Title
Resolution to Approve Change Order No. 2 with Tri-City Groundbreakers, Inc. for the Geddes Avenue Improvements Project ($1,094,047.81)
Memorandum
Attached for your review and approval is a change order to the Construction Contract with Tri-City Groundbreakers (Bid No. 4366) for the 2016 Geddes Avenue Improvements Project.
The Geddes Avenue Improvements Project includes complete road reconstruction, stormwater work for conveyance and quality improvements, sanitary sewer extension, correction of slope failure, and the construction of non-motorized improvements within the project limits. The first phase of work commenced in late 2015, and resumed in spring 2016.
Due to the limited space available, a retaining wall to support the roadway and sidewalk was designed which required grading in the Michigan Department of Transportation (MDOT) railroad right-of-way. MDOT staff was engaged in the project design phase and approved the design, which also required permits for general construction access and to place earth in their right-of-way against the finished retaining wall. Amtrak, which operates and maintains the track and right-of-way for MDOT, would not engage with the design team during the design of the project.
When the contractor applied for the railroad permit from Amtrak, they were informed that grading in the railroad right-of-way would not be allowed, causing a delay in the project construction and necessitating the redesign of the retaining wall. The redesigned retaining wall added steel sheet piling at the base of the wall to avoid the need to grade in the railroad right-of-way, adding significant cost to the project. The majority of Change Order No. 2 is to compensate the contractor the additional work for the redesigned wall and for the accelerated schedule to keep the project reasonably on track.
Budget Impact
The project is funded primarily from the Street Millage, with additional funding from Sanitary, Water, and Strormwater Funds for those components of the project. Construction of the retaining wall is funded by Street Millage plus $364,000.00 General Fund dollars.
The construction contract with Tri-City Groundbreakers was approved by City Council on July 20, 2015 for a total authorized amount of $7,614,405.02 ($6,922,405.02 plus a contingency of $692,000). Change Order No. 2 in the amount of $1,094,047.81 increases the total authorized amount to $8,708,452.83.
Primary work items changes to the Geddes Avenue Improvements to date include the following:
1. Wall design modification and costs due to railroad ROW requirements - $743,917.08
2. Accelerated construction to complete wall and adjacent road - $449,200.00
3. Construction delays due to DTE gas main work in 2015 and 2016. The City is seeking reimbursement of these costs from DTE - $95,634.33
4. Adjustment of pay items up to actual quantities placed, and other added items necessary to complete the project. These items include such things as Exploratory excavations and adjustments to water main, storm improvements, and sanitary sewer, based on existing field conditions; additional traffic control for flaggers at multiple locations to maintain local traffic during construction; additional maintenance gravel for access during construction; additional gravel for side roads for a thicker road section and better transition between existing and new improvements; driveway, sidewalk, and related modifications in the right of way to better match existing features with the new road improvements; additional boulder wall to better transition between new infiltration trenches and existing property elevations; and additional tree and heavy brush removal in order to construct sidewalk, block wall, and the retaining wall. Final reconciliation, including all decreased items, will be made on the final balancing change order once the project is completed - $497,296.40
Items #1, 2, and 3 will be funded from the Street Millage. Item #4 will be funded from the Street Millage as well as water ($35,600.00), sanitary ($52,600.00), and storm ($46,300.00), based on the individual items.
Tri-City Groundbreakers complies with the City’s Non-Discrimination and Living Wage Ordinances.
Staff
Prepared by: Nicholas Hutchinson, P.E., City Engineer
Reviewed by: Craig Hupy, Public Services Area Administrator
Approved by: Howard S. Lazarus, City Administrator
Body
Whereas, The City of Ann Arbor Adopted Capital Budget includes the Geddes Avenue Improvements Project, and funding for the Geddes Avenue Improvements Project is available in respective approved capital budgets;
Whereas, Tri-City Groundbreakers was awarded the contract for the Geddes Avenue Improvements for a bid amount of $6,922,405.00, plus a contingency of $692,000.00, for a total authorized amount of $7,614,405.00; and
Whereas, Tri-City Groundbreakers complies with the City’s Non-Discrimination and Living Wage Ordinances;
RESOLVED, That Change Order No. 2 to the construction contract with Tri-City Groundbreakers for the Geddes Avenue Improvements Project be approved in the amount of $1,094,047.81 for additional amounts of work under the contract; and
RESOLVED, That the City Administrator be authorized to take the necessary administrative actions to implement this resolution.