Title
Proposed Amendment No. 1
Contract No. GLWA-CS-151A
Reservoir Inspection, Design and Construction Project at Imlay Station, Lake Huron WTP, Springwells WTP, and Southwest WTP
CIP# 170801
Body
Agenda of: September 1, 2021
Item No.: 2021-317
Amount: Original Contract: $2,164,692.00
Proposed Amendment No.1: 610,000.00
New Contract Amount: $2,774,692.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Sue F. McCormick
Chief Executive Officer
Great Lakes Water Authority
DATE: August 4, 2021
RE: Proposed Amendment No. 1
Contract No. GLWA-CS-151A
Reservoir Inspection, Design and Construction Project at Imlay
Station, Lake Huron Water Treatment Plant (WTP), Springwells WTP,
and Southwest WTP
Vendor: Hazen and Sawyer
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-CS-151A Proposed Amendment No. 1 “Reservoir Inspection, Design and Construction Project at Imlay Station, Lake Huron WTP, Springwells WTP, and Southwest WTP” with Hazen and Sawyer, at an increased cost of $610,000.00 for a total cost not to exceed $2,774,692.00 for an increased duration of 529 days and a total duration of 2,232 days; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
Contract No. CS-151A Reservoir Inspection and Design project involves engineering design, inspection, resident project representation (RPR), and construction administration services as related to the rehabilitation of 10 finished water storage reservoirs in the GLWA system. Rehabilitation of the 10 reservoirs is performed under a separate construction contract, namely Contract No. 1900744. Note that there are 33 finished water reservoirs that are inspected and repaired, as mandated by Michigan Department of Environment, Great Lakes, and Energy (EGLE), on a scheduled basis as part of this capital improvement program.
As of June 22, 2021, four (4) reservoirs have been inspected, rehabilitated, and returned to service at GLWA’s Lake Huron WTP, Springwell’s WTP, Southwest WTP, and at the Imlay Pumping Station. Six (6) more reservoirs need to be inspected and rehabilitated, as determined by the inspection results. These remaining reservoirs are located at the Lake Huron, Springwells and Southwest WTPs. Note that the treatment plants have three (3) reservoirs each, whereas the Imlay Pumping Station has one reservoir.
The reservoirs that have been inspected and rehabilitated to date have required more effort than planned in the development of the Contract No. CS-151A scope and budget. The additional effort has involved providing RPR services during both weekdays and on weekends because some of the construction work has been accelerated to make sure that the reservoirs are rehabilitated and placed back into service by the high-demand season. Similarly, additional RPR effort will be necessary during the rehabilitation of the reservoirs at the Southwest WTP because the interior of these reservoirs is significantly more deteriorated than planned. Furthermore, additional design improvements are required to the reservoir appurtenances that were not anticipated requiring major rehabilitation. We anticipate that similar conditions may be faced as the remaining six (6) reservoirs are inspected and rehabilitated, which will require additional funds to administer and oversee the construction of reservoir improvements.
Contract No. CS-151A started on December 7, 2018 and ends on August 19, 2023. The associated construction contract (Contract No. 1900744) started on November 21, 2019 and ends on January 19, 2025. The contract end date for Contract No. CS-151A needs to be extended by 529 days to end on January 29, 2025, so that engineering services may be provided throughout the construction period.
The additional $610,000.00 that is requested will be used to amend the Task 9 Provisional Allowance in the CS-151A contract, and then be used to pay for any additional design, RPR and construction administration services through the end of the construction period. Currently, there is $33,000.00 remaining in the $100,000.00 Provisional Allowance in Contract No. CS-151A contract. It is anticipated that approximately $450,000.00 of the additional $610,000.00 will be used for RPR, $100,000.00 for design, and $60,000.00 for construction administration services.
JUSTIFICATION
The level of effort required to design and oversee the construction of reservoir improvements has been greater than originally planned. The additional effort has mainly been due to more extensive rehabilitation needs that have been encountered so far, and it is anticipated that these needs will persist over the remaining six reservoirs requiring inspection and rehabilitation. The additional funds for engineering services requested in the amendment will allow GLWA to use the consulting engineer’s services to continue to design the appropriate improvements to the reservoirs and assure that they are properly made during construction.
PROJECT MANAGEMENT STATUS
Original Contract Time 1,703 days
Proposed Amendment No. 1 529 days
New Contract Time 2,232 days
PROJECT ESTIMATE
Original Contract Price $ 2,164,692.00
Proposed Amendment No. 1 610,000.00
New Contract Total $ 2,774,692.00
FINANCIAL PLAN IMPACT
Award of this Proposed Amendment No. 1 to the vendor will be funded in full by a budget amendment from the System-Wide Finished Water Reservoir Inspection, Design and Rehabilitation Program - 170800.
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on August 11, 2021. 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.