Title
Resolution to Award a Construction Contract to CI Contracting, Inc. (Bid No. 3957, $574,383.00) for the Swift Run Parallel Relief Sewer Project
Memorandum
Attached for your review and approval is a resolution to award a construction contract to CI Contracting, Inc. in the amount of $574,383.00 for the Swift Run Parallel Relief Sewer Project.
The project consists of constructing a 27" diameter parallel relief sewer to the Swift Run Sanitary Trunk Sewer to provide capacity for peak and predicted future flows. During wet weather, overflows have occurred in the trunkline. In 1981, additional capacity was added with the construction of a sewer in parallel to the existing line from Salem Court to Clark Road. This alleviated basement flooding upstream. However, downstream of the improvement, overflows still occur, specifically at a manhole south of Clark Road. Much of the trunkline runs along Shetland Drive, just north of Clark Road.
On September 4, 2003, the City entered into an Administrative Consent Order (ACO) with the Michigan Department of Environmental Quality (MDEQ) to address sanitary sewer overflows within the City. As part of the ACO compliance program, the City is obligated to begin the construction of the sewer by December 31, 2008.
This project is in the current Capital Improvements Plan (UT-SN-08-19) and will provide capacity for existing and future wet weather flows.
Plans and specifications were made available through BidNet. Six bids were received and opened on June 27, 2008. The lowest responsible bid, in the amount of $574,383.00 is $98,067.00 lower than the engineer's estimate of $672,450.00. A tabulation of the bids is attached.
CI Contracting, Inc. received Human Rights approval on July 2, 2008. All employees of CI Contracting, Inc. assigned to work on the project will receive compensation in accordance with the Living Wage Ordinance.
The project will be funded from the previously approved project budget in which sufficient funds exist. All necessary easements have been obtained.
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 City is required by an Administrative Consent Order with the MDEQ to construct the Swift Run Parallel Relief Sewer in order to address sanitary sewer overflows within the system;
Whereas, Competitive bids were received by Procurement on June 27, 2008 and CI Contracting, Inc. was the lowest responsible bidder at $574,383.00;
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, CI Contracting, Inc. received Human Rights approval on July 2, 2008, and its employees will receive compensation in accordance with the Living Wage Ordinance; and
Whereas, Sufficient funds exist in the approved project budget;
RESOLVED, That a contract in the amount of $574,383.00 be awarded to CI Contracting, Inc. for the construction of the Swift Run Parallel Relief Sewer 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 a contingency amount of $75,000.00 be established within the project budget and that the City Administrator be authorized to approve additional change orders to the construction contract with CI Contracting, Inc., not to exceed $75,000.00 in order to satisfactorily complete this project;
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.