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ARDEN HILLS CITY COUNCIL—April 26, 2010 8 7.A. Municipal State Aid Update (continued) Mayor Pro-Tem Holmes stated Valentine Avenue could not be kept as an MSA designated road because the City was not reconstructing it to those standards. With this change the City would need to identify other road segments to designate. She asked when this needed to be completed by. Civil Engineer Giga stated the change does not need to happen right away. State Aid would expect the change to happen but does not require the change to happen right away. Mayor Pro-Tem Holmes stated asked if the City could wait to make the change until 2016 when there would be no charge to the City. Mayor Pro-Tem Holmes stated it was the consensus of Council to direct Staff to wait to make changes to the MSA system road designations and bring this item back to the Council at a future date. B. Adopt Resolution 2010-023; Awarding Bid for the 2010 Pavement Management Program Civil Engineer Giga stated on March 8, 2010, the City Council approved the plans and specifications for the 2010 Pavement Management Program and ordered advertisement for bids. Bids were solicited during March and early April. Based on the bids received, Staff recommends awarding the project. Based on past practice, the City Council has awarded the contract to the lowest responsible bidder. In the case if the 2010 PMP, the lowest bidder is T.A. Schifsky & Sons, Inc., of North Saint Paul, MN. Their bid of$779,799.67 is 13% lower than the Engineer's construction estimate of $897,545. To establish a total project cost for the improvements, engineering and overhead costs need to be included. The non-assessable items include 20% for engineering fees. The assessable portion, the street improvements, includes a 37% overhead, which includes engineering and other administrative overhead costs as defined in the Assessment Policy. The City's portion of the project costs are currently budgeted in the General Capital Fund and Utility Enterprise Funds. The water main and sanitary sewer improvements identified in the feasibility report have a greater estimated cost than what was included in the budget. The City will also need to utilize more funds from the PIR for the roadway improvements, since State Aid funds will not be used on this project. The estimated assessment amount would be $8,268 for the reconstruction project on Valentine Avenue, Valentine Court and Valentine Crest Road and $1,721 for the mill and overlay project on Janet Court, Katie Lane and Katie Court. She reviewed the correspondence Staff has received from residents regarding their concerns about this project. Councilmember Holden stated asked Civil Engineer Giga to explain the difference in the road ratings, especially those for Katie Lane, Janet Court, and Valentine Crest Road. Civil Engineer Giga stated one of things that are looked at in the rating is if there is a sub-grade built up under the road. For those roads such as Valentine Crest Road that were built in the 1960's the sub-grade is inadequate compared to today's standards. The typical life of a road with an adequate sub-grade is to have a mill and overlay done after twenty years, which is the case with Katie Lane.