Town of Cary
North Carolina

Staff Report

FY 2019 Street Improvements Bid Award


Department:Transportation and FacilitiesSponsors:
Category:Bid Award

Speaker:  Amir Nezarati, Transportation and Facilities


Executive Summary:  Our annual Street Improvements Project helps ensure one of our most visible assets, asphalt pavement, is well-maintained – improving vehicle and bicycle safety and reducing expensive future street replacement costs.  Using Pavement Condition Ratings data and in collaboration with internal and external stakeholders, Staff has prioritized a list of street segments to be included in the FY 2019 Street Improvements Project.  Staff requests Council approval to proceed with the construction contract award.


Recommendation: That Council (1) award the construction of the FY 2019 Street Improvements Project to the Fred Smith Company for $5,923,665.25 and (2) authorize staff to make reasonable revisions to the streets listed in Tables 1 through 3 to add or delete streets as permitted by the bidding documents. The recommendation of award by Council represents a preliminary determination, and no legally binding acceptance of the bid or offer occurs until the Town has executed a written agreement. The contract award is subject to the contractor providing all bonds, insurance, and other required documents and executing a contract in a form agreeable to the Town.


Background:  This year’s street improvements project continues our Neighborhood Proximity Approach to street maintenance begun in FY 2017.  This approach combines survey data of our 485-mile Town maintained street network, provided by a third-party engineering consultant, AECOM, with the Town’s annual water main replacement list as well as scheduled installations from private utility companies.  Assessing this information enables Staff to determine which streets are the best candidates for repaving this year.


The following documents are included in the staff report:


§         Attachment 1 – AECOM’s full Pavement Condition Survey

§         Attachment 2 – Revised Paving Group Map

§         Attachment 3 – FY 2019 Overall Plan Map, highlighting the streets scheduled for maintenance

§         Table 1 – Resurfacing List

§         Table 2 – Rejuvenator List

§         Table 3 – Patching List


The results of AECOM’s FY 2019 survey showed that the weighted average Pavement Condition Rating (PCR) of our street network decreased slightly from 81.3 in FY 2018 to 79.5. This “Fair” rating is consistent with our previous PCR values going back to 2007, where our ratings have been between 77.3 and 82.7.


Minor year-to-year PCR variances are expected in a network level survey.  Factors influencing the weighted average include:


§         Growth of the Street Network – Over the past five years our street network has grown on average one percent each year.  This change translates to almost a five-mile increase per year of streets that we will eventually have to maintain.

§         Street Selection Process – Prior to FY 2017, street selection was based on “worst first” methodology. This process assured that the worst rated streets were always repaved giving us a higher weighted average.  However, this method meant that the same neighborhoods were disrupted by street construction multiple years in a row, causing residents to contact us in frustration. It also meant that construction contractors had to scatter their crews and equipment throughout different parts of Town, an inefficiency that was costly for us.  In FY 2017, Council approved the Neighborhood Proximity Approach to improve our customer service and reduce overall construction costs, but may be a factor in slightly lowering our weighted average PCR.


Staff will continue the Neighborhood Proximity Approach as the appropriate selection process because it balances maintenance needs, citizen concerns, construction methods, and gives us flexibility to coordinate street paving with utility installation.


For example, streets within Group 92 (including but not limited to Meadowmont, Kurtsbrook, Greenwood Forest, Allenbrook, Medcon, and Tanglewood) and Group 157 (including but not limited to Kildaire Estates and Holly Brook) as referenced in the attached Paving Group Map were identified as resurfacing areas; however, there are current and future water main upgrades planned in these areas.  Deferring these paving groups enables Staff to re-evaluate them after the utility work is complete.  This strategic decision allows the newly installed water main to be in service and inspected throughout the one-year warranty.  Repairs can be done during the warranty period without damage to a newly paved street.


Likewise, Staff deferred repaving streets within Paving Group 81 (including but not limited to Kenilworth, Huntsmoor, Woods of Fairfax, and Candlewood) and Group 95 (including but not limited to MacArthur Park, Southwick, Amesbury, Gleneagles, and Giverny) due to conflicts with Google Fiber’s scheduled installations.  This coordinated effort minimizes conflicting work and prevents damage to newly paved streets.  As with the water main areas, these paving groups will be re-evaluated in future years once utility work is completed. 



This year’s project includes three pavement maintenance techniques:

1.      Milling and Resurfacing

Benefits: removes existing pavement distresses, maintains existing drainage patterns, retains stormwater capacity of existing curb and gutter




2.      Rejuvenating

Benefits: preventative maintenance, restores some of the original properties of aged asphalt











3.      Repair Patching

Benefits: repairs to isolated areas of pavement distresses, utility trenches, and tree root encroachment.


Maintenance Technique

Miles Scheduled for FY 2019

Percentage of Total Network














A bid opening was held on December 6, 2018 and three bids were received.  Fred Smith Company is determined to be the lowest, responsive, responsible bidder with a bid of $5,923,665.  The Engineer’s Estimate for the project is $6,989,503.



Total Bid Amount

Engineer’s Estimate


Fred Smith Company


Lane Construction Corporation


Barnhill Contracting Company



Fiscal Impact

A total of $7,100,000 has been appropriated to ST1280 – FY 2019 Street Improvement. To date, $319,474 has been either spent or encumbered, leaving a balance of $6,780,526. The bid award of $5,923,665.25 along with associated expenses brings the total amount of funding needed for the construction of this project to $6,754,085.  A breakdown of the funding needs is shown in Table 1.


Table 1: Funding Needs



FY 2019 Construction Bid Amount


FY 2019 Construction Contingency (6%)


FY 2019 Construction Management and Inspection


FY 2020 Pavement Condition Survey





Available funding from savings within previous years’ street improvements project was identified to support funding needs for this project.


Table 2: Funding Sources



ST1261 – FY 2017 Street Improvements


ST1270 – FY 2018 Street Improvements


ST1280 – FY 2019 Street Improvements





Next Steps

Staff will issue a Notice of Award to the Fred Smith Company and begin the process to execute contracts.  Construction is anticipated to commence in spring 2019.


Exact construction schedule is determined by the construction contractor in coordination with other stakeholders.  The Town mails a flyer to neighborhoods approximately a month before the work is expected to begin.  A minimum of three-days before construction work starts, the contractor distributes door hangers to residences within the immediate repaving area.