Title
Resolution to Award a Construction Contract to Fonson Company, Inc. for the Longshore, Indianola, Ottawa, Argo, Amherst Water Main Replacement Project ($2,465,644.50)
Memorandum
Attached for your approval is a resolution to award a construction contract to Fonson Company, Inc. in the amount of $2,465,644.50 for the Longshore, Indianola, Ottawa, Argo, Amherst Water Main Replacement Project (“Project”).
Project Description
The Project will replace and upsize water mains at:
• Longshore Drive from Argo Drive to 2000 Longshore Drive;
• Indianola Drive between Longshore Drive and Pontiac Street;
• Ottawa Road between Argo Drive and Indianola Drive;
• Argo Drive between Longshore Drive and Pontiac Street; and,
• Amherst Avenue between Longshore Drive and Pontiac Street.
This Project also includes geometric changes to intersections, new accessible sidewalk ramps, curb and gutter replacements, drainage structure replacements, and street resurfacing.
Project plans and specifications were distributed through the City’s procurement website. Six bids were received and opened on February 19, 2019. Fonson Company, Inc., of Brighton, MI, was the lowest responsible bidder with a bid amount of $2,465,644.50, which is 6.31% higher than the Engineer's Estimate of $2,307,850.34. Attached is a summary of the bids received.
Fonson Company, Inc., has successfully completed similar work in the City and is able to meet the Project requirements. Fonson Company, Inc., has submitted all required Non-Discrimination, Prevailing Wage, Living Wage, and Conflict of Interest Disclosure forms and complies with the requirements of the City’s Non-Discrimination and Living Wage ordinances.
A contingency amount of $246,564.50 is requested to cover changes orders approved by the City Administrator.
Budget/Fiscal Impact: The current Capital Improvements Plan (CIP) includes the Project (UT-WS-16-09). Funding for the project is included in the approved capital budgets of the Water Supply System and the Street, Bridge and Sidewalk Millage Funds.
Staff
Prepared by: Nicholas Hutchinson, P.E., City Engineer
Reviewed by: Craig Hupy, Public Services Area Administrator
Approved by: Howard Lazarus, City Administrator
Body
Whereas, Water mains should be replaced along:
• Longshore Drive from Argo Drive to 2000 Longshore Drive;
• Indianola Drive between Longshore Drive and Pontiac Street;
• Ottawa Road between Argo Drive and Indianola Drive;
• Argo Drive between Longshore Drive and Pontiac Street; and,
• Amherst Avenue between Longshore Drive and Pontiac Street.
Whereas, This replacement project (the “Project”) includes geometric changes to intersections, new accessible sidewalk ramps, curb and gutter replacements, drainage structure replacements, and street resurfacing;
Whereas, The Capital Improvements Plan includes the Project (UT-WS-16-09);
Whereas, Funding for the Project is included in the Water Supply System and the Street, Bridge, and Sidewalk Millage Funds approved capital budgets;
Whereas, Competitive bids were received on February 19, 2019 (ITB 4565) and Fonson Company, Inc. was the lowest responsible bidder with a submitted bid of $2,465,644.50;
Whereas, The contract sets forth the services to be performed by and payments to be made, all of which are agreeable to the City;
Whereas, It is now appropriate to contract with Fonson Company, Inc. for the Project; and
Whereas, Fonson Company, Inc. has submitted all required Non-Discrimination, Prevailing Wage, Living Wage, and Conflict of Interest Disclosure forms and complies with the requirements of the City’s Non-Discrimination and Living Wage Ordinances;
RESOLVED, That a contract in the amount of $2,465,644.50 be awarded to Fonson Company, Inc. for the construction of the Project;
RESOLVED, That a contingency amount of $246,564.50 be established within the project budget and that the City Administrator be authorized to approve change orders not to exceed that amount;
RESOLVED, That the City make the following declaration to comply with the reimbursement rules of Treasury Regulations 1.150-2 pursuant to the Internal Revenue Code of 1986, as amended: the City reasonably expects to reimburse itself for expenditures for the costs of the Project with proceeds of bonds;
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 Public Services Area Administrator and City Administrator; 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.