Title
Resolution to Award a Construction Contract to Dunigan Brothers, Inc. for the Stadium and Iroquois Water Main Replacement Project ($462,458.00; Bid No. ITB-3998)
Memorandum
Attached for your review and approval is a resolution to award a contract to Dunigan Brothers, Inc. in the amount of $462,458.00 for the Stadium and Iroquois Water Main Replacement Project.
The construction contract titled "Stadium and Iroquois Water Main Project" includes the installation of new 8" water mains at Iroquois Place and East Stadium Boulevard. The work includes approximately 3,350 feet of new 8" ductile iron water main to replace the existing 4" and 6" water main that serves the houses on East Stadium and Iroquois. This work will provide a more reliable water service for the neighborhood, and conform to City of Ann Arbor water main and fire protection standards by upsizing the pipe, and adding four new fire hydrants. As part of this construction contract, the street will be resurfaced, and adjacent sidewalk ramps will be replaced to comply with the ADA requirements.
The project was advertised on Bidnet and plans and specifications were distributed to contractors who expressed interest in the project. Ten bids for the construction were received and opened on Friday, March 13, 2009. The lowest responsible bid from Dunigan Brothers, Inc. of $462,458.00 is approximately 17% below the Engineer's Estimate. The price of ductile iron pipe has decreased in the last year, resulting in a lower price than anticipated. The construction of the project is scheduled for completion by September 2009.
The funding for this project will be advanced from the Water Supply System pending the sale of Water Revenue bonds.
The project budget is as follows:
Design $ 68,500.00
Construction Contract $465,000.00
Construction Contingency $ 46,500.00
Testing $ 24,000.00
User Fees $ 33,000.00
Construction Engineering $ 75,000.00
Misc $ 24,000.00
Total project budget: $736,000.00
Dunigan Brothers, Inc. received Human Rights approval on March 16, 2009. Employees working on this project will be paid prevailing wages (which exceed the "living wage") per the contract.
Staff
Prepared by: Homayoon Pirooz, P.E., Manager, Project Management Unit
Reviewed by: Sue F. McCormick, Public Services Administrator
Approved by: Roger W. Fraser, City Administrator
Body
Whereas, It is necessary to install new water mains in Iroquois Place and East Stadium Boulevard to provide safe and dependable water service for these residences;
Whereas, Competitive bids were received by the Procurement Unit on March 13, 2009 and Dunigan Brothers, Inc. of Jackson, MI, was the lowest responsible bidder at $462,458.00;
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, Dunigan Brothers, Inc. received Human Rights approval on March 16, 2009 and complies with the living wage ordinance; and
Whereas, funding for this project will be advanced from the Water Supply System pending the sale of Water Revenue bonds;
RESOLVED, That a contract in the amount of $462,458.00 be awarded to Dunigan Brothers, Inc. for the construction of the Stadium and Iroquois Water Main Replacement Project (Bid No. ITB-3998);
RESOLVED, That a contract contingency amount of $46,200.00 be established and that the City Administrator be authorized to approve additional change orders to the construction contract with Dunigan Brothers, Inc., not to exceed $46,200.00 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.