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Agenda Item - 2019-05-21 (13) 503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.lakeoswego.city Subject: Work Order 282: 2019 Preventative Maintenance Projects Meeting Date: May 21, 2019 Staff Member: Joel B. Komarek, Project Director Department: Engineering Action Required Advisory Board/Commission Recommendation ☐ Motion ☐ Approval ☐ Public Hearing ☐ Denial ☐ Ordinance ☐ None Forwarded ☐ Resolution ☐ Not Applicable ☐ Information Only Comments: ☐ Council Direction ☒ Consent Agenda Staff Recommendation: Reject all bids received for Work Order 282: 2019 Preventative Maintenance Projects Recommended Language for Motion: Reject all bids received for Work Order 282: 2019 Preventative Maintenance Projects. Project / Issue Relates To: ☒Council Goals/Priorities ☐Adopted Master Plan(s) ☐Not Applicable ISSUE BEFORE COUNCIL Reject all bids received for Work Order 282 – 2019 Preventative Maintenance Projects. BACKGROUND On October 17, 2017, City Council approved a contract with Murraysmith to provide program management, construction management and inspection services relating to the City’s ongoing efforts to improve the pavement condition of its street network. The award of that contract initiated a program approach to the planned delivery of more than $21M dollars of investment 7.2 Page 2 503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.lakeoswego.city in its street network by 2021. These investments will result in the rehabilitation of thousands of feet of collector and local streets. DISCUSSION On May 8, 2019 the City opened bids for the subject project. Two bids were received; the bidders and the amount of their bids are tabulated below. The Engineer’s estimate is $443,329.75. Bidder Bid Intermountain Slurry Seal, Inc. $954,000.00 VSS International, Inc. $789,311.00 Based upon a review of the bids by staff, each bid submitted was determined to be responsive and responsible. FISCAL IMPACT The City’s adopted budget for Street Fund capital improvements included approximately $500,000 in funding for preventative maintenance (slurry seal). Because each of the bids received is substantially higher than available funding, staff believes it is in the public’s best interests that the Council reject these bids and that this element of the City’s annual pavement management program work be deferred until summer 2020. RECOMMENDATION Reject all bids received for Work Order 282 – 2019 Preventative Maintenance Projects.