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HomeMy WebLinkAbout11B - 2010 Street Resurfacing Project o~ PR10~\ t ~~ 4646 Dakota Street S.E. u"Wr; Prior Lake, MN 55372-1714 4r/~ESO~~ CITY COUNCIL AGENDA REPORT MEETING DATE: AGENDA #: PREPARED BY: FEBRUARY 16,2010 11B LARRY POPPLER, ASSISTANT CITY ENGINEER STEVE ALBRECHT, DIRECTOR OF PUBLIC WORKS AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION APPROVING PLANS AND SPE- CIFICATIONS AND AUTHORIZING ADVERTISEMENT FOR BIDS FOR THE 2010 STREET RESURFACING PROJECT DISCUSSION: Introduction The purpose of this agenda item is to seek approval from the City Council for the plans and specifications and to authorize advertisement for bids for the 2010 Street Resurfacing Project City Project #10-012. Histor{ In 2009, in an effort to quickly address deteriorating streets, the City Council ap- proved a new program in the Capital Improvement Program (CIP) to keep streets safe and useable until they can be reconstructed. Currently the City has a 10+ year backlog of neighborhood street projects that are worthy of immediate recon- struction. The 2009 Transportation Plan, adopted as part of the CIP, proposes the resurfacing of several streets to extend the useable life a minimum of 10 years to allow the City to catch up with the backlog of deteriorating neighborhood streets. The Council was very clear in directing that only streets where existing watermain and sanitary sewer systems are adequate, or can be operated with minor repairs to meet the life of the resurfacing, should be considered for this program. The street resurfacing project involves making spot utility repairs which include replacement of valves and hydrants that are no longer functioning properly, along with any needed drainage repairs. The streets and infrastructure in the project area were originally constructed in the 1970s. Once utility repairs are made, the existing roadway will be milled and leveled as needed to provide a surface for the new 1 %-inch bituminous overlay surface. Because the subgrade of the road is not being reconstructed, this is a far less expensive construction method. How- ever, this resurfacing is not meant to be a long-term repair as the useable life for this type of activity is about 10 years. One of the issues with this method is that within a year or two of the resurfacing, cracks will begin to appear in the new sur- face where subgrade issues currently exist. Any cracks that appear will be sealed by the City as part of our annual crack sealing program to ensure the re- surfaced area remains safe and useable for the 10 year design life. In addition to the streets identified for the resurfacing program, staff is recom- mending that Crossandra Street and Fremont Avenue be included as they have been identified for resurfacing as part of the annual street maintenance overlay program. At the January 19, 2010 meeting the City Council approved a resolution authoriz- ing the preparation of the plans and specifications for this project. www.cityofpriorlake.com R:\Council\20 1 0 Agenda Reports\02 I01tmR~~~ih12~i*Pt~~.re-p~rtll&5 Current Circumstances At this point the project design is complete and it is appropriate to seek City Council authority to advertise for bids. A copy of the plans is available in the En- gineering Department for review. Once the bids are received, City staff will pre- sent the bids to the City Council for award. If the bids received are higher than expected, the City Council can elect to amend the project area or not to move forward with awarding a contract. ISSUES: Existina Street Condition Existing streets in the Martinson Island (Lords/Edgewater), Shady Beach Trail and Rustic Road neighborhoods are over 30 years old and failing. These streets have significant degradation that affects the safety of and usability by the public. Based on the current transportation plan and available funding, these streets are not scheduled for full reconstruction until after 2019. Aoorove the Plans and Soecifications and Authorize Advertisement for Bids By authorizing the advertisement for bids the City would be in a favorable posi- tion to open bids in March. Historically, February and March are the most desir- able months to bid projects, typically result in the lowest prices and allow the pro- jects to be scheduled for early completion. During this period the maximum num- ber of contractors are typically lining up their initial projects for the year and bid on them much more competitively. More competition typically results in the best prices for the City. Additionally these projects also receive scheduling priority. Delay in proceeding with the bidding process at this time could result in higher costs. Existina Utilities The utilities in these streets have been evaluated and staff believes that with re- placement of valves, hydrants and minor sanitary and storm sewer repairs, the useable life of the utility infrastructure can be extended until the streets are re- constructed. Assessments The CIP does not propose to assess residents for this project. The City's Stan- dard of Practice over the last 10 years with overlays has not been to assess them to benefiting properties. City staff believes that this is a maintenance item and that assessment should be reserved for full reconstruction of streets. Some sur- rounding communities assess anywhere from $500 to $1,200 for street overlays; however, those communities typically have much lower street reconstruction as- sessments. Cost Analvsis At the January 19, 2010, City Council meeting the Council requested that Staff perform a financial analysis on the alternatives to this method to compare value. For the purposes of this analysis Staff considered the following alternatives: 1) Resurfacing w/ Future Reconstruction 2) Reconstruction R:\Council\201O Agenda Reports\02 16 lO\Resurfacing acceptplans agenda report. doc 2 A "no-build" alternative was not considered viable due to the advanced degrada- tion of the streets. Staff calculated the annual average liability in present day dollars for the pro- posed 3.4 mile project under both scenarios. This