Title
Resolution to Award a Construction Contract with Douglas N. Higgins, Inc. ($1,324,357.50, Bid No. ITB-4333) for the Arbor Oaks Phase II Watermain Replacement Project
Memorandum
Attached for your review and approval is a resolution to award a contract to Douglas N. Higgins, Inc. in the amount of $1,324,357.50 for the Arbor Oaks Phase II Watermain Replacement Project.
The current City of Ann Arbor Capital Improvements Plan (CIP) includes project UT-WS-14-12, the Arbor Oaks Phase II Watermain Replacement Project. Total project costs are estimated to be $1,841,000.00 with funding available in the Water Fund Capital budget and the Street Millage Resurfacing capital budget in the amounts of $986,500.00 and $854,500.00 respectively.
This project will replace the remaining older water mains in the Arbor Oaks Subdivision (also known as the Bryant Neighborhood). The existing watermains in this neighborhood experienced frequent breaks and are in generally poor condition. This project will replace the existing water main with approximately 1100 feet of 12-inch watermain and 2360 feet of 8-inch watermain along Santa Rosa Dr., Jay Lee Ct., Lucerne Ct., Burlingame Ct., Blain Ct., Hardyke Ct., and Bryant Elementary School property. Also included in this project is the resurfacing of the street, replacement of some curb and gutter, and reconstruction of some storm sewer structures.
For this construction contract we received seven (7) bids on Tuesday, April 29, 2014. The low bid from Douglas N. Higgins, Inc. of $1,324,357.50 is approximately the same as the Engineer’s Estimate. The construction of the project is scheduled to begin in July of 2014 and to be completed in October 2014.
Douglas N. Higgins, Inc. received Human Rights approval on May 9, 2014. The contractor employees on this project will be compensated in accordance with the City of Ann Arbor Living Wage Ordinance.
Staff
Prepared by: Nicholas Hutchinson, P.E., City Engineer
Reviewed by: Craig Hupy, Public Services Area Administrator
Approved by: Steven D. Powers, City Administrator
Body
Whereas, The existing water mains in the Arbor Oaks Subdivision along Santa Rosa Dr., Jay Lee Ct., Lucerne Ct., Burlingame Ct., Blain Ct., Hardyke Ct., and Bryant Elementary School property are in poor condition, and are in need of replacement;
Whereas, This project is included in the City’s Capital Improvement Plan;
Whereas, Total project costs are estimated to be $1,841,000.00 with funding available in the water fund capital budget and street millage resurfacing capital budget in the amounts of $986,500.00 and $854,500.00 respectively;
Whereas, Competitive bids were received by the Procurement Unit on April 29, 2014 and Douglas N. Higgins, Inc. of Ann Arbor, MI, was the lowest responsible bidder at $1,324,357.50;
Whereas, It is now necessary to enter into a Douglas N. Higgins, Inc. company for the construction of Arbor Oaks Phase II Watermain Replacement Project; and
Whereas, Douglas N. Higgins, Inc. received Human Rights approval on May 9, 2014 and complies with the Living Wage Ordinance;
RESOLVED, That a contract in the amount of $1,324,357.50 be awarded to Douglas N. Higgins, Inc. for the construction of the Arbor Oaks Phase II Watermain Replacement Project (Bid No. ITB-4333);
RESOLVED, That a contract contingency amount of $150,000.00 be established and that the City Administrator be authorized to approve additional change orders to the construction contract with Douglas N. Higgins, Inc. not to exceed $150,000.00 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 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; and
RESOLVED, That the City Administrator be authorized to take the necessary administrative actions to implement this resolution.