MEMO DETAILS:
This item is to consider awarding the Village's annual road resurfacing contract to Fred Smith Company from Raleigh, North Carolina. Please note that Fred Smith Company acquired Riley Paving in October 2020 and continues to maintain an office and asphalt plant in Carthage. They also completed the Village’s resurfacing project in FY21.
Four (4) contractors submitted unit pricing on an initial list of approximately four (4) miles of roads to resurface on August 30, 2022. A street listing and map showing the roads included in the bid package are attached for reference. Utilizing the Village's estimated quantities of items within the project, Fred Smith Company’s total bid amount to complete the project is $1,352,951.00.
This bid is approximately 21% higher than the low bid received by the Village to resurface four (4) miles of roadways in FY22, but it is also significantly less than the other three (3) bids received for the FY23 project. A Bid Tabulation summary showing all bids received is attached for reference.
The Village's Powell Bill budget for FY23 is $1.3 million; therefore, the low bid exceeds the current funds available. The Village could reduce the scope of work and resurface less than four (4) miles, or approve a budget amendment to complete the full project. In addition to the road resurfacing, the Powell Bill budget includes road shoulder rehabilitation performed by a separate contractor after the resurfacing work has been completed. At this time, staff estimates the total FY23 Powell Bill project cost, including road resurfacing and shoulder rehabilitation, to be $1,472,875.00.
In order to achieve our annual goal of resurfacing at least four (4) miles of roadways, staff recommends a budget amendment to complete the full scope of work. This would require an additional $172,875.00 of funding, which is summarized as follows:
· $37,875.00 from the forfeiture of the Windjam Development performance bond
· $135,000.00 of fund balance appropriation
If the amendment is approved, our plan would be to award an original contract to Fred Smith Company in the amount of $1,352,951.00 via motion and request that the motion include that the Village Manager is authorized to execute change orders to add additional quantities at the original unit pricing with the overall amount not to exceed $1,472,875.00.
Please note that the actual contract is not attached as the Contractor typically does not obtain performance bonds or payment bonds that go with the contract until after Council authorizes the execution.