Adopt Resolution #15-07-173 Accepting Bids and Awarding a Contract for 2015 Street Maintenance Program Division A, Sealcoat Improvements; Improvement Project #15-00

Purpose:
The purpose of this case is to accept bids and award a contract for Division A of the 2015 Street Maintenance Program, sealcoating improvements.
 
Background:
As part of the city's long-term Street Maintenance Program, various city streets receive cracksealing and sealcoating improvements each year to help maximize the life expectancy of street pavement sections.  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, reducing the potential for future pavement damage due to wet subgrade soils and frost heaving.  Sealcoating streets helps protect the pavement from the negative effects of stormwater runoff, the sun’s rays, and oil based by-products deposited on the surface of the pavement by vehicles.

The 2015 Street Maintenance Project proposes to crackseal and sealcoat approximately 12.8 miles of public streets located throughout the City.  Attached are Exhibits A through E which show the locations of all streets proposed to be improved with Division A of the 2015 Street Maintenance Program.

Bids were opened on July 9^th.  A total of two bids were received, and were checked for errors and omissions.  The bid of Pearson Brothers was adjusted to account for a math error in the alternate bid category.. A tabulation of the bids, including adjustments, is below.
 
 

CONTRACTOR	BASE BID	ALT. BID	TOTAL BID
Pearson Brothers, Inc.	$248,685.50	$6,810.62*	$255,496.12*
Allied Blacktop Company	$288,250.69	$7,317.94	$295,568.63
Engineer’s Estimate	$262,286.92	$14,871.04	$277,157.96

   * = adjusted bid price
 
The bids included an alternate bid to allow Staff to employ and evaluate two new pavement maintenance treatments this year as part of the Division A improvements.  The alternate treatments include the use of Traprock on a small area of the project instead of the more costly granite rock that has typically been used for sealcoating streets.  Several other cities have started using Traprock on all their streets therefore staff wishes to evaluate the effectiveness of Traprock on the streets identified in Exhibit E.  The second alternate treatment includes fogsealing several newly sealcoated streets to evaluate the benefits of applying fogsealing over freshly sealcoated streets.  Again, several other cities are fogsealing over new sealcoat applications and have found benefits including aesthetic benefits that allow the pavement to look newer for longer, and longevity benefits as the fogsealing locks the rocks into place longer thereby preventing the rocks from being tracked into garages, homes and businesses on tires and the shoe bottoms.  The streets proposed to receive fogsealing applications are identified in Exhibit C.
 
Upon acceptance of bids and award of a contract, staff will contact the contractor to obtain a work schedule which will then be posted on the City web site and conveyed to adjacent property owners via letter.  The earliest work could likely commence would be July 27^th.

Advertisements for bids were published in the Anoka Union Herald and in Finance and Commerce on June 12th, 19th, and 26th.

Observations:
The streets identified for receiving improvements with Division A of the 2015 Street Maintenance Program were selected by City staff based on various criteria including their Pavement and Surface Evaluation Rating (PASER), previous maintenance history, project scope, and other more intangible criteria.
 
Alternatives:
Alternative #1 - Motion adopting Resolution #15-07-173 accepting bids and awarding a contract for 2015 Street Maintenance Program Division A, Sealcoat Improvements; Improvement Project #15-00.

Alternative #2 - Motion denying adoption of Resolution #15-07-173 at this time.

A total of $500,000 was budgeted for sealcoating work in 2015.  The low bid was $255,496.12 which leaves $244,503.88 available to pay for indirect costs including administrative, engineering, finance, and legal fees, and for hiring contracted spray patching services in 2015 to complete other sealcoating work previously identified by staff.  Available funds can also be applied toward overlay projects.  
 
No assessments are proposed to fund any portion of Division A of the 2015 Street Maintenance Program.

Staff recommends Alternative Action #1.

Motion to accept adoption of Resolution #15-07-173.