Item 4E AudioCity Council Members:
Item 4E on the consent agenda if for Approval of Change Order No 1 for the
electrical modifications to the existing construction contract for the Wholesale meter
Station Improvements with Legacy Contracting in the amount of $53,331.64.
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Effective management of the City’s water resources
will insure our ability to sustain high quality customer
service in the delivery a safe and adequate supply of
drinking water.
2
First, I would like to briefly provide some background information on the Wholesale
Meter Station Project
-The Cities of Southlake and Keller share two water transmission lines from the City
of Fort Worth
-At this time, the City of Fort Worth bills Southlake for all the water passing through
both of these lines and in turn Southlake bills Keller for their share of the water
usage
3
In February of 2008, The Cities of Fort Worth, Southlake, and Keller amended the
wholesale billing contract which incorporated these new meters. Once the
modifications are completed, the City of Fort Worth will bill Southlake and Keller
separately for their individual water use
4
The is a map indicating the locations of the wholesale meters that will be modified
as a part of the contract with Legacy Contracting.
5
The modifications at the meter stations will include new state of the art telemetry at
all 4 stations and will be constructed to the City of Fort Worth standards
6
The interlocal agreement between Keller and Southlake calls for Southlake to pay
for the improvements at the Southlake-Pearson meter station and half the cost of
the improvements at the Fort Worth meter stations. Keller will pay for the
improvements at the Keller-Pearson meter station and half the cost of the
improvements at the Fort Worth meter stations.
7
Legacy Contracting began construction in November of 2008. It was discovered
after the project was under construction, that a draft 2006 set of plans were
inadvertently put in the bid documents instead of the final set of plans that were
approved for construction by the City of Southlake and the City of Fort Worth in
2007.
The bid from the contractor was based on this set of plans. The Contractor received
the correct set of plans from Freese and Nichols and after reviewing the revised set,
submitted a change order for the additional work required by the 2007 final set of
plans that were approved by Fort Worth.
8
The change order includes work that is required by the City of Fort Worth in
accordance with the Wholesale Water Contract between the customer cities and the
City of Fort Worth. This work must be completed in order to meet the terms of the
contract to allow Fort Worth to bill Southlake and Keller for their water use
independently.
This change order represents the additional work for the electrical component of the
contract. There will be another change order which will include the civil component
of the contract.
Freese and Nichols, Inc. has acknowledged that their firm prepared the initial bid
documents with the 2006 set of plans included. Freese and Nichols, Inc and the
Southlake and Keller City staff discussed and agreed upon an equitable contribution
toward the change order.
9
The construction contract is divided into 4 units representing each meter station.
The total cost of changes for the 4 units is $47,405.64. The construction contract
allows for an overhead and profit of 15%, however this was successfully negotiated
down to 10% with the Contractor. The construction contract also allows for a bond
cost of 2.5% of the total change order. This results in an overhead, profit and bond
cost of $5,926.00 which brings the total proposed change order no 1 cost to
$53,331.64.
10
As mentioned earlier, the interlocal agreement calls for both cities to pay for the
improvements at their respective meter station and to share in the cost of the
improvements to the Fort Worth meter stations. Southlake’s cost for change order
No. 1 is $15,145.15 and Keller’s cost is $38,186.49.
11
The total contract cost has increased from $776,867.00 to $830,195.64.
12
Staff recommends that Council approve Change Order No. 1 for electrical
modifications to the existing construction contract for the Wholesale Meter Station
Improvements with Legacy Contracting, LP in the amount of $53,331.64.
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