Title
Resolution Awarding a Construction Contract to Douglas N. Higgins, Inc. for the Washtenaw Water Main Replacement Project ($1,156,923.10; Bid No. ITB-4021)
Memorandum
Attached for your review and approval please find a resolution that awards a construction contract to the Douglas N. Higgins, Inc. (DNH) in the amount of $1,156,923.10 for the Washtenaw Water Main Replacement Project.
The FY 2009-2014 Capital Improvements Plan (CIP) includes project UT-WS-06-14, the Washtenaw Avenue Water Main Replacement Project. The project consists of replacing approximately 2,900 feet of 12" water main in the Washtenaw Avenue corridor from US-23 to a point approximately 350 feet west of the Washtenaw Avenue/Huron Parkway Intersection (near the Midas Auto Service Store). The project is expected to begin mid-July and be completed by mid-October. We have included the necessary contract provisions such that Washtenaw Avenue and the side streets will not be blocked during the Art Fair, University of Michigan Home football weekends, or major Holidays. Most all of the construction will occur at night, but certain road restoration activities will occur during the day in order to minimize the duration of the planned work.
During the daytime road restoration activities, it will be necessary to reduce Washtenaw Avenue to one lane of traffic in each direction. Access to business entrances will be maintained at all times.
During a public meeting that was held in December, a question was posed by the business owners if it would be possible for the City to defer the water main project until calendar year 2010. We carefully studied this request, however over the course of the last year; we've experienced two major water main breaks within the project limits. During these water main breaks, several water main valves have also broken such that we are concerned that we may not be able to reliably shut-off the water main if it breaks again. Also, large sections of pavement along Washtenaw Avenue have been badly damaged. As a result, we have decided that it is necessary to replace the water main at this time in order to help ensure the integrity of the water supply system in this area and minimize further damage to the roadway.
Water service will be maintained during construction, except for brief periods when the new water main is tied in to the existing main, and when water service leads are transferred to the new main. We will work with the affected businesses to minimize the disruptions while this work is being completed.
The attached resolution also authorizes the City Administrator to approve needed night construction activities associated with the planned construction. These approvals are consistent with Title IX, Chapter 119, Section 9:363(5) of City Code. Personnel from the Project Management Services Unit will be on-site monitoring the construction to ensure compliance with the applicable requirements of this ordinance.
Plans and specifications were made available through BidNet. Six bids were received and opened on June 3, 2009. The lowest responsible bid, in the amount of $1,156,923.10 is $83,632.10 higher than the engineer's estimate of $1,073,291.00. Attached is a tabulation of the bids received for the project.
Douglas N. Higgins, Inc. received Human Rights and Living Wage approval on April 28, 2009. All employees of Douglas N. Higgins, Inc., who will work on the project, will receive compensation in accordance with the Living Wage Ordinance.
Funding for this project is included in the approved Capital Budget. This project has also been included in our Drinking Water Revolving Fund (DWRF) project plan. We are hopeful that we will be selected to receive this funding. If we are successful, we expect to receive low interest financing on approximately 60% of the principle amount with the remaining portion being forgiven by the DWRF program. We expect to receive notification from the State of Michigan on, or about, August 1, 2009 if we have been selected to receive DWRF funding.
Staff
Prepared by: Homayoon Pirooz, P.E., Project Management Manager
Reviewed by: Sue F. McCormick, Public Services Administrator
Approved by: Roger W. Fraser, City Administrator
Body
Whereas, The City of Ann Arbor Adopted Capital Budget includes the Washtenaw Avenue Water Main Replacement Project;
Whereas, It is necessary to replace the existing water main in Washtenaw Avenue to ensure safe drinking water;
Whereas, Competitive bids were received by the Office of Procurement on June 3, 2009 and Douglas N. Higgins, Inc. was the lowest responsible bidder with a submitted bid of $1,156,923.10;
Whereas, The contractual proposal sets forth the services to be performed by said company, and the payments to be made by the City, all of which are agreeable to the City;
Whereas, It is now necessary to enter into a Contract with said company for this construction project; and
Whereas, Douglas N. Higgins, Inc. has received Human Rights and Living Wage approval on April 28, 2009 and its employees will receive compensation in accordance with the Living Wage Ordinance;
RESOLVED, That a contract in the amount of $1,156,923.10 be awarded to Douglas N. Higgins, Inc. for the construction of the Washtenaw Avenue Water Main Replacement Project;
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 the City Administrator is authorized to approve changes to the construction contract with Douglas N. Higgins, Inc. for in an amount up to $120,000 for the satisfactory completion of the construction;
RESOLVED, That the City make the following declaration for the purpose of complying with the reimbursement rules of Treasury Regulations 1.150-2 pursuant to the Internals Revenue Code of 1986, as amended, that the City reasonably expects to reimburse itself for expenditures for the costs of the Project with proceeds of Bonds; and
RESOLVED, That the City Administrator is authorized to take necessary administrative actions to implement this resolution, including issuing temporary and permanent Traffic Control Orders and night work authorizations as required for the construction of the project;