Title
Resolution to Approve a Construction Contract with Major Contracting Group, Inc. for the Huron West Park Sanitary Sewer Replacement Phases 2 & 3 ($8,528,195.50)
Memorandum
Attached for your review and approval, please find a resolution to approve a construction contract between the City of Ann Arbor and Major Contracting Group, Inc. in the amount of $8,528,195.50 for the Huron West Park Sanitary Sewer Replacement Phases 2 & 3 (RFP #23-62).
The scope of this project includes replacement of sanitary sewer through easements, park property, and along Dexter Avenue from Arbana Drive to Lyn Anne Court. A visual depiction of the pipe location can be found in the attached drawing. The construction of the project is anticipated to begin in late February and extend through November 2024.
Engineering staff supervised the creation of plans and contract documents and bid the project through the City’s Procurement Unit. On December 14, 2023, the City received proposals from Major Contracting Group, Inc. and Pamar Enterprises, Inc. for this work.
The City evaluates construction project proposals using its best value criteria in ORD 21-41 which include:
• Qualifications, Experience, & Accountability (20%)
• Workplace Safety (20%)
• Workforce Development (20%)
• Social Equity & Sustainability (20%)
• Schedule of Pricing/Cost (20%)
Applying the best value criteria, City Council determines that the proposal from Major Contracting Group, Inc. provides the best value to the City.
Major Contracting Group, Inc. complies with the City’s Non-Discrimination and Living Wage ordinances.
Budget/Fiscal Impact: This project is included in the FY23-28 Capital Improvements Plan (UT SN 19-01). The estimated total cost of the project is $11,650,000,.00. Funding for the project is included in the approved capital budgets of the Developer Offset Mitigation Fund and the Sanitary Sewer Fund.
Staff
Prepared by: Nicholas S. Hutchinson, P.E., City Engineer
Reviewed by: Brian Steglitz, Public Services Area Administrator
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, the existing sanitary sewer in the project area has been identified as needing replacement to provide additional capacity and increase the useful life of the sewer infrastructure;
Whereas, Funding for the project is included in the approved capital budgets of the Developer Offset Mitigation Fund and Sanitary Sewer Fund;
Whereas, The City of Ann Arbor received two proposals for this work on December 14, 2023, and Major Contracting Group, Inc. submitted the proposal which provides the best value to the City; and
Whereas, It is now necessary to enter into a contract with Major Contracting Group, Inc. for the performance of this work;
RESOLVED, That City Council approves a construction contract with Major Contracting Group, Inc. in the amount of $8,528,195.50 for the Huron West Park Sanitary Sewer Replacement Phases 2 & 3 (RFP #23-62);
RESOLVED, That a contingency amount of $800,000.00 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 the Mayor and City Clerk be authorized and directed to execute said agreement after approval as to substance by the City Administrator and approval as to form by the City Attorney;
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 necessary administrative actions to implement this resolution, including issuing temporary and permanent Traffic Control Orders and night work authorizations as required for the construction of the project.
As Amended and Approved by Ann Arbor City Council on February 5, 2024.