Title
Resolution to Increase Purchasing Authority on the Construction Contract with C.A. Hull Co. for the East Medical Center Bridge Rehabilitation and Widening Project; ($1,600,000.00 Increase, Total Contract Amount $13,807,881.33)
Memorandum
This resolution requests approval for an increase in purchasing authority on the construction contract with C.A. Hull Co. for the East Medical Center Bridge Rehabilitation and Widening Project, RFP 23-59. The project is being constructed in partnership with the University of Michigan (UM) and a cost sharing agreement.
Project Background
The project, which extends along East Medical Center Drive from Fuller Road to Cancer Center Drive; includes the following elements (funding sources in parenthesis):
• Rehabilitation of the bridge (50% Street, Bridge, and Sidewalk Millage; 50% UM)
• Widening of the bridge (100% UM)
• Widening East Medical Center Drive to the south of West Medical Center Drive on UM property (100% UM)
On December 18, 2023, City Council approved R-23-448 awarding a construction contract to C.A. Hull Co. in the amount of $10,173,757.03 for the East Medical Center Drive Bridge Rehabilitation and Widening Project (RFP 23-59);
Construction of the project began in the spring of 2024 and will be completed in 2025.
Additional Purchasing Authority
The requested additional purchasing authority for the construction contract is due to various delays to the project, including MDOT and Amtrak railroad permitting, a fiber utility conflict that led to redesign work and approval from MDOT for a modified pier footing, micropile and steel sheeting conflict downtime.
In addition, original plans include the salvaging and refurbishing of some of the existing beams. However, when the beams were removed during construction, they were found to be more deteriorated than was initially thought, thus necessitating the fabrication of new beams. This extension of purchasing authority includes all the items listed above, in addition to the cost and wait time for the new beams.
The original contract had a completion date of December 1, 2024. However, due to the delays outlined above, new work orders, and winter conditions, the completion date has been pushed to June 13, 2025. The project delays and additional seven months of work on the project has necessitated new pay items not in the original contract such as heating and other charges related to winter work, additional rental equipment costs, equipment downtime, and additional railroad labor impacts and flagging. To complete the project, additional contract authorization is required.
The initial contract award equaled $10,173,757,03. In addition, on September 3, 2024, City Council approved R-24-365 which increased contract award to a total of $11,607,881.33 and re-established a contingency amount. Contract Modifications 1 through 6 have been approved administratively within the approved contingency or approved increased contract amount. The increased purchasing authority of $1,600,000.00 will bring the total construction contract to a total of $13,807,881.33.
Due to the complexity of the work, City Staff is recommending re-establishing an additional contingency of $500,000.00 for potential future change orders.
Budget/Fiscal Impact: This project is included in the Capital Improvements Plan (TR-BR-16-02). The new estimated total cost of the project is $17.1 M. Funding for the project is included in the approved capital budget of the Street, Bridge and Sidewalk Millage Fund. The University of Michigan will contribute approximately 50% for this additional construction costs in accordance with the formal cost sharing agreement approved on February 20, 2024. Final costs will be dependent on actual construction costs.
Staff
Prepared by: Nicholas Hutchinson, P.E., City Engineer
Reviewed by: Jordan Roberts, Public Services Area Administrator
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, City Council approved a construction contract for $10,173,757,03 with C.A. Hull Co., in December 2023 (R-23-448) and increased the contract to $11,607,881.33 (R-24-365);
Whereas, C.A. Hull Co. has demonstrated the required experience, professional qualifications, and has performed well to date under the existing contract;
Whereas, Additional work due to project delays related to unforeseen circumstances and winter conditions is needed for project completion;
Whereas, The addition project costs will be paid for from the Street, Bridge and Sidewalk Millage Fund, and The University of Michigan will contribute funding in accordance with Cost Sharing Agreement for the project (R-24-052); and
Whereas, C.A. Hull Co. has submitted all required Non-Discrimination, Prevailing Wage, Living Wage, and Conflict of Interest Disclosure forms and complies with the requirements of the City’s Non-Discrimination, Prevailing Wage and Living Wage ordinances;
RESOLVED, That City Council approves an increase in purchasing authority on the construction contract with C.A. Hull Co. for the East Medical Center Bridge Rehabilitation and Widening Project from $11,607,881.33 to $13,807,881.33;
RESOLVED, That an additional contingency amount of $500,000.00 be established within the Project budget, and that the City Administrator be authorized to approve change orders not to exceed that amount in order to satisfactorily complete the project; and
RESOLVED, That the City Administrator be authorized to take the necessary administrative actions to implement this resolution.