Title
Resolution to Award a Construction Contract to Lester Brother's Excavation, Inc ($66,260.50; Bid No. ITB-3929) for the Wayne Street Utility Improvements Project - Phase I
Memorandum
Attached for your review and approval is a resolution to award a contract to Lester Brother's Excavation, Inc in the amount of $66,260.50 for the Wayne Street Utility Improvements Project - Phase I.
The scheduled resurfacing of Wayne Street and a history of citizen complaints regarding sanitary sewer back-ups on the street prompted an investigation of the utility services in Wayne Street. During the investigation, it was discovered that several of the Wayne Street residential properties and the First Church of Christ Science are currently served by sanitary sewer leads crossing neighboring properties (cross lot services). Similary, one of the residential properties on Wayne Street has a cross lot water service. There is no sanitary sewer main on Wayne Street, and water main extends along only one block of the street. Constructing sanitary sewers and water main on Wayne Street requires extension of those facilities off of sewers and water main in Washtenaw Avenue and Day Street.
Late in 2007, the City of Ann Arbor was informed by MDOT that the entire length of Washtenaw Avenue would be resurfaced in the spring and summer of 2008. An expedited design of the utility improvements for Wayne Street was initiated imediately. Because of the short time frame, the project was designed to be constructed in two phases, with Phase I being the work that is necessary in Washtenaw Avenue before MDOT starts their work.
Phase I of the project, recommended for approval, includes the construction of approximately 139 feet of new plastic sanitary sewer pipe, and approximately 50 feet of new ductile iron water main from connection to facilities in Washtenaw Avenue to Wayne Street, which is located on the north-east side of Washtenaw Avenue, between Berkshire Road and Vinewood Boulevard.
Phase II of this project is planned to be built under a separate contract later this summer. This will include: the completion of the water main in Wayne Street to Day Street; completion of the sanitary sewer main in Wayne Street from Washtenay Avenue to Lorraine Place; an additional section of sanitary sewer from Day Street onto the north end of Wayne Street ; improvements to the existing storm sewer near Day Street; sidewalk ramps being brought into ADA compliance; and resurfacing of the entire street.
The project was advertised on Bidnet and eleven sets of plans and specifications were distributed to contractors who expressed interest in the project. Four bids for the construction were received and opened on Friday, March 21, 2008. The low bid from Lester Brother's Excavation, Inc of $66,260.50 is approximately 9% below the Engineer's Estimate. The construction of Phase I of the project is scheduled for completion by June of 2008.
Council, as a part of the FY08 Capital Budget process, approved this project and it's associated funding. Of the $66,260.50 requested, $24,516.00 will be advanced from the Water Supply System pending the sale of Water Revenue bonds and $41,744.50 will be advanced from the Sewage Disposal System pending the sale of Sewer Revenue Bonds.
Lester Brother's Excavation, Inc received Human Rights approval on March 25, 2008. Employees working on this project will be paid prevailing wages (which exceed the "living wage") per the contract.
Staff
Prepared by: Homayoon Pirooz, P.E., Manager, Project Management Unit
Reviewed by: Sue F. McCormick, Public Services Administrator
Approved by: Roger W. Fraser, City Administrator
Body
Whereas, It is time to resurface Wayne Street from Washtenaw Avenue to Day Street;
Whereas, It is necessary to install new water and sanitary sewer mains in Wayne Street prior to resurfacing the street;
Whereas, Washtenaw Avenue is scheduled for resurfacing by MDOT during June and July of 2008;
Whereas, The Wayne Street Utility Improvements Project - Phase I, located at Wayne Street at Washtenaw Avenue, must be completed prior to June 2008;
Whereas, Council approved the Wayne Street Utility Improvements projects and associated funding during the FY08 Capital Budget process;
Whereas, Competitive bids were received by the Procurement Unit on March 21, 2008 and Lester Brother's Excavation, Inc of Jackson, MI, was the lowest responsible bidder at $66,260.50;
Whereas, The contractual proposal sets forth the services to be performed by said company, and the payments to be made by the City therefore, all of which are agreeable to the City;
Whereas, It is now necessary to enter into a Contract with said company for said construction project; and
Whereas, Lester Brother's Excavation, Inc received Human Rights approval on March 25, 2008 and complies with the living wage ordinance;
RESOLVED, That a contract in the amount of $66,260.50 be awarded to Lester Brother's Excavation, Inc for the construction of the Wayne Street Utility Improvements Project - Phase I (Bid No. ITB-3929);
RESOLVED, That a contract contingency amount of $10,000.00 be established and that the City Administrator be authorized to approve additional change orders to the construction contract with Lester Brother's Excavation, Inc, not to exceed $10,000.00 in order to satisfactorily complete this project;
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 $24,516.00 be advanced from the Water Supply System pending the sale of Water Revenue bonds and $41,744.50 be advanced from the Sewage Disposal System pending the sale of Sewer Revenue bonds;
RESOLVED, That the City makes 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.