Title
Resolution to Award Contract for the Water Treatment Plant Architectural and Structural Repairs - ITB No. 4553 ($2,156,037.65) to RAM Construction Services of Michigan, Inc.
Memorandum
This memorandum and resolution requests approval to award a contract to RAM Construction Services of Michigan, Inc. (RAM) for the Architectural and Structural Repairs - ITB No. 4553 ($2,156,037.65).
The Water Treatment Services Unit (WTSU) maintains approximately 20 building envelopes and roofing systems throughout the City including the Water Treatment Plant (WTP), two hydroelectric dam powerhouses, and five remote pump stations. These envelopes and systems are different ages. The WTP buildings, for example, are comprised of original 1938 construction and various expansions completed in 1949, 1965, 1974, 1996, 2008 and 2014.
Based on roofing and building envelope (masonry) evaluations completed in 2017, several of the buildings, pump stations and hydroelectric dam powerhouses were found to exist in various conditions ranging from very poor to just satisfactory.
The roofing evaluation found that many of the roof systems have exceeded their service life and show signs of deteriorated sealant, deteriorated flashing and failed insulation, and experience leaks that have resulted in water damage. The masonry evaluation found major masonry distress and delamination, with widespread areas of cracked masonry units and deteriorated mortar joints on some of the older wall systems that date back to 1938. Roofs should not be replaced prior to addressing any building envelope (masonry) repairs.
The scope of the project for this contract includes masonry restoration and roofing repairs and replacement in accordance with prioritized recommendations from the study and design phases. The goal of the repairs is to restore the WTP facilities to structural soundness and prolong useful life while maintaining overall general appearances (color, style, details, materials, etc.). Due to the magnitude of repairs, this project will be conducted in phases to address the next set of priorities that were identified in the 2017 evaluations. This current phase, and future phases, have been programmed in the City’s Capital Improvements Plan (UT-WS-08-04).
The scope of work was bid in nine base bids with six alternates, as well as a unit price section for unknown items which may be incorporated into the contract sum by way of a change order as determined by the City. The intent was to award the Contract based on the base bid or any combination of base bid(s) and alternate bid(s) in order to best utilize available funds.
On December 13, 2018, the City received two bids for this work, one from RAM and the other from Spence Brothers. The bid from Spence Brothers did not include the required compliance forms, thus the bid was considered non-responsive and was rejected from consideration for award. The base bid totals between were compared and showed that the prices for the roofing and masonry restoration work averaged within 5.8% of each other.
After evaluating the bid amounts, as well as the available funds, the City has prioritized the work and decided to include Base Bid Nos. 1 and 5, and forego Base Bid Nos. 2-4 and 6-9. The base bid totals for the work to be included in this contract are summarized below:
|
Bid Item |
RAM |
Spence |
|
Base Bid No 1(WTP Core Buildings) |
$2,064,747.65 |
$2,220,154.00 |
|
Base Bid No 5 (Barton Pump Station |
91,290.00 |
85,141.00 |
|
TOTAL |
$2,156,037.65 |
$2,305,295.00 |
Base Bid Nos. 2-4 and 6-9 cover interior work and WTP buildings and outstations roofing and restoration work that were ranked as lower priority in the evaluation study and will be completed in a future phase as identified in the Capital Improvement Plan.
Since RAM submitted the lowest (and only) responsible total bid for Base Bid Nos. 1 and 5, in the amount of $2,156,037.65, it is recommended that its bid be accepted, and that RAM be awarded the contract for the WTP 2018 Architectural and Structural Repairs project. WTSU also recommends the authorization of a contingency, in the amount of $220,000.00, to fund any unforeseen change orders required through construction.
The funds for this project are included in the approved Water Supply System Capital Improvement Budget.
RAM complies with the City’s Living Wage and Non-Discrimination Ordinances.
Staff
Prepared by: Brian Steglitz, Manager, Water Treatment Services
Reviewed by: Craig Hupy, Public Services Administrator
Approved by: Howard S. Lazarus, City Administrator
Body
Whereas, It is appropriate and important to complete the WTP 2018 Architectural and Structural Repairs project to perform masonry restoration, repair and replace roofs at the Water Treatment Plant buildings and Barton Pump Station;
Whereas, The WTP Architectural and Structural Repairs project will repair critical infrastructure that has reached the end of its service life;
Whereas, The WTP Architectural and Structural Repairs project is identified as a high priority project in the City’s approved Capital Improvement Plan;
Whereas, The WTP Architectural and Structural Repairs project is crucial to restore the WTP facilities to structural soundness, prolong useful life while maintaining overall general appearances;
Whereas, Of the two bids received, one bid was rejected as non-responsive and RAM Construction Services of Michigan, Inc. provided the lowest responsible bid for Base Bid Nos. 1 and 5 in the amount of $2,156,037.65;
Whereas, Funding in the amount of $2,156,037.65 for the WTP 2018 Architectural and Structural Repairs project is appropriated from the approved Water Supply System Capital Improvement Budget; and
Whereas, RAM Construction Services of Michigan, Inc. complies with the City’s Living Wage and Non-Discrimination ordinances.
RESOLVED, That Council accepts Base Bid Nos. 1 and 5 and awards a contract to RAM Construction Services of Michigan, Inc. in the amount of $2,156,037.65 for the WTP 2018 Architectural and Structural Repairs project;
RESOLVED, That a contingency in the amount of $220,000.00 is approved for appropriate change orders to the contract with RAM Construction Services of Michigan, Inc. to be approved by the City Administrator;
RESOLVED, That the Mayor and City Clerk are authorized and directed to execute the contract for services after approval as to substance by the City Administrator and approval as to form by the City Attorney;
RESOLVED, That the City makes the following declaration for the purposes 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 expect to reimburse itself for expenditures for the costs of the Project with proceeds of Bonds;
RESOLVED, That funds for this project are available for the life of the project without regard to fiscal year; and
RESOLVED, That the City Administrator be authorized to take the necessary administrative actions to implement this resolution.