Title
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONTRACT WITH PERRAM ELECTRIC, INC. AND INCREASE FUNDS FOR THE ADAPTIVE TRAFFIC SIGNAL PROJECT (PID 116924); AND DECLARING AN EMERGENCY.
Brief Description: Bids were received on April 16, 2024, with the lowest bid being $3,121,000. The City’s Engineer’s Estimate on this project was $2,520,078.85. Per Federal Highway Administration (FHWA) and Ohio Department of Transportation (ODOT) guidelines, the Engineer’s Estimate is able to be corrected when, after bids are received, and it is discovered that the unit cost of certain item(s) have been understated in the Engineer's Estimate. In accordance with FHWA & ODOT guidelines, the correct Engineer’s Estimate is now $3,121,000. Staff is now requesting permission to increase funding for the Adaptive Traffic Signal project based upon the corrected Engineer’s Estimate.
Body
Legislative History
19-0056 - Discussion on Adaptive Signal Technology; 6/11/2019
19-92 - Authorize City Manager to Solicit Proposals for Stage 1; 7/9/2019
20-0031 - Discussion regarding Adaptive Signal Timing Analysis; 3/10/2020
21-12 - Authorize Contract with TMS for Adaptive Signal Design; 2/16/2021
21-83 - Authorize Application for CMAQ Funds; 7/20/2021
22-99 - Enter into LPA Agreement; 8/16/2022
23-16 - Enter into a Professional Services Contract with TMS for re-design; 2/7/2023
23-174 - Permission to Bid and Award; 12/19/2023
Purpose & Explanation
The project includes upgrading fifteen (15) signalized intersections along SR 91 and SR 303 and upgrades to the signal’s emergency preemption system at a total of 28 signals throughout the City. The project also includes the installation of a new traffic signal at the Owen Brown railroad overpass and the installation of additional fiber network and upgrades to the traffic signal at 303 and Hayden Parkway for inclusion into the new adaptive signal system
The main benefit of the adaptive traffic technology is that it will improve the traffic within our downtown central business area, improve safety, and all at a considerably lesser cost than adding pavement lanes to SR 91 and SR 303 in our historic downtown.
The City was awarded Congestion Mitigation/Air Quality (CMAQ), federal funding for construction and management of the project. The maximum CMAQ grant amount is $2,316,939 and costs above this amount are the responsibility of the City. The construction costs will be split 80% ODOT/ 20% City.
The Engineering Department bid this project out on April 16, 2024. Two bids were received with the lowest bid being $3,121,000.00, which was approximately 24% above our Engineer’s Estimate of $2,520,078.85. The second-place bid was $3,258,116.00.
Staff contacted both ODOT and AMATS to alert them that the project bids came in over budget.
ODOT indicated that they would support the City awarding the contract to the apparent low bidder (ALB) even though it appears that the low bidder was 10% over the Engineer’s Estimate. ODOT noted that per FHWA “Guidelines on Preparing Engineer's Estimate, Bid Reviews and Evaluation” that when bids are received, and it is discovered that the unit cost of certain item(s) have been understated in the Engineer's Estimate, the FHWA allows the flexibility of correcting the price of that item(s) in the Engineer's Estimate. With this correct, the Engineer’s Estimate would be within 10% of the ALB, necessary to award the contract.
ODOT recommended that the City review the bids to identify any corrections that should have been made. Based upon staff’s interview with the City’s design consultant, and traffic signal contractors familiar with this type of work, it has been identified that there are bid items that were in error and should have been higher due to the wrong unit cost being utilized and that a number of bid items were incorrectly estimated based upon the design consultant not taking into consideration updated costs due to inflation, equipment shortages and the use of proprietary equipment.
AMATS staff noted that based upon current Congestion Mitigation/Air Quality (CMAQ) grant funding availability in FY24, they would be able to increase the City’s funding to help offset the project's increased construction and management costs by approximately $347,541.00, of which $321,662 is needed to cover the shortfall in covering 80% of the project cost, as shown in spreadsheet attached.
Staff inquired with ODOT and AMATS about rebidding the project. AMATS noted that the current CMAQ Funding is required to be encumbered by the state by the end of FY 2024. This date is on/near May 14, 2024, to account for the State’s time for processing the bids and funding, the upcoming Memorial Day Holiday and fiscal year-end shutdown.
Should the City wish to rebid the project, a rebid cost submitted after May 14th would likely result in no increase in funds as CMAQ funds in FY 2025 are currently over budget. In addition, bidding and awarding the project later in the spring/summer would likely increase the overall cost of the project without some reduction in the scope of the work.
AMATS staff also noted that if the City fails to meet its schedule requirement to submit bids by the end of FY 2024, a scoring penalty towards future CMAQ funding will be incurred by the City.
Project Cost Summary
The increased cost to the City, based upon the April 16, 2024 bid results plus cost for construction is $200,250. City cost for construction administration fee is $53,176. The City’s total cost increase for the project is $253,426 ($200,250 + $53,176 = $253,176), which is the additional 20% match requirement for the project. See attached spreadsheet for a detailed summary of the project costs. Note that City staff will return to Council for permission to enter into a Professional Services contract for the construction management of the project.
Fiscal Impact
X Currently Budgeted (430 fund - $580,000)
X Supplemental Appropriation Required (430 Fund - $253,426)
Appropriation Not Required.
Does this legislation require use of an emergency clause?
X Yes - In order to meet AMATS/ODOTS award date and avoid future funding penalties.
No
Recommendation
Suggested Action
Staff recommends that City Council award the contract to Perram Electric in accordance with the Federal Highway Administration and Ohio Department of Transportation’s guidance noted above. If Council approves, the City will proceed with awarding the contract and requesting permission to accept additional funding from AMATS to help offset the increased project costs and avoid future funding penalties associated with missing funding use deadlines.
Submitted by,
Thomas J. Sheridan, City Manager
Bradley S. Kosco, PE, PS, City Engineer