Memorandum

City of Lawrence

Utilities Department

 

TO:

David Corliss

Debbie Van Saun

FROM:

Philip Ciesielski

CC:

Dave Wagner

Bob Skinner

Date:

March 28, 2007

RE:

April 3, 2007 City Commission Agenda – 2007 Downtown Waterline Improvements Award Construction Contract 

 

Please include the following information on the consent agenda for the City Commission meeting of April 3, 2007.   

Phase III - Downtown Waterline Improvements – Award Construction Contract:

  

Project History:  The current project includes waterline improvements along Massachusetts, from 9th to south of North Park 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 6th Street,  Tennessee to Massachusetts  and Massachusetts street,   6th to North Park Street.    The plan was completed in fall of 2004 with a recommendation to improve the waterline over a three year period. A public meeting with the downtown association and businesses was conducted after the completion of the design report to solicit input and again 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 6th Street, from Tennessee to Massachusetts; Massachusetts, 6th to 7th Street and 7th Street, Massachusetts to New Hampshire; the second phase completed in 2006 included waterline improvements along Massachusetts, from 7th to 9th.  An additional segment along 9th street East of Massachusetts is being rescheduled to a later date due to the cost increases and construction schedule projected in this year’s construction activity and the potential to add future waterline improvements from Kentucky to Tennessee.  The third, and current, phase of waterline improvements to be completed this year includes Massachusetts from 9th to North Park.  In addition to the waterline work, the contract includes electrical and irrigation improvements requested by Public Works and Parks and Recreation Department.

 

On Thursday March 1, 2007 City Staff and representatives from BG Consultants met with the community to present the project and potential construction schedules.  Several potential schedules, outlined on the attached, were discussed. Based on the results of these discussions Staff is recommended going forward with construction based on the Scenario 2 schedule. This schedule provides for an April construction start of Phase I in the 1100 block of Massachusetts, and has the contractor demobilized during the weekend of KU’s Sunday May 20th graduation prior to beginning Phases II & III. The following dates represent the Scenario 2 Schedule - 

 

Advertise for Bids – March 8, 2007

Bid Letting – March 27, 2007  

Phase I Construction – April 23, 2007 – May 18, 2007

Phase IIa & IIb Construction – May 21, 2007 – July 12, 2007

Phase III Construction – July 13, 2007 – September 7, 2007  

 

During the March 6, 2007 City Commission meeting the above recommended schedule was accepted and a bid date of March 27, 2007 was set by the City Commission for Phase III of the Downtown Waterline Improvements. 

 

Project Status / Details:   The bid opening is complete.  The following bids were received from two contractors;

 

Nowak Construction   $1,928,977.60

Emcon Construction   $1,943,231.95

Engineer’s Estimate    $2,096,000.20

 

Subsequent to the bid opening, it was brought to staff’s attention that the bid from Nowak included participation from a subcontractor for a portion of the waterline installation of this project.  Since page NC-2 of the Notice to Contractors states: “The waterline installation under this contract shall be performed by the prime contractor”, the engineer asked for an explanation from Nowak.  Apparently Nowak misinterpreted this portion of the Notice to Contractors as being applicable to providing evidence of past performance on successful projects, per their attached letter.  When asked to clarify if Nowak, as the prime contractor, intends to install the waterline, Nowak’s response is (again, per their letter): “consider this letter official notification that Nowak Construction Company Inc. will install all waterlines with our own personnel and equipment.”  Per the City’s Purchasing Procedures, this correction is permissible as authorized by the City Manager. (Chapter 4.2.6 Correction or Withdraw of Bids: Cancellation of Awards.  Correction or withdrawals of inadvertently erroneous bids before or after award, or cancellation of awards or contracts based on such bid mistakes, shall be permitted after authorization by the City Manager.).

 

Attached to this memo is a recommendation from BG Consultants to award the project to Nowak Construction.  Nowak completed the first two phases of the waterline replacement project in a satisfactory manner.  The Utility Department staff is in agreement with the recommendation. 

 

The contract stipulates Liquidated Damages to be assessed at a rate of $1,000.00/day for each day work is required in excess of the allotted working days for a defined section of work. An incentive structure similar to the 2006 Phase will also be offered for early completion of the entire project.  This will be incorporated in the contract by change order after reviewing Nowak’s proposed schedule and work sequence. 

 

It is anticipated that this Phase of the project will require street closures and traffic control similar to the 2006 phase. These have typically been one-way traffic on Massachusetts and limited/intermittent impacts to traffic on the cross streets.

 

Utilities Engineering Division inspections staff will provide fulltime construction inspection services for this project.   

 

Fact sheets will be mailed to each business and a public meeting will occur prior to the start of construction to provide business owners an opportunity to meet the contractor and discuss the project improvements / schedule.     

 

Project Funding:   Funding for this project will come from the non-bonded construction fund for 2007 waterline improvements with participation from Public Works.  The Utility Department fund provides for approximately $1,170,000 per year for improvements to replace deteriorating waterlines and improve reliability in the water distribution system.   

The contractor bid breakdown:  waterline replacement including street restoration - $1,405,550.70; crosswalk and handicapped ramp reconstruction - $137,576.90; electrical - $352,225.00; traffic signal conduits - $33,625.33 (total project bid - $1,928,977.60)  

Action Request:   Utilities staff requests approval from the City Commission to award the project to the low bidder, Nowak Construction, in the amount of $1,928,977.60 and authorize the City Manager to execute a contract agreement for the project. 

 

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