Title
Resolution to Approve Change Order No. 2 with Corby Energy Services, Inc. for the 2016 Sewer Lining Project ($180,000.00; ITB-4441)
Memorandum
Attached for your review and approval is a change order to the Construction Contract with Corby Energy Services, Inc. (ITB-4441) for the 2016 Sewer Lining Project.
This project has lined approximately 18,000 lineal feet of sanitary sewer at 20 locations throughout the City. The sewers included with this project were identified by City staff as being in critical need of repair. Lining is a process by which new material is inserted into the existing pipe, creating a new pipe inside the existing one. The process is not only cost effective, but also eliminates the need for extensive excavation and lengthy traffic control measures, thereby minimizing traffic disruption.
Bids received on May 6, 2016 in response to the Invitation to Bid (ITB-4441) were under the Engineer’s Estimate. Inspection and administrative costs have been lower than anticipated, leaving a surplus of budget.
There are many locations throughout the City that have been identified as needing repair but were not included in the bid documents. The intent of this change order is to take advantage of the favorable prices provided by Corby Energy Services, Inc. by extending the current contract to line additional locations. An additional 6,800 lineal feet of sewer lining would be added to the current contract.
Budget Impact
The FY 2016-2021 Capital Improvements Plan (CIP) includes the 2016 Sewer Lining Project (UT-SN-14-06). Funding for the project is included in the approved Sewage Disposal System capital budget. The construction contract was approved by City Council on June 20, 2016 for a total authorized amount of $645,403.50, in addition to a contingency amount of $130,000.00. Change Order No. 1 enables the use of the previously approved contingency amount. Change Order No. 2 will increase the total authorized amount to $955,403.50.
Corby Energy Services, Inc. complies with the requirements of the City’s Non-Discrimination and Living Wage ordinances.
Staff
Prepared by: Nicholas Hutchinson, P.E., City Engineer
Reviewed by: Craig Hupy, Public Services Area Administrator
Approved by: Howard S. Lazarus, City Administrator
Body
Whereas, The City of Ann Arbor FY 2016-2021 Capital Improvements Plan (CIP) includes the 2016 Sewer Lining Project (UT-SN-14-06);
Whereas, It is necessary to repair sanitary sewers in various locations throughout the city in order to provide reliable sewer service for residences at these locations;
Whereas, Corby Energy Systems, Inc. was awarded a construction contract on June 20, 2016 for a total authorized amount of $645,403.50;
Whereas, It is desirable to take advantage of favorable prices provided by Corby Energy Services, Inc. by extending the current contract to line additional sanitary sewer; and
Whereas, Funds are available in the approved Sanitary Sewer capital budget;
RESOLVED, That Change Order No. 2 to the construction contract with Corby Energy Systems, Inc. for the 2016 Sewer Lining Project be approved in the amount of $180,000.00 for additional amounts of work under the contract; and
RESOLVED, That the City Administrator be authorized to take the necessary administrative actions to implement this resolution.