Title
Resolution to Award a Construction Contract to Pamar Enterprises, Inc. (Bid No. 3932, $2,324,312.00) for the Huron River Drive Improvements Project and to Amend the Project Budget ($2,482,649.00) (8 Votes Required)
Memorandum
Attached for your review and approval is a resolution to award a construction contract to Pamar Enterprises, Inc. (Pamar) in the amount of $2,324,312.00 for the Huron River Drive Improvements Project and to amend the project budget by $2,682,649.00 for a total of $3,606,015.00.
Background
Huron River Drive between Bird Road and North Main Street is a popular route for recreational bicyclists and motorists seeking a scenic drive. However, the road surface is in poor condition. It was last surface treated in the 1990's and has not been resurfaced since. Its continued deterioration was cause for response by the city, as it cannot go untreated much longer without consequence.
The City's 2007 Non-Motorized Plan identifies Huron River Drive as a second tier priority for bike lanes on paved shoulders. The Natural Features Guidelines protect landmark trees, steep slopes, wetlands, woodlands, and other natural features found along both sides of the road, and identifies many of them as Highest Concern. Because a balance must be found between these competing directives, an extensive public involvement process was undertaken by staff in 2007. From this process, it was determined that rebuilding the road within its current dimension was the alternative that best reflected the values of our community at large. In August 2007, City Council authorized the preparation of plans and specifications to reconstruct the road (R-373-8-06).
Another public meeting was held April 2, 2008 to explain the project, the schedule, and the detour routes. The public is in favor of reconstructing the road. Concerns were expressed regarding the impact of the detour route, especially as it affects emergency service access, and also with the proposed phasing with final completion in 2009.
Detour Route
During the construction, Huron River Drive from Main Street to Bird Road will be closed to traffic. The detour route for eastbound Huron River Drive traffic will be Maple-Dexter-Huron-Main. The detour route for westbound Huron River Drive traffic will be Main-Miller-Maple. The detour routes have been provided to the Emergency Services Unit and the Huron Valley Ambulance (HVA). Both entities will coordinate their services with the road closure. HVA stated that currently their ambulances are often staged in locations that would more often use Miller-Newport rather than Huron River Drive.
Construction Schedule
The specifications for Huron River Drive call for road construction to be completed over two construction seasons. The first effort involves installation of Sanitary sewer improvements in 2008, followed by road construction from M-14 to approximately 3,200 ft west, beginning in May and continuing to September 2008. The road will be reopened to traffic from September 2008 until May 2009. In May 2009, Huron River Drive will be closed and the road section from 3,200 west of M-14 to Bird Road) will be constructed from May to September 2009.
The goal of the phasing is to balance completing the construction as quickly as possible with the priority of protecting the adjacent natural features. The phasing will limit the amount of time that any area will be in an exposed state (i.e., reducing the risk of failures that may occur to due to a significant rain event). It also provides for the stabilization and revegetation of all the slopes in September of each year, which will allow the vegetation to become established before the winter. Leaving exposed slopes through the winter would not be acceptable in terms of protecting the adjacent natural features.
Staff has heard from citizens who are upset with the proposed phasing. However, staff believes that the proposed phasing will best protect the natural features and provide for a successful project. Also, the total time of construction will be about the same (approximately 7 months) as it would be if it were to be worked on continuously over one construction season. The documents also allowed for the contractors to bid an alternate schedule, provided that the work could be completed while protecting the natural features. No bidder proposed an alternate schedule.
Design Features
Because the natural area adjacent to the road contains sensitive natural features, including special plants, steep slopes, and wetlands, additional steps were taken to reduce construction impacts. Limited grading will occur in natural areas next to the road. The new road will be built up on top of the current road, and its edges will be stabilized with geogrid materials and native plants. Culverts for road drainage will be set at the same level as existing culverts, to prevent wetlands from being drained. Their design has been modified from conventional drop-structures to prevent trapping small animals. Stormwater will be directed to a channel vegetated with native wetland plants (it currently runs down a concrete ditch and erodes existing stream banks). Tree removal will be kept to a minimum, and new trees will be planted.
The project also includes upsizing of the existing North Main Submain sanitary sewer that runs the length of Huron River Drive. This project is in the current Capital Improvements Plan (UT-SN-08-19) and will provide capacity for existing and future wet weather flows.
Thirty-one sets of plans and specifications were distributed to contractors, subcontractors, and suppliers who expressed interest in the project. Six bids were received and opened on April 7, 2008. The lowest responsible bid, in the amount of $2,324,312.00 is $912,035.00 lower than the engineer's estimate of $3,236,347.00. We believe the lower bid prices are due to the contractors being less busy this year than in years past. A tabulation of the bids is attached.
Pamar Enterprises, Inc. received Human Rights approval on April 17, 2008. All employees of Pamar assigned to work on the project will receive compensation in accordance with the Living Wage Ordinance.
Council approved this project as a part of the FY08 capital budget with funding from the Street Resurfacing Millage, Sewage Disposal System and Stormwater System. At that time the details involving the road reconstruction solution and utility improvements were not complete. Given the need to construct over two years, staff is requesting amending the budget The Storm Water System Operating Fund Balance will advance funding pending the sale of bonds for replacement of culverts and improvement to the existing swales and the Sewage Disposal System Operating Fund Balance will advance funding pending the sale of bonds for the upsizing of the sanitary sewer. The total project cost is estimated as shown below:
Construction Contract $2,324,312
Design Engineering $ 380,000
Construction Engineering $ 400,000
Material Testing & Insp. $ 50,000
Miscellaneous $ 116,000
Contingencies $ 250,000
Art In Public Places $ 35,203
Bonding Expenses $ 50,500
$3,606,015
Funding Sources:
Street Resurfacing Millage $1,990,015
Sewage Disposal System $1,351,000
Stormwater System $ 265,000
$3,606,015
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, The Huron River Drive Improvements Project includes the reconstruction of Huron River Drive (M-14 to Bird Road) and the upsizing of the North Main Submain Sanitary Sewer that runs within Huron River Drive;
Whereas, City Council authorized the reconstruction of Huron River Drive (R-373-8-07) after an extensive public involvement process was completed in 2007;
Whereas, The project generally received support from local residents attending an additional public meeting on April 2, 2008;
Whereas, Competitive bids were received by Procurement on April 7, 2008 and Pamar Enterprises, Inc. was the lowest responsible bidder at $2,324,312.00;
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, Pamar Enterprises, Inc. received Human Rights approval on April 17, 2008, and its employees will receive compensation in accordance with the Living Wage Ordinance; and
Whereas, Council approved the Huron River Drive project and associated funding during the FY08 Capital Budget process;
RESOLVED, That funds for this project are available in the FY08 Capital Projects Budget and are advanced from the Stormwater System and Sewage Disposal System Operating Fund Balances to be repaid pending the sale of appropriate revenue bonds;
RESOLVED, That the City makes 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;
RESOLVED, That a contract in the amount of $2,324,312.00 be awarded to Pamar Enterprises, Inc. for the construction of the Huron River Drive Improvements Project;
RESOLVED, That the project budget be amended by $2,482,649.00 for a total of $3,606,015.00 with funding to be available for the life of the project without regard to fiscal year;
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; and
RESOLVED, That a contingency amount of $250,000.00 be established within the project budget and that the City Administrator be authorized to approve additional change orders to the construction contract with Pamar Enterprises, Inc., not to exceed $250,000.00 in order to satisfactorily complete this project; and
RESOLVED, That the City Administrator be authorized to take the necessary administrative actions to implement this resolution.