ACTION REQUESTED:
Title
Communication from City Manager and Director of Public Works with a Request to Accept the Value Engineered Proposal from OTTO BAUM COMPANY, INC., in the Amount of $269,983.00, and Award a CONTRACT for the POPLETT HOLLOW ROAD CULVERT REPLACEMENT PROJECT. [District 5]
Body
BACKGROUND:
After the heavy storms and flash flooding that occurred in April and June, 2013, one very significant repair issue discovered was the failing culvert and headwalls on Poplett Hollow Road. This 5' diameter culvert is in the regulatory floodplain. The culvert pipe is in poor condition and is under the only access road to several houses. The culvert needs to be replaced before it fails and causes the road to be closed and residential access to be blocked.
Some of the repairs are eligible for FEMA funding (estimated $29,800); however, the repairs must be completed within 18 months of the FEMA declaration (late fall for this project) in order to meet FEMA's funding requirements. This creates a shortened construction schedule. The lead time for the box culverts' fabrication is 6 to 8 weeks. Immediately following Council's award of the contract, the ordering process for these structures will begin.
On June 10, 2014 the bids were opened for the Poplett Hollow project. The engineer's estimate was $269,560. One (1) bid was received:
Contractor |
Bid Amount |
Otto Baum Company, Inc. |
$327,883.00 |
Since there was only one bid, it was greater than 20% of the engineer's estimate, and the construction schedule is short, Public Works asked that the Contractor look at Value Engineering the project to lower the project cost.
Value Engineering is letting a contractor look at the project to determine if there is a more cost effective way that this particular contractor can build the project. Different contractors could have different value engineering proposals. For most projects, value engineering happens after the award of the contract. For this project, we do not have the funds to award as bid, so the value engineering had to happen first. If the value engineering proposal had not been within our available funding we would have had to redesign and rebid. Rebidding would have delayed the construction schedule and risked missing the FEMA deadline.
For this project, Otto Baum submitted a value engineering proposal which includes removing the temporary bridge and installing a temporary crossing. The proposal was reviewed by the Engineering consultant, Foth Infrastructure and Environment, and Public Works staff and it was found to be acceptable.
Contractor |
Value Engineering Proposal Amount |
Otto Baum Company, Inc. |
$269,983.00 |
The Good Faith Efforts documentation submitted by Otto Baum Company has been reviewed and approved by the Equal Opportunity Manager. The company will be purchasing construction materials equaling 10% of the total bid amount from a Minority Business Enterprise (MBE). Because the company is a manufacturer, 100% of the contract's value will be counted towards the MBE goal. Three Woman Business Enterprises (WBEs) were also awarded contracts collectively equal to 6% of the total bid amount. The services to be performed include site clearing, landscaping and traffic control.
FINANCIAL IMPACT: Funds for this project will come from the previously-authorized Poplett Hollow funds (Project D13005) and the Drainage Assistance program fund (Project D13000). FEMA has approved $29,800 and Public Works has filed an appeal with FEMA to request additional funding.
NEIGHBORHOOD CONCERNS: Completing the repairs to the public storm sewer system promotes reliable storm water drainage and enhances neighborhood safety and appearance. This culvert is under the only access road for several homes.
IMPACT IF APPROVED: Needed repairs will be completed within the timeframe required to be eligible for FEMA reimbursement.
IMPACT IF DENIED: If denied, the needed repairs would be delayed, resulting in further deterioration of the culvert and road and possibly losing FEMA funding.
ALTERNATIVES: N/A
EEO CERTIFICATION NUMBER: Otto Baum Company, Inc. has current EEO Certification #00073-141231.
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL'S 2014 - 2029 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Financially Sound City Government, Effective City Organization
2. Attractive Neighborhoods with Character: Safe and Livable
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Invest in our infrastructure and transportation.
2. Reinvest in neighborhoods.
3. Have an efficient government.
DEPARTMENT: Public Works