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AI- 3080   12. B. 8.    
BOC Regular
Meeting Date: 11/21/2019  
Approval of the Lakeland Asphalt Corporation bid for the Emmett Township Road Project
FROM: Jim Dyer, Corporation Counsel, Corporation Counsel
Department: Corporation Counsel  

Resolved, that the Calhoun County Board of Commissioers does approve acceptance of the bid from Lakeland Asphalt Corporation, in the amount of $21,486,169.45, contingent upon securing appropriate financing and execution of a contact with Emmet Township, and authorize the Board Chair to sign any documents necessary to complete a contract.
The Road Department recommends approval of the resolution. 
On May 7, 2019, the voters of Emmett Township approved an estimated 3.3987 mill Road Improvement Project bond authorization, expected to raise $14,320,000.00 to fund the township's 50% contribution toward a complete repaving of their local roads. The plan is to phase this project over three years commencing in 2020. The County will fund the remaining cost of the project through a planned issuance of capital improvement bonds. 
The original engineering estimate of the total cost of this project  $24,926,427.08. In order to commence construction in the spring of 2020, the Calhoun County Road Department sought bids to cover all three years of the construction project. It was determnined to bid all three phases of the project together,  in order to lock in predictable costs and allow for the completion of the entire project at uniform cost. Taking this step was recommended to assure that funds are available to complete all three phases of the project without a reduction in quality.
The bids were received in late October and showed Lakeland Asphalt Corporation as the low bidder. Their bid was actually 13.80% ($3,440,257.60) under the engineer's projected costs, and $347,613.90 less than the next lowest bidder. 

The Road Department Engineering staff recomends accepting the Lakeland bid. Lakeland has done the vast majority of  the federal road aid work for the Road Department in recent years. They have demonstrated excellent customer service and responsiveness in completing these tasks. In addition, Lakeland is located in Calhoun County, and close to the project area. This is favorable, not just because they are a local businees, but this project will require on-site, at Lakeland's facility, testing of the asphalt used in the project. A local plant will save staff time in the inspections as well. Lakeland has also secured Hoffman Brothers, a local excavation company, as their earthworks subcontractor. They are described by the engineering staff as one of the best and most conscientious contractors in the business. Hoffman Brothers is also a local contractor. Coupled with their status as the low bidder this completes the rationale for award of the bid to Lakeland. 
As recomended by the Commission.
The Road Department recommends approval of the bid from Lakeland Asphalt Corporation, in the amount of $21,486,169.45, contingent upon securing appropriate financing and execution of a contact with Emmett Township.

Fiscal Impact
The County's portion of the project will be financed through the anticipated issuance of bonds. Financing this project has been factored into the proposed 2020 budget and future applicable budget projections.
Bid Tabulation

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