Title
Proposed Change Order No. 1
Contract No. 2201316/SCN-0000427
Reservoir Rehabilitation Phase II
CIP#170802/BCE Score: 91.0
Body
Agenda of: December 11, 2024
Item No.: 2024-406
Amount: Original Contract Price $35,573,564.00
Proposed Change Order No. 1 8,905,072.00
New Contract Total $44,478,636.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: November 27, 2024
RE: Proposed Change Order No. 1
Contract No. 2201316/SCN-0000427
Reservoir Rehabilitation Phase II
Vendor: LGC Global, Inc.
Status: Amendment/Change Order
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. 2201316/SCN-0000427, Proposed Change Order No. 1, “Reservoir Rehabilitation Phase II” with LGC Global, Inc., at an increased cost of $8,905,072.00 for a total cost not to exceed $44,478,636.00 and no increase in duration for a total duration of 1,660 days; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
Contract No. 2201316 is a low bid construction project to clean, repair, and add select improvements to 16 (17 with this Proposed Amendment) finished water reservoirs at:
• Eastside
• Wick Road
• Schoolcraft
• Haggerty
• Adams Road
• Joy Road No. 1 and No. 2
• North Service Center No.1 and No. 2
• Water Works Park No. 1 and No. 2A/2B
• Northeast No. 1 and No. 2
• Michigan Avenue
• Lake Huron No. 3
• Ford Road with this Proposed Amendment
The Contract started in December 2023 and is in the second phase under the umbrella Capital Improvement Program (CIP) No. 170800 reservoir program that services all 30 finished water reservoirs in the GLWA system. The first phase completed the repair of 10 finished water reservoirs. This second phase first milestone season of work during the winter 2023 to fall 2024 is completed at Wick Road, Eastside, and Schoolcraft reservoirs. Six (6) reservoirs are planned to be inspected, cleaned, and repaired in this next low water demand season, fall 2024 to spring 2025. The balance of the reservoirs in the Contract will be completed by spring of 2027. Inspection, design, and resident project representative services are being performed under a separate Contract No. 2100236 by Brown and Caldwell.
JUSTIFICATION
The justification to increase the Contract price is based on several items related to the sanitary condition of the finished water reservoirs identified since the Contract started in December 2023. The price of this work will exceed the provisional allowance budget.
Ford Road reservoir located in Dearborn Heights, Wayne County has developed three (3) active side wall leaks, and the roof coating is severely deteriorated. This Amendment will fund the work to clean, perform repairs, strip and recoat the roof, and add a bird deterrent device. The cost for this work is $3,027,515.00.
Haggerty reservoir located in Commerce Charter Township, Oakland County has several active leaks at the foundation base. This was identified and confirmed during inspections under Contract No. 2100236 by Brown and Caldwell. DN Tanks performed a courtesy temporary repair this summer to help slow the leaks, but a full permanent repair is needed. This Proposed Amendment will fund the work to improve the wall to foundation joint. The cost for this work is $619,370.00.
A pilot bird deterrent device was installed at Schoolcraft reservoir and has proven to be effective at keeping birds off the roofs. This Proposed Amendment will expand bird deterrent devices to four (4) additional booster station properties that have flat roof reservoirs and a known problem of collecting bird guano. The cost of this work is $456,500.00 and includes:
• Imlay Station located in Imlay City, Lapeer County
• Joy Road Station located in Canton, Wayne County
• North Service Center Station located in Troy, Oakland County
• Franklin Station located in West Bloomfield, Oakland County
This proposed Amendment will also provide a full roof replacement at three (3) booster station properties with a total of five (5) reservoir roof decks. Two (2) roofs at North Service Center, two (2) roofs at Joy Road, and one (1) roof at Adams Road located in Bloomfield Hills. A full roof replacement includes the complete removal of the existing coating, surface preparation, construction joint seal replacement, and the application of three separate layers of a liquid urethane roofing compound. During the design phase it was planned to patch the roof deck and apply a single layer topcoat to these reservoirs. Brown and Caldwell’s inspection team has found these roof coatings is proving problematic. For example, Schoolcraft reservoir was originally planned for a patch and recoat. Once the work started, the patch areas were so large that it was more cost effective to perform a full coating removal over the entire roof deck to ensure a longer lasting roof repair. The cost of this work is $3,730,687.00.
This Proposed Amendment will also provide replenishment to the provisional allowance to account for formally executed $1,071,000.00 in Contract Change Directives for two high value items. The Haggerty reservoir currently does not have a grade level side wall access hatch to the reservoir. Currently, to gain access to the reservoir requires a 40-foot vertical ladder climb then a 40-foot ladder descent. During the last GLWA water quality inspection, GLWA operations brought a crane on site with a personal cage to hoist staff into the reservoir. The new hatch will be designed and installed by the original tank manufacturer, DN Tanks, under the Contract with LGC Global, Inc. The cost for this work is $496,000.00 The second change was a complete coating removal and reapplication at the Schoolcraft reservoir. The cost for this is $575,000.00.
PROJECT MANAGEMENT STATUS
Original Contract Time 1,660 days (12/21/2023 - 07/6/2028)
Proposed Change Order No. 1 0 days
New Contract Time 1,660 days (12/21/2023 - 07/6/2028)
PROJECT ESTIMATE
Original Contract Price $35,573,564.00
Proposed Change Order No. 1 8,905,072.00
New Contract Total $44,478,636.00
FINANCIAL PLAN IMPACT
Summary: Sufficient funds are provided in the financial plan for this project.
Funding Source: Water Construction Fund
Cost Center: Water Engineering
Expense Type: Construction (5519-880000-616900-PRJ170802)
Estimated Cost by Year and Related Estimating Variance: See table below.
Original Contract Price $35,573,564.00
Proposed Change Order No. 1 8,905,072.00
New Contract Total 44,478,636.00
Financial Plan Estimate 35,574,000.00
Estimating Variance $(8,904,636.00)
Approximately $5,000,000.00 of the estimating variance is projected to be spent in fiscal year 2025 with the balance being spent evenly over the remaining term of the contract. The fiscal year 2025 estimated spend will be funded from Capital Reserves. Future versions of the CIP plan have been updated to address the remaining variance.
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on December 11, 2024.
SHARED SERVICES IMPACT
This item does not impact the shared services agreement between GLWA and DWSD.