Title
Resolution to Approve Change Order No. 1 with Cadillac Asphalt LLC for the 2020 Street Resurfacing Project (ITB-4260, $8,899,300.00) in the amount of $230,418.69 and to Appropriate $73,000.00 from the Alternative Transportation Fund, $152,435.00 from the Local Street Fund, and $60,000.00 from the Downtown Development Authority (8 Votes Required)
Memorandum
Attached for your review and consideration for approval, please find a resolution requesting approval of a change order to the construction contract with Cadillac Asphalt LLC in the amount of $230,418.69 and a budget amendment in the amount of $285,435.00, both related to the 2020 Street Resurfacing Project. The change order and budget amendment address costs borne by the project to support activities related to Healthy Streets and Traffic Calming. The 2020 Street Resurfacing Project was used to support these initiatives because: a) it allowed for a more rapid deployment since a contractor was already under contract with the City through a competitive bid; and b) the contract was a unit-price contract and structured in a manner that could be easily adjusted for these activities as many of the necessary work items were the same or similar to those included in the contract. This resolution allows for the proper budget allocations to be made to support this work.
On May 4, 2020, City Council passed R-20-2158 “Resolution to Promote Safe Social Distancing Outdoors in Ann Arbor,” which established what is now referred to as the City’s Healthy Streets Program. This resolution stipulated “that the City Administrator direct that staff implement as soon as possible pilot lane or street re-configurations on residential streets based on resident requests…” While the resolution set forth this directive, funding was not appropriated. After months of receiving recommendations from the public, the City implemented 26 of these “neighborhood slow streets” through the Healthy Streets Program. The cost for this deployment was $29,500.00 and is available in the approved FY 21 Alternative Transportation Fund Operations and Maintenance Budget.
Additionally, on July 6, 2020, City Council passed R-20-261 “Resolution to Advance Healthy Streets in Downtown Ann Arbor to Promote Safe Social Distancing Outdoors” and R-20-262 “Resolution to Advance Healthy Streets Outside of Downtown Ann Arbor to Promote Safe Social Distancing Outdoors and Appropriate $15,000.00 from the FY 2021 Major Street Fund Operations and Maintenance Budget,” which authorized lane reconfigurations on major streets to support Healthy Streets and safe social distancing. The lane reconfigurations downtown are within the $60,000.00 budget as identified in R-20-261 but the contract with Cadillac Asphalt LLC needs to be changed to reflect this work. The lane reconfigurations outside of downtown will exceed the $15,000 originally identified and the total is now expected to be $43,500 (including inspection costs). As such, this resolution increases the budgeted amount for Healthy Streets lane reconfigurations outside of downtown to $43,500.00, which is also available in the approved FY 21 Alternative Transportation Fund Operations and Maintenance Budget.
Lastly, City staff has recently completed processing a traffic calming petition for Fernwood Avenue. The project received support from the neighborhood and City Council will consider approval of the project through a separate action. Cadillac Asphalt LLC has indicated they have the capacity to build this project this construction season. As such, the identified project cost of $152,435.00 needs to be added to the existing contract amount for the 2020 Street Resurfacing Project. Funding for this portion of the project is included in the approved FY 21 Local Street Fund Operations and Maintenance Budget.
Budget/Fiscal Impact: On April 20, 2020, City Council approved a resolution (R-20-135) to award a construction contract to Cadillac Asphalt LLC for $8,899,300.00 including a $890,000.00 contingency. The Change Order and Budget Amendment authorize additional funding for the 2020 Street Resurfacing Project as follows:
|
|
Change Order |
Budget |
|
• Healthy Streets (Neighborhood Slow Streets) |
|
|
|
Alternative Transportation Fund |
$26,762.00 |
$29,500.00 |
|
• Healthy Streets (Downtown Major Streets) |
|
|
|
Downtown Development Authority Funds |
$47,313.19 |
$60,000.00 |
|
• Healthy Streets (Outside of Downtown Major Streets) |
|
|
|
Alternative Transportation Fund |
$35,842.00 |
$43,500.00 |
|
• Traffic Calming (Fernwood Ave) |
|
|
|
Local Street Fund |
$120,501.50 |
$152,435.00 |
|
Total |
$230,418.69 |
$285,435.00 |
In each case, we are requesting that the funding be appropriated to the existing 2020 Street Resurfacing Project Budget to adjust budget authorization.
Cadillac Asphalt LLC complies with the City’s Non-Discrimination, Living Wage Ordinances, and Prevailing Wage Ordinances.
Staff
Prepared by: Nicholas Hutchinson, P.E., City Engineer
Reviewed by: Craig Hupy, Public Services Area Administrator
Approved by: Tom Crawford, Interim City Administrator
Body
Whereas, Cadillac Asphalt LLC was awarded a construction contract for the 2020 Street Resurfacing Project in the amount of $8,899,300.00 including a $890,000.00 contingency;
Whereas, a change order is necessary to address added work related to the implementation of Healthy Streets and traffic calming projects;
Whereas, Funds for this work are available in the FY 21 approved Alternative Transportation, Local Street and DDA operations and maintenance budgets; and
Whereas, Cadillac Asphalt LLC is in compliance with the requirements of the City’s Non-Discrimination and Living Wage Ordinances;
RESOLVED, That Change Order No. 1 to the construction contract with Cadillac Asphalt LLC for the 2020 Street Resurfacing Project be approved in the amount of $230,418.69 for additional work related to implementation of Healthy Streets and Traffic Calming on Fernwood Avenue; and
RESOLVED, That $73,000.00 be appropriated from the Alternative Transportation Fund to the Existing 2020 Street Resurfacing project budget to support the Healthy Streets initiative; thereby, increasing the project expenditure and revenue budgets;
RESOLVED, That $152,435.00 be appropriated from the Local Street Fund to the existing 2020 Street Resurfacing Project budget to support the Fernwood Avenue traffic calming project; thereby, increasing the project expenditure and revenue budgets;
RESOLVED, That $60,000.00, the amount contributed by the Downtown Development Authority, be appropriated to the existing 2020 Street Resurfacing Project budget; thereby, increasing the project’s revenue and expenditure budgets;
RESOLVED, That an additional contingency amount of $28,550.00 be established within the amended project budget and allocated proportionately across those applicable funding sources, and that the City Administrator be authorized to approve additional change orders related to the Healthy Streets and Traffic Calming work activities performed under the construction contract with Cadillac Asphalt LLC not to exceed $28,550.00 in order to satisfactorily complete that work; and
RESOLVED, That the City Administrator be authorized to take the necessary administrative actions to implement this resolution.