Tuesday night the Manhattan City Commission agreed to Award 2001 Street Maintenance Projects - Phase I and Phase II to Shilling
Construction Co., Inc. of Manhattan. Here is a memo given to the Commission:

BACKGROUND

Over the years, City streets become in need of repairs. The annual street maintenance projects are intended to improve the condition of
existing streets. These projects are funded through the Special Street and Highway Fund. The primary source of revenue to the Special Street
and Highway Fund is gas tax money passed back down to cities from the state level.

The locations for this years maintenance program were identified and designed by Public Works staff by utilizing the Pavement Management
System (PMS) and maintenance history. The PMS is a pavement modeling software tool that identifies the condition of a pavement and the
rate of deterioration of a section of pavement. Variables such as structural integrity, surface condition, ride, and surface drainage are criteria
by which the pavement section is rated and quantified with an Overall Condition Index (OCI). Lower OCI’s are indication that pavement
sections are generally in worse condition than those with higher OCI values.

DISCUSSION

The 2001 Street Maintenance Projects provide for mill and/or overlay operations on several streets within the community. Phase I of this
project is a mill and overlay of Manhattan Avenue from Anderson/Bluemont north to Old Claflin Road. This portion of the project will also
provide for new thermoplastic pavement markings to enhance the safety of the pedestrian/vehicular/bicycle interaction within this corridor.

Phase II of the project provides for mill and/or overlay on ten additional street segments in Manhattan. Those areas are as follows:

• 8th Street - Poyntz to Bluemont, OCI = 27, 39, and 63

• 11th Street - Poyntz to Bertrand, OCI = 46 and 77

• 12th Street Bluemont to Ratone, OCI = 29

• Allison Avenue - Seth Child to Dondee, OCI = 85

• Griffith Drive - Manfax to Casement, OCI = 75

• Laramie Street - 3rd to 11th, OCI = 37, 38, and 63

• Leavenworth Street - Juliette to 11th, OCI = 74

• Stagg Hill Road - Cox Circle to Allison (NE), OCI = 76

• Sunset Avenue - Leavenworth to Statton Circle, OCI = 72

• Westwood Road - Fort Riley Blvd. to Oak, OCI = 63

Street segments that have more than one OCI associated with them are indicative of several projects within the PMS of varying limits being
combined for our maintenance efforts. The OCI’s listed for Allison Avenue and Griffith Drive are those provided from the PMS for lengths
greater than what our maintenance projects encompass. If the project limits for these two segments were rated separately, they would receive
much lower OCI’s. OCI ratings of 63 or less indicates the range of pavements in Manhattan that fall within the worst 10% of pavement
segments as identified by the PMS. Of the 15 PMS street segments addressed by this phase of the maintenance effort, 9 are within the worst
10% of pavement segments and 6 are within the worst 3%.

In addition to these ten street segments, areas of Sunset Cemetery will receive significant asphalt maintenance as part of this phase of the
project. Also the driveways of the caretakers’ residence in Sunrise cemetery as well as to the cemetery maintenance shop on Sunset Avenue
are included. These items will be paid for from the Parks and Recreation budget and amount to approximately $90,500 of the total bid for
Phase II.

Efforts for both phases of the project resulted in a bid letting on April 4, 2001.

The low and only bidder for both Phase I and Phase II is Shilling Construction Co., Inc., of Manhattan, Kansas, with low bids of $116,588.65
and $590,083.74 respectively. The Engineer’s Estimates are $124,424.35 and $631,598.15 respectively. There is approximately $780,000
budgeted from the Special Street and Highway Fund for contract street maintenance efforts in 2001.

It is the intention of City Administration to consider recommending additional projects, by change order, to this contract to address
maintenance issues that were not initially included in the contract. Differentials between estimates and actual bids for Phases I and II of the
2001 Street Maintenance Project indicate that other street maintenance concerns can potentially be addressed, with budgeted funds, if
change orders to the existing items can be minimize. City Administration, in conjunction with the PMS, will make future recommendations as
to where additional funds can most appropriately and effectively be put to use.