Title
Resolution to Approve a Construction Contract with M-K Construction Company, Inc. for the Southside Interceptor Sanitary Diversion Project ($1,245,166.64)
Memorandum
Attached for your approval please find a resolution that approves a construction contract with M-K Construction Company, Inc. in the amount of $1,245,166.64 for the Southside Interceptor Sanitary Diversion Project.
Project Description
The Project will construct a cast-in-place sanitary sewer diversion chamber under Fuller Street across from Glen Court to divert approximately 11 cubic feet per second from the existing Southside Interceptor Sewer into the Northside Interceptor Sewer to reduce the likelihood of overflows during large rain events. This will provide for the desired current level of flow diversion and allow for the diversion of additional sanitary sewer flow in the future should it become necessary.
Engineering had plans and contract documents prepared, and bid the project through standard City procedures. Three bids were received and M-K Construction Company, Inc. was the lowest responsible bidder. The following is the tabulation of the bids received:
M-K Construction Company, Inc. $1,245,166.64
Pamar Enterprises, Inc. $1,248,048.33
E.T. MacKenzie Company, Inc. $1,649,975.00
The winning bid was 84.7% above the Engineer’s Estimate of $673,698.25. Engineering believes the discrepancy arises from the Project’s difficulty, including its location along the MDOT railroad right-of-way on a very steep slope, the significant depths associated with the proposed work, and the limited working area available. Consequently, staff recommends awarding this contract to M-K Construction Company, Inc. based on the bids received and the likelihood that re-bidding the project will not result in a significant reduction in costs and will postpone the project to next construction season.
Construction is expected to start on May 6, 2019 after University commencement exercises. The Project will require closure of Fuller Street at the Fuller Road/Glen Avenue intersection. Fuller/Depot Street traffic will be detoured. The Contractor has until August 21, 2019 to substantially complete the work (i.e. re-open the roadway to vehicular traffic) and until September 20, 2019 to complete all restoration and project clean-up activities. Pedestrian traffic will be maintained around the work area. Personnel from Engineering will oversee and manage the work. Engineering has coordinated this construction and road closures with the U of M, Ann Arbor Public Schools, and AAATA.
Budget/Fiscal Impact: Funding for this project is available in the approved Public Services Area, Sewer Capital Budget, utilizing Developer Offset Mitigation Funds.
Staff
Prepared by: Nicholas S. Hutchinson, P.E., City Engineer
Reviewed by: Craig Hupy, Public Services Area Administrator
Approved by: Howard S. Lazarus, City Administrator
Body
Whereas, Sanitary overflows in the Southside Interceptor Sanitary Sewer should be addressed and avoided;
Whereas, The City of Ann Arbor has developed a solution to avoid them during future large rain events that serves the long-term best interest of the City’s sanitary sewer collection system;
Whereas, The cost of this work will be funded by the approved Public Services Area, Sewer Capital Budget;
Whereas, The City of Ann Arbor received three bids for this work and M-K Construction Company, Inc. was the lowest responsible bidder at $1,245,166.66;
Whereas, It is now appropriate to contract with M-K Construction Company, Inc. for the performance of this work; and
Whereas, M-K Construction Company, Inc. has submitted all required Human Rights, Living Wage, and Conflict of Interest Disclosure forms and complies with the requirements of the City’s Non-Discrimination and Living Wage Ordinances;
RESOLVED, That a contract in the amount of $1,245,166.64 be awarded to M-K Construction Company, Inc. for construction of the Southside Interceptor Sanitary Diversion Project;
RESOLVED, That a contingency amount of $124,517.00 be established within the project budget and the City Administrator be authorized to approve change orders not to exceed that amount if needed 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 Public Services Area Administrator and City Administrator; 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.