calculation took into account standard maintenance practices and costs for each alternative. It should be noted that the current City CIP does not have funding available for the immediate reconstruction (alternative 2). Alternatives 1 and 2 have annual liabilities of $59,241 and $61,754 respectively over the design life. Based on this analysis, extending the life of the street by a minimum of 10 years utilizing resurfacing de- creases the City's annual long term liability for these streets by $2,513 per year. The above analysis is only valid if the existing water and sewer infrastructure are in serviceable condition and require only minimal repairs at the time of resurfac- ing. Cost vs. Value/Qualitv The above analysis shows that utilizing a street reconstruction program that ex- tends the life of severely degraded streets utilizing resurfacing does provide a slightly lower cost to the taxpayer if major utility repairs are not needed. The con- cern with this method is that the quality of the resurfacing will not meet the ex- pectations of the taxpayers. As is noted above, the resurfaced streets typically crack within a year or two due to the subgrade conditions. This cracking can be managed and mitigated utilizing crack sealing. Aesthetically the crack sealing is not ideal, but it is functional and staff believes it will ensure that the resurfaced street's useable life can be extended as required. The real benefit to the resurfacing project is that it allows the City to address needed street repairs in several neighborhoods while continuing to focus on in- frastructure reconstruction in the areas where the need is the greatest. FINANCIAL IMPACT: The total project budget is $900,000 ($700,000 tax levy, $100,000 Street Budget, $100,000 utility fund). The estimated project cost is: Construction Cost Engineering/Bonding (11 %) Total Estimated Project Cost $717,132 $79,000 $796,132 The estimated project cost is approximately $104,000 less than the available funding. Potentially the City could reduce the tax levy allocation to $600,000 should bids reflect the estimated costs. This would result in an estimated annual debt levy cost of $72,000 for this project over a period of 10 years. Advertising for bids does not commit the City to completing the project. Once bids are received, the City Council will consider the bids and evaluate the finan- cial impact and benefits to the community prior to awarding bids. Staff antici- pates bringing bids back to the Council for consideration on April 5. R:\Council\201O Agenda Reports\02 16 lO\Resurfacing acceptplans agenda report. doc 3 ALTERNATIVES: The alternatives are as follows: 1. Approve Resolution 10-XX approving plans and specifications and authoriz- ing advertisement for bids for the 2010 Street Resurfacing Project. 2. Deny this item for a specific reason and provide staff with direction. 3. Defer this item until a future date. RECOMMENDED Alternative #1. MOTION: R:\Council\201O Agenda Reports\02 16 lO\Resurfacing acceptplans agenda report.doc 4 OO~ PRio~'\ A ("\ f.., ';P U ~ h'J 4r~NNESV 4646 Dakota Street S.E. Prior Lake, MN 55372-1714 RESOLUTION 10-XXX A RESOLUTION APPROVING THE PLANS AND SPECIFICATIONS AND AUTHORIZING THE ADVERTISEMENT FOR BIDS FOR THE 2010 STREET RESURFACING PROJECT Motion By: Second By: WHEREAS, Pursuant to Resolution 10-008, adopted on January 19, 2009, the City Engineer has prepared plans and specifications for the 2010 Street Resurfacing Project (Project #10-012); and WHEREAS, The 2010-2014 Capital Improvement Program (CIP) identifies the Street Resurfacing Program for construction in 2010; and WHEREAS, The streets in the Shady Beach Trail, Lords/Edgewater, Rustic/Maple neighborhoods have deteriorated to the point where their usability has been compromised; and WHEREAS, Due to budget constraints the City does not plan to reconstruct these streets until after 2019; and WHEREAS, The City will utilize its Street Resurfacing Project to extend the useable life of these streets until they can be reconstructed; and WHEREAS, Staff has reviewed the existing utilities and determined that with minor repairs they can be maintained over the life of the resurfacing project; and WHEREAS, The 2010 Budget includes funds for overlay of Crossandra Street and Fremont Avenue and therefore those streets should be included in the Street Resurfacing Project; and In order to provide the opportunity for the City to bid this project during the WHERAS, recommended period it is necessary to approve the plans and begin the advertisement for bids at this time. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. Staff is authorized to prepare the plans and specifications for the 2010 Street Resurfacing Project. 3. The plans and specifications for the 2010 Street Resurfacing Project (Project #10-012), a copy of which is attached hereto and incorporated by reference herein, are hereby approved. 4. The City Manager shall prepare and cause to be inserted in the official newspaper of the City and in the Construction Bulletin an advertisement for bids for the making of the improvement pursuant to the attached plans and specifications. The advertisement shall be published not less than 21 days prior to the bid opening, shall specify the work to be done, and shall state that the bids will be R:\Council\2010 Agenda Reports\02 16 1 O\Resurfacing ~.~~fY~Hpriorlake.com Phone 952.447.9800 / Fax 952.447.4245 received by the City Manager at which time the bids will be publicly opened at City Hall at 4646 Dakota Street SE by the City Engineer. No bids will be considered unless sealed and filed with the City Manager and accompanied by a cash deposit, cashier's check, bid bond, or certified check payable to the City of Prior Lake in the amount of five (5) percent of the amount of such bid. 5. The City reserves the right to reject any and all bids for any reason as determined solely by the City Council. PASSED AND ADOPTED THIS 16th DAY OF FEBRUARY 2010. YES NO Myser Hedberg Erickson Keeney Millar Myser Hedberg Erickson Keeney Millar Frank Boyles, City Manager R:\Council\2010 Agenda Reports\02 16 10\Resurfacing Resolution.doc