Title
Resolution to Approve a Contract with Pro-Tech Environmental, Inc. for $317,670 for the Abatement and Demolition of 2800 Jackson Road, Per Bid #4004 and to Establish a Total Construction Project Budget of $398,937
Memorandum
Attached for your review and action is a resolution to approve a contract with Pro-Tech Environmental, Inc. for $317,670 for the abatement and demolition of the former Michigan Inn buildings at 2800 Jackson Road, per Bid #4004, and establish a total construction project budget of $398,937.
The former Michigan Inn buildings have been identified as both contaminated property and blighted and functionally obsolete property. City Council Resolution R-08-441 recommended to the Washtenaw County Brownfield Authority a Brownfield Redevelopment Plan for the property, which was subsequently approved by the Washtenaw County and the State of Michigan.
By Agreement with the MichiGinns Real Estate, L.L.C., the property owner, the City has the right to pursue expedited demolition of the structures on the property. MichiGinns is obligated to repay the City with interest within three years. In addition, City Council approved Resolution R-08-160 allowing the City Attorney to proceed with a special assessment lien to demolish the property at 2800 Jackson Road.
The City released an Invitation to Bid on the 2800 Jackson Road Abatement and Demolition Project (ITB No. 4004) on February 12, 2009. Bid documents were advertised on MITN. Thirteen companies submitted bids for the Project; one was determined non-responsive since it did not include costs for the abatement work at the site. The remaining twelve bids were:
Pro-Tech Environmental, Inc $317,670*
H&M Demolition $348,500
Adamo Demolition $363,820
Pitsch Companies $359,600
MacKenzie Environmental Services $354,965
Dore & Associates Contracting $408,400
Bierlein $398,500
Homrich $392,000
Terra $464,766.01
Blue Star, Inc. $368,900
Omega Demolition $465,000
Able Demolition $373,605
*Lowest responsible bid
The resolution includes a recommended project contingency of ten percent (10%) to cover potential contract change orders to be approved by the City Administrator. In additional Project Management costs for the services of architectural and environmental and in the amount of $25,000 are included in the project budget to cover construction management during the phases of the abatement and demolition.
Project Budget
Abatement and Demolition $317,670
Project Management/Consulting Srvs. 45,000
Project Contingency 36,276
Total Project Budget $398,937
It is requested that a total construction project budget be established for the life of the Project without regard to fiscal year.
Pro-Tech Environmental, Inc. meets the living wage and prevailing wage requires and received Human Rights approval on March 13, 2009.
Staff
Prepared by: Mary Joan Fales, Senior Assistant City Attorney
Review by: Stephen Postema, City Attorney
Approved by: Roger W. Fraser, City Administrator
Body
Whereas, City Council and the MichiGinns Real Estate, L.L.C. ("MichiGinns"), property owner of 2800 Jackson Road, have previously agreed to the abatement and demolition of the blighted structures on the property;
Whereas, The City has the right to pursue expedited demolish;
Whereas, The City issued an Invitation to Bid, ITB No. 4004, to obtain competitive bids for the abatement and demolition of the structures at 2800 Jackson Road;
Whereas, Twelve responsive bids were received, and Pro-Tech Environmental, Inc. was selected to perform the work based on the experience of its personnel and the experience of its subcontractor, Griffelle Development, and competitive fee;
Whereas, MichiGinns supports the selection of Pro-Tech Environmental, Inc. to perform the work;
Whereas, Sufficient funds for this project are included in the F09 approved General Fund budget;
Whereas, MichiGinns has previously entered into an Agreement with the City for reimbursement of the expended funds through either assignment of eligible funding in connection its approved Brownfield funding for the property and/or through special assessment of the property, with all costs expended by the City to repayment within three years; and
Whereas, Pro-Tech Environmental, Inc. received Human Rights approval on March 13, 2009 and complies with the living wage and prevailing wage requirements;
RESOLVED, That City Council approve a construction contract per Bid #4004, with Pro-Tech Environmental, Inc. for $317,670;
RESOLVED, That the Mayor and City Clerk be authorized and directed to execute the contract after approval as to substance by the City Administrator and approval as to form by the City Attorney;
RESOLVED, That City Council establish a total construction project budget of $398,937 to be available for expenditure for the life of the project without regard to fiscal year;
RESOLVED, That the City Administrator be authorized to take all necessary administrative actions to implement this Resolution, including the authority to approve change orders within the approved contingency and the terms of the Agreement with the Property Owner; and
RESOLVED, That the City Attorney be authorized to take all necessary legal actions to implement the rights granted to the City under the terms of the Agreement with the Property Owner.