Memorandum

City of Lawrence

Utilities Department

TO:	David Corliss Debbie Van Saun
FROM:	Chris Stewart
CC:	Bob Skinner, Philip Ciesielski
Date:	April 26, 2006
RE:	May 2, 2006 City Commission Agenda

Please include the following information on the regular agenda for the City Commission meeting of May 2, 2006.

Phase II - Downtown Waterline Improvements – Award Project:

Project History: The current project includes waterline improvements along Massachusetts, from 7^th to 9^th street. In addition to the waterline work, the Public Works and Park and Recreation Departments have included electrical and irrigation improvements on this project.

BG Consultants was retained by the Utilities Department in 2004 to complete a preliminary design report http://www.lawrenceutilities.org/downtown.shtml) for waterline improvements along 6^th Street, Tennessee to Massachusetts and Massachusetts street, 6^th to North Park Street. The plan was completed in fall of 2004 with a recommendation to improve the waterline in three years. A public meeting with the downtown association and businesses was conducted after the completion of the design report to solicit input and before the beginning of each construction phase.

The final report recommended a three phase construction schedule that included the following work: The first phase of the project, completed in 2005, included improvements along 6^th Street, from Tennessee to Massachusetts; Massachusetts, 6^th to 7^th Street and 7^th Street, Massachusetts to New Hampshire; the second phase for 2006 included waterline improvements along Massachusetts, from 7^th to 9^th and 9^th from Vermont to Kentucky . The segment along 9^th street has been delayed to a later date due to the cost increases and construction schedule projected in this year construction activity and the potential to add waterline improvements from Kentucky to Tennessee. The third phase of waterline improvements in 2007 will include Massachusetts from 9^th to North Park and possibly the portion along 9^th street. In addition to the waterline work, the contract includes electrical and irrigation improvements requested by Public Works and Parks and Recreation Department.

A bid date was set by the City Commission for Phase II of the waterline improvements for April 11, 2006 bid opening.

Project Status / Details: The bid opening is complete. Bids were received from one contractor, Nowak Construction in the amount of $1,599,584.74. The engineer’s estimate for the project was $1,611,299.70. Attached to the memo is a recommendation from BG Consultants to award the project to Nowak construction. The Utility Department staff is in agreement with the recommendation.

City staff and BG Consultants met with the contractor and the downtown business owners to develop a revised construction sequence in an effort to reduce the construction schedule. The attached memo from BG Consultants provides a summary of the different options that were considered viable by the contractor. This information was presented to a steering committee of five business owners and subsequently to approximately 30 - 35 downtown business representatives during a meeting on April 26, 2006. Both the steering committee and the majority of representatives from the meeting were in concurrence with the proposal listed as Option 2 in the letter. The proposal would change the construction sequence at no extra cost to the City. In addition to the sequence change, the City Manager and Utility staff have reviewed an incentive proposal with Nowak Construction to pay the contractor $1,000 per day for each day the construction project is completed before the projected completion date. If Option 2 is selected for the changed construction sequence, then the incentive would be tied to the completion date of September 18, 2006. The contractor is in agreement with this proposal. The contract already has a $1,000 per day liquidated damage for each day the contractor exceeds the number of working days allocated in the contract.

Fact sheets will be mailed to each business and a final public meeting will occur prior to start of construction.

Project Funding: Funding for this project will come from the non-bonded construction fund for 2006 waterline improvements.

The contractor bid breakdown : waterline replacement - $939,158.80; street reconstruction - $160,551.54; electrical - $446,190.00; irrigation - $53,684.40 (total project bid - $1,599,584.74)

Action Request: Utilities staff requests the following:

Approval from the City Commission to award the project to the low bidder, Nowak Construction, in the amount of $1,599,584.74 and authorize the City Manager to execute a contract agreement for the project.
Consider change in contract with the proposed construction sequence and direct staff as appropriate.
Consider change in contract to provide an incentive of $1,000 per day for each day the construction project is completed before the projected completion date and direct staff as appropriate.

Thank you for your assistance. Please advise if you have any questions.