Title
Resolution to Approve a Construction Contract with DiPonio Contracting, LLC for the Crescents Water Main Replacement and Resurfacing Project (RFP 23-61; $7,691,341.70) and to Appropriate $6,601,000.00 in Contributing Funds. (8 Votes Required)
Memorandum
Attached for your review and approval, please find a resolution to approve a construction contract between the City of Ann Arbor and DiPonio Contracting, LLC in the amount of $7,691,341.70 for the Crescents Water Main Replacement and Resurfacing (RFP 23-61).
The scope of this project includes watermain replacement, miscellaneous storm inlet replacements, and street resurfacing at the following locations:
• Creal Crescent - Dead End to Saunders Crescent
• Argyle Crescent -Creal Crescent to Saunders Crescent
• Helen Street- Creal Crescent to Hatcher Crescent
• Creal Court - Creal Crescent to End
• Hatcher Crescent - Miller to Saunders
• Cooley Avenue - Saunders to end of public right-of-way
• Saunders Crescent - Hatcher to Miller
The construction of the project is scheduled to begin in March 2024 and continue through October 2024.
Engineering staff supervised the creation of plans and contract documents and bid the project through the City’s Procurement Unit. On December 19, 2023 seven proposals were received for this work. A selection committee comprised of Public Services staff reviewed the proposals and determined which bidder was the Best Value based on the criteria in ORD-21-41:
• Qualifications, Experience, & Accountability (20%)
• Workplace Safety (20%)
• Workforce Development (20%)
• Social Equity & Sustainability (20%)
• Schedule of Pricing/Cost (20%)
After reviewing and scoring the proposals, staff ranked the responding firms in the following order:
1. DiPonio Contracting, LLC.
2. E.T. MacKenzie Company, Inc.
3. Bailey Excavating, Inc.
4. Verdeterre Contracting, Inc.
5. Fonson Company, Inc.
6. Major Contracting Group Inc.
7. Miller Bros. Const., Inc.
DiPonio Contracting, LLC. (DiPonio) received the highest score among the proposals reviewed by the selection committee. Therefore, staff recommends awarding the contract for this project to DiPonio. DiPonio complies with the City’s Non-Discrimination and Living Wage ordinances.
Budget/Fiscal Impact: This project is included in the Capital Improvements Plan (UT-WS-18-24), Storm (UT-ST-25-06) Roads (TR-SC-25-11). The estimated total cost of the project is $10,767,000. Partial funding for the project is included in the approved capital budgets of the Water Supply System; Stormwater Fund; Street, Bridge and Sidewalk Millage Fund; remaining funds are available in unobligated fund balance.
Fund Project Cost
Water Supply System Fund $ 6,795,000.00
Stormwater Fund $ 1,038,000.00
Sanitary Disposal Fund (Curb Drain) $ 108,000.00
Street, Bridge and Sidewalk Millage Fund $ 2,826,000.00
Total $10,767,000.00
Staff
Prepared by: Nicholas S. Hutchinson, P.E., City Engineer
Reviewed by: Brian Steglitz, Public Services Area Administrator
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, the existing water mains in the project area have been identified as needing upgrade or replacement;
Whereas, Funding for the project is included in the approved capital budgets of the Water Supply System; Stormwater Fund; Street, Bridge and Sidewalk Millage Fund;
Whereas, The City of Ann Arbor received three proposals for this work on December 19, 2023 and DiPonio Contracting, LLC received the highest score among the proposals reviewed by the selection committee; and
Whereas, It is now necessary to enter into a contract with DiPonio Contracting, LLC for the performance of this work;
RESOLVED, That City Council approves a construction contract with DiPonio Contracting, LLC in the amount of $7,691,341.70 for the Crescents Water Main Replacement and Resurfacing Project (RFP 23-61);
RESOLVED, That $2,629,000.00 be appropriated from the Water Supply System Fund unobligated fund balance to the Crescents Water Main Replacement and Resurfacing Project, thereby increasing the project revenue and expenditure budgets;
RESOLVED, That $1,038,000.00 be appropriated from the Stormwater Fund unobligated fund balance to the Crescents Water Main Replacement and Resurfacing Project, thereby increasing the project revenue and expenditure budgets;
RESOLVED, That $108,000.00 be appropriated from the Sanitary Disposal Fund Capital Budget to the Crescents Water Main Replacement and Resurfacing Project, thereby increasing the project revenue and expenditure budgets;
RESOLVED, That $2,826,000.00 be appropriated from the Street, Bridge and Sidewalk Millage Fund Capital Budget to the Crescents Water Main Replacement and Resurfacing Project, thereby increasing the project revenue and expenditure budgets;
RESOLVED, That a contingency amount of $765,000.00 be established within the project budget and that the City Administrator be authorized to approve construction change orders not to exceed that amount, in order to satisfactorily complete this project;
RESOLVED, That the Mayor and City Clerk be authorized and directed to execute said agreement after approval as to substance by the City Administrator and approval as to form by the City Attorney;
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 necessary administrative actions to implement this resolution, including issuing temporary and permanent Traffic Control Orders and night work authorizations as required for the construction of the project.