Title
Resolution to Award a Construction Contract to Strawser Construction, Inc. (ITB-4630, $2,367,983.83) and to Appropriate $3,642,400.00 for the FY2021 Street Preventative Maintenance Project (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 Strawser Construction, Inc. for $2,367,983.83 for the FY2021 Street Preventative Maintenance Project, which consists of crack sealing and surface treatment applications on various major and minor/local City streets.
Scope and Schedule
The FY2021 Street Preventative Maintenance Project includes the application of cape sealing pavement preservation treatment on approximately eight (8) major streets and twenty-six (26) minor/local streets citywide. In addition, it includes citywide crack sealing of approximately 24 miles of major streets and 18 miles of minor/local streets. Attached, are a list of streets and maps showing the proposed work locations. The schedule anticipates construction beginning in early July 2020 and being complete by June 30, 2021. The Contractor will provide an exact schedule for each street, as required, to coordinate with planned City and other area construction projects, community events, in-session school days, and applicable holiday periods.
The proposed contract is a unit price contract, based on the fact that actual construction quantities will vary. This arrangement allows for removal, addition and substitution of streets as appropriate. 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 surface treatments project. Conversely, the City may add additional streets if the available budget allows.
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 and opened publicly three (3) bids on Wednesday, May 27, 2020. Attached is a copy of the results. The lowest responsive bid from Strawser Construction, Inc., for $2,367,983.83, was 30.1% below the Engineer's Estimate. Staff reviewed and compared the bid prices received with others from past City and recent statewide projects and found them to be acceptable.
Budget/Fiscal Impact: The current City of Ann Arbor Capital Improvements Plan (CIP) includes the Annual Capital Street Maintenance Program (TR-SC-15-02), which includes this project. This program, coupled with the Annual Street Resurfacing Program, are vital to the continued improvement of the City’s street network. This work is included in the adopted FY 2021 Major and Local Street Funds Operations and Maintenance and Budgets and is supplemented by an allocation from the FY 2020 General Fund. This work is essential to achieving the long-term goals established for the City’s pavement asset management plan. The project will have no additional operational impacts.
The estimated total cost for this project is $3,642,400.00 and includes estimated revenue from the following sources:
|
Revenue Source |
Amount |
|
FY 2021 Major Street Fund |
$2,053,000.00 |
|
FY 2021 Local Street Fund |
$744,000.00 |
|
Bridge, Street and Sidewalk Millage Fund |
$500,000.00 |
|
FY 2020 General Fund |
345,400.00 |
|
Total |
$3,642,400.00 |
Due to significantly lower than expected bid prices, staff is requesting a higher than customary contingency amount of $725,000.00 be established within the project budget to address unforeseen matters encountered during construction and allow for the potential to add street work to the contract through the change order approval process.
Maintenance of Traffic
On major streets, the contract requires maintaining two-way traffic. The contractor will utilize lane closures with traffic shifts, and flag control at times to perform its work. It will utilize temporary short-term street closures (one day or less) to accomplish the work on local streets. For all the streets, the contract requires maintaining access to driveways and side streets during construction although short-term restricted access will be necessary. The contractor, at the staff’s direction, will utilize message boards to notify drivers of upcoming construction and related traffic delays.
Public Outreach
The Contractor, working with staff, will provide advance construction notice to residents and business owners affected by this project. The City will notify the public of any temporary traffic control impacts on major streets.
Strawser Construction, Inc. complies 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: Tom Crawford, Interim City Administrator
Body
Whereas, The City of Ann Arbor’s Adopted FY 2021 Budget includes the Annual Capital Street Maintenance Program;
Whereas, The FY2021 Street Preventative Maintenance Project includes the application of cape sealing pavement preservation treatment on approximately eight (8) major streets and twenty-six (26) minor/local streets citywide;
Whereas, The FY2021 Street Preventative Maintenance Project also includes citywide crack sealing of approximately 24 miles of major streets and 18 miles of minor/local streets;
Whereas, The City’s Procurement Office received competitive bids for a contract for that project on Wednesday, May 27, 2020, and Strawser Construction, Inc. was the low responsive bidder at $2,367,983.83;
Whereas, The contract proposal sets forth the services to be performed by said company, and the payments to be made by the City therefore, along with other terms and conditions, all of which are agreeable to the City;
Whereas, The FY2021 Street Preventative Maintenance Project is important to improving and maintaining City streets and achieving the goals of the City’s pavement asset management program;
Whereas, Funds are available from the FY 2021 approved Major and Local Street Fund Operations and Maintenance budgets;
Whereas, As a result of the Citizen Survey, $345,400.00 was allocated from the FY 2020 General Fund operations and maintenance budget for increased road repairs;
Whereas, It is now important to enter into a contract with said company for said construction project; and
Whereas, Strawser Construction, Inc. complies with the City of Ann Arbor Non-Discrimination and Living Wage Ordinances;
RESOLVED, That a contract in the amount of $2,367,983.83 be awarded to, and entered into with, Strawser Construction, Inc. for the construction of the FY2021 Street Preventative Maintenance Project;
RESOLVED, That the FY2021 Street Preventative Maintenance Project Capital Budget be established in the amount of $3,642,400.00 with the sources of funding being the appropriation of the FY 2021 Major Street Fund Operations and Maintenance Budget ($2,053,000.00), the FY 2021 Local Street Operations and Maintenance Budget ($744,000.00), the Approved Street Millage Capital Budget ($500,000.00) and the FY 2020 Approved Public Services Area General Fund Operations and Maintenance Budget ($345,400.00);
RESOLVED, That the funds for the FY2021 Street Preventative Maintenance Project expenditure and revenue budgets be available without regard to fiscal year; 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 $725,000.00 be established within the project budget and that the City Administrator be authorized to approve additional change orders to the construction contract with Strawser Construction, Inc., not to exceed $725,000.00 in order to address unforeseen construction matters, potentially add street work, and to satisfactorily complete this project; and
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 FY2021 Street Preventative Maintenance Project, including parking prohibitions as needed in excess of one (1) block and/or ninety (90) days.