The approved 2019-2023 Capital Improvement Program (CIP) includes $2.085 million for the Campbell / Sigwalt Stormwater Control Project.  This project was identified in the Flood Study performed by CDM Smith in 2015.  The original project budget was $2.7 million which included $600,000 for the asphalt pavement restoration and originally the pavement work was to be funded from our road annual road projects.  However, the road funding was not included in the approved CIP and only the $2.085 million was included in the 2019 budget.

During the design and bid preparation phase, several changes in scope were authorized to address critical issues. Those changes and their budget impact are summarized as follows:

1. The sewer on Sigwalt Avenue is being extended west from Walnut Avenue to Ridge Avenue to address a known problem area not included in the original estimate ($50,000).
2. In some locations, the sewer size and depth requires the relocation and reconfiguration of water mains ($120,000).
3. The plan to use parallel relief sewers was changed to a design calling for the replacement and upsizing of the existing combined sewers. This allows for more utility room in the R.O.W. for future work ($140,000). 
4. The Project Budget was increased for inflation since original costs were projected in 2015 ($290,000). 
5. An Alternate (No. 1) was added to perform a sewer connection on Sigwalt east of Arlington Heights Road which was necessary to handle the actual flows on the south half of the project ($25,000).
6. Another Alternate (No. 2) was added to construct the Dunton mid-block crosswalk ($110,000).

This additional work and adjustment for inflation result in a project estimate of $3,435,000.

Bidding

On Monday, April 8, 2019 a public bid opening was held for the Downtown Sewer Project. Five bids were publicly opened and read aloud. Martam Construction, Inc. was the apparent low bidder at $3,649,582.80. A copy of the bid tabulation is attached for reference.

Martam Construction’s Base Bid is $3,448,612. Martam included the following pricing for the Alternates:

Alternate No. 1: Consists of a short relief pipe that connects two existing sewers on Sigwalt Street in front of Village Hall. This portion was split off as an alternate because Staff considered doing this connection in-house. Based on the bids obtained and after internal discussion, Staff recommends that Alternate 1 be included in the bid award.

Martam Bid Alternate No. 1:  $24,966.00

Alternate No. 2: Encompasses the work for the Dunton Avenue mid-block crossing, which was previously designed by HLR, Inc. as a stand-alone project.  The original estimate of cost from HLR, Inc. was $119,133. Based on the bids obtained and after internal discussion, Staff recommends that Alternate 2 be included in the bid award. Staff feels there would be no benefit to try to re-bid this mid-block crossing separately.

Martam Bid Alternate No. 2:  $176,004.80

The Total Bid from Martam Construction, Inc. including the alternates is $3,649,582.80

Our consulting engineer, Burns and McDonnell, has reviewed the bids and recommends that the bid with alternates be awarded to Martam Construction.  Staff concurs with this recommendation.

Construction Management

Staff requested a proposal from Burns and McDonnell for the construction management of the project.  This proposal is being reviewed by Staff.  The cost for this work is $260,000. Staff believes this cost is reasonable at approximately 7+% of the total project cost. These costs are included in the recommended budget amendment. Staff is reviewing the proposal and anticipates bringing the contract for approval to the Village Board for consideration at the May 6^th meeting

MWRD Grant

During the design phase of this project, Staff applied for a grant with the MWRD.  The grant request was for the $2.1 million estimate of the stormwater costs of this project, not including road patching or other considerations. The MWRD has made a preliminary award to the Village of up to $1.8 million.  The agreement for this grant will be voted upon at the April 15^th Board meeting, with final approval by MWRD on May 2nd. The Village will need to upfront the cost and request reimbursements.

$3,473,578.00 of this award will be funded from Account 426-7101-571.50-25 (SW1804).  $176,004.80 will be funded from 401-4001-571.50-30 (ST1535).

Staff also requests a budget transfer in the amount of $1,648,578.00 from the Storm Water Control Capital Reserves Fund to 426-7101-571.50-25 (SW1804).  This budget transfer will support additional construction costs due to a change in project scope as summarized above ($1,388,578.00) and future construction management costs ($260,000.00) that staff will present to the Village Board at the May 6, 2019 meeting.

RECOMMENDATION

It is recommended that the Village Board award the contract for Downtown Sewer Construction to Martam Construction, Inc., of Elgin, Illinois in the amount of $3,649,582.80.   Martam Construction has completed work for the Village in the past and has been determined to be a responsive vendor. It is also recommended that the budget for this project be amended by $1,648,578 using Storm Water Control Fund reserves.