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File #: ID18-0593    Version: 1 Name:
Type: Action Item Status: Passed
File created: 5/2/2018 In control: City Council
On agenda: 5/17/2018 Final action: 5/17/2018
Title: Approve Change Order No. 14 to the construction contract with W.M. Lyles Company for the City of Fresno's Southeast Surface Water Treatment Facility to increase the lump sum contract value by $278,726 (Citywide)
Sponsors: Department of Public Utilities
Attachments: 1. 2018-05-17 Attachment 1 - SESWTF Contract Change Order No 14.pdf

REPORT TO THE CITY COUNCIL

 

 

May 17, 2018

 

 

FROM:                     MICHAEL CARBAJAL, Interim Assistant Director

                                          Department of Public Utilities - Utilities Planning & Engineering

 

BY:                     GLENN A. KNAPP, P.E., Professional Engineer

                     Department of Public Utilities - Utilities Planning & Engineering

 

SUBJECT

Title

Approve Change Order No. 14 to the construction contract with W.M. Lyles Company for the City of Fresno’s Southeast Surface Water Treatment Facility to increase the lump sum contract value by $278,726 (Citywide)

 

Body

RECOMMENDATION

 

Staff recommends that City Council approve Change Order No. 14 to the construction contract for the City of Fresno’s (City) Southeast Surface Water Treatment Facility (Facility) to increase the lump sum contract value by $278,726 for necessary modifications to various process controls and appurtenances in meeting design intent and project operational, safety and security requirements.

 

EXECUTIVE SUMMARY

 

On November 19, 2015, City Council awarded a contract to W.M. Lyles Company for construction of the Facility in the amount of $158,766,000.  Notice to Proceed (NTP) with construction was issued on December 31, 2015.  It is recommended that these items be incorporated into the construction contract through Change Order No. 14 in the amount of $278,726, for a net total increase of $4,140,985 (2.6%), through 14 Contract Change Orders (CCO’s), resulting in a new total construction contract value of $162,906,985.  The cost of CCO No. 14 will be covered by contingencies within the project budget and funded by the State Revolving Fund (SRF) Low Interest Loan for the construction of the Facility.

 

BACKGROUND

 

On February 26, 2015, the City Council adopted a five-year water utility rate plan to finance the construction of a five-year water capital plan totaling approximately $429 million.  The five-year capital plan included the construction of the Facility to allow the City to more effectively use its existing surface water allocations and entitlements from Millerton Lake and Pine Flat Reservoir.  Consistent with the Council approved rate plan and capital plan, the Facility will be constructed with a permitted capacity of 54 Million Gallons per Day (MGD), and the City will petition the State to allow the Facility to be re-rated to 80 MGD through a one-year performance demonstration testing procedure.

 

On September 10, 2015, the City Council approved acceptance of a $195,489,000 SRF Low Interest Loan through the State Water Resources Control Board (SWRCB) for construction of the Facility.  The construction contract is fully funded through this loan.

 

W.M. Lyles Company submitted the low bid price of $158,766,000 on October 13, 2015, a contract to construct the Facility was awarded on November 19, 2015, and NTP was issued on December 31, 2015.  The Facility is currently scheduled to complete construction in September 2018.

 

Subsequent to NTP, a total of thirteen CCO’s have been executed to date, resulting in a net total increase to the contract value of $3,862,259.

 

Implementation of this Change Order will increase the lump sum contract value by $278,726 with no increase to contract time related to Change Order items.  These increased costs will be covered by contingencies within the project budget, and funded through the SRF Low Interest Loan.

 

This Change Order No. 14 (attached) incorporates necessary modifications to various process controls and appurtenances in meeting design intent and project operational, safety and security requirements resulting in a new total construction contract value of $162,906,985.

 

ENVIRONMENTAL FINDINGS

 

Approval of a change order for an existing construction contract is not a “project” for the purposes of the California Environmental Quality Act (CEQA), and does not involve commitment to any specific project which may result in a potentially significant physical impact on the environment as contemplated by CEQA Guidelines section 15378.

 

LOCAL PREFERENCE

 

Local preference was not implemented because this action pertains to an existing construction contract.

 

FISCAL IMPACT

 

There is no impact to the General Fund.  Appropriations for CCO No. 14 are available in the Water Division’s approved Fiscal Year 2018 Capital Improvement Projects budget within the SRF Low-Interest Loan Fund 40188.  The cost of debt service for this state low interest loan was incorporated into the water rate model used to create the five-year utility rate plan that was adopted by City Council on February 26, 2015.

 

 

Attachment: Change Order No. 14