R2006-78 ACCEPTING THE BID AND AUTHORIZING A CONTRACT

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• r • ,ti COUNCIL COMMUNICATION FORM Engineering & Infrastructure Memorandum NO. 2006-32 May 25, 2006 TO: Honorable Mayor Osborne and City Council FROM: Steve Garm ity Manager Stephen Sw s n, P.E.,Director of Engineering& Infrastructure�%V' Matthew C. ell,P.E., City Engineer`�� SUBJECT: Street Restoration, City Project 06-08, Section No. 06-00608-00-FP ' SUMMARY RECOMMENDATION: ' ' It is recommended by staff that the City Council approve the attached resolution awarding the contract for Street Restoration, City Project 06-08, to Dunn Company, A Division of Tyrolt, Inc., as the lowest, responsible bidder in the amount of$2,044,548.20, and that the Mayor be authorized to execute the contract and the City Clerk to attest. BACKGROUND: The Engineering Division inspects and rates approximately 1/2 of the City's streets on a yearly basis. The results of these inspections are input into a computer database which is used to project the future condition of the streets based on their current condition, historical condition, surface type(i.e. brick, concrete, asphalt, etc.), average daily traffic, and traffic type (i.e. trucks, cars, etc.). This data is then paired with available funding and is used as a basis to aid City Engineering in the preparation of the City's yearly street improvement program. Staff then determines which streets need to have the surface restored or be totally reconstructed. The Street Restoration Project generally involves the placement of a 1 to 2 inch asphalt surface course on an existing paved surface. A portion of the existing pavement is often milled off to reduce the impact of the overlay on existing curbs and driveways. If additional structural capacity is desired in the pavement,no milling may take place prior to the overlay. The two main purposes of the Street Restoration Project are (1)to increase the useful life of a pavement in advance of its deteriorating to a condition that would require its complete reconstruction and (2)to improve the street's ride ability. This year's program includes approximately 7.13 centerline miles of streets in the City. A listing of streets in this year's project is attached. The project specifications were prepared by the Engineering Division and approved by the Illinois Department of Transportation(IDOT) for the use of Motor Fuel Tax funds. The project was initially advertised in mid-April with bids opened on May 3, 2006. The bid received was approximately$275,000 in excess of the funding available in the City's Motor Fuel Tax Fund and was therefore rejected. Due largely to the high cost of petroleum, asphalt prices in 2006 have increased over 30% above the bids received in 2005. Engineering staff had anticipated a 15%to 20% increase.