Title
Proposed Amendment No. 2
Contract No. 2002655/SCN-00000368
Study and Design Services for Northwest Interceptor Relief Sewer to Oakwood CSO Facility
CIP #222001/BCE Score: 53.6
Body
Agenda of: November 21, 2024
Item No.: 2024-387
Amount: Original Contract $5,599,456.00
Amendment No. 1 96,480.00
Proposed Amendment No. 2 7,888,013.00
Total Contract Amount $13,583,949.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: October 30, 2024
RE: Proposed Amendment No. 2
Contract No. 2002655/SCN-0000358
Study and Design Services for Northwest Interceptor Relief Sewer to Oakwood CSO Facility
Vendor: FK Engineering Associates
Status: Amendment/Change Order
MOTION
Upon recommendation of Navid Mehram, Chief Operating Officer - Wastewater Operating Services, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA), authorizes the Chief Executive Officer (CEO) to enter into Contract No. 2002655/SCN-0000358, Proposed Amendment No. 2, “Study and Design Services for Northwest Interceptor Relief Sewer to Oakwood CSO Facility” with FK Engineering Associates, at an increased cost of $7,888,013.00 for a total cost not to exceed $13,583,949.00 and an increased duration of 901 days for a total duration of 2,787 days; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
FK Engineering was engaged by GLWA on March 21, 2021, to provide engineering services for the design and construction of the proposed Northwest Interceptor Relief Sewer to Oakwood CSO Facility, now known as “NOCSOS”. In accordance with the original contract schedule, the study and design for the work were completed in November 2022, at which point the contract was put on hold for construction bidding. At the time the project was placed on hold, efforts related to the project during the hold period were funded under Contract Change Directive No. 1 (CCD-1, dated March 13, 2023). These efforts included easement negotiations, permit coordination, and additional project hydraulic and other analyses necessary for leadership.
In the fall of 2023, additional funding from the State Revolving Fund (SRF) and various Southeast Michigan communities allowed the project to enter a bidding phase, and the project was re-started on an “SRF milestone schedule”. Additional efforts related to assisting GLWA with funding efforts, restarting, and bidding on the project were authorized under Contract Change Directive No. 2 (CCD-2, dated February 22, 2024).
JUSTIFICATION
The construction project was awarded at the August Board of Directors meeting, and a notice to proceed was issued on October 14, 2024. The NOCSOS tunnel project has an anticipated duration of approximately four years and primarily consists of the construction of five shafts, 3,500 linear feet of 10-foot diameter tunnel, and final structures needed for the operation and maintenance of the tunnel. The initial Construction Assistance (CA) budget was established in the original contract at $3,054,823.00, later modified under Amendment No. 1 to include CA for the pinch valve replacement, corresponding to a total initial CA budget of $3,105,823.00. The additional cost identified under this amendment include extensive geotechnical monitoring required by the railroad that equate to approximately $5.0 Million and the increase in construction duration 15 months that was not anticipated in the original CA. Furthermore, Jay Dee plans to submit an alternate design and mining methodology that includes a 14.5-foot diameter tunnel and the deletion of the mining shaft and the starter tunnel that reduced the construction cost by $8 million dollars.
This proposed scope and budget associated with this amendment is for CA, re-permitting and geotechnical monitoring during the construction of the tunnel.
PROJECT MANAGEMENT STATUS
Original Contract Time 1,886 days (03/15/2021 - 05/14/2026)
Amendment No. 1 0 days
Proposed Amendment No. 2 901 days (05/15/2026 - 11/01/2028)
New Contract Time 2,787 days (03/15/2021 - 11/01/2028)
PROJECT ESTIMATE
Original Contract Price $5,599,456.00
Amendment No. 1 96,480.00
Proposed Amendment No. 2 7,888,013.00
New Contract Total $13,583,949.00
FINANCIAL PLAN IMPACT
Summary: Sufficient funds are not provided in the financial plan for this project.
Funding Source: Wastewater Construction Bond
Cost Center: Field Engineering
Expense Type: Design (5421-892411.000-617950-222001)
Estimated Cost by Year and Related Estimating Variance: See table below.
Original Contract Price $ 5,599,456.00
Amendment No. 1 96,480.00
Proposed Amendment No. 2 7,888,013.00
New Contract Total 13,583,949.00
Amended Financial Plan Estimate 5,696,000.00
Estimating Variance $(7,887,949.00)
GLWA has been awarded $80.5 million for the design and construction of the Northwest Interceptor to Oakwood CSO Sewer project, which consists of a $60.5 million Clean Water State Revolving Fund (CWSRF) loan and a $20 million American Rescue Plan Act (ARPA) grant. The negative estimating variance for this amendment will be funded from the ARPA grant.
Construction Contract No. 2304897 was awarded in the amount of $73,508,929.00 and the new amount for design Contract No. 2002655 is $13,583,949.00 for a total project cost of $87,092,878.00. There is $6,592,878.00 in costs above the available $80.5 million in CWSRF and ARPA funds for the project. Note this $6,592,878.00, if necessary to complete the project, is anticipated to be covered with local cash reserves or other sources by GLWA.
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on November 13, 2024. 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.