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REQUEST FOR COUNCIL ACTION DATE: 8/28106 ITEM NO.: 3.g Department Approval: Manager Reviewed: Agenda Section: k � :�5 � � y� �i �,f+^ Consent � Itein Descari�t�o�: Authorize Mill and Overlay of Fulham Street between Terminal Road and South Highway 36 Service Drive Background: In January, Bonestroo, Rosene, Anderlik, and Associates received approval from the City Council for their building expansion proj ect. As a part of that proj ect, they needed to make a number of new connections to the public sanitary sewer, watermain and storm sewer located within the right- of- way and under the pavement on Fulham Street. They also had to disconnect existing service connections to buildings that were razed as a part of their project. Consistent with our right- of- way permitting process, we are requiring them to restore the portions of the street that were torn up to perform their construction work. Restoration of the street includes a mill and overlay of approximately350 feet of the total street length of 9�(? feet, roughly 36% of the entire street segment. In our annual evaluation of the Capitol Improvement Program we have determined that the condition of Fulham Street warrants a Mill and Overlay within the next 2 or 3 years. Currently this road has a Pavement Condition Index of 50, putting it into our Pavement Management Program Maintenance category. With this in mind, staff inet with Bonestroo's representatives to discuss with them the possibility of parmering on the costs to mill and overlay this street. We discussed putting off their restoration of the street until next year, to be included as a part of the City's 2007 PMP program. However, Bonestroo is very interested in completing their portion of the work this fall. To this end, they have negotiated a price with their contractor to mill and overlay the entire street segment in September. Their contractor's price to restore the entire street including the repairs required as part of their contract, is $46,855. The city's portion of the cost to mill and overlay the additional 600 feet of street is $20,280. Financial Implications: Based on our hid prices from this year's PMP project, we estimate the City's cost to Mill and Overlay the entire segment of street to be $47,500. With the uncertainty of oil prices and construction costs increasing 10-20% every year, we feel that the price provided to Bonestroo by their contractor is competitive. To move forward with the work this fall and add the additional 600 feet of street to Bonestroo's mill and overlay, would cost the City only $20,280. This is a substantial cost savings for the City. These costs would he paid for from City's Infrastructure �und. RECOMMENDED COUNCIL ACTION: Motion authorizingMill and Overlay of Fulham Street between Terminal Road and South Highway 36 Service Drive. Prepared by: Debra Bloom