maintenance Program. This bid was checked for errors and omissions. A tabulation of the bid results is included below, as well as in attached Resolution 14-06-116.  Bid prices for both the base and alternate bids were about 10% less than the engineer's estimates which were calculated using average unit prices bids received with the original 2014 Street Maintenance Program bids.
 

CONTRACTOR	BASE BID	ALTERNATE BID	TOTAL BID (Base + Alt.)
Allied Blacktop Company	$111,730.24	$27,268.80	$138,999.04
Engineer’s Estimate	$127,000.00	$29,736.00	$156,736.00

 
If a contract is awarded, all work must be completed by August 15, 2014.

Advertisements for bids for the 2014 Street Maintenance Program Phase 2 project were published in the Anoka County Union and in Finance and Commerce on May 23^rd, May 30^th, and June 6^th, 2014.  Plans and Specifications were made available at City Hall and were posted on the QuestCDN web site for on-line bidding purposes.

Observations:
If Council wishes to spend the entire $500,000 budgeted for street maintenance projects in 2014, Alternative #1 should be selected whereby both the base and alternate bids would be accepted in the amount of $138,999.04 and approved for construction.  If this option is chosen, about $23,000 more than the budget amount of $500,000 will be spent on street maintenance projects in 2014.  Staff would propose allocating the additional funds from the Public Improvement Revolving (PIR) fund to draw down on the funds transferred into the PIR fund last year as a result of the unspent street maintenance program budget.
 
If Council wishes to spend only the remaining $116,000 from Improvement Project 14-00, Alternative #2 should be selected whereby only the base bid would be accepted in the amount of $111,730.24 and approved for construction.  If this option is chosen, about $4,270 will remain unspent from the $500,000 budgeted for street maintenance projects in 2014.

Alternatives:
Alternative #1 - Motion to accept the bid and award a contract to Allied Blacktop Company for both the base and alternate bid improvements in the amount of $138,999.04 for Improvement Project 14-01, 2014 Street Maintenance Program Phase 2.

Alternative #2 - Motion to accept the bid and award a contract to Allied Blacktop Company for the base bid improvements only in the amount of $111,730.24 for Improvement Project 14-01, 2014 Street Maintenance Program Phase 2.
 
Alternative #3 - Motion to deny accepting the bid and awarding a contract for Improvement Project 14-01, 2014 Street Maintenance Program Phase 2.

The 2014 budget includes $500,000 in the Street Maintenance Fund (within the general fund) for street maintenance projects. If Council approves Alternative #1, approximately $23,000 would be applied to the project from the Public Improvement Revolving fund with the final amount being determined from final quantities.  And as was previously stated, no assessments are proposed to fund any portion of the 2014 Street Maintenance Program Phase 2 project.

Staff recommends adopting Resolution #14-06-116 accepting the bid and awarding a contract to Allied Blacktop Company for IP 14-01; 2014 Street Maintenance Program Phase 2 for both the base and alternate bids in the amount of $138,999.04 for Improvement Project 14-01, 2014 Street Maintenance Program Phase 2.  This will utilize all $500,000 budgeted for street maintenance projects in 2014, and approximately $23,000 will be drawn from the PIR fund to utilize some of the unspent 2013 street maintenance funds.

Council is requested to adopt resolution #14-06-116 accepting the bid and awarding a contract to Allied Blacktop Company for IP 14-01; 2014 Street Maintenance Program Phase 2 for both the base and alternate bids in the amount of $138,999.04 for Improvement Project 14-01, 2014 Street Maintenance Program Phase 2.