Minutes 04/25/2017 - Laserfiche WebLink

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April 25, 2017 “ORDINANCE AUTHORIZING THE AMENDMENT OF THE OVERALL AND FOURTH QUARTER FY 2017 PORTSMOUTH PUBLIC SCHOOLS GENERAL FUND OPERATING BUDGETS BY TRANSFERRING $200,000 FROM THE ADMINISTRATION CLASSIFICATION TO THE PUPIL TRANSPORTATION CLASSIFICATION AND TRANSFERRING $50,000 FROM THE ADMINISTRATION CLASSIFICATION TO THE OPERATION AND MAINTENANCE CLASSIFICATION.” Ayes: Cherry, Clark, Lucas-Burke, Moody, Psimas, Whitaker, Rowe Nays: None 17 - 189 - Adoption of a resolution authorizing the Department of Public Utilities to approve change orders totaling more than 25% of the construction contract with SHAW Construction, Corp. for the Goose Creek Transmission Main Replacement Project. Background:  The city completed the Transmission Main Study in September 2013 to guide in the long-term sustainability and reliability of the city’s water transmission system utilizing a risk versus consequence of failure evaluation process. Replacement of the aerial stream crossing at Goose Creek was identified as critical project with a high level of both risk and consequence of failure.  There are three transmission mains crossing Goose Creek that transport water from the Lake Kilby Treatment Plant is Suffolk to downtown Portsmouth. Two of these mains are 20” cast iron pipes (placed in service in 1888 & 1906). The third main is a 30” concrete pipe (placed in service in 1938).  The concrete transmission main currently transports 65% (average day basis) of the water produced by Portsmouth’s Lake Kilby Water Treatment Plant to the “In-Town” area of Portsmouth.  Public Utilities operational staff observed several significant leaks on the 30-inch concrete pipe. Failure of this pipe would severely restrict the ability of Public Utilities to provide potable water and fire suppression to the “in-town” area of Portsmouth and to fulfill contractual obligations for bulk water sales to the city of Chesapeake. Discussion:  Due to the concern of imminent failure of the concrete main, a decision was made to prepare a solicitation for the complete replacement of all three transmission mains. Kimley Horn prepared bid specifications and site plans for the bid process. 20% plans were developed using aerial imagery, GIS and schematic drawings from 1938 and those plans were included in the bid specifications.  The original contract amount was for $1,449,249.00 and was awarded to SHAW Construction. The contract was for the replacement of all three finished water transmission lines with two, 30-inch HDPE transmission mains. Installation of the new transmission lines requires horizontal directional drill methods to minimize the impact to the CSX Railroad, Goose Creek and surrounding wetlands.  Additional surveying and field exploration completed after award, but before commencement of work, resulted in necessary adjustments to the horizontal and vertical alignment of the proposed transmission mains. Over 90% of the cost increase is associated with the purchase of necessary material items not included in the original bid specifications.  Section 12-183 of the City Code requires that any change orders that will exceed 25% of a contract’s cost must be approved by City Council. Financial Impact:  Approval of the Resolution and subsequent change orders will add approximately $979,000 in additional expense to this project.  The anticipated final cost for this project is $2,427,864.39. While this is approximately 67% greater than the original contract, approximately $903,000 of the $979,000 is for material costs not included in the 20% bid documents. The next lowest bid was $2,256,000 and would have required a similar change in material costs.