Title
Resolution to Award a Construction Contract to P.K. Contracting, Inc. for Pavement Marking Maintenance ($560,088.25; Bid No. ITB No. 4631)
Memorandum
Attached for your review and consideration for approval, please find a resolution to authorize the award of a unit price contract to P.K. Contracting, Inc. in the amount of $560,088.25 for the maintenance of pavement markings throughout the City. Available funds and needed replacements are the basis of the contract amount.
The City advertised for bid the proposed work on its website and on the Michigan Inter-Governmental Trade Network (MITN) website with the bidding documents being available to interested contractors. The City received one (1) bid and publicly opened it on May 27, 2020. The bid received from P.K. Contracting, Inc. for $560,088.25 is approximately 7.0% below the Engineer’s Estimated Opinion of Costs.
Staff anticipated that only a single bid would be received for this work, as P.K. Contracting, Inc. is typically the only company in the area that provides these services. Staff thoroughly evaluated the submitted bid to determine that the unit prices are fair and acceptable. Following this evaluation, staff recommends awarding the contract to P.K. Contracting, Inc. Attached is a summary of the bid results.
Budget/Fiscal Impact
Funding for this work is available in the adopted FY 2021 Public Services Area, Operation and Maintenance Budget in the Alternative Transportation, Major and Local Street Funds as shown below together with other revenue sources.
|
Revenue Source |
Amount |
|
FY 2021 Major Street Fund Operation and Maintenance Budget |
$350,000.00 |
|
FY 2021 Major Street Pedestrian Safety Operation and Maintenance |
$50,000.00 |
|
FY 2021 Major Street School Zone Safety Operation and Maintenance |
$26,500.00 |
|
FY 2021 Local Street Fund Operation and Maintenance Budgets |
$50,000.00 |
|
FY 2021 Local Street Pedestrian Safety Operation and Maintenance |
$3,500.00 |
|
FY 2021 Local Street School Zone Safety Operation and Maintenance |
$15,000.00 |
|
Alternative Transportation Fund Operation and Maintenance Budget |
$145,000.00 |
|
Traffic Calming - Local Street Fund Operation and Maintenance Budget |
$5,000.00 |
|
Total |
$645,000.00 |
Operationally, these pavement marking improvements will benefit the safety of patrons using the City’s motorized and non-motorized transportation systems.
Staff expects the contract work to begin in early July 2020 and be complete as required by June 30, 2021. There is an option to extend this contract for a one-year period to allow for pavement marking maintenance in FY 2022. This extension is subject to the availability of funding, the same contract terms and unit prices as the original contract, and the approval of City Council.
P.K. Contracting, 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: Tom Crawford, Interim City Administrator
Body
Whereas, It is necessary to replace pavement markings throughout the City to help maintain a safe environment on the City’s roadways;
Whereas, Bids were received by the Purchasing Services Office on May 27, 2020, and P.K. Contracting, Inc. was the lone responsive bidder with a submitted bid of $560,088.25;
Whereas, The Public Services Area staff recommends approval of a contract with P.K. Contracting, Inc.;
Whereas, Funding is available in the adopted FY 2021 Public Services Area, Operation and Maintenance Budget in the Alternative Transportation, Major Streets and Local Street Fund Budgets;
Whereas, P.K. Contracting, Inc. complies with the requirements of the City’s Non-Discrimination and Living Wage ordinances; and
Whereas, It is now appropriate to enter into a contract with P.K. Contracting, Inc. for the proposed work;
RESOLVED, That City Council approves the award of a contract with P.K. Contracting, Inc. in the amount of $560,088.25 (ITB No. 4631) for the maintenance of pavement markings throughout the City;
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 $56,000.00 be established within the project budget, and that the City Administrator be authorized to approve additional change orders/contract modifications to the pavement marking contract with P.K. Contracting, Inc., not to exceed $56,000.00 in order to satisfactorily complete the project; and
RESOLVED, That the City Administrator be authorized to take the necessary administrative actions to implement this resolution including approval of needed Traffic Control Orders, night work authorizations, and other similar administrative approvals to allow the work of the project to proceed without delay.