AGENDA #4q

 

MEMORANDUM

 

TO:                  Mayor and Town Council

 

FROM:            W. Calvin Horton, Town Manager

 

SUBJECT:      Award of Bid for Resurfacing

 

DATE:            June 26, 2006

 

 

The attached resolution would award a contract to Riley Paving, Inc. for resurfacing and milling several town-maintained streets, and allow adjustment in the amount of the contract within the amount budgeted by the Council for the budget year 2006-2007.

 

The adoption of the attached resolution would authorize execution of a contract with the low bidder and change orders as necessary provided that the contracted cost of resurfacing, pavement marking and milling remains within the budget.

 

BACKGROUND

 

Budget

 

The Manager’s recommended budget for FY 2006-2007 includes $498,000 for milling selected streets and for traditional resurfacing.

 

Resurfacing and Milling

 

Resurfacing

 

A traditional overlay is one of several preventive maintenance activities to keep pavement, under normal conditions of traffic and normal forces of nature, as nearly as possible in its original constructed condition.  Such maintenance is necessary because all pavements eventually will weaken due to stress caused by traffic loading, weather and oxidization. 

 

The U.S. Department of Transportation Federal Highway Administration’s publication “Road Surface Management for Local Governments” pavement life cycle analysis shows that the average street pavement quality drops 40 percent over the first 75 percent of life (approximately 12 years) after construction.  Prior to this 40 percent drop in quality, the road condition is usually very good to excellent.  If maintenance is postponed only briefly, even two to three years, then the drop in quality is another 40 percent, resulting in a poor condition. As a result, maintenance costs increase significantly when this happens.

 

Renovation maintenance (e.g., full-depth patching and street reconstruction) costs may be five times higher, or more, per square yard compared to preventive maintenance (e.g., crack pouring, skin-patching, seals and overlays) cost if repairs by resurfacing are made after the first 75 percnet of the life cycle.  The recommended budget also includes $40,000 for slurry seal and $20,000 for a non-aggregate seal that would be performed under separate agreements with different contractors.

 

The list below represents an average pavement age of 16.3 years.  We believe most or all of the streets or portions of streets can be resurfaced within the available funds and the unit prices in the low bid:

 

 

Allard Road

Angier Drive

Balsam Court

 

Bolin Heights Road

Booker Creek Road

Boundary Street

 

Burlwood Place

Caldwell Street

Cameron Avenue (E)

 

Campbell Lane

Canterbury Lane (W)

Carr Street

 

Caswell Road

Cedar Street

Channing Lane

 

Chatham Lane

Clayton Road

Colony Court

 

Cottage Lane

Dawes Street

Eastridge Place

 

Farrington Drive

Hampshire Place

Hardwick Place

 

Hill Street

Jones Street

Justin Place

 

Laurel Hill Circle

Longview Street

Louis Armstrong Court

 

Lynwood Place

Marilyn Lane

Mitchell Lane

 

Old Mill Road

Owens Court

Park Place

 

Rose Lane

Rosemary Street

Saint James Place

 

Short Street

Surry Road

Woodland Avenue

 

York Place

 

 

 

The street segments listed above would total about 5.76 miles. This list is subject to change depending on conditions at the time of work, such as possible utility failures.

 

Milling

 

Fourteen of the streets noted above would need to be milled prior to the new overlay.  Milling is a process used to retain the gutter to insure proper drainage and consists of machine grinding of pavement surfaces near gutters after several street overlays.  Milling also improves adhesion of new surfaces on older surfaces, reducing slippage of asphalt and premature pavement failure. 

 

Bid Process

 

Bid notices were distributed to 16 prospective contractors in North Carolina.  The notice to bidders was published April 6, 2006 on the Town of Chapel Hill’s website.

 

Five bids were received and publicly opened at 3:00 p.m. on May 12, 2006 as follows:

 

Vendor

Asphalt

Milling

Total

Riley Paving

$375,840

$93,810

$469,650

Raleigh Paving

$484,300

$56,640

$540,940

APAC

$447,470

$118,590 

$566,060

Barnhill Contracting

$471,250

$123,900

$595,150

Rea Contracting

$550,652

$70,092

$620,744

 

DISCUSSION

 

Basic Resurfacing

 

The low bid for basic street resurfacing of $375,840 was submitted by Riley Paving, Inc. Unit prices established under the resurfacing contract would not change as long as the actual amount of asphalt needed to resurface the streets is 25 percent less or more than we estimate.

 

The exact amount of asphalt needed to resurface the streets will be known more precisely after the work is underway.  It is possible that the actual total cost of resurfacing the approximate 5.76 miles of streets based on measured units of asphalt could be higher or lower than now estimated. To the extent funding permits, we could resurface and mill additional streets.

 

Therefore, as in past years, we request the Council’s authorization to make changes in the amount of resurfacing contract, if necessary, with the requirement that the contract would remain within the amount budgeted by the Council.  The attached resolution would authorize such a change to the contract.

 

Alternates

 

The alternative bid for milling selected streets included a cost quote of $93,810 in Riley Paving, Inc.’s low bid.  Given the necessity to coordinate milling with the resurfacing process, selection of one vendor is necessary.

 

In addition to the base bid for street resurfacing, and at the request of the Orange Water and Sewer Authority, an “alternate” bid was requested for raising manhole covers and water valve boxes as a part of the street resurfacing project.  OWASA would pay for this work if it chooses to use the Town’s resurfacing contractor, and, thus the cost of this work is not calculated in bid or budget totals.

 

The low bid for basic resurfacing and milling selected streets totals $469,650.

 

Option to Extend Contract:

 

The base bid contract may be extended twice by a one-year contract addendum if mutually agreeable to both parties (Town of Chapel Hill and the Contractor) at the same base unit price.  Unit prices for Alternate 1, Manhole and Water Value Adjustments, Alternate 2, Pavement Markings and Alternate 3, Milling, may be resubmitted with each contract extension addendum.

 

RECOMMENDATION

 

That the Council adopt the attached resolution awarding a contract for the combined low bid of $469,650 by Riley Paving, Inc.