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HomeMy WebLinkAbout~Master - Authorizing the Use of American Rescue Plan (ARP) Funds for the Prairie View Industrial Center Utility Extension Project RESOLUTION NO. 21-380 RESOLUTION AUTHORIZING THE USE OF AMERICAN RESCUE PLAN ACT (ARP) FUNDS FOR THE PRAIRIE VIEW INDUSTRIAL CENTER UTILITY EXTENSION PROJECT FOR THE CITY OF AMES,IOWA WHEREAS, the Prairie View Industrial Center (East Industrial) Utility Extension Project consists of the extension of water and sanitary sewer mains to the recently annexed area east of Interstate 35 (I-35); and, WHEREAS, plans include water main and a gravity sewer main between I-35 and Potter Avenue (formerly 5901''), a force sewer main from Teller Avenue (formerly 5801ki) to west of Freel Drive, and a sewer lift station; and, WHEREAS,most of this new area to be served by City utilities east of I-35 has been certified by the Iowa Economic Development Authority as the Prairie View Industrial Center; and, WHEREAS,after the project was previouslybid(low bid$7,098,946)and rejected in Spring 2020, City staff, in partnership with the Ames Chamber of Commerce &Economic Development staff, applied for a federal economic development grant toward this project; and, WHEREAS, the grant was successfully received in the amount of $1,500,000 from the Department of Commerce Economic Development Authority (EDA) and approved by the City Council on April 27, 2021; and, WHEREAS,Stanley Consultants prepared updated plans and specifications meeting the EDA requirements with a Base Bid(EDA grant eligible portion)to include all sanitary sewer force main, lift station plus gravity sewer and water main to Teller Avenue(580t')and an add alternate(Alternate 1) to extend the water and sanitary sewer to Potter Avenue (590t''); and, WHEREAS, plan revisions/updated made by Stanley Consultants included creating a base bid with an add alternate package, including existing pavement information for contractor's information, adding temporary construction areas, and providing for a longer project completion timeframe(substantial completion by May 13, 2022, and final completion by June 30, 2022); and, WHEREAS, a deduct alternate (Alternate 2) was added by addendum during the bidding period where the contractor could identify how much they would be willing to deduct from the contract to extend the completion date to December 31, 2022; and, WHEREAS,engineering and administration costs to complete the project were estimated in the amount of$225,000; and, WHEREAS,funding for this project include$4,300,000 in General Obligation(G.O.)Bond revenue included in the Capital Improvements Plan and$1,500,000 from the EDA Grant,resulting in total available funding of$5,800,000; and, WHEREAS, on June 9,2021,bids for the project were received and staff analyzed the bids and consulted with other professionals regarding the current bidding environment; and, WHEREAS, the current bidding environment is very difficult due to material shortages, supply chain delays, and workforce issues caused by COVID-19; and, WHEREAS, the bidding environment may be more competitive for a standalone project to install the utilities between 580`' and 5901h Avenue at a later date; and, WHEREAS,the$5,800,000 in planned funding for this project is short of the$6,168,791.40 bid submitted by the low base bidder,Keller Excavating,and in addition to the base construction bid, funds are also required to cover the engineering/administration and contingency expenses for the project; and, WHEREAS,the City was recently notified that over$14 million will be received through the American Rescue Plan Act(ARP) Coronovirus State and Local Fiscal Recovery Funds; and, WHEREAS,this Act provides funding to local agencies to cover revenue losses that occurred due to the COVID-19 pandemic and any remaining funds may be used for investments in water, sewer, and broadband infrastructure; and, WHEREAS,the ARP interim final rule provides governments with wide latitude to identify investments in water and sewer infrastructure that are of the highest priority for their communities; and, WHEREAS, these rules align eligible uses with the types and categories of projects that would be eligible to receive financial assistance through the EPA's Clean Water State Revolving Fund or Drinking Water State Revolving Fund; and, WHEREAS, a preliminary review indicated that, of the total$14 million expected from the ARP,approximately$3 million will be available to backfill lost revenues,leaving approximately$11 million for water and sewer infrastructure investments; and, WHEREAS, to complete the base bid alone (utilities to 580t1i), $900,000 of the anticipated $11 million in available ARP funds would be required to supplement the$4.3 million in G.O.Bond funding and$1.5 million in EDA grants. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that the authorization to use $900,000 from the American Rescue Plan Act (ARP) for the Prairie View Industrial Center Utility Extension Project is hereby approved. ADOPTED THIS 22nd day of June, 2021. Diane R. Voss, City Clerk John A. Haila, Mayor Introduced by: Martin Seconded by: Junck Voting aye: Beatty-Hansen, Betcher, Corrieri, Junck, Martin Voting nay: None Absent: None Abstaining: Gartin Resolution declared adopted and signed by the Mayor this 22nd day of June, 2021.