Title
Resolution to Award a Construction Contract to Strawser Construction, Inc. (ITB. 4478, $3,900,794.97) for the 2017 Street Surface Treatment Project, and Appropriate $2,759,862.00 from Unobligated Major Street Fund Balance and $276,000.00 from Unobligated Local Street Fund Balance (8 Votes Required)
Memorandum
Attached for your review and consideration for approval, please find a resolution to authorize the award of a construction contract to Strawser Construction, Inc. for $3,900,794.97 for the application of surface treatments on various major and local streets located throughout the City. The resolution also requests the appropriation of unobligated fund balance in the amounts of $2,759,862.00 from the Major Street Fund and $276,000.00 from the Local Street Fund.
Scope and Schedule
The 2017 Street Surface Treatments Project includes micro-surfacing and cape sealing surface treatment applications on approximately seven (7) major streets and thirty-six (36) local streets citywide. Attached, is a list of streets and a map showing the proposed work locations. The schedule anticipates for construction to begin in early August 2017 and be complete by June 30, 2018. The Contractor will provide an exact schedule for each street, as required, to coordinate with planned City and other area construction projects, events such as U of M home football games, in-session school days, and applicable holiday periods.
Staff develops the Street Surface Treatments Project as a unit price contract with the understanding that the actual quantities used in construction will vary. Reflecting this flexibility, this allows for removal of any street(s) on the proposed list for any reason, and substitution with any other street(s) within the City. Depletion of available funds prior to the completion of all the streets on the list will result in termination the construction contract and deferral of the balance of the streets to a future surface treatments project. Conversely, the City may add additional streets if the available budget allows.
Bidding
The City advertised the proposed work for bid on its procurement webpage and on the Michigan Inter-governmental Trade Network (MITN) website with the bidding documents being available to interested contractors. Staff received and opened one bid on June 6, 2017; from Strawser Construction, Inc. for $3,900,794.97, which was 19.5% higher than the Engineer's Estimate. Staff reviewed and compared the bid prices received with others from recent statewide projects and found them to be comparable and acceptable.
Budget/Fiscal Impact
The current City of Ann Arbor Capital Improvements Plan (CIP) includes the Annual Capital Street Maintenance Program (TR-SC-15-02), which comprises this project and one for crack sealing streets citywide. These projects coupled with that for the Annual Street Resurfacing Program are vital to the continued improvement of the City’s street network. A portion of this work is included in the adopted FY 2018 budget. The appropriation of additional Major Street ($2,759,862.00) and Local Street ($276,000.00) funds is necessary to complete the entirety of this project in efforts toward achieving the long-term goals established for the City’s pavement asset management plan. The project will have no additional operational impacts.
The estimated total cost for this project is $4,880,000.00 and includes estimated revenue from the following sources:
|
Revenue Source |
Amount |
|
Street, Bridge, and Sidewalk Millage Fund |
$268,000.00 |
|
Major Street Fund |
$3,711,000.00 |
|
Local Street Fund |
$276,000.00 |
|
Washtenaw County Road Millage* |
$625,000.00 |
|
Total |
$4,880,000.00 |
*To be expensed in the Street, Bridge, and Sidewalk Millage Fund and Reimbursed by the Washtenaw County Road Millage.
Maintenance of Traffic
On major streets, the contract requires maintaining two-way traffic, and the contractor will utilize lane closures and traffic shifts, or flag control to perform its work. It will utilize temporary short-term street closures (one day or less) to accomplish the work on local streets. For all the streets, the contract requires maintaining access to driveways and side streets during construction although short-term restricted access will be necessary. The contractor, at the staff’s direction, will utilize message boards to notify drivers of upcoming construction and related traffic delays.
Public Outreach
The Contractor, working with staff, will provide advance construction notice to residents and business owners affected by this project. The City will notify the public of any temporary traffic control impacts on major streets.
Strawser Construction, Inc. complies with the City of Ann Arbor Non-Discrimination and Living Wage Ordinances.
Staff
Prepared by: Nicholas Hutchinson, P.E., City Engineer
Reviewed by: Craig Hupy, Public Services Area Administrator
Approved by: Howard S. Lazarus, City Administrator
Body
Whereas, The City of Ann Arbor Adopted FY2018 Capital Budget includes the Annual Capital Street Maintenance Program;
Whereas, The 2017 Street Surface Treatments Project includes the application of micro-surfacing and/or cape sealing surface treatments on approximately seven (7) major streets and thirty-six (36) local streets citywide;
Whereas, The 2017 Street Surface Treatments Project is necessary to improve and maintain the streets in the City of Ann Arbor and achieve the goals of the City’s pavement asset management program;
Whereas, The City’s Procurement Office received competitive bids on Tuesday, June 6, 2017, and Strawser Construction, Inc. was the sole bidder at $3,900,794.97;
Whereas, The contract 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;
Whereas, Strawser Construction, Inc. complies with the City of Ann Arbor Non-Discrimination and Living Wage Ordinances; and
Whereas, An appropriation of $2,759,862.00 from Major Street fund and $276,000.00 from the Local Street funds is necessary to complete the entirety of the project in efforts toward achieving the long-term goals established for the City’s pavement asset management plan.
RESOLVED, That a contract in the amount of $3,900,794.97 be awarded to Strawser Construction, Inc. for the construction of the 2017 Street Surface Treatments Project;
RESOLVED, That the 2017 Street Surface Treatments Project expenditure and revenue budgets be increased by $3,035,862.00 with the sources of funding being $2,759,862.00 from Unobligated Major Street Fund Balance and $276,000.00 from Unobligated Local Street Fund Balance, and that these funds be available without regard to fiscal year; and
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 a contingency amount of $390,100.00 be established within the project budget and that the City Administrator be authorized to approve additional change orders to the construction contract with Strawser Construction, Inc., not to exceed $390,100.00 in order to satisfactorily complete this project; and
RESOLVED, That the City Administrator be authorized to take necessary administrative actions to implement this project, including issuing Traffic Control Orders for the streets included in the 2017 Street Surface Treatments Project, including parking prohibitions as needed in excess of one (1) block and/or ninety (90) days.