Title
Proposed Change Order No. 4
Contract No. GLWA-CON-109
Emergency Refurbishment of Storm Pump 5 & 7 - Freud Pump Station
CIP# 232002
Body
Agenda of: July 22, 2020
Item No.: 2020-224
Amount: Original Contract Price $3,963,889.86
Change Order No. 1 886,684.07
Change Order No. 2 0.00
Change Order No. 3 87,190.53
Proposed Change Order No. 4 148,283.13
New Contract Total $5,086,047.59
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Sue F. McCormick
Chief Executive Officer
Great Lakes Water Authority
DATE: July 1, 2020
RE: Proposed Change Order No. 4
Contract No. GLWA-CON-109
Emergency Refurbishment of Storm Pump 5 & 7 - Freud 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 Proposed Change No. 4 “Emergency Refurbishment of Storm Pump 5 & 7 - Freud Pump Station” with Lakeshore Global Corporation, at an increased cost of $148,283.13 for a total cost not to exceed $5,086,047.59, and an increase in duration of 365 days for a total duration of 1,735 days; and authorizes the CEO to take such other 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 where the last event was in 2016. This prompted the emergency repair of Freud Pumps 5 and 7 originally authorized for this project in November of 2016.
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.
Change Order No. 2 was requested due to additional wet weather delays within the DRI that have further extended the time to complete the work. Change Order No. 3 further extended the contract work timeline to July 1, 2020 and authorized an additional amount not-to-exceed $200,000.00 to preserve equipment warranties and an additional mobilization/demobilization event by the contractor. The Contractor’s actual cost of Change Order No. 3 was $87,190.53, which is $112,809.47 less than the estimated approved not-to-exceed amount of $200,000.00.
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 fourth change order to increase the time to complete the work. In addition, issues with the emergency stop circuitry were recently identified and will result in an additional fee of $148,283.13 to install the necessary conduit, wiring, and appurtenances to bring the eight Freud storm pumps into compliance with current OSHA and electrical code requirements. In order to complete the work, we recommend approval of the additional funds and an extension in time to July 1, 2021.
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 request. In addition, recently emergency stop deficiencies were identified for the storm pumps that are recommended to be resolved under this work. Based on the historic and anticipated GLWA requested delay days, and emergency stop work, an extension to July 1, 2021 for final completion is requested. GLWA staff have directed the delays. The contractor has agreed to hold its prices for the work as negotiated for Change Order No. 1, however, they are requesting reimbursement for the additional funds to complete the emergency stop work for the eight storm pumps in the amount of $148,283.13. GLWA staff recommends approval of this change order.
PROJECT MANAGEMENT STATUS
Original Contract Time 791 days
Change Order No. 1 0 days
Change Order No. 2 365 days
Change Order No. 3 214 days
Proposed Change Order No. 4 365 days
New Contract Time 1,735 days
PROJECT ESTIMATE
Original Contract Price $ 3,963,889.86
Change Order No. 1 $886,684.07
Change Order No. 2 0.00
Change Order No. 3 87,190.53
Proposed Change Order No. 4 148,283.13
New Contract Total $5,086,047.59
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
Change Order No. 3 87,190.53
Current Contract Total 4,937,764.46
Proposed Change Order No. 4 148,283.13
New Contract Total 5,086,047.59
Amended Financial Plan Estimate 4,937,764.46
Negative Estimating Variance $ (148,283.13)
The award of this change order to the vendor creates a negative estimating variance of $148,283.13. This variance will be funded from capital reserves.
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on July 8, 2020. The Operations and Resources Committee unanimously recommended that GLWA Board adopt the resolution as presented.
SHARED SERVICES IMPACT
This item does not impact the shared services agreement between GLWA and DWSD.