Title
An Ordinance awarding the bid for Project No. P-296 OV for the Mill & Overlay FY27 Program to Ideker, Inc. in the amount of $4,256,868.18 and authorizing the City Manager to execute an agreement for the same.
(PWC 4/13/26)
Body
Issue/Request:
An Ordinance awarding the bid for Project No. P-296 OV for the Mill & Overlay FY27 Program to Ideker, Inc. in the amount of $4,256,868.18 and authorizing the City Manager to execute an agreement for the same.
Key Issues:
• The Mill & Overlay Program is a key element in the City’s yearly Pavement Maintenance Programs. Timely undertaking of it is necessary to extend the life of existing pavement, as it restores the pavement surface close to its original condition.
• Approximately 40 lane miles will be restored under the Mill & Overlay FY27 Program (hereinafter "Project No. P-296 OV").
• Project No. P-296 OV is funded by the Transportation Sales Tax Fund.
• Public Works Engineering issued an advertisement for bids for the construction of Project No. P-296 OV on March 11, 2026, guided by local policies and state statutes
• Ideker, Inc. (hereinafter "Contractor") was determined to be the lowest and best bidder by City staff
• The City and Contractor desire to enter into an agreement for Project No. P-296 OV.
Proposed Committee Motion:
I move to recommend to City Council approval of an Ordinance awarding the bid for Project No. P-296 OV for the Mill & Overlay FY27 Program to Ideker, Inc. in the amount of $4,256,868.18 and authorizing the City Manager to execute an agreement for the same.
Proposed City Council Motion:
FIRST MOTION: I move for a second reading of an Ordinance awarding the bid for Project No. P-296 OV for the Mill & Overlay FY27 Program to Ideker, Inc. in the amount of $4,256,868.18 and authorizing the City Manager to execute an agreement for the same.
SECOND MOTION: I move for adoption an Ordinance awarding the bid for Project No. P-296 OV for the Mill & Overlay FY27 Program to Ideker, Inc. in the amount of $4,256,868.18 and authorizing the City Manager to execute an agreement for the same.
Background:
The Mill & Overlay Program is the most extensive and expensive street preventive maintenance process performed under the City’s Pavement Management Program. The process involves removing (milling) approximately 2” of asphalt from the surface, then replacing it with new asphalt. The mill and overlay process improves smoothness, cross-slope, and ride-ability, while reducing future construction expenses by delaying the need for complete street re-construction.
The primary evaluation tool used to prioritize streets for the mill and overlay is the Pavement Condition Index (PCI), which is a standardized method to evaluate pavement condition. New this year, Public Works has contracted with Road Asset Services to complete a condition survey and analysis on the City's 1,110 lane miles network. The evaluations assign a Pavement Condition Index (PCI) score to each street to evaluate the type maintenance appropriate to preserve the pavement as well as the best time to conduct maintenance.
In addition to the pavement condition, the condition of the curb is also taken into consideration and associated adjacent overlay coordinated with the curb replacement program. Like most municipalities in the metro area, the City is dealing with premature curb failure. This concrete failure is primarily focused on curbs installed between 1980 and 2008. To help manage limited funding for curb replacement, Public Works typically limits curb replacement to streets that will be overlaid in the near future. Ideally, a street will be overlaid during the year following curb replacement. This process minimizes damage to newly placed overlay pavement caused by tearing out curb. Coordinating these two programs produces a finished product with new pavement surfacing and curb similar to a new street. The City’s curb replacement program from last year replaced curbs in eight of the seventeen areas outlined in this year’s mill and overlay program .
To reduce disruption to residents, to simplify the logistical operations, and take advantage of economics of scale, staff attempts to group mill & overlay streets by neighborhoods. Overlaying entire neighborhoods streamlines the City’s pavement management process, extends the life of the overlay, reduces the unit price for overlay work, and reduces routine maintenance in the area.
Over the past year the oil price index has dropped by 3.3% since March of 2025. Due to the lower oil price index the price for asphalt has been reduced by 5% despite the Highway Construction Price Index increasing by 2.5%. Public Works continues to use the KCMMB asphalt mix. Oil price indexing is a means to insure the City and contractor share the risk in asphalt oil price fluctuation. Historically, this shared risk has lowered bid prices.
Historically, the asphalt mill and overlay program that included oil price indexing routinely received the lowest unit price for asphalt resurfacing every year. Capital projects with asphalt paving can pay as much as two to five times the amount for asphalt paving when compared to the overlay program based on the large volume of asphalt work in the annual overlay program. The low unit prices make it advantageous for other divisions within the City to piggyback onto the overlay contract. City parking lots, fire stations, airport, and other locations have used the overly contract for asphalt resurfacing work.
Timeline:
June - October 2026
Impact/Analysis:
Public Works Engineering advertised for bids for Project No. P-296 OV on March 11, 2026. Potential bidders were notified through QuestCDN, the City's website and a mass email notification. Four responsive bids were received by the March 31, 2026, bid opening date. The bids were evaluated, and City staff determined Ideker, Inc to be the lowest and best responsive bidder. Ideker has previously and successfully performed work for the City. Staff had estimated a no increase from last year's award price. The received low bid for this year project was 6% below staff's estimate. The budget was approved by City Council in the Capital Improvement Plan. This program is delivered through a design, bid, build process. City staff prepared the design and bid documents for construction.
Presenter
Vince Schmoeger, Project Manager
Recommendation
Staff recommends approval.
Committee Recommendation
Committee Recommendation: [Enter Committee Recommendation text here]