Minutes 06/24/2014 - Laserfiche WebLink

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June 24, 2014 o Restoration of the sidewalks and replacement of the 16-inch water line increased the original contract amount approximately $1.2 million. This water line was not initially included to be replaced due to its relatively young age (installed in the late 1970s); however, excavation during the project showed significant deterioration of the condition of the pipe and it was replaced. o Installation of verges, including mondo grass and edging, reduces the amount of impervious surface which assists the City in complying with stormwater regulations. This increased the original contract amount approximately $413,268.00. o Replacement of the storm sewer along Water Street and the associated restoration of the roadway and sidewalks increased the contract amount approximately $465,000.00. A significant section of this pipe had settled which required excavation and replacement instead of relining. o These changes in project scope have already increased the budget by approximately 21 %. • Given the age of the infrastructure we are replacing (80 to 100 years old), we continue to encounter unknown field conditions such as unsuitable soils and conflicts with other utilities -electric, gas, and telephone lines. With the amount of work completed to date, our experience tells us we will encounter more field conditions that will require additional work. Financial Impact: • Approval of the Resolution and anticipated future change orders may add approximately $1,500,000 in additional expense to this project. • The Design Engineer's original opinion of construction cost was $11,500,000; however, actual bids came in at $9,867,599.00. With the increases already incurred due to significant changes in scope and anticipated cost increases due to unknown field conditions, the final cost for this project is estimated to be $13,821,417.00. While this is approximately 20% greater than the original estimate, this amount includes substantial infrastructure improvements not included in the original bid. • Funds earmarked for project contingencies and for infrastructure improvements are available in the Public Utilities Capital Budget and will fund this additional expense. Recommended Action: • Adoption of the proposed resolution to exceed the 25% limit of allowable change orders to the Downtown Sewer and Water Rehabilitation Project contract to cover the additional expenses due to the increased scope of work. Vision Principles: A Robust Economy for working men and women and Neighborhoods and a Sense of Community. Next Steps following City Council Action: • Project will be completed to all design standards and finished streets and sidewalks will be much improved than what currently exists in the downtown area. Motion by Ms. Randall, and seconded by Mr. Moody, to adopt the following resolution, and was adopted by the following vote: "RESOLUTION AUTHORIZING THE DEPARTMENT OF PUBLIC UTILITIES TO APPROVE CHANGE ORDERS TOTALING MORE THAN 25% OF THE CONSTRUCTION CONTRACT WITH GASTON BROTHERS UTILITIES, LLC FOR QUADRANT 1 OF THE DOWNTOWN MASTER UTILITY PLAN WATER AND SEWER REHABILITATION PROJECT. WHEREAS, a project budget of $11,500,000 was originally projected by the City's Design Engineer for Quadrant 1 of the Downtown Master Utility Plan Water and Sewer Rehabilitation Project; and WHEREAS, a construction contract in the amount of $9,867,599 for replacement of water and sanitary sewer lines and rehabilitation/replacement of storm sewer within a 16-block area of Downtown Portsmouth was awarded to Gaston Brothers Utilities, LLC, in January 2013; and