SUBJECT: CONSENT
Title
A Resolution of the Board of Trustees of the Town of Erie Approving the Second Amendment to the Lynn R. Morgan Water Treatment Facility Expansion CMAR Contract with Garney Companies, Inc.
Body
DEPARTMENT: Public Works
PRESENTER/PREPARER: Todd Fessenden, Public Works Director
Wendi Palmer, Civil Engineer
FISCAL INFORMATION:
Cost as Recommended: $8,750,768
Balance Available: $7,684,553
Fund: Water
Budget Line Item Number: 500-70-110-605000-100258
New Appropriation Required: Yes
STAFF RECOMMENDATION:
Recommendation
Approve the Resolution to amend said agreement, authorizing the appropriate Town officer to execute said agreement, authorize new appropriation and authorize staff to expend budgeted funds.
End
SUMMARY AND BACKGROUND OF SUBJECT MATTER:
The 2019 Water Fund Budget has funds appropriated for constructing the Water Treatment Plant Expansion. Additional Funds will need to be appropriated to fully fund the construction and Construction Administration for this project.
At the February 26, 2019 Board Meeting, the Board approved Amendment 1, which allowed for the early procurement of membranes, a critical component of the Water Treatment Plant expansion which has a long lead time. With the installation of the membranes and associated work, the water treatment plant will have increased treatment capacity prior to the completion of the pretreatment building expansion. For the full increase in capacity the pretreatment building must be expanded.
Also at the February 26, 2019 Board Meeting, Staff noted that Amendment 2 to the CMAR Contract with Garney would be brought to the Board of Trustees for authorization for the Guaranteed Maximum Price (GMP) for the Water Treatment Plant Expansion.
As part of the CMAR process, Garney prepared a cost estimate of $11,886,801 based on the 60% complete construction plans prepared by Burns & McDonnell. The Town, Garney and Burns & McDonnell worked closely to refine the design to 90% complete construction plans. Using the 90% plans Garney solicited and received bids on April 23, 2019 for equipment and subcontractors needed for the Water Treatment Plan Expansion. After review with Town Staff to ensure that the equipment and subcontractors are acceptable to the Town, the Cost for Amendment 2 is $8,750,768.
In addition to this resolution, on the agenda tonight is a resolution for approval of a Professional Services Agreement with Burns & McDonnell for Construction Administration Services in the amount of $806,722, 19-223.
Project Construction Cost
Preconstruction Phase Services $ 24,210
Amendment 1 (19-078) $ 2,011,057
Amendment 2 (19-222) $ 8,750,768
Total Cost for CMAR $10,786,035
Project Design and Administrative Costs
Design Services (18-187) $ 459,116
Design Services Contingency (18-187) $ 65,884
Construction Administration (19-223) $ 806,722
Total Cost Design & Administration $ 1,331,722
Project Contingency for Construction (5%) $ 450,000
Total Project Cost $ 12,567,757
The funds for Amendment 2 (19-222), and Construction Administration (19-223) and Project Contingency for Construction (5%) total to $ 10,007,490
Funds remaining in the current budget $ 7,684,553
New Appropriation required $ 2,322,937
This project is over budget because the original budget was based on a rough estimate from a master plan done several years ago, prior to actually engaging in design work on the project. Since that time, construction costs have gone up significantly. As part of the CMAR approach, all pricing is “open book”, so the Town sees the contractor’s actual costs and mark ups were agreed on in advance of any costs. As a result, we are confident the Town is getting good and current pricing. Additionally, staff has reviewed the costs on a line-by-line basis with the contractor and engineer. While the new appropriation is significant, the Water Fund has reserves to absorb this impact.
To use available funds most efficiently, staff recommends that funds for the new appropriation come from another waterline project where the design is not ready for bidding. At this time the Zone 3 Waterline Extension Phase 2 project is still working out easements to firm up the alignment. The design cannot be complete until this is done. Staff does not believe the entire line will be under construction this year. Based on this status, staff recommends that funds in the amount of $2,322,937 be transferred from the Zone 3 Waterline Extension Phase 2 project (account number 500-70-110-605000-100228) into the Water Treatment Plant Expansion project (account number 500-70-110-605000-100258).
Project Schedule
Notice of Award May 15, 2019
Notice to Proceed May 22, 2019
Membrane Complete April, 2020
Construction Complete September, 2020
ATTACHMENTS:
a. Resolution
b. Amendment No. 2 CMAR Contract
c. Detail of Amendment 2 Costs