Title
Resolution to Award a Construction Contract to Bailey Excavating, Inc. for the Observatory Street Improvements Project (ITB-4225) ($1,288,808.51)
Memorandum
Attached for your review and approval is a resolution to award a contract to Bailey Excavating, Inc. in the amount of $1,288,808.51 for the Observatory Street Improvements Project.
Observatory Street from Ann Street to Geddes Avenue is in need of several improvements. The street pavement is in a poor condition and it is in need of repaving. The existing water main is in poor condition and undersized. This project will replace the existing 6-inch water main with new 16-inch ductile iron water main. It will also include the replacement of some storm sewer structures, some aggregate base, street resurfacing, replacement of sidewalk ramps and some concrete curb and gutter, drive approaches and related work. It will also reconfigure the intersection of Observatory and E. Medical Center Drive.
To reduce traffic impacts the construction will be divided into two major phases, with approximately a half of Observatory Street under construction at any given time. The first phase will extend from Ann Street to just north of Washington Heights, and the second from Washington Heights to Geddes. Separate detour routes will be set up for each phase.
In response to the invitation to bid (ITB-4225), five (5) bids were received on Thursday, March 3, 2016. The low bid from Bailey Excavating, Inc. of $1,288,808.51 is approximately 3% lower than the Engineer’s Estimate. A summary of bids is attached. Bailey Excavating, Inc. complies with the City of Ann Arbor’s Non-Discrimination and Living Wage Ordinances.
The construction of the project is scheduled to begin in May of 2016 and to be completed in August of 2016. Extensive coordination will occur between the City’s project manager, the contractor, and the University of Michigan to successfully manage user needs and expectations during construction.
Budget/Fiscal Impact
Work for this project is included in the Capital Improvement Plan (CIP) as:
Observatory Water Main Replacement (UT-WS-16-93) and Observatory Street Resurfacing (TR-SC-12-16). The total project cost is estimated at $1,900,000.00 and is being funded by the approved Water System Capital budget ($600,000.00), approved Street Resurfacing Capital budeget ($800,000), and a contribution from the University of Michigan ($500,000.00).
Staff
Prepared by: Nicholas Hutchinson, P.E., City Engineer
Reviewed by: Craig Hupy, Public Services Area Administrator
Approved by: Tom Crawford, Interim City Administrator
Body
Whereas, The pavement on Observatory Street from Ann Street to Geddes Avenue is in poor condition and is in need of repaving;
Whereas, The existing water main on Observatory Street is in poor condition and undersized, and must be replaced prior to resurfacing the street;
Whereas, This project is included in the City’s Capital Improvement Plan;
Whereas, Funding for this project is included in the approved FY16 Water and Street Millage capital budgets;
Whereas, Competitive bids were received by the Procurement Unit on March 3, 2016 and Bailey Excavating, Inc. of Jackson, MI, was the lowest responsible bidder at $1,288,808.51;
Whereas, It is now necessary to enter into a contract with Bailey Excavating, Inc. for the construction of the Observatory Street Improvements Project; and
Whereas, Bailey Excavating, Inc. complies with the City of Ann Arbor’s Non-Discrimination and Living Wage Ordinances;
RESOLVED, That a contract in the amount of $1,288,808.51 be awarded to Bailey Excavating, Inc. for the construction of the Observatory Street Improvements Project (Bid No. ITB-4225);
RESOLVED, That a contract contingency amount of $130,000.00 be established within the project budget and that the City Administrator be authorized to approve additional change orders to the construction contract with Bailey Excavating, Inc. not to exceed $130,000.00 in order to satisfactorily complete this project;
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;
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; and
RESOLVED, That the City Administrator be authorized to take necessary administrative
actions to implement this resolution.