Title
Resolution to Award a Construction Contract to Verdeterre Contracting, Inc. for the Orchard Hills Water Main Extension Project ($153,293.50; Bid No. ITB-4439)
Memorandum
Attached for your review and approval is a resolution to award a contract to Verdeterre Contracting, Inc. in the amount of $153,293.50 for the Orchard Hills Water Main Extension Project.
This project consists of the construction of a new 12-inch water main across the Arboretum from Orchard Hills Drive to Riverview Court. The purpose of this water main is to provide a looped connection in anticipation of future water main construction on Riverview Drive. The future water main construction on Riverview Drive will improve fire protection and provide municipal water service to parcels that currently draw their drinking water from wells.
In response to the invitation to bid (ITB-4439), four (4) bids were received on Thursday, June 2, 2016. The low bid from Verdeterre Contracting, Inc. of $153,293.50 is approximately 9% lower than the Engineer’s Estimate. A summary of bids received for the project are attached.
Verdeterre Contracting, 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 September of 2016 and to be completed by November of 2016.
Budget/Fiscal Impact
The FY 2016-2021 Capital Improvements Plan (CIP) includes the Orchard Hills Water Main Extension Project (UT-WS-14-14). Funding for the project is included in the approved Water System capital budget.
Staff
Prepared by: Chris Elenbaas, P.E., Public Works Engineer
Reviewed by: Craig Hupy, Public Services Area Administrator
Approved by: Howard S. Lazarus, City Administrator
Body
Whereas, Water main must be installed from Orchard Hills Drive to Riverview Court for future extension of water service on Riverview Drive;
Whereas, This project is included in the City’s Capital Improvement Plan;
Whereas, Funding for this project is included in the approved Water System capital budget;
Whereas, Competitive bids were received by the Procurement Unit on June 2, 2016 and Verdeterre Contracting, Inc. of Canton, MI, was the lowest responsible bidder at $153,293.50;
Whereas, It is now necessary to enter into a contract with Verdeterre Contracting, Inc. for the construction of the Orchard Hills Water Main Extension Project; and
Whereas, Verdeterre Contracting, Inc. complies with the requirements of the City’s Non-Discrimination and Living Wage Ordinances;
RESOLVED, That a contract in the amount of $153,293.50 be awarded to Verdeterre Contracting, Inc. for the construction of the Orchard Hills Water Main Extension Project (Bid No. ITB-4439);
RESOLVED, That a contract contingency amount of $20,000.00 be established within the project budget and that the City Administrator be authorized to approve additional change orders to the construction contract with Verdeterre Contracting, Inc. not to exceed $20,000.00 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 the necessary administrative actions to implement this resolution.