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File #: 2019-444    Version: 1 Name:
Type: Resolution Status: Passed
File created: 12/5/2019 In control: Board of Directors
On agenda: 12/19/2019 Final action: 12/19/2019
Title: Proposed Change Order No. 3 GLWA-CON-109 Emergency Refurbishment of Storm Pumps 5 and 7 Upgrade of Pump 5 and Motor Control Center Upgrade for Eight Storm Pumps for Freud Sanitary Pump Station CIP #232002 / BCE: 79.6
Sponsors: Cheryl Porter, Todd King
Indexes: Water Operations

Title

Proposed Change Order No. 3

GLWA-CON-109

Emergency Refurbishment of Storm Pumps 5 and 7 Upgrade of Pump 5 and Motor Control Center Upgrade for Eight Storm Pumps for Freud Sanitary Pump Station

CIP #232002 / BCE: 79.6

 

Body

Agenda of:                     December 19, 2019

Item No:                     2019-444

Amount:                     Original Contract Price                                                               $3,963,889.86

                                          Change Order No. 1                                                                    886,684.07

                                          Change Order No. 2                                                                                         0.00

                                          Proposed Change Order No. 3                                               200,000.00

                                          New Contract Total                                                                                    $5,050,573.93

 

TO:                                          The Honorable

                                          Board of Directors

                                          Great Lakes Water Authority

 

FROM:                     Sue F. McCormick

                                          Chief Executive Officer

                                          Great Lakes Water Authority

 

DATE:                         December 5, 2019

 

RE:                                          Proposed Change Order No. 3

                                          Contract No. GLWA-CON-109

                                          Emergency Refurbishment of Storm Pumps 5 and 7 Upgrade of

                                          Pump 5 and Motor Control Center Upgrade for Eight Storm Pumps for

                                          Freud Sanitary Pump Station

                                          Vendor:  Lakeshore Global Corporation

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. GLWA-CON-109 Change Order No. 3 “Emergency Refurbishment of Storm Pumps 5 and 7 Upgrade of Pump 5 and Motor Control Center Upgrade for Eight Storm Pumps for Freud Sanitary Pump Station” with Lakeshore Global Corporation, at an increased cost of $200,000.00 for a total not to exceed $5,050,573.93, for an increased duration of 214 calendar days to the Substantial and Final Completion dates for a total contract duration of 1,370 days; and authorizes the CEO to take such action as may be necessary to accomplish the intent of this vote.

BACKGROUND

The GLWA Wastewater Conveyance System consists of a network of sewers which collect and transfer wastewater through three major interceptors to the Water Resource Recovery Facility (WRRF). The three major interceptors are the Detroit River Interceptor (DRI), North West Interceptor (NWI), and North Interceptor East Arm (NIEA). The DRI runs parallel to the Detroit River for approximately 13 miles with a tunnel diameter that varies from 8 feet at Alter Road to 16 feet at WRRF. The DRI carries about 36% of the total flow to the WRRF. Dry weather flows are pumped to the DRI by the Conner and Freud pump stations and re-pumped by the Fairview pump station to the WRRF through the DRI. During wet weather, the Conner and Freud pump stations work together, hydraulically to pump combined sewer and stormwater to the Conner Creek CSO Facility. Therefore, work performed on the Freud, Conner, and Fairview pump stations, the Conner Creek CSO Facility, and the DRI needs to be carefully prioritized and coordinated based on system needs and requirements. GLWA has prioritized work on the DRI (CON-183 and DB-226), Fairview pump station (CON-297), and Conner Creek CSO basin ahead of the CON-109 work and thus this project has been delayed.

The Freud Pump Station was constructed during the 1950s as a storm water pump station. It was later converted to sanitary service in addition to storm flows. When the Conner Creek CSO facility was built in 2005, changes in the discharge conditions at the Conner Creek pump station reduced its ability to be brought online and flood events in the Conner Creek/Freud Pump stations service area occurred in 2008, 2010, 2011, and 2016. This prompted the emergency repair of Freud Pumps 5 and 7 originally authorized for this project.

Change Order No.1 for this project was a significant increase in the level of effort for this project based on the poor condition of concrete and joints within the project work boundaries. The Board approved an additional $886,684.07 in work and extended the contract to the revised final completion date of November 30, 2018.

Change Order No. 2, a time extension of 365 days, was requested due to additional wet weather delays within the DRI that further extended the time to complete the work. 

Work within the DRI under CON-183, DB-226, and on the Fairview Pump station, along with historically high Detroit River levels, have resulted in this request for a third change order to increase the time to complete the work. Also, due to the amount of time that has passed, the contractor is seeking additional funds to extend the warranty for the equipment and to pay for demobilization and remobilization. In order to complete the work, we recommend approval of the additional funds and an extension in time to July 1, 2020.

 

 

JUSTIFICATION

In order to control flows into the DRI, GLWA has limited work under this contract to allow for other work to proceed within the DRI. This resulted in an overall delay to the project work at GLWA’s request. Based on the historic and unanticipated wet weather recently experienced within the system resulting in GLWA requesting additional delay days, an extension to July 1, 2020 for final completion is requested. While the contractor has agreed to hold its prices for the work as negotiated for Change Order No. 1, they are requesting reimbursement for the extended warranty and demobilization/remobilization in the amount of $200,000.00 due to the GLWA requested delay days.

PROJECT MANAGEMENT STATUS

Original Contract Time                                                               517 Days

Change Order No. 1                                                               274 Days

Change Order No. 2                                                               365 Days

Proposed Change Order No. 3                                          214 Days

New Contract Time                                                                       1,370 Days

PROJECT MANAGEMENT STATUS

Original Contract Price                                                               $3,963,889.86

Change Order No. 1                                                                    886,684.07

Change Order No. 2                                                                                         0.00

Proposed Change Order No. 3                                               200,000.00

New Contract Total                                                                                    $5,050,573.93

FINANCIAL PLAN IMPACT

Summary: Sufficient funds are provided in the financial plan for this project.              

Funding Source: Wastewater Construction Bond

Cost Center: Field Engineering

Expense Type: Construction (5421-892211.000-616900-232002)

Estimated Cost by Year and Related Estimating Variance:  See table below.

 

 

Original Contract Price                                                                                    $  3,963,889.86

Change Order No. 1                                                                                           886,684.07

Change Order No. 2                                                                                                      0.00

Current Contract Total                                                                                        4,850,573.93

Proposed Change Order No. 3                                                                      200,000.00

New Contract Total                                                                                                             5,050,573.93

  Amended Financial Plan Estimate                                              4,850,573.93

Negative Estimating Variance                                                    $    (200,000.00)                                                                                                                                                                                                                                                                                   

The award of this change order to the vendor creates a negative estimating variance of $200,000.00. This variance will be funded from capital reserves.

COMMITTEE REVIEW

This item was presented to the Operations and Resources Committee at its meeting on December 11, 2019. The Operations and Resources Committee unanimously recommended that the GLWA Board adopt the resolution as presented.

SHARED SERVICES IMPACT

The item does not impact the shared services agreement between GLWA and DWSD.