Title
Resolution to Award a Construction Contract to Fonson Company, Inc. for the Rock Creek Sanitary Sewer Repair Project ($231,030.00, Bid No. ITB-4526)
Memorandum
Attached for your review and approval is a resolution to award and enter into a contract with Fonson Company, Inc., in the amount of $231,030.00, for the Rock Creek Sanitary Sewer Repair Project, ITB-4526.
This project involves the replacement of an existing 12-inch sanitary sewer that has partially collapsed. Due to the location of the collapse in relation to the house at 485 Rock Creek Drive, traditional open cut repair methods are not feasible. The partially collapsed pipe will be abandoned and a new section of sewer will be installed around the house.
While preparing this project for approval, the sewer fully collapsed on August 15, 2018, resulting in a complete backup. City staff responded and are coordinating emergency sewer work with Fonson Company while preparing to construct the replacement sewer included in the project bid documents.
In response to the Invitation to Bid (ITB-4526), four (4) bids were received on Wednesday, July 25, 2018. The lowest responsible bid was from Fonson Company, Inc. in the amount of $231,030.00. A summary of the bids is attached.
|
Fonson Company, Inc. |
Bidigare Contractors, Inc. |
ET Mackenzie Company |
Stante ExcavatingCo. Inc. |
|
$231,030.00 |
$280,207.00 |
$377,900.00 |
$426,165.00 |
Staff is recommending award of a contract to Fonson Company, Inc. in the amount of $231,030.00, with an additional $60,000.00 for contingencies. The large contingency amount is requested to cover additional emergency work necessary to stabilize the sewer after its collapse on August 15, 2018. It is requested that the total $291,030.00 contract and contingency amount be approved for the life of the project without regard to fiscal year.
Fonson Company, Inc. complies with the requirements of the City’s Non-Discrimination and Living Wage ordinances.
Budget Impact
The FY 2018-2023 Capital Improvements Plan (CIP) includes funding for this repair work under the Rock Creek and Huntington Drive Sanitary Sewer Extension Project (UT-SN-14-03). Funding for the project is included in the approved Sewage Disposal System capital budget.
Staff
Prepared by: Chris Elenbaas, P.E., Public Works Engineer
Reviewed by: Molly Maciejewski, Public Works Unit Manager
Reviewed by: Craig Hupy, Public Services Area Administrator
Approved by: Howard S. Lazarus, City Administrator
Body
Whereas, It is necessary to replace a partially collapsed sanitary sewer at 485 Rock Creek Drive in order to provide reliable sewer service;
Whereas, The cost of this work is included in the approved Sewage Disposal System Capital Budget;
Whereas, Competitive bids were received by the Procurement Unit on July 25, 2018 and Fonson Company of Brighton, MI, was the lowest responsible bidder at $231,030.00;
Whereas, It is now appropriate to enter into a contract with Fonson Company, Inc. for the Rock Creek Sanitary Sewer Repair Project; and
Whereas, Fonson Company, Inc. complies with the City’s Non-Discrimination and Living Wage ordinances;
RESOLVED, That a contract in the amount of $231,030.00 be awarded to Fonson Company, Inc. for the Rock Creek Sanitary Sewer Repair Project (Bid No. ITB-4526);
RESOLVED, That a contract contingency amount of $60,000.00 be established within the project budget and that the City Administrator be authorized to approve additional change orders to the construction contract with Fonson Company, Inc. not to exceed $60,000.00 in order to satisfactorily complete this project;
RESOLVED, That the City makes 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;
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; 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.
Sponsored by: Councilmember Lumm