AGENDA TOWN COUNCIL SPECIAL MEETING Wednesday September 18, 2019 6:30 pm I. CALL TO ORDER II. PLEDGE OF ALLEGIANCE III. ROLL CALL IV. DETERMINATION OF QUORUM V. PUBLIC COMMENT-The name and address of each speaker shall be provided and a speaking limit of three (3) minutes shall apply. VI. OLD BUSINESS A. Update on Sidewalk Project – Sam Finz’ report (pages 2-4) B. Additional VDOT funds and Town contribution (pages 5-32) VII. ACTION ITEMS A. Acceptance of additional VDOT funding; Motion to approve increased Town contribution (Motion 1, page 33) B. Award of Contract (Motion 2, page 34) VIII. ADJOURNMENT
Transcript
AGENDA TOWN COUNCIL SPECIAL MEETING
Wednesday September 18, 2019 6:30 pm
I. CALL TO ORDER
II. PLEDGE OF ALLEGIANCE
III. ROLL CALL
IV. DETERMINATION OF QUORUM
V. PUBLIC COMMENT-The name and address of each speaker shall be provided and aspeaking limit of three (3) minutes shall apply.
VI. OLD BUSINESS
A. Update on Sidewalk Project – Sam Finz’ report (pages 2-4)B. Additional VDOT funds and Town contribution (pages 5-32)
VII. ACTION ITEMS
A. Acceptance of additional VDOT funding; Motion to approve increased Towncontribution (Motion 1, page 33)
B. Award of Contract (Motion 2, page 34)
VIII. ADJOURNMENT
MEMO
Date: September 13, 2019
To: Mayor Simpson and Members of the Town Council
From: Samuel Finz, Local Government Consultant
Subject: Request Approval for Local Match for VDOT Sidewalk Project
Town of Hamilton VDOT UPC 107659
ISSUE
The Town of Hamilton has received approval from VDOT on September 6, 2019 of a request for an increase in funding for the Sidewalk project and has authorized the Town to proceed with the Award of a Construction Contract to M and F Concrete in the amount of $457,931.
BACKGROUND
The Town of Hamilton was originally awarded a grant on September 22, 2015 for engineering and construction of a Pedestrian Improvements (Sidewalks) Project )”Project”) in the amount of $422,471. In the past several months the engineering work has been completed, easements have been recorded, the Project has been advertised, the Town has received three bids, the lowest qualified bidder was confirmed by the Town’s engineering firm J-2, and VDOT has issued all necessary approvals.
The bid was from the firm of M & F Concrete of Manassas. The low bid of $457,931 for construction exceeded the engineer’s estimate in the original VDOT Project document of $297,271 by $160,660 or 54 percent. It appears that much of the increase is attributable to current economic conditions which have greatly affected the cost of construction in the Washington Metropolitan area and particularly in Northern Virginia. Numerous towns, as well as Loudoun County, have experienced similar situations.
To fully fund the project, the Mayor requested that VDOT consider additional funding. A telephone conversation with the VDOT Project Coordinator, Christer Carshult was encouraging. The Town in turn submitted a request for additional funding on September 3, 2019, which was approved by VDOT on September 6, 2019.
Total project funding including Engineering, Construction, Contingency, and Oversight increased from $509,365 to $768,342.
Page 2
The original cost structure and VDOT amounts were somewhat different in 2015, and the Town share at the time was estimated to be $171,388. The new cost structure, including an increase in construction costs, and a reevaluation of other related costs such as engineering and construction oversight, actually reduces the Town share from $171,388 to $165,993.
ACTION REQUIRED:
The Town Council must review the Project documents and determine whether it will accept the additional VDOT amounts and commit to the local funding portion. The Council should review the bids and decide whether to award the contract to M&F Concrete, the low bidder.
In the event that the Town awards the contract to M&F, the contractor can proceed to submit the signed contract, insurance documents, performance and payment bonds. Upon receipt and approval of the contractor documents, mobilization and construction can begin. Barring any unforeseen circumstances, the work should take approximately 60 days and be completed before the end of the calendar year.
Attached to the memo is a Cost Table, titled, Project Funding Analysis - Comparison Request vs. VDOT Matrix of 9.3.19, further explains the cost considerations of this project.
RECOMMENDATION
I recommend that the Mayor and Town Council accept the additional VDOT funding for the Project; authorize the expenditure of up to $165,993 in Town funds to be used as the local funding match for VDOT Enhancement; and award the Project construction contract to M&F Concrete of Manassas, Virginia.
