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5.3 2023 Mill and Inlay AwardCITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 3/27/2023 4:00 P.M. AGENDA SECTION ORIGINATING DEPARTMENT: FISCAL APPROVAL: NO: 5 BY: ITEM PUBLIC WORKS FINAL APPROVAL: NO: 3 Page 1 BY: DANIEL R. STACK, P.F. BY: ITEM: Consider awarding the bid for project number 23016, 2023 Mill and Inlay to APAC Kansas Shears Division of Salina in the amount of $1,016,049.40 with a $50,802.47 (5%) construction contingency for a total project authorization not to exceed $1,066,851.87 and authorizing the City Manager to execute a contract with APAC Kansas Shears Division of Salina upon fulfillment of all prerequisites under the bid documents. BACKGROUND: As further described in the attachments, mill and inlay is a treatment that involves removing the top 1'/ inches of asphalt pavement plus any overlays and replacing the 1Y2 inches of asphalt pavement to re- establish the pavement surface's original elevation. This year's project, a map of which is attached, covers 2 miles of City streets. Bids were received for this project on Thursday, March 9, 2023 and are as follows: APAC Kansas Shears Division, Salina $1,016,049.40 Engineer's Estimate $1,000,293.60 APAC has been Salina's only asphalt bidder for a number of years. As an alternate approach intended to assess the competitiveness of APAC's bids, staff has previously bid asphalt or microsurfacing as an option which typically receives multiple bidders. APAC's asphalt bid remained unchanged from an identical asphalt only project bid that same year that was not bid against microsurfacing, lending to the belief that APAC's bids are unaffected by not having competition. Further, an asphalt supplier in Manhattan told staff an asphalt project in Salina would have to be about $3 million for them to be interested. The unit price bid per ton for the surfacing material is up 23% from 2022, which is commensurate with the price increase currently being experienced by the Kansas Department of Transportation. APAC is a reputable contractor who has successfully performed this work for the City of Salina in recent years. FISCAL NOTE: The 2023 Streets Sub-ClP approved by the City Commission on February 6, 2023, included: $2,935,000 for Asphaltic Surface Treatments, which includes Mill and Inlay; and $580,000 of Federal Funds as administered by the Kansas Department of Transportation (KDOT). If this project is approved as recommended, the remaining $907,936.31 in the Asphaltic Surface Treatments budget item will be utilized as well as $158,915.56 of the KDOT Federal Funds as shown in the 2023 Streets Sub-CIP attachment. COMMISSION ACTION OR RECOMMENDED ACTION: Staff has identified the following options for the City Commission's consideration: Approve a motion awarding the bid for project number 23016, 2023 Mill and Inlay to APAC Kansas Shears Division of Salina in the amount of $1,016,049.40 with a $50,802.47 (5%) construction contingency for a total project authorization not to exceed $1,066,851.87 and CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 3/27/2023 4:00 P.M. AGENDA SECTION ORIGINATING DEPARTMENT: FISCAL APPROVAL: NO: BY: ITEM PUBLIC WORKS FINAL APPROVAL: NO: Page 2 BY: DANIEL R. STACK, P.E. BY: authorizing the City Manager to execute a contract with APAC Kansas Shears Division of Salina upon fulfillment of all prerequisites under the bid documents. 2.) Approve a motion awarding the bid for project number 23016, 2023 Mill and Inlay to APAC Kansas Shears Division of Salina with amendments as the City Commission deems appropriate and authorizing the City Manager to execute a contract with APAC Kansas Shears Division of Salina upon fulfillment of all prerequisites under the bid documents. 3.) Postpone consideration of the award of bid for project number 23016 to a specified date and time and provide staff direction regarding additional information or amendments the City Commission would like to request for its further consideration. 4.) Do not award project number 23016, 2023 Mill and Inlay, and provide staff with any further direction. Staff recommends Option #1. Attachments: Location map 2023 Streets Sub-CIP Contract Street Maintenance Brochure CC: APAC Kansas Shears Division, Salina T -a ---, L__— YodgaM 1301ves Blvd 0 �hittinghll \ �----"•� Ave eo N"o ° Duvall Ave = D 3 :her �---� 3 n - . a hicago St Chicago St Ch ago St 7S 02". 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