Title
Resolution to Award a Construction Contract to Cadillac Asphalt, LLC (ITB. 4477, $6,604,749.97) for the 2017 Street Resurfacing Project, and Appropriate $875,000.00 from the Street, Bridge, and Sidewalk Millage Unobligated Fund Balance (8 Votes Required)
Memorandum
Attached for your review and consideration for approval, please find a resolution to authorize the award of a construction contract to Cadillac Asphalt, LLC in the amount of $6,604,749.97 for the resurfacing of various major and local streets located throughout the City. The resolution also requests the appropriation of $875,000.00 from the Street, Bridge, and Sidewalk Millage Unobligated Fund Balance.
This year’s Resurfacing Project includes the resurfacing of approximately ten (10) major streets and thirteen (13) local streets. Attached, is a list of streets showing the proposed work locations. The schedule anticipates for construction to begin in May 2017 and be complete by late October 2017. The Contractor will provide an exact schedule for each street, as required, to coordinate with planned City and other events, such as Art Fair, U of M home football games, in-session school days, holiday periods, and other construction projects.
Staff develops the Street Resurfacing Project as a unit price contract with the understanding that the actual quantities used in construction will vary. Reflecting this flexibility, this allows for removal of any street(s) on the proposed list for any reason, and substitution with any other street(s) within the City. Depletion of available funds prior to the completion of all the streets on the list will result in termination the construction contract and deferral of the balance of the streets to a future resurfacing project. Conversely, the City may add additional streets if the available budget allows.
Budget/Fiscal Impact
The current City of Ann Arbor Capital Improvements Plan (CIP) includes the Annual Street Resurfacing Program. The estimated cost for this year’s project is $8,800,000.00, and includes estimated revenue from the following sources:
|
Revenue Source |
Amount |
|
Street, Bridge, and Sidewalk Millage Fund |
$7,255,000.00 |
|
County Road Millage and P.A. 283 Funds |
$1,185,000.00 |
|
Stormwater Fund |
$300,000.00 |
|
Water Fund |
$30,000.00 |
|
Sanitary Fund |
$30,000.00 |
|
Total |
$8,800,000.00 |
This project includes the annual planned resurfacing program utilizing Street, Bridge, and Sidewalk Millage funds, County Road Millage and P.A. 283 funds, and various utility operating budget funds. Construction projects span fiscal years and due to fluctuations of project schedules, an appropriation of $850,000.00 from the Street, Bridge, and sidewalk Millage funds is required to align funding with project construction costs for FY 17. The project includes no unplanned operational impacts.
Maintenance of Traffic
For all the streets, the contract requires maintaining local access throughout the majority of the construction. On the major streets, the contract requires utilizing part width construction to perform. The contractor will maintain traffic in one direction, at a minimum, with the opposite direction being temporarily detoured. The contractor, at the staff’s direction, will utilize message boards to notify drivers of upcoming construction detours and related traffic delays.
Public Outreach
In January and March 2017, staff met with neighborhood residents regarding the planned resurfacing of Arlington Boulevard. In late April or early May, staff plans to meet with affected residents and property owners regarding the work planned within the “Old West Side” neighborhood.
In early April, staff will mail an informational post card to all residents/property owners within the resurfacing limits of each street. The notice will inform them of the project and provide resources to find more information (staff contacts and the web page; www.a2gov.org/RoadConstruction <http://www.a2gov.org/RoadConstruction>). Staff will distribute a second notification to residents prior to construction, and if desired they may choose to receive periodic e-mails to keep them informed on the progress of construction.
Bidding
The City advertised the proposed work for bid on its procurement webpage and on the Michigan Inter-governmental Trade Network (MITN) website with the bidding documents being available to interested contractors. Staff received two bids and opened them on April 3, 2017. The lowest responsible bid, from Cadillac Asphalt, LLC, in the amount of $6,604,749.97 is 1.8% lower than the Engineer's Estimate. Attached is a summary of the bids.
Cadillac Asphalt, LLC complies with the City of Ann Arbor 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 FY2017 Capital Budget includes the Annual Street Resurfacing Program;
Whereas, The 2017 Street Resurfacing Project includes the resurfacing of approximately ten (10) major streets and thirteen (13) local residential streets located throughout the City;
Whereas, The 2017 Street Resurfacing Project is necessary to improve and maintain the streets in the City of Ann Arbor;
Whereas, Competitive bids were received by the City’s Procurement Office on Monday, April 3, 2017, and Cadillac Asphalt, LLC was the lowest responsible bidder at $6,604,749.97;
Whereas, The contract proposal sets forth the services to be performed by said company, and the payments to be made by the City therefore, all of which are agreeable to the City;
Whereas, It is now necessary to enter into a contract with said company for said construction project;
Whereas, Cadillac Asphalt, LLC complies with the City of Ann Arbor Non-Discrimination and Living Wage Ordinances; and
Whereas, Construction projects span fiscal years and fluctuations of project construction schedules have occurred, an appropriation of $875,000.00 is required to align funding with project construction costs for FY 17;
RESOLVED, That a contract in the amount of $6,604,749.97 be awarded to Cadillac Asphalt, LLC for the construction of the 2017 Street Resurfacing Project;
RESOLVED, That the 2017 Street Resurfacing Project expenditure and revenue budgets be increased by $875,000.00 with the sources of funding being the Street, Bridge, and Sidewalk Millage Unobligated Fund Balance; and
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 a contingency amount of $660,500.00 be established within the project budget and that the City Administrator be authorized to approve additional change orders to the construction contract with Cadillac Asphalt, LLC, not to exceed $660,500.00 in order to satisfactorily complete this project;
RESOLVED, That the City Administrator be authorized to take necessary administrative actions to implement this project, including issuing Traffic Control Orders for the streets included in the 2017 Street Resurfacing project, including parking prohibitions as needed in excess of one (1) block and/or ninety (90) days; and
RESOLVED, That the City Administrator be authorized to take the necessary administrative actions to implement this resolution.