Title
AUTHORIZATION TO ENTER INTO A CONSTRUCTION AGREEMENT WITH NESBITT CONTRACTING CO., INC., FOR THE PAVEMENT MANAGEMENT PROGRAM - MILL AND OVERLAY
Staff Contact: Jack Friedline, Director, Public Works
Purpose and Recommended Action
Recommendation
This is a request for City Council to authorize the City Manager to enter into a Construction Agreement with Nesbitt Contracting Co., Inc., in an amount not to exceed $7,333,006.50 and authorize a term expenditure limit of $7,699,656.83 (base contract + 5% contingency $366,650.33) for the Mill and Overlay project associated with the Pavement Management Program. This request also authorizes the City Manager, at the City Manager’s discretion, to renew the agreement for an additional four terms, in an amount not to exceed $38,498,284.12 over the duration of the Agreement, contingent upon Council Budget approval.
Background
The city has over 748 miles of paved arterial, collector and residential roadways, which represents an investment of over $1 billion in the street network based on replacement costs in today’s economy. With the exception of minor street and concrete repairs (potholes, curb, and sidewalk) the city contracts for all other preventative maintenance and reconstructive roadway projects.
The Mill and Overlay project for the Pavement Management Program provides for approximately 14 miles of mill and overlay improvements per term on various arterial, collector, and residential streets throughout the city. Specifically this project includes: mill and overlay treatment of existing roadway sections, American with Disability (ADA) sidewalk ramp improvements, utility adjustments and miscellaneous concrete repairs, repainting of pavement markings, and thermoplastic restriping.
Analysis
The Engineering division published a Notice to Contractors requesting bids for the Pavement Management Program - Reconstruction and Mill & Overlay project (project number 151623) on March 24, and 31, 2016. Nine contractors obtained the bid documents. On April 21, 2016, four bids were received, with Nesbitt Contracting submitting the lowest responsive and responsible bid in the amount of $7,330,006.50, which was below the engineer’s estimate. Staff anticipates issuing a Notice to Proceed mid to late July, with completion of the initial term construction project before the end of March 2017.
The initial term of the Agreement is focused primarily on streets south of Peoria Avenue. The first renewal will focus primarily north of Peoria Avenue; subsequent renewals will alternate south and north of Peoria Avenue.
Previous Related Council Action
On April 5, 2016, staff presented the 5 year Pavement Management Program to Council.
Community Benefit/Public Involvement
Well maintained infrastructure is an important element of strong neighborhoods and business corridors and is critical for the attraction of quality economic development.
Budget and Financial Impacts
Funding is available in the Fiscal Year 2015-16 Capital Improvement Plan budget. Expenditures with Nesbitt Contracting Co., Inc. are not to exceed $7,699,656.83 per term, or $38,498,284.13 over the full five-year term of the agreement based on annual budget approval from Council.
|
Cost |
Fund-Department-Account |
|
$5,699,656.83 |
2000-68917-550800, Pavement Management-HURF |
|
$2,000,000.00 |
2210-65089-550800, Pavement Management |
Capital Expense? Yes
Budgeted? Yes
Requesting Budget or Appropriation Transfer? No
If yes, where will the transfer be taken from?