CC MEETING: September 10, 2024
DATE: September 3, 2024
TO: Erin Rinehart, City Manager
FROM: Jonathan Wheat, P.E., Director of Engineering
Shannon Hicks, Assistant City Manager
Title
Consider Authorizing The City Manager To Approve A Construction Contract With KIK Underground, LLC For The Duncan Heights NOTICE Street, Drainage, And Utility Improvements Phase 1 Project In An Amount Not To Exceed $6,954,653.50.
Body
BACKGROUND:
This contract will provide for the reconstruction of seven (7) streets in the Duncan Heights neighborhood in the City of Carrollton. The project consists of replacement of approximately 16,400 LF of street pavement, 6,705 LF of sidewalks, 890 LF of sanitary sewer, 4,050 LF of storm sewer, and 460 LF of storm channel.
Due to the overall size of the neighborhood, the reconstruction project was split into two construction projects. The Duncan Heights neighborhood is part of the City’s NOTICE program.
The engineer’s estimated construction cost is $7,548,005.00. As outlined below, the lowest qualified proposal is approximately 12% under the estimated cost. The contract duration is 548 calendar days.
FINANCIAL IMPLICATIONS:
Seven complete (7) proposals were received on August 19th, 2024. The low bid, in the amount of $6,624,653.50, was submitted by KIK Underground, LLC. KIK Underground has performed similar satisfactory work within the past three years. Funding is available in Account Unit 854201 (Neighborhood Partnership), Account Unit 854560 (Drainage Consolidated) and Account Unit 855160 (Utility Consolidated).
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. We recommend and 5% contingency be included in the contract, for a total not to exceed $6,954,653.50.
IMPACT ON COMMUNITY SUSTAINABILITY:
As part of the NOTICE Program, 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 and encourage 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 City Council authorize the City Manager to approve a construction contract with KIK Underground, LLC. for the Duncan Heights NOTICE Street, Drainage, and Utility Improvements Phase 1 project in an amount not to exceed $6,954,653.50 ($6,624,653.50 base plus $330,000.00 contingency).