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HomeMy WebLinkAboutA048 - Hearing on 2025/26 Asphalt Street Pavement ImprovementsITEM #:49 DATE:06-09-26 DEPT:PW SUBJECT:2025/26 ASPHALT STREET PAVEMENT IMPROVEMENTS (HILLCREST AVENUE, ELLIS STREET, KENTUCKY AVENUE, ILLINOIS AVENUE, INDIANA AVENUE, OKLAHOMA DRIVE, AND DELAWARE AVENUE) COUNCIL ACTION FORM BACKGROUND: This annual Capital Improvement Plan (CIP) program utilizes rehabilitation and reconstruction techniques to improve existing Asphalt streets. These pavement improvements will restore structural integrity, serviceability, and rideability. Targeted streets are experiencing accelerated deterioration, and timely intervention will extend their service life. The 2025/26 program locations include Hillcrest Avenue, Ellis Street, Kentucky Avenue, Illinois Avenue, Indiana Avenue, Oklahoma Drive and Delaware Avenue. On June 3, 2026, bids for the project were received as follows: Bidder Bid Amount Engineer's Estimate $4,356,402.00 Manatts Inc $4,830,760.34 Revenue and expenses associated with the project are estimated as follows: Description Revenues Expenses 2025/26 GO Bonds $4,000,000 Unallocated GO Bonds 425,000 Water Systems Improvement Program 230,000 Sanitary Sewer Systems Improvement Program 150,000 Stormwater Improvement Program 150,000 Construction $4,830,760.34 Engineering (HR Green) 302,000.00 Administration 298,000.00 TOTAL $4,955,000 $5,430,760.34 Following the bid opening, staff closely reviewed the bid that was received in comparison to the Engineer's Estimate. It would appear that the revenue available in the storm water improvement funds for the necessary storm sewer work on this project is not sufficient enough to cover the as-bid expenses. A value engineering exercise on a unit price project such as this is unlikely to produce results that would allow portions of the project to proceed 1 without further redesign. Staff is recommending that the City Council accept the report of bids, but reject the bid to allow staff time to perform further evaluation and redesign to align the project closer to the approved budget. ALTERNATIVES: 1. City Council may: a. Accept the report of bids b. Reject all bids, awarding no contract c. Direct staff to make modifications to the project to align project expenses with budgeted revenue and bring the revised project back to City Council at a later date 2. Direct staff to identify available funding and award the project to Manatts, Inc. of Ames, IA. CITY MANAGER'S RECOMMENDED ACTION: The available revenue, especially in the storm sewer improvement funds, is not sufficient to cover anticipated project expenses. Staff is unable to modify the existing project scope enough at this stage to bring the project in alignment with the budgeted revenue. Staff believes that rejecting all bids, modifying the project scope, and soliciting for bids again at a later date, likely in fall 2026, is the most appropriate course of action. Therefore, it is the recommendation of the City Manager that the City Council adopt Alternative No. 1, as noted above. ATTACHMENT(S): 2025-26 Asphalt (Hillcrest Ave and Ellis St) Location Map.pdf 2025-26 Asphalt Street Kentucky, Illinois, Indiana Location Map.pdf Delaware and Oklahoma.pdf 2 3 4 2025/26 Asphalt Street Pavement Improvements Open trenching Sanitary Force main on South side of East Lincoln Way Lift Station Single Lane Alternating Traffic North Side of intersection S 16TH ST S D U F F A V E S K E L L O G G A V E BU C K E Y E A V E ¯Delaware Ave - Ontario St to North Dakota Ave Oklahoma Dr - Idaho Ave to Idaho Ave Vet Med Trail Box Culvert D D D D D D D D D D D D D D D D !!2 !!2 !!2 !!2 !!2 !!2 !!2 !!2 !!2 !!2 !!2 !!2 !!2 #* #*#*#* #* %2 %2 %2 "S "S "S "S "S "S "S "S"S !!2 !!2 S R I V E R S I D E D R AP P L E P L UNIVE R S I T Y B L V D S 16TH ST Project Area S 16TH ST S D U F F A V E GO L D E N A S P E N D R BU C K E Y E A V E S K E L L O G G A V E ASPEN RIDGE RD DD D D D D D D D D D D D DD D D D D D D D D !!2 !!2 !!2 !!2 !!2 !!2!!2 !!2 !!2 !!2 !!2 !!2 !!2 !!2 GR A N D A V E RO Y K E Y A V E BLOOMINGTON RD TOP O HOLLOW RD DA W E S D R POLARIS DR 16TH ST MURRAY DR GR A N D A V E NO R T H W E S T E R N A V E NARLAND DR 16TH ST MURRAY DR GR A N D A V E NO R T H W E S T E R N A V E 16TH ST MURRAY DR GR A N D A V E NO R T H W E S T E R N A V E NARLAND DR 18TH ST 16TH ST GR A N D A V E NO R T H W E S T E R N A V E FE R N D A L E A V E OAKLAND ST OL I V E R A V E OL I V E R C I R FR A N K L I N A V E MARY CIR HA W T H O R N E A V E OAKLAND ST MARY CIR Sidewalk Extension 24TH ST 20TH ST GR A N D A V E NO R T H W E S T E R N A V E HU N Z I K E R D R MCKINLEY DR ONTARIO ST ROSS RD UTAH DR NO R T H D A K O T A A V E FL O R I D A A V E YU M A A V E QUEBEC ST DOVER D R GREENE ST ARKANSAS DR 5