REPORT TO THE CITY COUNCIL
March 31, 2016
FROM: THOMAS C. ESQUEDA, Director
Department of Public Utilities
BY: MICHAEL CARBAJAL, Division Manager
Department of Public Utilities - Water Division
SUBJECT
Title
Approve construction Change Order No. 1 for the City of Fresno's 80-Million Gallon per Day Southeast Surface Water Treatment Facility to reduce the lump sum scope of work by $1,153,313, establish a $1,000,000 Supplemental Work Payment line item, and add a value-engineering procedure to the Contract (Citywide).
Body
RECOMMENDATIONS
Staff recommends that City Council approve construction Change Order No. 1 for the City of Fresno's (City's) Southeast Surface Water Treatment Facility (Project) to reduce the lump sum scope of work by $1,153,313, establish a $1,000,000 Supplemental Work Payment line item, and add a value-engineering procedure to the Contract.
EXECUTIVE SUMMARY
On November 19, 2015, City Council awarded a contract to W.M. Lyles Company (Lyles) for construction of the City's Southeast Surface Water Treatment Facility (Project) in the amount of $158,766,000. Notice to Proceed (NTP) with construction was issued on December 31, 2015. Subsequent to issuing the NTP, the Department of Public Utilities (DPU) staff has negotiated with the Contractor to reduce the scope for the City's temporary Construction Management office facilities for a savings of $1,153,313. DPU will allocate $1,000,000 of the cost reductions to create a Supplemental Work Payment line item for the Project, and allocate $153,313 to reducing the value of the construction contract. In addition, to encourage further contractor initiated value-engineering savings, a value engineering procedure will be added to the Contract. This Change Order does not modify contract time, and all additional work and change orders required for the Project will be subject to review and consideration by the Capital Projects Oversight Committee.
BACKGROUND
The Project is a key component...
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