Title
Resolution to Award a Construction Contract to E.T. Mackenzie Company for the 2020 Utility Improvements ($861,457.60)
Memorandum
Attached for your approval is a resolution to award a construction contract to E.T. Mackenzie Company (Mackenzie), in the amount of $861,457.60, for the 2020 Utility Improvements.
Project Description
This project includes separate areas of work, which were combined into one contract for cost saving purposes. The three locations included are as follows:
• John Street - Construction of a new sewer connecting to John Street and abandonment of old rear yard sewer.
• South Blvd - Replacement of an old deteriorated 4-inch water main with a new 8-inch water main to improved water quality.
• Huron Street - Replacement a deteriorated section of storm sewer, west of First Street.
The City published plans and specifications through its procurement website and MITN.info and received four bids on May 12, 2020. Mackenzie was the lowest responsible bidder at $861,457.60, which is 14% below the Engineer’s Estimate. A summary of the bids is attached.
Mackenzie 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.
Budget/Fiscal Impact: The current Capital Improvements Plan (CIP) includes funding for the John Street Sanitary Sewer (UT-SN-20-14) and the South Boulevard Water Main (UT-WS-01-30). Per the existing agreement with the Michigan Department of Transportation (MDOT), the Huron Street Storm Sewer repair will be completed by the City’s contractor and the costs will be reimbursed to the City by MDOT.
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 2020 Utility Improvements will provide more reliable water service on South Blvd; sanitary sewer service on John Street; and storm water conveyance on Huron Street;
Whereas, The John Street sanitary sewer and the South Blvd water main are included in the Capital Improvements Plan and funding is available in the respective Sanitary Sewer System, Water Supply System, and Stormwater Sewer System approved Capital Budgets;
Whereas, repairs to the Huron Street storm sewer will be completed by the City, and the costs reimbursed by MDOT, per the current City-MDOT Agreement;
Whereas, Competitive bids were received by Procurement on May 12, 2020 (ITB 4626) and E.T. Mackenzie Company was the lowest responsible bidder with a submitted bid of $861,457.60;
Whereas, The proposed contract sets forth the services to be performed and the payments to be made, all of which are agreeable to the City;
Whereas, It is now appropriate to enter into a Contract with said company for this construction project; and
Whereas, E.T. Mackenzie Company 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 construction contract in the amount of $861,457.60 be awarded to E.T. Mackenzie Company for the construction of the 2020 Utility Improvements project;
RESOLVED, That a contingency amount of $90,000.00 be established within the project budget and that the City Administrator be authorized to approve change orders to the construction contract with E.T. Mackenzie Company not to exceed that amount, in order to satisfactorily complete this Project;
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 Internal 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;
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.