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HomeMy WebLinkAbout#10 - Seal Coat Project Joint Services Agreement STAFF REPORT DATE: May 15, 2018 CONSENT ITEM #: 10 AGENDA ITEM: 2018 Seal Coat Project – West Lakeland Township Joint Services Agreement SUBMITTED BY: Jack Griffin, City Engineer REVIEWED BY: Kristina Handt, City Administrator Rob Weldon, Public Works Director Amanda Groh, Project Engineer ISSUE BEFORE COUNCIL: Should the City Council approve the West Lakeland Township Joint Services Agreement for the 2018 Seal Coat Project? BACKGROUND: Since 2012, Lake Elmo and West Lakeland Township have successfully contracted jointly for the annual street seal coat projects to share and reduce overall project costs. This year Lake Elmo also included Denmark Township for both crack seal and seal coat services (the Joint Services Agreement with Denmark was approved by the Lake Elmo City Council on April 17, 2018). Each jurisdiction pays its portion of the construction costs and shares in the engineering design, bidding and construction administration costs. The construction observation services are contracted directly by each jurisdiction. PROPOSAL DETAILS/ANALYSIS: Staff is recommending that the City continue to work jointly with West Lakeland Township to perform seal coating for routine maintenance of City and Township streets, therefore, staff has reviewed and updated the Joint Services Agreement with West Lakeland Township in preparation of the 2018 Seal Coat Project. The agreement identifies the terms and conditions upon which the City of Lake Elmo prepares and administers a contract for the 2018 Seal Coat Project to be completed on streets within both the City and Township. The City of Lake Elmo is defined as the lead entity and prepares the plans and specifications with input from the Township. The City bids the project and enters into a contract with the selected contractor for all the work. West Lakeland will pay a fee to the city in the amount of $3,000 to reimburse the City for the Township’s share of the design, bidding and construction administration services related to the project. The Township will reimburse the City within 30 days of receiving contractor invoices for the work performed on West Lakeland streets. FISCAL IMPACT: Cost savings of $3,000 in engineering and administration services. Staff believes that a unit price savings for the seal coat work is also likely due to the economy of scale at the time of bid/construction. Through a joint project effort, the City of Lake Elmo and West Lakeland Township, have been realizing project cost savings through an economy of scale and sharing in project expenses for preparation of plans and specifications, bidding, and construction administration. In addition, staff believes that by combining the project work for multiple communities, we can continue to promote a more favorable bidding environment that may result in lower overall construction costs. RECOMMENDATION: Staff is recommending that the City Council consider approving, as part of the consent agenda, the West Lakeland Township Joint Services Agreement for the 2018 Seal Coat Project. If removed from the consent agenda, the recommended motion for this action is as follows: “Move to approve the West Lakeland Township Joint Services Agreement for the 2018 Seal Coat Project.” ATTACHMENTS: 1. West Lakeland Township Joint Services Agreement for the 2018 Seal Coat Project.