Title
Resolution to Approve a Construction Contract with LiquiForce Services (USA), Inc. for the Nichols Arboretum Sewer and Siphon Rehabilitation Project ($890,900.00)
Memorandum
Attached for your review and approval, please find a resolution that approves a construction contract between LiquiForce Services (USA), Inc. and the City of Ann Arbor for the Nichols Arboretum Sewer and Siphon Rehabilitation Project.
Budget/Fiscal Impact
The cost of this work is being funded by the approved Sewage Disposal Capital Budget as part of CIP Project UT-SN-14-06. As reported to Council on June 20, 2016, the estimated total budget for the proposed project is expected to be approximately $1,250,000.00. However, as the full extent of the work required cannot be determined until the siphon is cleaned and inspected, it may become necessary to amend the budget for the project based on the results of that inspection.
Project Description
The Nichols Arboretum Sewer and Siphon Rehabilitation Project includes the cleaning, lining, and rehabilitation of a portion of the Southside Interceptor sewer that passes through the Nichols Arboretum. Also included in the proposed work is the performance of a hands-on inspection of the flow chambers at the beginning and end of an inverted siphon that exists along the interceptor sewer. Attached, please find a drawing that depicts the affected portion of the Arboretum and the portion of the sewer that is planned to be rehabilitated. Due to the sensitive nature of the area in which this project exists, there were several challenges that the design and specification preparation process addressed so that the applicable portions of City Code were met and the contract documents contained the necessary safeguards to appropriately direct the contractor’s operations to prevent needless disruption and damage to the Arboretum.
The Southside Interceptor sewer is a major sanitary trunkline sewer that provides sanitary sewer service to approximately 1,185 acres; or, an ultimate population of about 20,000 residents. Due to the location and topography of the land which contains the sewer, it is very difficult for Public Works forces to access the sewer for performing routine maintenance and cleaning activities. Consequently, the condition of the sewer has degraded over time. It has been reported that the City’s Public Works staff has had to perform periodic joint repairs on this sewer for at least the last twenty years as leaks in the pipe developed. Sanitary sewer overflows and/or leaks cannot be tolerated. Given the sensitive nature of this area and its proximity to the Huron River, the severity of any leaks are greatly compounded. Thus, it is now necessary to properly clean the sanitary sewer, thoroughly inspect the pipe, place a structural liner within the pipe to prevent further decay and leaks, and clean and rehabilitate the existing inverted siphon and the chambers.
The Project Management Services Unit had plans and contract documents prepared for this work and bid the project through the City’s Procurement Unit following our standard procedures. On November 15, 2016, four bids were received for this work. LiquiForce Services (USA), Inc. of Romulus Michigan was the lowest responsible bidder with a bid amount of $890,900.00. A tabulation of the bids received is as follows:
LiquiForce Services (USA), Inc. $890,900.00*
Ric-Man Construction, Inc. $934,277.00
Lanzo Trenchless Technologies North $981,754.00*
SAK Construction, LLC $1,695,429.00
* the bid contained a mathematical error; this is the corrected value.
The Engineer’s Estimate for the project’s construction is $1,143,510.00. The lowest responsible bid for this project is approximately 22% below the Engineer’s Estimate. Upon review of the bids received, it appears that this bid properly addresses the work and the conditions in which it is to be performed. Consequently, staff recommends awarding this contract to LiquiForce Services (USA), Inc.
Construction is expected to start in early January and be substantially completed by March 24, 2017; final completion is May 31, 2017. Staff from the Project Management Services Unit will inspect the work of the project and manage its construction.
Staff
Prepared by: Nicholas S. Hutchinson, P.E., City Engineer
Reviewed by: Craig Hupy, Public Services Area Administrator
Approved by: Howard S. Lazarus, City Administrator
Body
Whereas, A portion of the Southside Interceptor Sanitary Sewer that passes through the Nichols Arboretum is in poor condition, contains leaking joints, and has experienced sanitary sewage spills;
Whereas, Due to the extremely difficult access to this particular run of sanitary sewer, maintenance activities in the past have been very challenging and it has been extremely difficult to perform the needed routine maintenance on this section of sanitary sewer;
Whereas, The cost of this work is available in the approved Sewage Disposal Capital Budget as part of CIP Project UT-SN-14-06;
Whereas, The City of Ann Arbor received four bids for this work on November 15, 2016 and LiquiForce Services (USA), Inc. of Romulus Michigan was the lowest responsible bidder for this work with a corrected bid amount of $890,900.00;
Whereas, It is now necessary to enter into a contract with LiquiForce Services (USA), Inc. for the performance of this work; and
Whereas, LiquiForce Services (USA), Inc. has submitted all required Human Rights, Living Wage, and Conflict of Interest Disclosure forms and complies with the requirements of the City’s Non-Discrimination and Living Wage Ordinances;
RESOLVED, That a construction contract with LiquiForce Services (USA), Incorporated of Romulus, Michigan the in the amount of $890,900.00 be approved;
RESOLVED, That the Mayor and City Clerk be authorized and directed to execute the construction contract with LiquiForce Services (USA), Incorporated in the amount of $890,900.00 in the form on file with the City Clerk, following approval as to substance by the City Administrator, and approval as to form by the City Attorney;
RESOLVED, That the City Administrator be authorized to approve change orders to the contract with LiquiForce Services (USA), Inc. up to $89,100.00 in order to satisfactorily complete the project;
RESOLVED, That the City make 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 Council authorize the City Administrator to take the necessary administrative actions to implement this resolution.