Title
Resolution to Award a Construction Contract to Fonson Company, Inc. for the Springwater Subdivision Improvements Project - Phase II ($2,251,763.99; Bid No. ITB-4426)
Memorandum
Attached for your review and approval please find a resolution that awards a construction contract to Fonson Company, Inc. in the amount of $2,251,763.99 for the Springwater Subdivision Improvements Project - Phase II.
BUDGET/FISCAL IMPACT
The FY 2016-2021 Capital Improvements Plan (CIP) includes the Springwater Subdivision Improvements Project - Phase II & III, and funds are available in the approved FY 16 and proposed FY 17 capital budgets as follows: Street Millage ($1,605,000.00), Stormwater ($1,590,000.00), and Drinking Water ($713,000.00); for a total project cost of $3,908,000.00. Phases II & III of this project are being performed together under one contract in order to limit disruption of the neighborhood to one construction season.
In addition to the above funding, the stormwater portion of this project is being financed with State Revolving Funds (SRF) and has been approved for a low interest (2.5%) loan, which will be secured by the Washtenaw County Water Resources Commissioner. The reason for financing a portion of the storm water improvements with SRF is the potential eligibility for 50% loan forgiveness. This loan will reimburse a portion of the Storm Water System Funds being allocated to the project. The Water Resources Commissioner will be assessing the City over a maximum of 20 years for this project for repayment of the loan. The first payment is included in the FY 17 proposed Storm Water Fund Capital Budget and subsequent payments will be included in the annual storm water budget submittals. Resolution R-12-456 authorized the annual payment to the County for this project from the Storm Water System Fund pending annual budget approvals by Council.
This project consists of the reconstruction of Redwood Avenue from Cardinal Avenue to Springbrook Avenue...
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