Copies:
Treasurer Town Attorney
Page 3
Project Funding Analysis - Comparison Request vs. VDOT Matrix of 9.3.19
Original Estimate Revised Revised VDOTSidewalk Project Add'l. Fnds Phase I Request Approval
Phase I Needed w/ Actual Eng. to VDOT 9/6/2019VDOT 8/27/2019 and M&F 9/3/2019
Total Engineering 88,876$ -$ 88,876$ 158,274$ * Orig. Engineering Award 158,274$ including VDOT OS at $15,000
Construction: Construction 297,270$ 160,661$ 457,931$ 457,931$ * M and F Bid 457,931$ Contingency 15% 44,591$ 24,099$ 68,690$ 68,690$ * Plus 15% of M and F Bid 68,690$ Local Oversight 68,372$ -$ 68,372$ 68,372$ * Less than estimate of 20% 68,372$ VDOT Oversight 3% 10,256$ 4,819$ 15,075$ 15,075$ * 3% VDOT Oversight 15,075$
Total Construction 420,489$ 189,579$ 610,068$ 610,068$ * Total New Construction Cost 610,068$
Total Project Cost 509,365$ 184,443$ 698,944$ 768,342$ * Total New Project Cost 768,342$
VDOT Enhancement Funds 337,977$ 189,838$ 527,815$ 463,010$ * Total VDOT Enhancement FundsNet Town Share 84,494$ 47,460$ 131,954$ 115,753$ * Town Share
Total VDOT Request 422,471$ 237,298$ 659,769$ 578,763$ or Needed
Construction Estimate (Bid Award Amount M&F Concrete) $457,931
Contingency (15%) $68,690
Sub‐Total CN $526,621
CEI ‐ Locality 20% $105,324 reduced down to 68,372 $68,372
CEI ‐ VDOT over‐sight (3%) reduced down to 15,075 $15,075
Total CN project Estimate $610,068
Total Project Estimate $768,342
Total Enhancement Funds $463,010
Total Local Match $115,753
Additional Funding Needed $189,579
Additional Enhancment Funds Requested $139,339
Additional Local Match Required $34,835
Total Local Funding Required as match $150,588
Total Local Funding additional N/Post $15,405
Total Local Funding available for the project per Letter from Locality $165,993
Project Estimate SummaryProject Name: Town of Hamilton Pedestrian Improvements Date: 9/3/19UPC: 107659 Locality PM: Mayor David Simpson VDOT PC: Christer CarshultR RW Authorization
Re: Award Notice Town of Hamilton Pedestrian Improvement
EN15-053-111, C501 (UPC 107659)
Dear Mr. Carshult:
The above listed project received three bids after a 30-day advertisement period.
On August 26, 2019 at 12:01 PM the sealed bids were opened in the Town Office in the Town of Hamilton. I as Mayor of the Town of Hamilton, read the bids aloud in the presence of representatives from staff, engineers, residents, and contractors.
At this time, the Town of Hamilton wishes to notify you of its intent to award the contract to M and F Concrete, Inc. as the lowest qualified bidder. M and F Concrete, Inc. mailing address is 9515 Contractors Ct., Ste.100, Manassas, VA 20109.
The M and F Concrete Bid is: $457,930.75
Our Engineers (J2 Engineering) estimate was : $290,270.00
Included are several documents in compliance with VDOT Section 12.6.9.1 for your review. Included are a bid tabulation sheet comparing the bid from M and F Concrete to our engineer’s estimate. Highlighted are several line items where the bid prices of M and F are significantly higher than the engineer’s estimates. There are a significant number of line items where the differences are in excess of ten percent. In addition, the low bid of $457,930.75 was more than twenty five percent greater than the engineer’s construction estimate of $297,270.00.
Each highlighted line item in the bid tabulation appears to be the result of the current construction market in Northern Virginia which has been extremely active, limiting the number of firms available to do the work, and driving construction prices to extremely high levels. We have noted several articles in local newspapers which have reported on these economic conditions and where other local governments are experiencing the same conditions, including Loudoun County, which as you know the Town of Hamilton is a part of.
There is no other explanation for these increases that we can think of after carefully reviewing the bid against our engineer’s estimate. The estimate prepared by J2 was bases largely on other Loudoun County projects undertaken over the past year or so, suggesting that this economic phenomenon, causing construction prices to rise, is recent, and a function of an increase in demand in the growing Northern Virginia market.
M and F Concrete, Inc. has provided all the required forms C111, C112, C48, C49, as well as proof of bond and the contractor certification forms C-104 and C-105, all of which are attached.
Pending funding availability, we would like to proceed to award our project to M and F Concrete, Inc. and hope we have provided you all the information required to meet VDOT requirements. If you have any questions, please call me at (540) 338-2811.
Sincerely,
David R. Simpson, Mayor
Town of Hamilton
Copies:
Samuel A. Finz, Project Manager
Jon Wilfong, J2 Engineering
Attachments:
1. Bid Comparison M and F Concrete verses Engineers’ Estimate
2. Bid Summary Sheet, M and F Concrete3. Bid Bond Document A310, M and F Concrete4. C-485. C-496. C-1047. C-1058. C-1119. C-112
