Title
Resolution to Approve a Construction Contract with E.T. MacKenzie Company for the Plymouth Road and Green Road Water Main Replacement, ITB No. 4470 ($2,059,990.00)
Memorandum
Attached for your review and approval, please find a resolution that approves a construction contract between E.T. MacKenzie Company and the City of Ann Arbor for the Plymouth Road and Green Road Water Main Replacement Project.
Budget/Fiscal Impact
The cost of this work is included in the approved Water Supply System Capital Budget as part of CIP Projects UT-WS-18-15 and UT-WS-14-15.
Project Description
In August 2016 and January 2017, large water main breaks occurred within the Plymouth Road and Green Road intersection. Due to the severity of these events, the integrity of the intersection has been permanently compromised. If not addressed, it is anticipated that there will be rapid pavement deterioration and the potential for the formation of sinkholes. Additionally, the water mains within the intersection remain at high risk for additional failures until they can be removed from service.
In response, the Public Works Unit expedited the design of a project to remove and replace all existing water main within the immediate vicinity of the intersection. In coordination with the water main replacement, the City will reconstruct the entire intersection to address the loss of supporting soil.
The plans and contract documents were bid through the City’s Procurement Unit following standard procedures. On March 2, 2017, three bids were received for this work. A tabulation of the bids received is as follows:
Evergreen Civil, LLC. $1,984,339.30*
E.T. MacKenzie Company $2,059,990.00**
Fonson Company, Inc. $2,171,614.18
* The bid contained a mathematical error; this is the corrected value.
** Lowest responsible bid.
Although Evergreen Civil, LLC of Northville, Michigan submitted the lowest bid, City staff determined their bid to be non-responsive because Evergreen Civil does not have the extensive experience on similar projects that is required.
The lowest responsible bid is E.T. MacKenzie Company of Ann Arbor, Michigan with a bid amount of $2,059,990.00. Upon review, it appears that this bid properly addresses the work and the conditions in which it is to be performed, and that E.T. MacKenzie Company has the required extensive experience in successfully completing similar projects. Consequently, staff recommends awarding this contract to E.T. MacKenzie Company.
The Engineer’s Estimate for the project’s construction is $1,654,672.00. The lowest responsible bid for this project is approximately 24% above the Engineer’s Estimate.
Construction is expected to start in early May and be completed by August 25, 2017. Lane closures on Plymouth Road are anticipated to begin June 19 and last until the August 25, 2017 completion date. Staff from the Project Management Services Unit will inspect the work of the project and manage its construction.
Staff
Prepared by: Nicholas S. Hutchinson, P.E., City Engineer
Reviewed by: Craig Hupy, Public Services Administrator
Approved by: Howard S. Lazarus, City Administrator
Body
Whereas, Multiple water main breaks have compromised the integrity of the Plymouth Road and Green Road intersection;
Whereas, Plans and contract documents were expedited to reconstruct the intersection and replace or rehabilitate the underlying water that has been the source of the water main breaks;
Whereas, The cost of this work is available in the approved Water Supply System Capital Budget as part of CIP Projects UT-WS-18-15 and UT-WS-14-15;
Whereas, The City of Ann Arbor received three bids for this work on March 2, 2017 and E.T. MacKenzie Company of Ann Arbor, Michigan was the lowest responsible bidder for this work with a bid amount of $2,059,990.00;
Whereas, It is now necessary to enter into a contract with E.T. MacKenzie Company for the performance of this work; and
Whereas, E.T. MacKenzie Company has submitted all required Non-Discrimination, Living Wage, Prevailing Wage and Conflict of Interest Disclosure forms and complies with the requirements of the City’s Non-Discrimination, Living Wage and Prevailing Wage Ordinances;
RESOLVED, That a construction contract with E.T. MacKenzie Company of Ann Arbor, Michigan the in the amount of $2,059,990.00 be approved;
RESOLVED, That the Mayor and City Clerk be authorized and directed to execute the construction contract with E.T. MacKenzie Company in the amount of $2,059,990.00 in the form on file with the City Clerk, following approval as to substance by the City Administrator, and approval as to form by the City Attorney;
RESOLVED, That a contingency amount of $205,999.00 be established, and the City Administrator be authorized to approve change orders to the contract with E.T. MacKenzie Company up to $205,999.00 in order to satisfactorily complete the project;
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 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.