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Board approves reduced Phase 1 final payout and $1.47M Phase 2 contract for alleyway repair program
Summary
The Board approved a final change order that reduces the Phase 1 alleyway contract to $1,677,283.04 and authorized Phase 2 award to Calumet Civil Contractors Inc with a contract compensation limit not to exceed $1,471,577. Funds saved will return to the Capital Asset Life Cycle Development Fund for alley program uses.
The Board of Business and Neighborhood Services on Oct. 23 approved a final change order for Phase 1 of the alleyway repair and rehabilitation program and authorized a Phase 2 contract with the same contractor.
Jacob Miller, a staff member with the Department of Business and Neighborhood Services, presented the items and said staff recommends the board "execute the final change order with Calumet Civil Contractors Inc for the phase 1 alleyway repair and rehabilitation program service agreement number 21222." He reported that "due to the actual quantities of materials used, the change order reduces the final contract compensation amount under phase 1 agreement 21222 [to] $1,677,283.04 in accordance with 2024 bid RFB 1ABNS-072 and all contract change orders."
Miller told the board that the savings from Phase 1 would roll back to the Capital Asset Life Cycle Development Fund, which he described as the funding source that supports alleyway-related projects and could become available for additional abatement of trash and debris.
On Phase 2, staff recommended awarding a new agreement to Calumet Civil Contractors Inc for alleyway repair and rehabilitation services on 13 selected alleyways, with a contract compensation limit not to exceed $1,471,577. The board memo notes the bid included an XB utilization commitment of 10.18% with a subcontractor dual-certified MBE and WBE. Miller said the 13 alleys are generally in Center Township neighborhoods on the east, south and west sides of the city and are areas that have been underserved for infrastructure investments.
Board members asked clarifying questions about whether the saved funds could be used outside alleyway work; Miller replied the appropriation was primarily for the alleyway program, which includes infrastructure work and illegal-dumping abatement, and that he would not expect to use it outside that scope except for abatement of trash and rubbish in rights of way or private property when necessary.
The board approved both the Phase 1 change order and the Phase 2 contract authorization by voice vote.
Background details provided in the meeting record: service agreement number for Phase 1 is 21222; the Phase 1 final contract compesation was reduced to $1,677,283.04; Phase 2 contract compensation limit is $1,471,577; bids for the Phase 2 solicitation showed 4 to 5 bidders and Calumet was the lowest, with the next-lowest bid about $150,000 higher.
