Title
Resolution to Award a Construction Contract to TSP Services, Inc. ($507,770.00; Bid No. ITB-4218) for the West Park Stormwater Completion Project
Memorandum
Attached for your review and approval is a resolution to award a construction contract to TSP Services, Inc. in the amount of $507,770.00 for the West Park Stormwater Completion Project.
In 2010, in addition to other park improvements, construction was performed on the Allen Creek Drain within West Park, with the goal of improving storm water quality in the drain. The design included the installation of eight swirl concentrator units (to remove suspended solids from the storm water prior to reintroducing it into the system) on the north and south branches of Allen Creek near the west side of the park.
During the construction of the project, flooding was experienced in and around the work area during one of the several large storms experienced that summer. In addition, in November of 2010, after the stormwater work had been completed, one of the swirl concentrators on the north branch collapsed, creating a sinkhole near the northwest corner of the park. Subsequent investigation revealed that the remaining swirl concentrators on the north branch were in various stages of failure as well.
City Staff engaged the engineering consulting services of Orchard Hiltz & McCliment (OHM) to analyze the failure of the swirl concentrator units, evaluate the original design, and propose changes to the system. OHM's contract was eventually extended to provide engineering plans and specifications to implement their proposed changes to the diversion manholes, which include rebuilding several storm structures, replacing the weirs with adjustable "stop log" assemblies, installing grated covers for stormwater surcharge relief, and restoration of the site upon completion.
Plans and specifications were distributed electronically to contractors, subcontractors, and suppliers. Seven bids were received and opened on April 10, 2012. The lowest responsible bid, in the amount of $507,770.00 is approximately $100,745.00 higher than the engineer's estimate of $407,025.00. A tabulation of the bids is also attached.
TSP Services, Inc. received Human Rights approval on November 11, 2011, and Living Wage approval on April 11, 2012.
The City is currently finalizing an agreement with the manufacturer of the swirl concentrator units to replace the covers on all eight structures with redesigned covers, at the manufacturer's cost. This work is currently expected to occur in late Spring. The work contained in this contract with TSP Services, Inc. will begin as soon as possible upon the completion of the repair work by the manufacturer.
This project is being funded by the Approved Storm Water Capital Budget.
The City intends to pursue various means of recovering the costs associated with this project, including claims against the original designers of the project.
Staff
Prepared by: Homayoon Pirooz, P.E., Project Management Manager
Reviewed by: Craig Hupy, Interim Public Services Administrator
Approved by: Steven D. Powers, City Administrator
Body
Whereas, It is necessary to reconstruct several stormwater structures in West Park in order to divert flow into adjacent swirl concentrator units;
Whereas, bids were received by the Procurement Unit on April 10, 2012 and TSP Services, Inc. of Livonia, Michigan, was the lowest responsible bidder at $507,770.00;
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; and
Whereas, TSP Services, Inc. received Human Rights approval on November 11, 2011, and Living Wage approval on April 11, 2012; and
Whereas, funding for this project is available in the approved Storm Water capital budget;
RESOLVED, That a contract in the amount of $507,770.00 be awarded to TSP Services, Inc. for the construction of the West Park Stormwater Completion Project (Bid No. ITB-4218);
RESOLVED, That a contract contingency amount of $75,000.00 be established and that the City Administrator be authorized to approve additional change orders to the construction contract with TSP Services, Inc., not to exceed $75,000.00 in order to satisfactorily complete this project;
RESOLVED, That the City makes the following declaration for the purposes 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 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 the City Administrator be authorized to take the necessary administrative actions to implement this resolution.