Title
Resolution to Approve a Construction Contract with Z Contractors, Inc. for the Replacement of Sequoia No. 1 and Sequoia No. 2 Sewage Lift Stations, ITB No. 4670 ($732,777.00)
Memorandum
Your approval is requested for a construction contract with Z Contractors, Inc. in the amount of $732,777.00 for the replacement of Sequoia No. 1 and Sequoia No. 2 Sewage Lift Stations (LS). The City operates and maintains eight LS, which lift sewage from lower to higher elevations as needed to allow it to flow by gravity to the City’s Wastewater Treatment Plant (WWTP) for treatment. An evaluation of all eight LS was performed during development of the 2004 WWTP Facilities Master Plan, which identified deficiencies and estimated the useful remaining life of each station.
Two of the LS were replaced prior to 2019 and one LS, South Boulevard, is scheduled to be eliminated in FY 23. The remaining five LS were identified as needing replacement due to their age and condition and design documents for this work were prepared in 2019. Astor and Franklin Sewage LS were replaced in 2020, Sequoia No. 1 and Sequoia No. 2 LS are to be replaced in FY 22 and Arbor Landings LS is to be replaced in FY 23 as scheduled in the City of Ann Arbor Capital Improvements Plan. The replacement of Sequoia No. 1 and Sequoia No. 2 LS includes demolition of existing structures, modification of an existing wet well structure, installation of new pumps and valves, and improvements to station electrical and control systems. The Sequoia LS construction area contains subsurface utilities that will increase complexity of construction. The project complexities are mainly due to the presence of a 60-inch diameter storm sewer that runs through the site and the close proximity to Sequoia Boulevard. Due to the age of the existing lift station, there may also be unknown subsurface utilities that may impact construction.
In response to ITB No. 4670, four bids were received to construct replacement of Sequoia No. 1 and Sequoia No. 2 LS and publicly opened on May 25, 2021. The low bid was evaluated and was determined to be non-responsible, and therefore was rejected.
• Lawrence M. Clarke, Inc. $ 688,000.00
• Z Contractors, Inc. $ 732,777.00
• A.Z Shmina, Inc. $1,167,000.00
• Spence Brothers $1,243,000.00
WWTP staff reviewed the remaining three bids and determined that the lowest responsible bid was from Z Contractors, Inc. WWTP staff recommends awarding a construction contract to Z Contractors, Inc. in the amount of $732,777.00 for the replacement of Sequoia No. 1 and Sequoia No. 2 LS. Staff also requests that a construction contingency in the amount of $110,000.00 be approved to fund additional necessary services, as approved by the City Administrator. Due to the complexities stated above and regarding unknown subsurface conditions, staff is requesting a larger than typical contingency.
Z Contractors, Inc. complies with the City’s Conflict of Interest, Non-Discrimination, Living Wage, and Prevailing Wage ordinances.
Budget/Fiscal Impact: Funds to finance this contract are included in the approved Sewage Disposal System Capital Budget.
Staff
Prepared by: Christopher J. Englert, P.E., WWT Services Engineer
Reviewed by: Craig Hupy, Public Services Area Administrator
Approved by: John Fournier, Assistant City Administrator
Body
Whereas, The City operates and maintains eight sewage lift stations (LS), which lift sewage from lower to higher elevations as needed to allow it to flow by gravity to the City’s Wastewater Treatment Plant (WWTP) for treatment;
Whereas, An evaluation of these LS was performed as part of the 2004 WWTP Facilities Master Plan, which identified deficiencies and estimated the useful remaining life of each station;
Whereas, As a result of this evaluation, four of the LS have been replaced, another has been identified for elimination, and the remaining three have nearly expended their expected useful life;
Whereas, Sequoia No. 1 and Sequoia No. 2 LS are the next two of the remaining three stations to be replaced due to their age and condition;
Whereas, Four competitive bids were received in response to ITB No. 4670 to construct replacement of Sequoia No. 1 and Sequoia No. 2 LS on May 25, 2021, and based on review of these bids, WWTP staff recommends Z Contractors, Inc. as the lowest responsible bid;
Whereas, Sufficient funds for this contract are included in the approved Sewage Disposal System Capital Budget; and
Whereas, Z Contractors, Inc. complies with the requirements of the City’s Conflict of Interest, Non-Discrimination, Living Wage, and Prevailing Wage ordinances;
Resolved, That City Council approve a construction contract with Z Contractors, Inc. in the amount of $732,777.00 for replacement of the Sequoia No. 1 and Sequoia No. 2 LS’s as specified in ITB-No. 4670;
RESOLVED, That a contingency amount of $110,000.00 be established to fund any additional necessary services and that the City Administrator be authorized to approve change orders that do not exceed the contingency amount;
RESOLVED, That the Mayor and City Clerk be authorized to sign the agreement after approval as to substance by the City Administrator and approval as to form by the
City Attorney;
RESOLVED, That the City makes the following declaration for the purposes 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 expect to reimburse itself for expenditures for the costs of the Project with proceeds of Bonds; and
RESOLVED, That the City Administrator be authorized to take the necessary actions to implement this resolution.