Memorandum

City of Lawrence

Public Works

TO:	Chuck Soules
FROM:	Mark Thiel
CC:	Tom Orzulak, Steve Lashley, David Cronin, David Woosley, James Risner, Steve Bennett
Date:	5/6/2013
RE:	PW-1306 : 2013 Crack Sealing project; Pavement Marking/Painting & Garage Maintenance (In-House)

Please include the following item o n the City Commission consent agenda for consideration at the May 14, 2013 meeting:

Project Description

For the past two summers we have been performing some of our maintenance work previously contracted with in-house personnel. We have been getting better results with quality as well as reducing costs. The 2012 pavement maintenance program utilizing the Public Works Department had great success with performing the crack sealing operation in-house. This year we wish to continue utilizing a combination of in-house staff, contracted labor and rented equipment. The project would be supervised by the street division manager and senior maintenance staff. It would also receive the same level of inspection as in previous years.

In addition to the crack sealing operation we intend to augment our in-house pavement marking/stripping project and garage maintenance projects with contracted labor. The success we have experienced with contracted labor assisting us meet our annual maintenance goals has resulted in better quality maintenance at a much lower cost vs. total contracting. We wish to experience that same level of cost saving with these other in-house operations.

Labor

We solicited informal bids from three labor companies to provide a maximum of 8 temporary maintenance personnel, based on work load and timing we will only utilize the number of workers needed for each day. We do not anticipate that we will use all 8 workers for the entire time. Two vendors provided pricing and one was unable to provide the type labor needed due to their insurance restrictions. We have quoted the lowest labor rate bid ($15.71) in the total project cost.

Equipment

The Street Division currently has one crack sealing machine. We are planning on using two machines this year to increase production and keep up with the crack sealing goals established with our maintenance program. There is one vendor in this region that rents equipment. The cost is $4,200 per month and we anticipate a two month utilization of this equipment for a total rental cost of $8,400.

Project Cost

Labor	$50,272.00
Equipment	$8,400.00
	Total $58,672.00

Funding Source

Funding will be broken out utilizing three separate account directly related to the type of work being performed. All cost will be absorbed from previously adopted budget requests from in August 2012.

214-3-3800-4508 – Street Maintenance	$38,563.20
001-3-3020-4007 – Paint Stripping	$10,054.40
001-3-3040-2135 – Facility Maintenance	$10,054.40

Action Request

Authorize the City Manager to sign an agreement with Manpower for an amount not to exceed $50.272.00. Approve the rental of equipment from Pavement Maintenance Supply Inc. (PMSI) in the amount of $8,400.00.