Title
Resolution to Award a Construction Contract to E.T. MacKenzie Co.
($3,610,140.81; Bid No. 3908) for the Miller - Maple Transmission Water Main Project
Memorandum
Attached for your review and approval is a resolution to award a construction contract to E.T. MacKenzie Co. in the amount of $3,610,140.81 for the Miller - Maple Transmission Water Main Project.
The Miller - Maple Transmission Water Main project includes the construction of approximately 9,834 LF of 24" Water Main and appurtenances, 2,800 LF Storm Sewer, 2,030 LF of sludge discharge force main and all related work. In addition, this work includes approximately 2,400 LF of curb and gutter and full and partial width road restoration.
An earlier study of the water supply system by Black & Veatch determined that a 20-inch transmission water main extending from the treatment plant to the intersection of Maple Road and Dexter Road would be necessary to supply Scio Township with the City water. Furthermore we determined that this would be an opportunity to enlarge the proposed 20-inch water main for the Scio Township to a 24-inch main to provide additional capacity that the City may need for the West High Service Area customers. Further considerations were given to add to the water main project, the installation of a new storm sewer line and the upgrades to the "spent lime stone" handling system, for more efficiencies and cost savings.
The total project cost is estimated at $5,231,144.00, as shown below:
Design Engineering $ 361,014.00
Construction Contract, Including Contingencies $ 3,971,155.00
Construction Testing, including Contingencies $ 90,254.00
Construction Engineering $ 541,521.00
Miscellaneous Expenses $ 180,507.00
Bond Expenses $ 86,693.00
TOTAL $ 5,231,144.00
The Scio Township's estimated share of the total project cost is $3,379,614.00. The City of Ann Arbor estimated share of the project cost is $1,851,530.00. The City's share of the project cost includes $569,112.00 for the upsizing of the water main from 20" to 24", $992,578.00 for the new storm sewer installation, and $289,840.00 for the WTP spent lime stone handling system upgrade.
Twenty-two sets of plans and specifications were distributed to contractors who expressed interest in the project. Ten bids for the construction were received and opened on Thursday, January 17, 2008. The lowest responsible bid was submitted by E.T. MacKenzie Co. for total of $3,610,140.81.
E.T. MacKenzie Co. received Human Rights approval on January 18, 2008. Employees working on this project will be paid prevailing wages, which exceed the "living wage" per the contract.
The construction project is expected to begin in April of 2008 and last approximately six months, weather permitting.
Staff
Prepared by: Homayoon Pirooz, P.E., Project Management Manager
Reviewed by: Sue F. McCormick, Public Services Administrator
Approved by: Roger W. Fraser, City Administrator
Body
Whereas, The Miller-Maple Transmission Water Main Project includes the installation of new transmission water main from City of Ann Arbor Water Treatment Plant to the intersection of Maple Road-Dexter Avenue;
Whereas, The Miller-Maple Transmission Water Main Project would provide the necessary water capacity to Scio Township, and would further improve the City's water supply system;
Whereas, To comply with the City's current storm water ordinance, the Miller-Maple Transmission Water Main Project includes a new storm water collection system and the "spent lime stone handling systems" for the City of Ann Arbor Water Treatment Plant;
Whereas, The total estimated cost to complete all work included in the Miller-Maple Transmittal Water Main project is $5,231,144.00;
Whereas, Scio Township will be providing funding, in advance for its share of the Miller-Maple Transmission Water Main Project ($3,379,614.00), per the City-Scio Township agreement;
Whereas, The City's Adopted 2008 Capital Budget includes sufficient funding ($1,851,530.00) for the upsizing of Transmission Water Main, the installation of the new storm water sewer line and upgrading of the spent lime stone handling system at the City of Ann Arbor Water Treatment Plant;
Whereas, Competitive bids were received by the City of Ann Arbor Procurement Unit on January 17, 2008 and E.T. MacKenzie Co. of Ann Arbor, Michigan was the lowest responsible bidder at $3,610,140.81.00;
Whereas, The contractual proposal sets forth the services to be performed by E.T. MacKenzie Co., and the payments to be made by the City for those services, all of which are agreeable to the City;
Whereas, It is now necessary to enter into a Contract with E.T. MacKenzie Co. for this construction; and
Whereas, E. T. MacKenzie Co. received Human Rights approval on January 18, 2008 and complies with the Living Wage Ordinance;
RESOLVED, That a contract in the amount of $3,610,140.81 be awarded to E.T. MacKenzie Co. for the construction of the Miller - Maple Transmittal Water Main project (Bid No. 3908);
RESOLVED, That a contingency amount of $361,014.00 be established within the project budget and that the City Administrator be authorized to approve additional change orders to the construction contract with the E.T. MacKenzie Co., not to exceed $361,014.00 in order to satisfactorily complete the project;
RESOLVED, That funding be available for the life of the project, without regard to fiscal year;
RESOLVED, That the Mayor and City Clerk be authorized and directed to execute this contract after approval as to form by the City Attorney, and approval as to substance by the City Administrator;
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 the City Administrator be authorized to take the necessary administrative actions to implement this resolution.