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Home My WebLink About14152RESOLUTION NO. 14152 A RESOLUTION AWARDING A CHANGE ORDER IN THE AMOUNT OF $1,074,284, TO MYERS AND SONS CONSTRUCTION, FOR PROJECT NO. 17-096A (WW1706) JAMES R. DIIORIO WATER RECLAMATION FACILITY 2017 PROCESS IMPROVEMENTS PROJECT AND TRANSFER OF FUNDS FROM DIGESTER COVER REHAB (WW1403) IN THE AMOUNT OF $761,156.98 AND FROM PROJECTS TO BE DETERMINED (WW1499) IN THE AMOUNT OF $313,127.02 TO 2017 PROCESS IMPROVEMENT PROJECT (WW1706) AUTHORIZING THE PURCHASING AGENT TO EXECUTE THE SAME WHEREAS, replacement of Digester No.1 lid as a change order to Project No. 17-096A (WW1706) James R. DiIorio Water Reclamation Facility 2017 Process Improvements Project will allow for cost savings and replace aging infrastructure that is failing; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. This change order to the Contract Agreement for James R. DiIorio Water Reclamation Facility 2017 Process Improvement, Project No. 17-096A (WW1706) in the amount of $1,074,284 is for the replacement of Digester No.1 lid at the James R. DiIorio Water Reclamation Facility in the City of Pueblo. SECTION 2. Funds will be transferred from WW1403 Digester Cover Rehab in the amount of $761,156.98 and from WW1499 Projects to be Determined in the amount of $313,127.02to Project No. 17-096A (WW1706) James R. DiIorio Water Reclamation Facility 2017 Process Improvement Project. SECTION 3. The Purchasing Agent is hereby authorized to execute said change order to the contract on behalf of Pueblo, A Municipal Corporation, and the City Clerk shall affix the seal of the City thereto and attest the same. SECTION 4. The officers and staff of the City are directed and authorized to perform any and all acts consistent with the intent of this Resolution and the contract to effectuate the transactions described therein. SECTION 5. This Resolution shall become effective immediately upon passage and approval. INTRODUCED January 28, 2019 BY: Ed Brown MEMBER OF CITY COUNCIL APPROVED: PRESIDENT OF CITY ATTESTED BY: ACTING CITY CLERK City Clerk’s Office Item # Q-1 Background Paper for Proposed Resolution COUNCIL MEETING DATE: January 28,2019 TO: President Dennis E. Flores andMembers of City Council CC: Sam Azad, City Manager VIA: Brenda Armijo, Acting City Clerk From: Nancy Keller, Wastewater Director SUBJECT: A RESOLUTION AWARDING A CHANGE ORDER IN THE AMOUNT OF $1,074,284, TO MYERS AND SONS CONSTRUCTION, FOR PROJECT NO. 17-096A (WW1706) JAMES R. DIIORIO WATER RECLAMATION FACILITY 2017 PROCESS IMPROVEMENTS PROJECT AND TRANSFER OF FUNDS FROM DIGESTER COVER REHAB (WW1403) IN THE AMOUNT OF $761,156.98 AND FROM PROJECTS TO BE DETERMINED (WW1499) IN THE AMOUNT OF $313,127.02 TO 2017 PROCESS IMPROVEMENT PROJECT (WW1706) AUTHORIZING THE PURCHASING AGENT TO EXECUTE THE SAME SUMMARY: This Resolution awards a change order to Myers and Sons Construction for Project No. 17-096A (WW1706) James R. DiIorio Water Reclamation Facility 2017 Process Improvements Project. Myers and Sons Construction will replace the second digester lid while on site for the 2017 Process Improvement Project, providing a cost reduction, capitalizing on the recent experience of design and construction personnel on the digester cover in the original contract. PREVIOUS COUNCIL ACTION : Resolution No. 13956 awarded the 2017 Process Improvement Project for the James R. DiIorio Water Reclamation Facility to Myers and Sons Construction, on April 23, 2018. BACKGROUND : This change order will allow the replacement of the aged and failing Digester No.1 lid. Digester No.2 lid replacement was included in the 2017 Process Improvement Project and Myers and Sons Construction was the lowest of the bids for the digester lid replacement. Digester No.2 had failed and required an emergency short term repair to be done in 2017. Digester No.1 lid was installed at the same time as Digester No. 2 and is in similar condition. Proceeding with the second digester lid will allow the city to utilize the existing design to minimize engineering and manufacturing costs, in addition to eliminating mobilization fees. This project is vital to the smooth operation of treatment processes at the James R. DiIorio Water Reclamation Facility. FINANCIAL IMPLICATIONS : Funds are available from the Sewer User Funds BOARD/COMMISSION RECOMMENDATION : Not applicable STAKEHOLDER PROCESS : None ALTERNATIVES : Alternative No. 1 – No Action In the event of no action being taken, equipment could potentially fail and lead to the inability to sufficiently treat wastewater causing the City to be in noncompliance of state requirements and cause serious health and safety issues to the public. RECOMMENDATION : Approval of the Resolution. Attachments : Cost Justification by Engineer of Record CONTRACT CHANGE ORDER CM'OF PUEBLO DEPARTMENT OF WASTEWATER Project Number: 17-096 Change Order No. : 001 1/14/2019 Page 1 of 1 Project Name: James R.Dilorio Facility 2017 Upgrades and Rehab Project Contractor: Myers and Sons Construction You are hereby requested to comply with the following changes from the drawings&specifications: Item Description of Changes Decrease Increase No. Contract By Contract By 1 Digester No. 1 Cover Purchase from WesTech - $205,556.00 2 Digester No.1 Cover