HomeMy WebLinkAbout12/16/1993, C-2 - UNIT 4 WATER RECLAMATION FACILITY IMPROVEMENTS PROJECT, CHANGE ORDER. IlfryAl��lll�llllln�lpl�Il ll�lll MEETING DATE:
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I II IIIYIXII o san suis oBispo December 16, 1993
COUNCIL AGENDA REPORT ITEM NUMBER:4_2
FROM: John E. Moss, Utilities Directo 91
SUBJECT: Unit 4 Water Reclamation Facility Improvements Project, Change Order
CAO RECOMMENDATION:
Approve change order to Alder Construction and Engineering for necessary electrical, control
and instrumentation changes to the Unit 4 Water Reclamation Facility Improvements Project,
City Plan # R-29S, in an amount not to exceed $78,000. Authorize City Utilities Director to
execute the change order.
DISCUSSION:
Background:
The Unit 4 Project for needed improvements to the City's Water Reclamation Facility (WRF)
was awarded to Alder Engineering and Construction by Council in October of 1991. The project
is nearing completion and should receive substantial completion by January 1994.
During the course of work on projects of this size and scope, changes to the project work are
frequently necessary to account for unforeseen conditions, unanticipated extra work, etc.. In
recognition of this, Council approved a 5% contingency in the amount of$524,339 to the Unit
4 project budget to account for any change orders associated with the project. A project of this
size and complexity is considered very successful if it remains within a 5% contingency.
On August 3, 1993 Council approved modifications to the City's change order policy requiring
Council approval of change orders in excess of $50,000. Staff is seeking Council approval of
this change order in an amount not to exceed $78,000 in accordance with the revised policy.
Required Change Order Work:
The required work associated with this change order is to modify the equipment electrical loads
being placed on the stand-by power system to insure necessary treatment is provided during the
event of a power outage. Stand-by power systems are required for wastewater treatment
facilities by the Environmental Protection Agency. A minimum level of treatment is required
to be provided under stand-by power conditions and the work associated with this change order
is necessary to achieve this minimum level of treatment.
During project design it was anticipated that stand-by power would be provided via a dual power
feed from PG&E from separate power substations. Following design and during the Unit 4
bidding process PG&E informed the City that their power grids had been shifted and the dual
power feed was no longer an option available to the City. Subsequently, Council approved
modifications to the project scope to include provision of a stand-by engine generator to fulfill
the requirements. The Generator and associated switchgear and controls was added to the Unit
4 project as an addendum to the plans and specifications.
During recent generator start-up and training it was discovered that certain additional treatment
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COUNCIL AGENDA REPORT
process equipment needed to be added to the stand-by power system, which had not been
included in the addendum to the plans and specifications, in order to meet the minimum
treatment requirements of the EPA. Adding this equipment is considered extra work to the
project and is thus a change order.
Staff is requesting this work be approved as a not to exceed change order to allow for the work
to be done on a time and materials (T&M) basis. Staff anticipates the work may be completed
for less than the proposed amount if done on a T&M basis.
Due to the fact that the project is very near to completion it is necessary that this work be
approved and completed without delay in order to minimize the potential for extended overhead
associated with delay claims from the contractor.
FISCAL IMPACT:
The original bid amount for the project from Alder Engineering and Construction was
$10,486,781. An additional 5% contingency for the project was approved in the amount of
$524,339. Total approved funding for the project thus equals $11,011,120. Sufficient change
order funding is available to complete this work and staff does not anticipate the total project
requiring funding in excess of the approved amounts.
As of November 15, 1993, $202,257 of the contingency funding remained to support project-
related expenses, such as change orders and prime engineering. A detail of the budget and
project expenses to date is shown below:
Through Pay Request No. 22
A. Original Contract $ 10,486,781
Approved Change Orders (1-12) 233.938
Revised Contract $ 10,720,719
B. Approved Budget: $ 11,011,120
Less Alder Contract (10.720.719)
$ 290,401
C. Less other constr. related charges $ (88.144)
(PG&E, Dept. of Fish & Game,
Haworth, etc.)
D. Balance to support change orders,
other projected related expenses
such as prime engineering $ 202.257