R2018-79 Rejecting the Bids Street Restoration Airport Road CP 2018-08

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Item Coversheet 6/13/2018 9:53:38 AM i9 Public Works DATE: 6/11/2018 MEMO: 2018-29 TO: Honorable Mayor Moore Wolfe and City Council FROM: Tim Gleason,City Manager Matthew C.Newell,P.E.,Public Works Director SUBJECT: Resolution Rejecting All Bids for Annual Street Restoration,Airport Road, City Project 2018-08 SUMMARY RECOMMENDATION: It is recommended that the City Council approve the attached resolution rejecting all bids for the Annual Street Restoration Project, City Project 2018-08. BACKGROUND: Project Description The 2018 project is planned to perform mill and overlay work on Airport Road between U.S. 36 and Country Club Road. The edges of the road will be strengthened after some exploratory coring found less thickness along the edges of the road,which is likely contributing to the severe rutting seen along the road currently. In total, 2.70 lane miles of the City's 825 total lane miles will be rehabilitated as part of this project. Bid Rejection Recommendation After receiving the bids, it was discovered that a critical pay item was left out of the contract. After consulting with IDOT,this pay item would amount to a significant increase to the contract and may change the way the road is constructed.Rejecting the bids will give all bidders a chance to reevaluate the project and modify their prices accordingly. SCHEDULE: Once bids are rejected,the amended plans will be forwarded to the Illinois Department of Transportation(IDOT)in Effingham for approval, along with a letter formally rejecting the bids. The project will need to be re-advertised and receive bids again. City staff intends to still finish this project before the end of the year. PRIOR COUNCIL ACTION: May 21,2018—Council approved Resolution R2018-50 appropriating$1,600,000 of Motor Fuel Tax funds for the purpose of resurfacing streets and highways under the applicable provisions of the Illinois Highway Code. POTENTIAL OBJECTIONS: Dunn Company may object to rejecting their bid. INPUT FROM OTHER SOURCES: Illinois Department of Transportation STAFF REFERENCE: Matthew Newell,Public Works Director and Griffin Enyart,Assistant City Engineer. Matthew Newell will attend the City Council meeting to answer any questions of the Council on this item. This memorandum was prepared by Griffin Enyart,Assistant City Engineer. BUDGET/TIME IMPLICATIONS: Budget Impact: The change to the contract will increase the bid prices from what is being rejected due to the additional pay item. The total cost of the project is expected to be below the$1,600,000 that has been budgeted for this project. Page 1 of 2