Title
Resolution to Award Contract for the Water Treatment Plant Physical Security Enhancements Project to Wiltec Technologies ($1,388,000.00)
Memorandum
This memorandum and resolution requests approval to award a contract to Wiltec Technologies for the Physical Securities Enhancements Project ($1,388,000.00).
The Physical Securities Enhancement project is included as a high priority project for 2011 in the City's approved Capital Improvement Plan. This project includes video surveillance, access control, wireless communication, programming, and integration at the City of Ann Arbor Water Treatment Plant (WTP) and remote stations. This project was borne from the results of a Vulnerability Assessment completed for the Water System. The Vulnerability Assessment was required by the Department of Homeland Security as part of Homeland Security Presidential Directive 7 (HSPD-7) for Critical Infrastructure.
City staff conducted a public meeting on May 18 to share the project scope and solicit any feedback or concerns from City residents and neighbors of the water facility properties where the security measures will be installed. Several neighbors of the Water Treatment Plant attended the meeting and expressed their support for the project. No concerns or issues were raised.
Because of the sensitive nature of this project, the city pre-qualified contractors to bid on the scope of work. All pre-qualified contractors were required to sign non-disclosure agreements prior to receiving copies of the bid documents. Of the seven pre-qualified contractors, the City received the following three bids:
Wiltec Technologies $1,388,000.00
Johnson Controls $1,512,706.00
Rauhorn Electric, Inc. $1,693,834.00
Since Wiltec Technologies submitted the lowest responsible bid in the amount of $1,388,000.00, it is recommended that their bid for $1,388,000.00 be accepted, and that Wiltec Technologies be awarded the contract for the Physical Security Enhancements Project.
The overall budget for the project is estimated at $2,453,057.00 which includes the contract for Wiltec Technologies, project management and inspection services by City Staff ($150,000.00), contingency for the contract with Wiltec Technologies for change orders to be approved by the City Administrator ($140,000.00), a bond issue fee ($75,000.00), materials and supplies ($25,000.00), IT Support Services ($20,000.00), and engineering services provided by Malcolm Pirnie ($655,057.00).
The funding for this project is available in the approved water fund capital budget and is to be advanced from the Water Supply System Unobligated Fund Balance to be repaid pending the sale of water revenue bonds via the Drinking Water Revolving Loan Fund (DWRF). This project is part of the fourth quarter FY11 funding for DWRF projects.
Wiltec Technologies has received Human Rights approval on May 24, 2011, and complies with the living wage ordinance.
Staff
Prepared by: Brian Steglitz, P.E., Sr. Utilities Engineer, WTP
Reviewed by: Sue F. McCormick, Public Services Administrator
Approved by: Tom Crawford, Interim City Administrator
Body
Whereas, It is necessary to complete the Physical Security Enhancements Project to comply with the recommendations for the Water System Vulnerability Assessment mandated by the Department of Homeland Security;
Whereas, This project is included as part of the Drinking Water Revolving Loan Fund application made by the City for a select number of water system projects and was accepted for funding through this program;
Whereas, Of the three bids received, Wiltec Technologies provided the lowest responsible bid in the amount of $1,388,000.00;
Whereas, Wiltec Technologies has received Human Rights approval on May 24, 2011, and complies with the living wage ordinance; and
Whereas, Funding for this project is available in the approved water fund capital budget;
RESOLVED, That Council accept the proposal and awards a contract to Wiltec Technologies in the amount of $1,388,000.00 for the Physical Securities Enhancements Project;
RESOLVED, That a contingency in the amount of $140,000.00 be approved to finance change orders to the contract with Wiltec Technologies to be approved by the City Administrator;
RESOLVED, That the Mayor and City Clerk be authorized and directed to execute the contract for services after approval as to substance by the City Administrator and approval as to form by the City Attorney;
RESOLVED, That the City makes the following declaration for the purpose of complying with the reimbursement rules of Treas. Reg. 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; and
RESOLVED, That the City Administrator be authorized to take the necessary administrative actions to implement this resolution.