Title
Resolution to Approve a Contract with Allied Building Service Inc., for the Replacement of the Emergency Generator in Fire Station #1 ($268,800.00)
Memorandum
We recommend your approval of the attached resolution authorizing a contract in the amount of $268,800.00 with Allied Building Service Inc., for the replacement of the emergency generator at Fire Station #1. The project involves the removal of the existing diesel generator and fuel tank located in the basement, reinforcement of the structural steel on the roof, supply and installation of new rooftop mounted natural gas generator, new automatic transfer switch, new natural gas supply line, all necessary connections and controls to operate the emergency power supply in the building.
The building currently has two generators. A new natural gas powered generator was installed when central dispatch was consolidated in Fire Station #1. This unit, and the related central dispatch operations, will not be impacted by this project. The second generator is a diesel-powered generator of unknown age. This generator only powers limited operations within the building. The exhaust from the diesel generator also causes air quality issues within central dispatch offices when it operates. The new natural gas powered generator will provide full power to all fire related operations at Fire Station #1 and address the interior air quality issues
The project was bid under ITB-4516 and bids were received from four contractors on October 31, 2017. Staff evaluated the bids and determined that the prices were competitive and recommends that Allied Building Service Inc., as the lowest responsible bidder, be awarded the contract. The bid tabulation is attached
Budget Impacts
The project was included in the City’s Capital Improvement Plan and funding is available in the approved General Fund Capital Budget. The Fire Station #1 Emergency Generator Replacement project has $230,000.00 in funding. The project will exceed the approved funding.
The revised project budget for the Generator Replacement project includes design/engineering ($51,500.00), generator work ($268,800.00), gas service upgrades/testing ($7,500.00) and a 5% contingency ($13,500.00) for a total of $341,300.00.
After meeting with Finance to discuss the deficiency and the best way to fund it, it was decided to utilize funding from other approved General Fund Capital Projects, which is the most prudent way of staying within approved funding without tapping General Fund fund balance. Staff is proposing that the $111,300.00 project deficit for the Fire Station #1 Emergency Generator Replacement project comes from the approved Fire Stations #3 & #4 Rehabilitation project in the amount of $34,600.00 and from the Fire Station #5 Generator project in the amount of $76,700.00.
The Fire Stations #3 & #4 Rehabilitation project was originally funded at $100,000.00 and was previously reduced by $65,400.00 to cover additional costs related to the Fire Station #1 elevator modernization work. The Fire Station #5 Generator project was also funded at $100,000.00 and would be reduced by $76,700.00. While both projects are still needed, it becomes a matter of priorities. The Fire Stations #3 & #4 Rehabilitation project has been on hold to determine if it made sense to invest funding into the aged structures as the City determines its fire stations functionality.
The resolution includes a recommended contract contingency of $13,500.00 (approximately 5%) to cover potential contract change orders to be approved by the City Administrator if necessary.
Allied Building Service Inc. of Detroit, MI, complies with the requirements of the City’s Living Wage, Prevailing Wage and Non-Discrimination ordinances.
Staff
Prepared by: Matthew J. Kulhanek, Fleet & Facilities Unit Manager
Reviewed by: Craig Hupy, Public Services Area Administrator
Approved by: Howard S. Lazarus, City Administrator
Body
Whereas, There is a need to provide a reliable source of emergency power for all fire operations at Fire Station #1;
Whereas, The existing diesel generator at Fire Station #1 is well beyond its useful life and only provides power to a limited portion of the building;
Whereas, Four bids for the supply and installation of the new rooftop mounted natural gas powered generator were opened October 31, 2017, and Allied Building Service Inc. of Detroit, MI, submitted the lowest responsible bid under ITB No. 4516;
Whereas, Allied Building Service Inc. complies with the City’s Living Wage and Non-Discrimination Ordinances; and
Whereas, The project was included in the City’s Capital Improvement Plan and funding is available in the approved General Fund Capital Budget;
RESOLVED, That City Council approve a contract, per ITB No. 4516, with Allied Building Service Inc., in the amount of $268,800.00 and authorize a construction contingency of $13,500.00 to cover potential contract change orders;
RESOLVED, That the project deficit in the amount of $111,300.00 for the Fire Station #1 Emergency Generator Replacement project comes from the Fire Stations #3 & #4 Rehabilitation project ($34,600.00) and the Fire Station #5 Generator project ($76,700.00);
RESOLVED, That the Mayor and City Clerk be authorized and directed to execute said contract after approval as to substance by the City Administrator and approval as to form by the City Attorney; and
RESOLVED, That the City Administrator be authorized to take all necessary actions to implement this resolution including the approval and execution of change orders within the approved contingency amount.