Procurement Fee(5%of purchase price) $10,277.80 3 Digester No. 1 Cover Replacement $858,450.00 TOTAL (Decrease)/Increase $0 $1,074,284 Net Adjustment This Change Order $ 1,074,283.80 Amount of Previous Change Order(s) $ 0.00 Original Contract Amount $ 5,769,000.00 Total Adjusted Contract Amount To Date $ 6,843,283.80 Reason For Change: Owner-requested addition of Digester No. 1 cover replacement to project scope Original Extension for Digester No. 1 Cover: Original Substantial Completion Date:2111/2019 Digester No. 1 Substantial Completion:8/30/2019 Original Final Completion Date: 3/11/2019 Digester No. 1 Final Completion Date: 9/13/2019 Note:Schedule extension applies to Digester No. 1 scope only.Original contract work shall adhere to the original completion date. Attachments:Digester No. 1 Cover Drawings and Specifications Drawings: DM-72-02 Specifications: 01011-CO1 DE-72-01 07540-CO1 M-72-03 07545-CO1 E-72-01 11546-CO1 E-72-02 11556-CO1 1-72-01 This document shall become an amendment to the contract and all provisions of the contract apply hereto. Prepared by: Erin Tracy Date: 1/14/19 Project Engineer Reviewed by: Kevin Keil Date: 1/14/19 Project Manager Accepted by: David Staats Date: 1/15/19 Contractors Represe live If this Change Order causes an increase from the original contract price,signed approval by the Director constitutes representation that la ul appropriations//are sufficient to cover such increase. • Approved by: -1/ '`'`r ��l.t l y Date: -i)---1 7 Director of Wastewater FORM CO100.1299 1527 Cole Boulevard Suite 300 Lakewood,CO 80401 T:303.239.5400 F:303.239.5454 January 16, 2019 Brown AND Caldwell Naomi Hedden City of Pueblo 230 S. Mechanic Street Pueblo, CO 81003 Subject: 17-096 JRD WRF Additional Digester Cover Dear Naomi: The 2017 Upgrades and Rehab Project at the James R. Dilorio Water Reclamation Facil- ity is nearing completion of the Digester No.2 cover replacement.The project team pro- poses to add a second digester cover replacement to the existing 17-096 contract as a change order.Adding this item to the existing contract will maximize value for the City in the following ways: • Meeting the needs of the facility for a second digester cover replacement • Enabling the City to procure long lead time equipment in time to complete the budgeted work in 2019 • Avoiding a lengthy re-bid process for both the Contractor and the Manufac- turer, and minimizing Engineering costs to produce bid packages and provide bidding services • Leveraging existing design and contract documents to minimize engineering and manufacturer costs • Utilizing a contractor who is already onsite to eliminate mobilization fees • Capitalizing on the recent experience of design and construction personnel on the Digester No.2 cover replacement for a more efficient schedule with fewer unexpected costs In partnership with the JRD WRF staff, Brown and Caldwell has compiled cover installa- tion cost estimates from Myers and Sons Construction (Contractor)and cover supply es- timates from WesTech (Manufacturer),who were awarded the competitive bids for this work on the 17-096.These installation and supply costs represent competitive pricing for the scope. The Myers and Sons Construction quote in Attachment 1 shows a cost reduction of ap- proximately$140,000 for installation of the second digester cover compared to the orig- inal rifiinal bid for the first cover installation. Attachment 2 includes WesTech's quote for the supply of the second cover,which has a cost increase of approximately$20,000.While WesTech has offered a deduct of approx- imately$8000 from the original bid for reduced design time,their overall cost has Naomi Hedden City of Pueblo November 29, 2018 Page 2 increased by approximately 18 percent.The increase is mostly tied to a 22%increase in steel prices since the original bid, a factor that would similarly impact any supplier.At- tachment 3 is included to document the justification for this increase. Table 1 provides a summary of the estimated difference in cost between our proposed change order approach vs. re-bidding this work. Table 1-Summary of Anticipated Costs Proposed Change Order Method Re-bid Method Difference Installation $868,728 $1,000,000 ($131,272) Equipment $205,556 $210,000 ($4,444) Engineering $5,000 $30,000 ($25,000) Totals $1,079,284 $1,240,000 ($160,716) Please note that the estimated values for the"Re-Bid Method"are based on best infor- mation from the previously completed competitive bids. Installation and equipment fig- ures for the"Proposed Change Order Method" are known costs from the quotes. Based on the estimated costs, Brown and Caldwell is confident that adding the supply and installation of a second digester cover to the 17-096 contract as a change order is the most economical mechanism to complete the work. Please confirm that you are in agreement with this proposed change order approach for completing this work. Sincerely, Brown and Caldwell Kevin Keil, P.E. Project Manager cc: Nancy Keller,City of Pueblo John Lindstrom, City of Pueblo Erin Tracy, P.E., Brown and Caldwell Attachments(3) 1. Attachment 1: Myers and Sons Construction Digester 1 Cover Installation Quote 2. Attachment 2:WesTech Digester 1 Cover Supply Quote 3. Attachment 3: WesTech Cost Justification Letter