Agenda - Council - 05/08/2018 - Laserfiche WebLink

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Observations/Alternatives: Observations: The proposed improvements are consistent with the City's long-term Street Maintenance Program. As discussed with Council on March 27th, bituminous pavement patching work is proposed for several areas of severely damaged pavement in three project areas prior to overlaying the streets. This will help the overlay improvements achieve their design life of 15 to 20 years. The proposed bituminous patching work involves removing the existing damaged pavement, shaping and compacting the existing aggregate base, and placing and compacting new bituminous pavement to the same elevation of the existing pavement. The proposed pavement patching work is shown on plan sheets 20, 21, and 22 of the attached plans. Staff estimated costs for the bituminous patching work at $33,000. Per North Valley's low bid, the cost is anticipated to be $34,711.08, which the City will pay for in full. A total of eight (8) bids were received and opened on May 1, 2018. All bids were checked for errors and omissions. The bid of ASTECH Corp. included several mathematical calculation errors. After adjustments, their bid was increased by an amount of $28.30, which had no impact on the award of bids. A bid summary is included below, as well as in the attached resolution. CONTRACTOR TOTAL BID North Valley, Inc. $544,224.86 Midwest Asphalt Services, LLC $557,871.23 GMH Asphalt Corp. $561,479.63 Omann Contracting Companies, Inc. $573,712.28 ASTECH Corp. $591,518.47 Northwest Asphalt, Inc. $596,864.06 Park Construction Company $599,791.60 C.S. McCrossan $715,994.70 Engineer 's Estimate $581,492.00 Bids were favorable. The lowest responsible bid was received from North Valley, Inc. in the amount of $544,224.86, which is 6.4% less than the Engineer's estimate for construction costs of $581,492.00. Alternatives: Alternative # 1 — Motion to adopt Resolution # 18-081 accepting bids and awarding a construction contract for 2018 Street Overlay Improvements, Improvement Project #18-03. Alternative #2 — Motion to deny adoption of Resolution # 18-081 at this time. Funding Source: The lowest responsible bid was received from North Valley, Inc. in the amount of $544,224.86. The City's 5-year Street Reconstruction and Overlay Program includes the streets listed above as proposed 2018 overlay improvements, allowing the City to utilize street reconstruction/overlay bonds to fund 100% of the improvements. The City's current 10-year Capital Improvement Plan (CIP) includes the proposed 2018 overlay improvements. Copies of each are attached for reference. Bonds will be issued in an amount sufficient to cover all project costs initially, after which a portion of the proceeds will be recovered through special assessments. Special assessments may fund up to 25% of eligible improvement costs per Minnesota Statute Chapter 429, Chapter 8 of the City Charter, and the City's Special Assessment Policy. Eligible project costs cover all costs except bituminous patching costs. Proposed special assessment amounts vary by project area. To be consistent with past practice, special assessments are proposed to be equal across all properties within each project area since each property generally receives the same benefit based on similar property values. This is consistent with the "per lot" method of assessment defined within the City's Special Assessments Policy. Final assessment amounts may be more or less based on final construction costs.