Title
Resolution to Award Construction Contract to Dan's Excavating, Inc. d/b/a Dan's Excavating and Pamar Enterprises, Inc., a Joint Venture (Bid No. 4063, $527,042.50) for the Yost Parkwood/Wildwood Sanitary Sewer Project
Memorandum
Attached for your review and approval is a resolution to award a construction contract to Dan's Excavating, Inc. d/b/a Dan's Excavating and Pamar Enterprises, Inc., a Joint Venture in the amount of $527,042.50 for the Yost/Parkwood/Wildwood Sanitary Sewer Project.
The construction contract titled "Yost/Parkwood/Wildwood Sanitary Sewer Project" includes the replacement of sanitary sewer mains at three different locations in the City. These locations have been combined into one construction contract for the purpose of efficiency.
The Yost Sanitary Sewer consists of the replacement by pipe bursting of approximately 315 feet of deteriorated sewer that runs cross-lot between Yost Street and Darrow Drive.
The Parkwood Sanitary Sewer consists of the replacement of approximately 90 feet of sanitary sewer by pipe bursting under Parkwood Avenue at Jeanne Street, and the relocation of approximately 100 feet of sewer behind the curb on the east side of Parkwood Avenue.
The Wildwood Avenue Sanitary Sewer project consists of the replacement of approximately 550 feet of deteriorated 8-inch sewer servicing residences on Wildwood Avenue. The project also includes the upsizing of approximately 160 feet of the existing 12-inch trunkline sanitary sewer that crosses Wildwood Avenue at Maryfield-Wildwood Park. Modeling of the sewer system shows the need for additional capacity in this trunkline, and this project will meet that need in the vicinity of Wildwood Avenue in advance of the resurfacing of the street; thereby precluding the need to re-excavate the street to replace the sewer in the near future.
A Public Meeting was held on October 28, 2009 to present the Wildwood portion of the project to local residents and receive feedback from the residents during the design phase of the project. City staff gave a brief presentation about the project, and answered questions from the residents. The discussion focused mainly on the extent of the construction work to be done, its effect on the residents and on the Maryfield-Wildwood Park, project schedule, and efforts to improve drainage on the street. The City will hold additional public meetings, for both areas, prior to the start of construction.
Plans and specifications were distributed electronically to contractors, subcontractors, and suppliers. One bid was received and opened on February 8, 2010. The bid, in the amount of $527,042.50 is approximately $85,220.00 higher than the engineer's estimate of $441,548.00. We spoke with a few contractors who showed initial interest in the project, but decided not to bid on this construction contract. Some cited their lack of experience for the required pipe-bursting operation and the others mentioned their unfamiliarity with the City's new Construction Unity Board (CUB) contract requirements, for their hesitation to bid on this project.
This project will be funded by the Sanitary Sewer Fund pending the sale of Sewer Revenue bonds. Dan's Excavating, Inc. d/b/a Dan's Excavating and Pamar Enterprises, Inc., a Joint Venture received Human Rights approval on February 11, 2010.
Staff
Prepared by: Homayoon Pirooz, P.E., Project Management Manager
Reviewed by: Sue F. McCormick, Public Services Administrator
Approved by: Roger W. Fraser, City Administrator
Body
Whereas, It is necessary to replace existing sanitary sewers on Yost Boulevard, Parkwood Avenue, and Wildwood Avenue in order to provide reliable sewer service for residences at these locations;
Whereas, bids were received by the Procurement Unit on February 8, 2010 and Pamar Enterprises, Inc. of New Haven, MI, was the sole responsible bidder at $527,042.50;
Whereas, The contractual proposal sets forth the services to be performed by said company, and the payments to be made by the City therefore, all of which are agreeable to the City;
Whereas, It is now necessary to enter into a contract with said company for said construction project;
Whereas, Dan's Excavating, Inc. d/b/a Dan's Excavating and Pamar Enterprises, Inc., a Joint Venture received Human Rights approval on February 11, 2010 and complies with the living wage ordinance;
Whereas, the project costs including design and inspection are estimated to be $700,000.00; and
Whereas, the funding for this project will be advanced from the Sanitary Sewer Fund pending the sale of Sewer Revenue bonds;
RESOLVED, That a contract in the amount of $527,042.50 be awarded to Dan's Excavating, Inc. d/b/a Dan's Excavating and Pamar Enterprises, Inc., a Joint Venture for the construction of the Yost/Parkwood/Wildwood Sanitary Sewer Project (Bid No. ITB-4063);
RESOLVED, That a contract contingency amount of $50,000.00 be established and that the City Administrator be authorized to approve additional change orders to the construction contract with Pamar Enterprises, Inc., not to exceed $50,000.00 in order to satisfactorily complete this project;
RESOLVED, That the Mayor and City Clerk be authorized and directed to execute said contract after approval as to form by the City Attorney, and approval as to substance by the City Administrator;
RESOLVED, That the City make the following declaration for the purpose of complying with the reimbursement rules of Treasury Regulations 1.150-2 pursuant to the Internal Revenue Code of 1986, as amended, that the City reasonably expects to reimburse itself for expenditures for the costs of the Project with proceeds of Bonds; and
RESOLVED, That the City Administrator be authorized to take the necessary administrative actions to implement this resolution.