Title
Resolution to Approve a Construction Contract with Action Traffic Maintenance, Inc. for the 2018 Guardrail Rehabilitation Program - RFP No. 4546 ($322,527.00), and to Appropriate Related Funds (8 Votes Required)
Memorandum
Attached for your consideration and approval is a resolution to authorize the award of a unit-price construction contract to Action Traffic Maintenance, Inc. in an estimated amount of $322,527.00 for the maintenance and replacement of guardrails at various locations throughout the City.
The City has guardrails in approximately 60 locations, and, until now, has addressed their condition reactively (e.g., after a guardrail had been hit). Many of these guardrails have been in service for years, and the standards to which they were built have changed. The City hired Hubbell, Roth and Clark, Inc. (HRC), which inventoried and evaluated the guardrails, helped the City prioritize repairs and replacements, and prepared plans for the same at 19 locations.
The City then advertised for bid the repair and replacement proposed work on its website and on the Michigan Inter-Governmental Trade Network (MITN) website. Action Traffic Maintenance, Inc. was the lowest responsible bidder of the two bids the City received. Its bid is $322,527.00, which is approximately $135,000.00 above the Engineer’s Estimated Opinion of Costs, which was developed based on average unit prices obtained from MDOT literature. The City believes that market volatility and the age of the MDOT literature explain the gap between estimate and bid. That the two bids the City received are only 2% different bolsters the City’s confidence in the winning bid.
Budget/Fiscal Impact: Funding for this level of work was not anticipated during budget development, but is available in Major Street Fund, Fund Balance. Operationally, these guardrail improvements will benefit the safety of patrons using the City’s motorized and non-motorized transportation systems.
The contract will include an option to extend it for a one-year period for guardrail maintenance in FY 2020. This extension would be subject to the availability of funding, the same terms and unit prices as the original contract, and the approval of City Council.
Action Traffic Maintenance, Inc. is in compliance with the requirements of 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 has guardrails in approximately 60 locations;
Whereas, It is appropriate to maintain or replace guardrails to maintain the City’s roadways;
Whereas, City staff evaluated the condition of the City’s guardrails;
Whereas, City staff created a prioritized list of guardrail improvements, and prepared plans and specifications to improve guardrails at 19 locations;
Whereas, The City issued ITB No. 4546 for this work and received bids on August 21, 2018;
Whereas, Action Traffic Maintenance, Inc. was the lowest responsible bidder with a submitted bid of $322,527.00;
Whereas, Funding for this work is available in the Major Street Fund, Fund Balance;
Whereas, It is now appropriate to enter into a contract with Action Traffic Maintenance, Inc. for the work;
Whereas, Action Traffic Maintenance, Inc. is in compliance with the requirements of the City’s Non-Discrimination and Living Wage ordinances; and
RESOLVED, That City Council approve the award of a unit-price construction contract with Action Traffic Maintenance, Inc. in the estimated amount of $322,527.00 (ITB No. 4546), which contract will include a City option for a one-year extension for guardrail maintenance in FY 2020, for the 2018 Guardrail Rehabilitation Program;
RESOLVED, That City Council appropriate $322,527.00 from the Major Street Fund Fund Balance, thereby increasing the Major Street Fund Revenue and Expenditure budgets, to be available for use without regard to fiscal year;
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 $32,000.00 be established, and that the City Administrator be authorized to approve additional change orders/contract modifications to guardrail repair and replacement contract with Action Traffic Maintenance, Inc., not to exceed $32,000.00 in order to satisfactorily complete the project; and
RESOLVED, That the City Administrator be authorized to take the necessary administrative actions to implement this resolution including approval of needed Traffic Control Orders, night work authorizations, and other similar administrative approvals to allow the work of the project to proceed without delay.