Title
Resolution to Approve a Construction Contract with Granger Construction Company ($10,630,000.00) (RFP# 24-57), Establish the Fire Station 4 Bond 2025 Fund and Appropriate Funding ($12,420,000.00) (8 Votes Required)
Memorandum
Attached for your review and consideration is a resolution to approve a construction contract with Granger Construction Company, Lansing, MI, for the construction of the replacement of Fire Station #4 located at 2415 S. Huron Parkway, Ann Arbor, MI.
The existing Fire Station #4 is over 60 years old and in poor condition. The facility does not provide adequate areas for modern firefighting equipment and personnel, including gender appropriate facilities. Additionally, the location of the building on the curve of the roadway creates a hazard for City staff, equipment and the public.
The replacement station will be a net zero fire station, possibly the first of its kind in the State of Michigan. As a net zero building design, the facility will produce as much, or more, energy than it uses. This is accomplished through a variety of means including the installation of solar panels to produce energy, an extremely efficient building envelope to reduce the buildings heating/cooling needs, the use of a geothermal heating/cooling system that uses the earth’s ground temperatures to heat or cool the building, an automated building control management system, and other features that help reduce the building’s carbon footprint. There are significant storm water improvements in the construction plan to retain volume and improve the quality of the water discharge. The access to the new Fire Station #4 will be integrated into the traffic signal at Platt Road and South Huron Parkway to allow safe access to and from the site. The project also includes the construction of a new basketball court at Scheffler Park, adjacent to the site. The new fire station will be constructed on the site of the existing station which will be demolished as part of this project.
RFP# 24-57 was issued and eight bids were received on December 4, 2024. Using the best value procurement requirements, Granger Construction Company scored the highest of the eight firms who submitted proposals. While Granger Construction Company proposal was the highest score, their bid price was only 3.8% above the median bid price for this project.
Granger Construction Company complies with the requirements of the City’s Conflict of Interest, Living Wage, Prevailing Wage and Non-Discrimination ordinances.
Budget/Fiscal Impact: The Fire Station #4 project is being funded by a combination of proceeds from a City issued General Obligation bond and General Capital funds that have previously been appropriated. The bond proceeds will be deposited in a newly created Fire Station 4 Bond 2025 fund for the purpose of the construction of the new Fire Station #4. It is being requested to appropriate the anticipated proceeds as part of this resolution. The proposed Fire Station #4 project budget is as follows:
|
Project Revenue |
Amount |
|
General Obligation Bond Proceeds |
$12,000,000.00 |
|
General Capital Project Funds |
$420,000.00 |
|
TOTAL REVENUE: |
$12,420,000.00 |
|
Project Expense |
Amount |
|
Construction Costs |
$10,630,000.00 |
|
Construction Administration & Observation (Architect) |
$160,000.00 |
|
Outside Testing and Inspection |
$200,000.00 |
|
Furnishing and Fixtures |
$50,000.00 |
|
IT/Telecom |
$200,000.00 |
|
Public Art |
$100,000.00 |
|
Bond Issuance Costs |
$80,000.00 |
|
Construction/Project Contingency |
$1,000,000.00 |
|
TOTAL EXPENSE: |
$12,420,000.00 |
Staff
Prepared by: Carl Konopaska, Fleet & Facilities Manager
Reviewed by: Marti Praschan, Interim Deputy City Administrator
Approved by: Milton Dohoney, Jr., City Administrator
Body
Whereas, Fire Station #4 is near the end of its useful life and needs to be replaced;
Whereas, The City has planned to replace Fire Station #4 with a new Net Zero fire station at the same location;
Whereas, The City needs to establish a Fire Station #4 Project budget to manage the expenses for the project;
Whereas, The City of Ann Arbor solicited proposals for the Fire Station #4 Project under RFP# 24-57 and eight proposals were received in December 2024;
Whereas, Granger Construction Company was the highest ranked proposal of the eight received utilizing the City’s best value procurement requirements outlined in RFP# 24-57;
Whereas, Granger Construction Company has provided a proposal at a cost of $10,630,000.00 to complete the Fire Station #4 Project;
Whereas, Staff has requested that the construction/project contingency in the amount of $1,000,000.00 be included in the project budget to cover any unknown conditions or necessary scope changes upon approval of the City Administrator;
Whereas, Adequate funds for this project in the amount of $12,420,000.00, including contingency, are or will be available in the approved General Capital Fund and the Fire Station 4 Bond 2025 fund upon completion of the sale of General Obligation Capital Improvement Bonds by the City; and
Whereas, Granger Construction Company complies with the requirements of the City’s Conflict of Interest, Living Wage, Prevailing Wage and Non-Discrimination ordinances;
RESOLVED, That City Council approves a contract with Granger Construction Company, in the amount of $10,630,000.00 for the Fire Station #4 Project
RESOLVED, That a contingency amount of $1,000,000.00 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 City Council approves the establishment of the Fire Station 4 Bond 2025 fund and appropriates $12,000,000.00 to the FY2025 expenditure budget of the Fire Station 4 Bond 2025 fund with the source of revenue being the General Obligation Capital Improvement Bond Proceeds;
RESOLVED, That all amounts herein are without regard to fiscal year;
RESOLVED, That the Mayor and City Clerk be authorized and directed to execute said contract after approval as to substance by the City Administrator and approval as to form by the City Attorney; and
RESOLVED, That the City Administrator is authorized to take all necessary actions to implement this resolution.