Title
Proposed Amendment No. 1
Contract No. 1803769
Lake Huron Water Treatment Plant - Low Lift, High Lift, Wash Water Pumping Improvements, Electrical Improvements, and Miscellaneous Chemical Improvements
CIP #111001 / BCE Score: 79.7
Body
Agenda of: October 26, 2022
Item No.: 2022-447
Amount: Original Contract $10,465,656.11
Proposed Amendment No. 1 4,537,700.00
Total Revised Contract: $15,003,356.11
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: September 30, 2022
RE: Proposed Amendment No. 1
Contract No. 1803769
Lake Huron Water Treatment Plant - Low Lift, High Lift, Wash Water Pumping Improvements, Electrical Improvements, and Miscellaneous Chemical Improvements
Vendor: Arcadis of Michigan, LLC
MOTION
Upon recommendation of Cheryl Porter, Chief Operating Officer - Water and Field Services, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA), authorizes the Chief Executive Officer (CEO) to enter into Contract No. 1803769 Proposed Amendment No. 1 “Lake Huron Water Treatment Plant - Low Lift, High Lift, Wash Water Pumping Improvements, Electrical Improvements, and Miscellaneous Chemical Improvements” with Arcadis of Michigan, LLC, at an increased cost of $4,537,700.00 for a total cost not to exceed $15,003,356.11 and an increased duration of 1,095 days for a total contract duration of 4,158 days; and authorize the CEO to take such action as may be necessary to accomplish the intent of this vote.
BACKGROUND
Contract No. 1803769 is an engineering services contract involving design, bid, construction administration, and resident project representation (RPR) to address switchgear; low-lift, high-lift and filter wash water pumping systems; and the phosphoric acid chemical feed system. The construction of these improvements will be made under separate contract(s) with construction contractors.
As part of the 2015 Water Master Plan Update, Lake Huron Water Treatment Plant’s (LHWTP) capacity is being aligned with the decreasing trend in water demands. The LHWTP’s treatment capacity will be modified to approximately 300 MGD to align overall installed treatment and pumping capacity with system demands.
This proposed amendment is requesting $4,537,700.00 to address two major changes to the design, minor changes, and replenishes allowances exhausted by unforeseen conditions. The first major change is designing an elevated tank-based wash water system in lieu of a direct pumping system. It was determined that elevated tanks create less variation in the suction well levels and are inherently safer to the filter system. In this case the elevated tanks will have a lower total cost of ownership than direct pumping. The second major change is addressing structural failures in the High Lift Building. GLWA observed failures in the concrete caps of the High Lift building exterior. This contract will provide a complete design, construction administration, and RPR services for these changes. The minor changes provide a credit to GLWA on elements of work that were deemed not necessary after the project award. The replenishment of the allowance is to cover any additional unforeseen conditions.
In addition, this proposed amendment is requesting 1,095 days to the final completion date based on evaluating the Maintenance of Plant Operation (MOPO). The MOPO plan structures the work to minimize plant interruptions. To minimize interruptions to the plant, the construction phase has been extended, which requires the additional days under this contract for construction administration and RPR services.
JUSTIFICATION
This proposed amendment uniformly represents the most effective way to proceed with the improved wash water system, maintain the structural integrity of the high lift building, and situates this CIP project to move towards completion. This project is necessary to maintain LHWTP’s ability to pump and effectively treat potable water.
PROJECT MANAGEMENT STATUS
Original Contract Time 3,063 days (03/12/2020) - (07/31/2028)
Proposed Amendment No. 1 1,095 days (08/01/2028) - (08/01/2031)
New Contract Time 4,158 days (03/12/2020) - (08/01/2031)
PROJECT ESTIMATE
Original Contract Price $10,465,656.11
Proposed Amendment No.1 4,537,700.00
New Contract Total $15,003,356.11
FINANCIAL PLAN IMPACT
Summary: Sufficient funds are provided in the financial plan for this project.
Funding Source: Water Construction Bond
Cost Center: Water Engineering
Expense Type: Construction (5519-882111.000-617950-111001)
Estimated Cost by Year and Related Estimating Variance: See table below.
Original Contract Price $ 10,465,656.11
Proposed Amendment No. 1 4,537,700.00
New Contract Total $ 15,003,356.11
Amended FY23 Financial Plan Estimate 4,891,000.00
Negative Estimating Variance $ (10,112,356.11)
The FY 23-27 CIP Plan provides sufficient funding to support the anticipated FY 23 spend of $975,500.00. The negative estimating variance of $10,112,356.11 has been taking into consideration in the Fiscal Year 24 - 28 Draft CIP which contains $15,966,000.00 in funding to support the total contract.
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on October 12, 2022. The Operations and Resources Committee unanimously recommended that the GLWA Board adopt the resolution as presented.
SHARED SERVICES IMPACT
This item does not impact the shared services agreement between GLWA and DWSD.