Title
Resolution to Approve a Construction Contract with SAK Construction, LLC for the 2023 Sewer Lining Project ($2,989,659.00, RFP 23-41)
Memorandum
Attached for your review and approval is a resolution to approve a construction contract with SAK Construction, LLC, in the amount of $2,989,659.00, for the 2023 Sewer Lining Project.
This project includes lining approximately 23,800 feet of sanitary and storm sewer at multiple locations throughout the City, as well as contingencies to repair or maintain segments of pipe where lining is not feasible. In addition, the project will line 50 sanitary sewer manholes to aid in limiting stormwater infiltration into the sanitary sewer system. The project locations were identified by City staff as in need of repair.
Lining is a “trenchless” technology that enables pipe repair or maintenance without disturbing the surface above. During lining, new material is pumped into the existing pipe, creating a new pipe inside the existing one. The process is not only cost effective but eliminates the need for extensive excavation and lengthy traffic control measures, thereby minimizing traffic disruption. The project is expected to begin in December 2023.
Engineering staff supervised the creation of plans and contract documents and bid the project through the City’s Procurement Unit. On September 7, 2023, three proposals were received for this work. A selection committee comprised of Public Services staff reviewed the proposals and determined which proposal was the Best Value based on the criteria in ORD-21-41:
• Qualifications, Experience, & Accountability (20%)
• Workplace Safety (20%)
• Workforce Development (20%)
• Social Equity & Sustainability (20%)
• Schedule of Pricing/Cost (20%)
After reviewing and scoring the proposals, staff ranked the responding firms in the following order:
1. SAK Construction, LLC.
2. Inliner Solutions, LLC.
3. Insituform Technologies USA.
SAK Construction, LLC (SAK) received the highest score among the proposals reviewed by the selection committee. Therefore, staff recommends the City Council approve a contract with SAK for this project. SAK complies with the City’s Non-Discrimination and Living Wage ordinances.
This contract was bid with the understanding that it could be extended for one additional year at the mutual consent of the City and the Contractor, thus locking in the rates for two years. If the contract is extended, it would then incorporate scope for the 2024 Sewer Lining Program (both Storm and Sanitary). This Resolution would authorize the City Administrator to approve such an extension.
Budget/Fiscal Impact: The City of Ann Arbor Capital Improvements Plan (CIP) includes the 2023 Sewer Lining Projects (UT-SN-21-06, UT-SN-22-13, UT-ST-14-07 and UT-ST-24-34). The estimated total cost of the project is $3,740,000. Funding for the projects is included in the approved Sewage Disposal System Fund and Stormwater Fund capital budgets.
Fund Project Cost
Sewage Disposal System Fund $2,800,000
Stormwater Fund $ 940,000
Total $3,740,000
Staff
Prepared by: Nicholas Hutchinson, P.E., City Engineer
Reviewed by: Brian Steglitz, Public Services Area Administrator
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, It is necessary to repair or maintain sanitary and storm sewers in various locations throughout the City in order to provide reliable sewer service;
Whereas, Funding for the project is available in the approved capital budgets of the approved Sewage Disposal System Fund and Stormwater Fund;
Whereas, The City of Ann Arbor received three proposals for this work on September 7, 2023 and SAK Construction, LLC received the highest score among the proposals reviewed by the selection committee;
Whereas, It is now appropriate to enter into a contract with SAK Construction, LLC for the 2023 Sewer Lining Project; and
Whereas, SAK Construction, LLC complies with the City’s Non-Discrimination, Conflict of Interest and Living Wage ordinances and submitted the appropriate documentation;
RESOLVED, That City Council approve a contract with SAK Construction, LLC in the amount of $2,989,659.00 for the 2023 Sewer Lining Project (RFP 23-41);
RESOLVED, That a contract contingency amount of $300,000.00 be established within the project budget and that the City Administrator be authorized to approve additional change orders to the construction contract with SAK Construction, LLC not to exceed $300,000.00 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 City Administrator;
RESOLVED, That the City Administrator be authorized to approve the extension of the contract for additional one-year renewal, subject to the availability of funds; and
RESOLVED, That the City Administrator be 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.