Adopt Resolution #16-06-126 Approving Plans and Specifications and Authorizing Bids for Improvement Project #16-00 Division A1, Sealcoat Improvements.

Purpose:
The purpose of this case is to adopt Resolution #16-06-126 approving plans and specifications and authorizing advertisements for bids for Improvement Project #16-00 Division A1, Sealcoat 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 the street pavement sections.  Cracksealing of streets prevents 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, 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.

As discussed in a previous case this evening, bids for the first proposed 2016 sealcoat project were opened June 21^st.  When reviewing bids, Staff observed that quantities for four of the fifteen bid items in the bid proposal were between 7% and 23% less than the quantities associated with the proposed design as shared with Council on May 24^th.  In addition, based on the lowest responsible bid over $150,000 would have remained unspent from the $500,000 budgeted for sealcoats in 2016.  Staff therefore used the bid proposal quantities to revise the proposed project scope by removing 2.66 miles of street segments from the original project to allow the City to accept bids and award a contract for construction to the lowest responsible bidder.  The purpose of this second 2016 sealcoat project is to use the remainder of the $500,000 budgeted annually for sealcoats.  Staff therefore prepared the attached plans for a second 2016 sealcoat improvements project which proposes to sealcoat 5.47 miles of municipal streets in the City.  The attached plan sheets show the locations of all streets proposed to receive sealcoat improvements with this project.  Specifications are not attached but will be available for review at the Council meeting, if needed.

Also attached is a cost estimate for the proposed improvements, including cost breakouts for each street segment.  As noted on pages 1 and 2, Staff is proposing limited fog sealing in the Ramsey Meadows 2^nd Addition so the newly sealcoated streets will better blend into adjacent streets which are newer.  The total estimated cost for fogsealing is $523.
 
Staff is proposing to use Dresser trap rock to sealcoat all streets in lieu of standard granite rock chips to ensure an adequate supply of rock is available as discussed in a previous case tonight.  Based on bids received this week for the first sealcoat project, staff does not anticipate receiving higher bid prices for specifying trap rock over granite rock chips.

No notifications were required for this case.  If Council approves plans and specifications and authorizes advertisements for bids, advertisements will be published in the Anoka Union Herald and in Finance and Commerce on July 1^st and July 8^th.

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.
 
Bids are proposed to be opened July 22^nd, after which Council would be asked to accept bids and award a contract for construction on July 26^th.  Work would then commence in early August with completion proposed by September 2^nd.
 
Alternatives:
Alternative #1 - Motion to adopt Resolution #16-06-126 approving plans and specifications and authorizing advertisements for bids for Improvement Project #16-00 Division A1, Sealcoat Improvements.

Alternative #2 - Motion to deny adoption of Resolution #16-06-126 at this time.

Attached is a cost estimate for the proposed improvements, including cost breakouts for each street segment, which shows estimated project costs of $217,378.  This includes 14% indirect costs for administrative, engineering, legal and financing.
 
A total of $500,000 was budgeted for 2016 cracksealing and sealcoating work.  The first sealcoat project carries a total project cost of $296,994.81.  The total project costs for both 2016 sealcoat projects is estimated at $514,373 which leaves an estimated funding gap of $14,373.  However, staff anticipates bids will be less than the engineer’s estimate, eliminating a funding gap.  However, if the lowest responsible bid results in total sealcoating expenditures for 2016 exceeding $500,000, staff is prepared to identify street segments that can be pulled from this project prior to award of bid to reduce costs below $500,000.  Whatever funds remain can then be used to pay for concrete pavement repair work on Sunwood Drive, or to contract for additional spray patching of streets to supplement the spray patching previously completed this spring.

Staff recommends Alternative #1.

Motion to adopt Resolution #16-06-126 approving plans and specifications and authorizing advertisements for bids for Improvement Project #16-00 Division A1, Sealcoat Improvements.