Title
A Resolution Amending Resolution No. 26-1261-RES to Rescind the Award to L & K Construction and Award the Highway Safety Improvement Program (HSIP) Project to P. L. Russell Construction, LLC for Pedestrian Improvements Along Highway 98 at Cedar Street, Oak Street, Pine Street, Chicago Street, and the Rose Trail Crosswalk
SUMMARY
Amending Resolution No. 26-1261-RES to rescind the award of the Highway Safety Improvement Program (HSIP) project to L & K Construction and award the project to P. L. Russell Construction, LLC, the second-lowest bidder, for $836,557.52. The Alabama Department of Transportation (ALDOT) has confirmed that it will not provide additional funding to cover the $23,758.34 difference between the two bids. Therefore, the City of Foley will be responsible for funding the additional $23,758.34.
Budgetary Impact:
Non-Capital Item:
____ Budgeted under account #_______________ (discussion item)
____ Not budgeted, requesting transfer of $__________ from Account #______________ to Account #_____________.**Request to Transfer Departmental Budget Dollars form must be attached**
____ Not budgeted requiring increase to account #___________ in the amount of $____________.**Request to Increase Departmental Budget Dollars form must be attached**
Capital - Departmental **Capital Purchase Worksheet form must be attached**
____ Budgeted under account #______________ for $_________ and described in budget as ________________________. Additional amount needed, if any: Increase in budget of $_________ OR, transfer of $________ from Account #____________ to Account #_____________**Request to Increase OR Request toTransfer Departmental Budget Dollars form must be attached**
____ Not Budgeted - account #____________ requires budget increase of $_____________.**Request to Increase Departmental Budget Dollars form must be attached**
Capital Project - **If requesting to start a project, a Capital Project Worksheet form must be attached**
In current year Capital Projects Plan:
_X_Yes, described as HSIP Pedestrian Improvement Hwy 98 Cedar, Oak, Pine, Chicago, Rose, currently approved project budget of $862,758.41, requesting an increase of $23,758.34 to the project budget, for a revised total project budget of $886,516.75, under Account No. 400-3020-5178, HSIP Hwy 98 Pedestrian Improvements.
_____ No, requesting $___________ as total project estimate, including contingencies, under account #____________________.
_____ Yes, requesting an increase of $___________ to an already approved project titled ________________________ that is being tracked under Account No. ___________________.
_____ No, requesting an increase of $__________ to an already approved project titled _______________________ that is being tracked under Account No. _________________.
Body
WHEREAS, the City of Foley previously approved Resolution No. 24-1247 authorizing the application for funding through the Alabama Department of Transportation (ALDOT) Highway Safety Improvement Program (HSIP) for pedestrian safety improvements along SR-42 (US-98) from Cedar Street to Chicago Street, including pedestrian crossing improvements; and
WHEREAS, ALDOT awarded funding for the project, with the City responsible for its required matching contribution; and
WHEREAS, Resolution No. 25-1041 accepted the HSIP grant, and Resolution No. 26-1261-RES approved Supplemental Agreement No. 1 with ALDOT, the associated budget amendment, the award of the construction contract to L & K Construction, LLC, and the construction engineering and inspection proposal submitted by Volkert, Inc.; and
WHEREAS, Resolution No. 26-1261-RES approved the construction contract award to L & K Construction, LLC, in the amount of $812,799.18 for HSIP Project No. HSIP-0042(549), Pedestrian Safety Improvements along SR-42 (US-98) from Cedar Street to Chicago Street; and
WHEREAS, L & K Construction, LLC, has requested termination of the previously awarded contract because of its financial condition and its decision to cease operations, and the City and L & K Construction, LLC, intend to formalize the termination through a Mutual Termination Agreement; and
WHEREAS, the Mutual Termination Agreement has not yet been fully executed, and the City Council intends for that agreement to serve as the formal termination of the existing contract before the replacement contract is executed; and
WHEREAS, Volkert, Inc., has submitted an updated recommendation to award the project to PL Russell, LLC, following review of the corrected certified bid tabulation; and
WHEREAS, the corrected bid amount submitted by PL Russell, LLC, is $836,557.52, which includes a $540.00 mathematical correction reflected in the updated bid tabulation and remains below the other remaining responsive bids; and
WHEREAS, the corrected bid amount of $836,557.52 exceeds the previously approved award to L & K Construction, LLC, of $812,799.18 by $23,758.34; and
WHEREAS, ALDOT has confirmed that it will not provide additional funding to cover the $23,758.34 difference, requiring the City to increase the project budget to cover the additional construction cost; and
WHEREAS, the additional $23,758.34 is to be funded through Account 400-3020-5178 (HSIP Expenses), subject to the necessary budget adjustment; and
WHEREAS, the City Council finds it appropriate to amend Resolution No. 26-1261-RES to provide for the termination of the existing contract through the Mutual Termination Agreement, approve the replacement award to PL Russell, LLC, and authorize the required project budget increase.
NOW THEREFORE BE IT RESOLVED that the City Council of the City of Foley, Alabama, as follows:
SECTION 1: The City Council acknowledges that the existing contract with L & K Construction, LLC, previously awarded under Resolution No. 26-1261-RES in the amount of $812,799.18 for HSIP Project No. HSIP-0042(549), shall be terminated through a Mutual Termination Agreement between the City of Foley and L & K Construction, LLC. The Mutual Termination Agreement shall be completed and executed by the parties before the replacement contract with PL Russell, LLC, is executed.
SECTION 2: Upon execution of the Mutual Termination Agreement, the previous award to L & K Construction, LLC, in the amount of $812,799.18 shall be rescinded, and the City shall proceed with the replacement award authorized by this resolution, subject to the conditions set forth herein.
SECTION 3: The City Council hereby approves the award of HSIP Project No. HSIP-0042(549), Pedestrian Safety Improvements along SR-42 (US-98) from Cedar Street to Chicago Street, to PL Russell, LLC, in the corrected bid amount of $836,557.52, consistent with the updated recommendation from Volkert, Inc.
The award and execution of the replacement contract are contingent upon execution of the Mutual Termination Agreement with L & K Construction, LLC, completion and verification of all required award documents and contractual prerequisites, and completion of the necessary project budget adjustment.
SECTION 4: The City Council acknowledges that ALDOT has confirmed that no additional funding will be provided to cover the $23,758.34 difference between the previously approved award and the corrected bid amount.
The City Council hereby authorizes an increase of $23,758.34 to account 400-3020-5178 to the previously approved project budget of $862,758.41, resulting in a revised total project budget of $886,516.75. The additional $23,758.34 shall be funded by the City through Account 400-3020-5178 (HSIP Expenses), subject to the necessary budget adjustment.
The Finance Department is authorized to process the necessary budget adjustment and related accounting entries consistent with this resolution and applicable City procedures.
SECTION 5: The Mayor, City Administrator, Finance Director, City Engineer, City Clerk, and other appropriate City personnel are authorized to take the actions necessary to implement this resolution, including completion and execution of the Mutual Termination Agreement with L & K Construction, LLC; completion of the required award documentation; processing of the authorized budget adjustment; and preparation and execution of the replacement contract with PL Russell, LLC, following satisfaction of the conditions established in this resolution.
SECTION 6: All provisions of Resolution No. 26-1261-RES not expressly amended by this resolution shall remain in full force and effect, including the previously approved ALDOT Supplemental Agreement No. 1, associated project funding provisions, and the construction engineering and inspection proposal submitted by Volkert, Inc., in the amount of $94,854.76, except as expressly modified by this resolution.
SECTION 7: This resolution shall become effective immediately upon its adoption by the Foley City Council.