Title
Resolution to Award Construction Contracts for Galvanized Water Service Line Replacements to All Seasons Underground Construction Inc (Not-to-Exceed $1,117,640.00 per year) and D’Angelo Bros., Inc. (Not-to-Exceed $1,117,640.00 per year) for Two Years (ITB No. 4740)
Memorandum
Attached for your approval is a resolution authorizing a construction contract with All Seasons Underground Construction Inc and D’Angelo Bros., Inc. for galvanized water service line replacements for two (2) years with the option to renew for one (1) additional year.
Most water service lines installed in Ann Arbor before 1928 and some services installed during World War II (1942-1945) were made of galvanized iron and connected to the water main with a short piece of flexible lead pipe, known as a “gooseneck”. The City has removed and replaced the publicly owned portion of all known galvanized water service lines and lead goosenecks. In June of 2018, an updated Lead and Copper Rule was adopted by the State of Michigan. The rule requires that water suppliers replace both the publicly owned and privately owned portions of galvanized service lines that are or were connected to lead. Water suppliers must replace these lines at a rate of 5% per year. Additionally, the rule also prohibits partial replacements, which includes repairs to leaking service lines. The City does not have the resources to complete this work in-house and so a contract for the work is needed to ensure swift response to leaking service lines and to meet the annual replacement rate.
ITB No. 4740, Galvanized Water Service Line Replacement, was advertised on the City’s Website and on the Bidnet website. Four (4) bids were received and publicly opened on November 29, 2023. All Seasons Underground Construction Inc and D’Angelo Bros., Inc. were determined to be responsible bidders.
All Seasons Underground Construction Inc and D’Angelo Bros., Inc. submitted all required Responsible Contractor Criteria, Non-Discrimination, Prevailing Wage, Living Wage, and Conflict of Interest Disclosure forms; and complies with the requirements of the City’s Responsible Bidder, Non-Discrimination, Prevailing Wages, and Living Wage ordinances.
|
Company |
Total Bid |
|
All Seasons Excavating Inc |
$1,117,640.00 |
|
D’Angelo Brothers Inc |
$1,487,968.00 |
|
Inner City Contracting |
$1,889,771.70 |
|
Duke’s |
$2,329,000.00 |
Budget/Fiscal Impact: The FY 2024-2092 Capital Improvements Plan included this project under Galvanized Water Services Replacements (UT-WS-20-14). Funding for the galvanized water service replacement project is included in the approved FY24 Water Supply System Capital Budget and will be available in subsequent budgets if approved by council.
Staff
Prepared by: Paul Matthews, Interim Public Works Manager
Reviewed by: Brian Steglitz, Public Services Area Administrator
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, In June of 2018, an updated Lead and Copper Rule was adopted by the State of Michigan;
Whereas, The rule requires that water suppliers replace both the publicly owned and privately owned portions of galvanized water service lines that are or were connected to lead;
Whereas, ITB quantities were established on a per unit basis for materials and labor, however, each service line will vary in total cost and so a large contingency is necessary to ensure adequate funding for the replacements;
Whereas, Four bids (ITB No. 4740) for galvanized water service line replacement was received on November 29, 2023;
Whereas, All Seasons Underground Construction Inc and D’Angelo Bros., Inc. were determined to be responsible bidders;
Whereas, Funding is available in the Water Supply System Capital Budget; and
Whereas, All Seasons Underground Construction Inc and D’Angelo Bros., Inc. have submitted all required Responsible Contractor Criteria, Non-Discrimination, Prevailing Wage, Living Wage, and Conflict of Interest Disclosure forms and complies with the requirements of the City’s Responsible Bidder, Non-Discrimination, Prevailing Wages, and Living Wage ordinances;
RESOLVED, That City Council approve a two (2) year construction contract with All Seasons Underground Construction Inc (Not-to-Exceed $1,117,640.00 per year) subject to Council’s appropriation of commensurate funds in subsequent years, for galvanized water service line replacements;
RESOLVED, That City Council approve a two (2) year construction contract with D’Angelo Bros., Inc. (Not-to-Exceed $1,117,640.00 per year) subject to Council’s appropriation of commensurate funds in subsequent years, for galvanized water service line replacements;
RESOLVED, That the City Administrator be authorized to extend each contract for up to one (1) additional year subject to an up to 3% increase in unit prices provided both parties agree to an extension and subject to the availability of funds;
RESOLVED, That the Mayor and Clerk be authorized and directed to execute the contract with All Seasons Underground Construction Inc and D’Angelo Bros., Inc., subject to approval by the City Administrator as to substance and subject to approval by the City Attorney as to form;
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 the necessary actions to implement this resolution.