HomeMy WebLinkAbout05(H) - Approve a Resolution for the 2022 Street Maintenance Services through South Metro Joint Powers Agreement (JPA) ReportAGENDA REPORT
Regular City Council - 22 Mar 2022
TITLE
Accept Bids and Award Contract for 2022 South Metro JPA for Street Maintenance Services
Project (22-504)
ACTION REQUESTED
Accept Bids and Award Contract for 2022 South Metro JPA for Street Maintenance Services Project
(22-504) to the following contractors in the following amounts:
Service Contractor Amount
Bituminous Fog Seal Pearson Bros., Inc. $ 118,611.14
Bituminous Seal Coat Pearson Bros., Inc. $ 1,501,957.05
Crack Sealing Northwest Asphalt & Maintenance $ 1,142,412.42
Pavement Markings Sir Lines-A-Lot $ 621,234.88
* Action requires simple majority vote of the Council.
BACKGROUND
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 following bids were received:
Service Contractor Bid Amount Burnsville's
Portion
Bituminous Fog
Seal Pearson Bros., Inc. $ 118,611.14 $ 0.00
Allied Blacktop Co. $ 125,408.34
Asphalt Surface Tech $ 212,072.64
Bituminous Seal
Coat Pearson Bros., Inc. $ 1,501,957.05 $ 203,894.00
Allied Blacktop Co. $ 1,581,122.50
Asphalt Surface Tech $ 1,845,651.09
Crack Sealing Northwest Asphalt Maint $ 1,142,412.42 $ 178,100.00
Asphalt Surface Tech $ 1,239,072.60
Allied Blacktop Co $ 1,606,083.50
American Pavement
Solutions $ 1,804,967.60
Fahrner Asphalt Sealers $ 2,101,168.20
Pavement Markings Sir Lines-A-Lot $ 621,234.88 $ 116,995.00
Bidding these routine maintenance services with all members of the JPA allows the member local
governments to reduce their administration costs and offers economy of scale pricing the members
could not get by bidding the work alone. Burnsville is reimbursed by JPA members for the
administrative work it completes on their behalf. The economy of scale pricing benefits all members,
Burnsville included.
The South Metro JPA includes the cities of Apple Valley, Bloomington, Burnsville, Eagan, Elko New
Market, Farmington, Hastings, Lakeville, Mendota Heights, Prior Lake, Rosemount, Savage,
Shakopee, South St. Paul, Waconia and West St. Paul, along with Scott County and the townships of
Empire, New Market, Sand Creek and Spring Lake. This is the largest JPA of its type in the state and
regularly has the largest contracts for this type of work in the state.
BUDGET IMPACT
Inflation is a major concern currently across the economy. This project is significantly impacted by
that market force. The four major areas of this contract (Fog Seal, Seal Coat, Crack Sealing,
Pavement Markings) all rose between 17% and 24% compared to last year. This level of inflation is
concerning, but there were multiple bidders in all but one category, so competition was there.
Burnsville's portion of the contracts total $ 498,989. With indirect costs this total will be over the
allotment within the Street Maintenance Fund for this work. This contract allows the City reduce
scope to come in on budget without penalty. Staff will determine these scope reductions in the next
couple of weeks. The remainder of the Street Maintenance Fund's allocat ion, authorized previously,
goes toward other materials and services bid and quoted separately that are individual to Burnsville's
street maintenance needs. The other bids and quotes needing Council approval will be brought
forward as the work within the fund continues through the summer and fall.
STAFF RECOMMENDATION
Staff feels the bids are competitive (but inflated as described above) given the current bidding
environment and recommend accepting the bids and awarding the contracts to the low responsib le
and responsive bidders as highlighted above. Last year Northwest Asphalt & Maintenance did
marginally acceptable work but it was also their first year completing this project and there is a huge
learning curve with managing a project this large and complex. All members of the JPA will work with
them to make them as successful as possible this year, but if Northwest's challenges persist they may
need to be consider a non-responsible bidder in the future. The other low bidders are returning
contractors who have completed the contracts successfully for many years.
STRATEGIC PRIORITIES
Transportation & Infrastructure: Burnsville is committed to planning, providing, and maintaining
effective infrastructure, asset, park, and transportation systems.
Staff Contact: Jeff Radick