Item 4B audioCity Council Members:
Item 4B on the consent agenda if for Approval of Change Order No 2 for the
civil engineering modifications to the existing construction contract for the
Wholesale meter Station Improvements with Legacy Contracting in the amount
of $60,369.00 and amend the project budget.
1
The construction of the wholesale water meter
at the TW King Pump Station site links to the
City’s strategy map relative to the focus areas
of Infrastructure and Performance Management
and Service Delivery. The specific corporate
objectives that are met by the construction of
this meter station include Providing high quality
customer service and investing to provide and
maintain high quality public assets as well as
collaborating with partners to implement service
solutions
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 change order No 1 for the additional work
associated with the electrical component of the project which was approved by
the City Council on September 1, 2009. The contractor submitted Change
Order No 2 for the additional civil engineering 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 and represents the additional work for the civil
engineering component of the contract. 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.
9
The construction contract is divided into 4 units representing each meter
station. The total cost of changes for the 4 units is $54,881.00. The
construction contract allows for an overhead and profit of 15%, however this
was successfully negotiated down to 10% with the Contractor. This results in
an overhead and profit cost of $5,488.00 which brings the total proposed
change order no 2 cost to $60,369.00.
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. Both Southlake’s and
Keller’s cost for change order No. 2 is $30,184.50.
11
The approved Change Order No 1 increased the total contract cost from
$776,867.00 to $830,195.64. Change Order No. 2 increases the total contract
from $830,195.64 to $890,567.64.
12
Staff recommends that Council approve Change Order No. 2 for civil
engineering modifications to the existing construction contract for the
Wholesale Meter Station Improvements with Legacy Contracting, LP in the
amount of $60,369.00.
13
14