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Home My WebLink About5E South Metro JPA Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: April 11, 2016 AGENDA #: 5E PREPARED BY: JAKE THEISEN, MAINTENANCE SUPERINTENDENT PRESENTED BY: JAKE THEISEN, MAINTENANCE SUPERINTENDENT AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION APPROVING 2016 STREET MAINTENANCE SERVICES THROUGH THE SOUTH METRO JPA AND AUTHORIZING THE EXPENDITURE OF $190,000 FOR THE SAME. DISCUSSION: Introduction The purpose of this agenda item is to authorize the expenditure of $190,000 to complete street maintenance as part of the South Metro Joint Powers Agreement (JPA) including traffic markings and seal coating. History A JPA is an agreement whereby Local Government Units (LGUs) with similar powers act collectively as an entity for the delivery of certain products or services. For many years several south suburban communities have entered into a JPA to acquire various street maintenance services including traffic markings, street sweeping, crack sealing, screening, and seal coating. The current agreement includes the communities of Burnsville, Apple Valley, Eagan, Lakeville, Rosemount, Savage, Prior Lake, Shakopee, West St. Paul, Elko New Market, Waconia, Farmington, Mendota Heights and South St. Paul. Scott County joined this partnership in 2014. By combining the quantities needed by each community, contractors have been able to discount the unit bid price which has a net effect of lower prices for all participating communities. The JPA has streamlined the process of advertising for sealed bids and contracting for the previously mentioned street maintenance services. The City of Burnsville administers the JPA which includes compiling all of the quantities from each project partner, completing the bidding process in accordance to state statute, and entering into and administering the construction contract. Each community pays a fee to Burnsville for this service based on a percentage of the total amount of services requested through the JPA. There is no change in this fee and it is billed as follows: $0 - $50,000 1.5% $50,000 - $100,000 1% Over $100,000 .5% 2 In 2012 the language of the JPA was modified slightly to have the agreement continue in effect until terminated instead of having an annual expiration. However, participating communities still need to authorize the work and expenditure of funds once the bids are received. Current Circumstances The 2016 city street maintenance budget has $190,000 to purchase materials and services through the JPA. The practice is to perform maintenance activities on streets which fall within the appropriate pavement management activity ranges in an effort to assure that we continue to have an average OSI rating of 70 on city streets as set forth in our 2040 Vision and Strategic Plan. The 2016 services will include 8.6 miles of seal coating and 30.5 miles of long line painting. These quantities are slightly over our pavement management goal of 7.0 miles annually of seal coating, however we have been under this goal in previous years. The City of Burnsville has completed the bidding process with the results shown on the attached Burnsville City Council Report. Prior Lake’s portion of the bids is as follows: Seal Coating $181,000 Long Line Painting $9,000. Conclusion In 2012 the language of the JPA was modified slightly to have the agreement continue in effect until terminated instead of having an annual expiration. The agreement can be terminated by giving Burnsville sixty (60) days’ notice. The Council is being asked to approve work related to this agreement prior to reporting of quantities to Burnsville for the bidding documents. Given only the slight modification and the overall benefit, it is recommended to proceed with participation in this collaborative, cost saving effort ISSUES: The fundamental reason for performing this work through a Joint Powers Agreement is to get better products for the least expensive prices. We also find that the oversight and administration of this work is considerably easier when it is done in collaboration with others. Prior Lake has been participating in the JPA since 1995 and typically utilizes seal coating, crack sealing and traffic marking services. Prior Lake does not have the required staff or equipment to complete large scale traffic marking, crack sealing or seal coating projects in- house. 3 FINANCIAL IMPACT: This Joint Powers Agreement is cost effective for city taxpayers. The State Legislature places a high priority on Local Government Units (LGU) combining their resources to accomplish day-to-day responsibilities. This is an excellent example of this practice. ALTERNATIVES: 1. Approve a resolution, as part of the consent agenda, authorizing the expenditure of $190,000 for street maintenances services through the South Metro Joint Powers Agreement. 