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Brentwood City Commission Agenda
Meeting Date: 04/22/2019  
Resolution 2019-40 - Authorizing an Agreement with Four Star Paving, LLC. for Annual Roadway Repairs and Improvements
Submitted by: Todd Hoppenstedt, Public Works
Department: Public Works  

Information
Subject
Resolution 2019-40 - Authorizing an Agreement with Four Star Paving, LLC. for Annual Roadway Repairs and Improvements.
Background
Earlier this year, staff determined that it would be in the City's best interest not to renew the current paving contract.  Therefore, staff solicited bids for annual roadway repairs and maintenance.  The majority of the work under this contract is for the City's Annual Asphalt Resurfacing Program. Additional services covered under the paving contract include other smaller work elements, such as storm drainage improvements, sidewalk/bikeway repairs and construction, and ADA retrofits all contained within the CIP and Annual Public Works Department budget.  The contract is structured to provide unit prices for the types of repair and improvement work that is typically undertaken by the City on a routine basis.

After publicly advertising for bids and holding a mandatory pre-bid conference, bids were publicly opened and read aloud on February 12, 2019.  Five bids were received, with the lowest bid being $3,488,467.71 from Four Star Paving, LLC. of Nashville, Tennessee.

The unit quantities included in the bid sheet are estimated amounts for each repair or improvement the City may perform throughout the year.  They are used for comparison purposes only, in order to determine the lowest-cost bidder using items and quantities representative of actual work.  Not all of the bid items or quantities will be utilized in the corse of the contract year.  The contract provides that the City is not obligated to the total dollar amount of the contract, and the actual amount spent in a year will be based solely on the amount of work authorized by the City.  This approach provides the City the advantages of competitive pricing and the flexibility to expand or contract the scope of work as needed throughout the year.
 

The bids received were as follows (bid tab attached):
 
Company Name Bid Amount
Four Star Paving, LLC $3,488,467.71
Sessions Paving Co. $3,538,704.80
Tennessee Valley Paving Co. $4,364,835.00
Civil Constructors, Inc. $5,252,466.20
Jones Bros. Contractors, LLC. $5,987,749.62


The agreement, copy attached, includes an option to extend the contract for two additional years if the City and the Contractor mutually agree to the extension on a year-by-year basis.  Because of the volatility of asphalt prices, staff included a provision in this contract that allows the price of asphalt mix to vary based on the TDOT AC Index, which is published monthly.  Use of this index is standard practice in the industry.  Prior to FY 2019, staff required a fixed price which resulted in contractors inflating their bids to financially protect themselves against loss during the contract period.  Given past experience, it is staff's opinion that using the TDOT AC Index is prudent and appropriate.

The FY 2020 Budget includes a total of $2,300,000 in street resurfacing and repairs that would be covered under this contract.  Additionally, there is an estimated $1,410,000 of unencumbered money, or about 60% of the published work remaining in the FY 2019 contract that will be moved forward to the FY 2020 contract for completion by Four Star Paving, LLC.  The total amount may or may not be used in its entirety, and each project will be priced according to the unit pricing in the attached agreement and the applicable TDOT AC Index asphalt price in effect at the time the work is performed.  In addition to the annual street repaving, larger drainage projects, sidewalk/bike trail repairs and extensions, as well as ADA retrofit and guardrail work will also be covered under this contract.

Staff, along with Sullivan Engineering, Inc., agree that the contract for the 2019-2020 season should be awarded to Four Star Paving, LLC as the lowest and most qualified bidder (see attached letter of recommendation).  Although the FY 2020 contract period runs from July 1, 2019 to June 30, 2020, staff is requesting immediate approval which would authorize Four Star Paving, LLC. to begin working May 1, 2019. This action will allow us to better serve the residents and motoring public in Brentwood, as well as protect the City's interest in the event of an unanticipated emergency repair.

Please direct any questions to the Public Works Director.
 
Staff Recommendation
Staff, along with Paul Collins, our representative from Sullivan Engineering, Inc. recommend the contract be awarded to Four Star Paving, LLC as the lowest and most qualified bidder.  
Previous Commission Action
The Commission approved the current paving contract with Civil Constructors at the July 23, 2018 meeting via resolution 2018-63.

Fiscal Impact
Amount : $4,335,000
Source of Funds: Various Funds
Account Number: Various Account
Fiscal Impact:
The following projects and funding are included in the FY 2019 budget and the proposed FY 2020 budget.  It is unlikely the full amount for all of these projects will be expended.  The actual amount expended will be solely dependent on work authorized by the City based upon the unit pricing included in this contract.
 
FY 2019 Street Resurfacing $1,410,000  Remaining 2019 funds
FY 2020 Street Resurfacing $2,300,000  
Storm Drainage Work $220,000  
Bike/Ped Repair and Construction $250,000  
ADA Retrofits $100,000  
Fountainhead/Franklin Rd. Paving $50,000  
Guardrail Repair $5,000  
Total Contract Allowance $4,355,000  

 
Attachments
Resolution 2019-40
Contract No. 2019-038
Four Star Paving Letter
Bid Reccomendation
Performance Bond
Payment Bond
Project Manual
Signed Resolution
Change Order

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