CC MEETING: January 7, 2025
DATE: December 16, 2024
TO: Erin Rinehart, City Manager
FROM: Jonathan Wheat, P.E., Director of Engineering
Shannon Hicks, P.E., Assistant City Manager
Title
Consider Authorizing The City Manager To Execute A Construction Contract With KIK Underground, LLC For The Carrollton Heights Street Reconstruction Phase 1 Project In An Amount Not To Exceed $8,594,217.50.
Body
BACKGROUND:
This contract will provide for the reconstruction of six (6) streets in the Carrollton Heights Subdivision including Clint Street, Baxley Street, Maryland Street, portions of Spring Avenue, Rosemon Avenue, Walnut Street, and alleys. The project consists of approximately 7,550 LF of residential street pavement, 1,700 LF of alley pavement, 2,528 LF of water pipe, 202 LF of sanitary sewer pipe, 4,600 LF of storm pipe, and residential street lighting. This project was a part of the 2018 Bond Election and is a NOTICE program project.
The duration of construction is 720 calendar days. Construction will be performed such that all of the streets will not be under construction at one time. Project signs will be placed at the entrances to the subdivision while it is under construction. All residents will be notified in writing regarding the construction schedule prior to the start of construction. Also, a neighborhood meeting with the homeowners and the contractor will be held prior to construction. Additional handouts will be distributed as required during the project.
FINANCIAL IMPLICATIONS:
Seven (7) bids were received on November 26, 2024. The low bid, in the amount of $8,344,217.50, was submitted by KIK Underground, LLC. The Engineer’s Estimate for the project was $8,811,164.00. KIK Underground, LLC has performed several projects in Carrollton, most recently the Northland Street Replacements. Funding is available in the Neighborhood Partnership, Streets, and Utility funds.
With this neighborhood reconstruction staff recommends the inclusion of a construction contingency. The construction contingency provides an expedient manner to accommodate unforeseen costs and minor additions in work common in all construction projects. Examples include unexpected conditions discovered during construction, and changes to design that were not possible during plan generation. All charges against contingency must be supported by detailed pricing information and approved by the City through a formal change order. However, having advanced Council authorization ensures that work progress is not impeded. Typical construction contingencies for a project of this magnitude range from 2-5% of the total contract amount. As a cost control measure, the construction contingency for the Carrollton Heights Street Reconstruction Ph 1 is recommended at 3% (original contract amount) or $250,000.
IMPACT ON COMMUNITY SUSTAINABILITY:
This project will support the City Council’s strategic objectives and vision of building a community that families and businesses want to call home by:
- Sustaining quality of life - Improvements in the subdivision should improve the appearance of the neighborhood which should promote residents to provide better upkeep of properties in the neighborhood.
- Sustaining day-to-day operations - The replacement of substandard street pavement, water and sewer lines should reduce the need for non-scheduled or emergency repairs.
STAFF RECOMMENDATION/ACTION DESIRED:
Staff recommends award of the construction contract for the Carrollton Heights Street Reconstruction Ph 1 Project to KIK Underground, LLC in an amount not to exceed $8,594,217.50 ($8,344,217.50 original proposal and $250,000 (3%) construction contingency).