2. Remove this item from the consent agenda for additional discussion. RECOMMENDED MOTION: Alternative #1 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 16-xxx A RESOLUTION AUTHORIZING THE EXPENDITURE OF UP TO $190,000 FOR STREET MAINTENANCE SERVICES THROUGH THE SOUTH METRO JPA Motion By: Second By: WHEREAS, Burnsville, Apple Valley, Eagan, Lakeville, Rosemount, Savage, Prior Lake, Shakopee, West St. Paul, Elko New Market, Waconia, Farmington, Mendota Heights, Scott County and South St. Paul wish to enter into a Joint Powers Agreement to contract for traffic markings, street sweeping, crack sealing, screening and seal coating last amended in 2014; and WHEREAS, The Joint Powers Agreement describes the City's participation in the traffic markings, street sweeping, crack sealing, screening and seal coating Contract; and WHEREAS, The Joint Powers Agreement will result in cost savings to the City of Prior Lake and previously this particular Joint Powers Agreement has been issued a commendation for interagency cooperation and cost savings by the State of Minnesota ; and WHEREAS, The City of Burnsville administers the JPA which includes compiling all of the quantities from each project partner, completing the bidding process in accordance to state statute, and entering into and administering the construction contract. WHEREAS, It is recommended that the City complete 8.6 miles of seal coating and 30.5 miles of long line painting with an estimated cost of $190,000.00. 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. The City Council authorizes the expenditure of an estimated $190,000 for Traffic Markings and Seal Coating as part of the Street Maintenance Joint Powers Agreement 3. The funding for the street maintenance completed through the Joint Powers Agreement shall come from the Street Portion of the 2016 General Street Fund Budget. PASSED AND ADOPTED THIS 11th DAY OF April, 2016. VOTE Hedberg Keeney McGuire Morton Thompson Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Frank Boyles, City Manager CITY OF BURNSVILLE Meeting Date: 3/22/2016 CITY COUNCIL REGULAR BACKGROUND Item Number: 4.M. PRESENTER(S): n/a ITEM: Accept Bids and Award Contracts for the 2016 South Metro Joint Powers Agreement (JPA) for Roadway Maintenance Services Project (#16-303) RELATED ENDS & OUTCOMES STATEMENT: TRANSPORTATION – People feel that the community roadway system is well maintained at a reasonable cost. POLICY DECISION / ACTION TO BE CONSIDERED: Accept bids and award contracts for the 2016 South Metro Joint Powers Agreement (JPA) for roadway maintenance services project (#16-303) to the following contractors in the following amounts: Service Contractor Bid Amount Bituminous Fog Seal Allied Blacktop Co. $ 126,889.99 Bituminous Seal Coat Asphalt Surface Technologies, Corp. $1,888,352.92 Crack Sealing American Pavement Solutions $ 938,924.66 Pavement Markings Sir Lines-A-Lot $ 566,029.00 Spray Patching RCM Specialties, Inc. $ 187,068.69 FACTS: As the lead organization for the South Metro JPA for Roadway Maintenance Services, the City of Burnsville coordinates the JPA, prepares the contract documents, provides bidding services, awards the contracts and provides general contract administration for the member local governments acting as one organization. The bids were advertised, received, opened and read aloud as required by law. The following bids were received: Service Contractor Bid Amount Burnsville’s Portion Bituminous Fog Seal Allied Blacktop Co. $ 126,889.99 $ 1,869.55 Pearson Bros, Inc. 129,248.54 Asphalt Surface Technologies, Corp. 188,684.00 Bituminous Seal Coat Asphalt Surface Technologies, Corp. $ 1,888,352.92 $ 139,902.04 Pearson Bros, Inc. 1,947,224.30 Allied Blacktop Co. 2,025,810.45 Crack Sealing American Pavement Solutions $ 938,924.66 $ 244,250.00 Asphalt Surface Technologies, Corp. 965,947.90 Fahrner Asphalt, LLC 1,309,823.32 Allied Blacktop Co. 1,716,608.09 Pavement Markings Sir Lines-A-Lot $ 566,029.00 $ 77,330.00 AAA Striping Service 576,501.00 Warning Lites 611,129.35 Spray Patching RCM Specialties, Inc. $ 187,068.69 $ 4,963.68 CITY COUNCIL REGULAR BACKGROUND Meeting Date:3/22/2016 PAGE 2 Item Number: 4.M. Bidding these routine roadway maintenance services on a joint basis allows the member local governments to reduce their administrative costs in bidding and administering these contracts and offers economy of scale pricing the members could not get bidding the work alone. Burnsville is reimbursed a portion of the amount of work each member does with the JPA contractors. The reimbursement roughly equates to our increased administrative time and effort to manage the JPA and contracts. The economy of scale pricing benefits all members; Burnsville included. South Metro JPA includes the following: Cities of Apple Valley, Burnsville, Eagan, Elko New Market, Farmington, Hastings, Lakeville, Mendota Heights, Prior Lake, Rosemount, Savage, Shakopee, South St. Paul, Waconia and West St. Paul as well as Scott County and Empire and Spring Lake Townships. Burnsville’s portion of the contracts total $468,315.27. The majority of the funding for this work comes out of the Street Maintenance Fund with a small portion coming out of the Facilities CIP for work around City Facilities. The remainder of the Street Maintenance Fund’s allocation goes toward other materials and services quoted or bid that is similar in nature but individual to Burnsville or the street we are maintaining and not done through the JPA. ISSUES: Staff is not aware of any issues regarding this item at this time. RECOMMENDATION: Staff feels the bids are competitive and of good value at the time of the bid and recommends accepting the bids and awarding the contracts to the low responsible and responsive bidders as detailed above. All the contractors have worked for the JPA in the past with acceptable results. ATTACHMENT(S): n/a JJR