Item 4CCITY OF
SOUTH LADE
MEMORANDUM
(March 29, 2011)
To: Shana Yelverton, City Manager
From: Robert H. Price, P.E., Director of Public Works
Subject: Approve Change Order No. 5 with Legacy Contracting, LP in the
amount of $21,720.00 for Fort Worth Meter Station Modification
Project
Action
Requested: Approve Change Order No. 5 with Legacy Contracting, LP in the
amount of $21,720.00 for Fort Worth Meter Station Modification
Project.
Background
Information: In 1984, the Cities of Keller and Southlake contracted to build and
share ownership and use of a water transmission main from the City of
Fort Worth's North Beach pump station. Since that time, the
contractual arrangement for water billing was that the City of Fort
Worth billed Southlake for all the water passing through the FW -North
Beach meter and Southlake would bill Keller for their share based on
the Keller /Southlake meters and calculate Max Day /Hour charges
based on the percent of use. Increased water demands by both
Southlake and Keller warranted the building of a second 42 -inch water
supply line from the City of Fort Worth Caylor Pump Station that was
completed in December 2005.
The plan by the three contracting cities has been that once the second
water transmission line was placed in service, a new billing contract
would be completed by the parties. Under the new contract, the Cities
of Keller and Southlake will upgrade the meters at their respective
Pearson Rd. pump stations and at the two Fort Worth pump stations to
the same accuracy standards as normally used in the City of Fort
Worth. Once completed, Fort Worth will begin using the Southlake and
Keller meters for billing the two cities individually for their water use.
In November of 2008, Legacy Contracting, LP began construction on
the improvements required by the City of Fort Worth on the Southlake -
Pearson, Keller- Pearson, North Beach, and Caylor Meter Stations. It
was discovered after the project was under construction, that a draft
2006 set of plans were inadvertently placed 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.
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 which will be divided between
the two cities.
The design engineer, Freese and Nichols, Inc., and Legacy
Contracting, LP met to determine the level of effort required to
construct the project according to the 2007 edition of the plans. The
work required is work that would have been required if the 2007 edition
of the plans had been included in the bid documents. During this time,
Legacy Contracting, LP was unable to move forward with the work
associated with the required changes to meet the 2007 edition of the
plans. The contractor's schedule was delayed due to this oversight
and incurred equipment rental costs and de- mobilization costs. In
addition Legacy Contracting, LP experienced a loss in revenue due this
oversight.
City Council approved Change Order No. 1 on September 1, 2009 in
the amount of $53,331.64 for revisions to the electrical sheets and
Change Order No. 2 on November 3, 2009 in the amount of
$60,369.00 for revisions to the civil engineering sheets. These change
orders were a result of not including the correct set of plans in the bid
documents.
Change Order No. 3 in the amount of $32,287.10 and Change Order
No. 4 in the amount of $2,163.31 were approved by the City Manager
and included changes to the vault location at the North Beach meter
station. The location was modified after exploratory digging resulted in
the original planned location being too small for the required vault to
house the double check valves. In addition, an extension ladder was
required by the City of Fort Worth previously not shown on the
construction plans.
Change Order No. 5 in the amount of $21,720 is for delay caused by
inclusion of the incorrect plan set. The contractor incurred additional
costs for equipment rental, de- mobilization and mobilization costs and
lost revenue during the delay period.
Financial
Considerations: On September 2, 2008 the City Council approved a bid amount of
$776,867.00. The previously approved change orders increased the
total contract amount to $925,018.05. Staff recommends that City
Council approve Change Order No. 5 in the amount of $21,720.00
resulting in a total project cost of $946,738.05. Funds are available in
the project budget. Southlake's portion of this change order is $5,243.
The remaining portion of the change order is being paid for by Freese
and Nichols, Inc and the City of Keller.
Strategic Link: The meter station improvements 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 water system infrastructure include: Providing High
Quality Customer Service and Investing to provide and maintain high
quality public assets.
Citizen Input/
Board Review: None
Legal Review: None
Alternatives: The City Council may approve Change Order No. 5 or deny it.
Supporting
Documents: Location Map
Change Order No. 5
Staff
Recommendation: Approve Change Order No. 5 with Legacy Contracting, LP in the
amount of $21,720.00 for Fort Worth Meter Station Modification
Project.
Staff Contact: Robert H. Price, P.E., Director of Public Works
Gordon J. Mayer, Jr., P.E. Deputy Director of Public Works
Michelle McCullough, P.E. Civil Engineer
Project Location
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CHANGE ORDER No. 5
Dated: March 8, 2011
OWNER'S Project No. 07 -030
Project: Wholesale Meter Station Improvements
OWNER
Contract for $776,867.00 Contract Date: October 21, 2008
To: Legacy Contracting, LP
Contractor
You are directed to make the changes noted below in the subject contract for the dollar amount stated below
including all labor, equipment, materials, overhead, and profit:
Nature of the changes:
During construction, several plan sheets were revised to reflect changes made during design of the project. Change
orders 1 and 2 reflected the work associated with the revised set of plans. During the time that this correction was
being made, the contractor was delayed and could not utilize rented equipment, required remobilization of crews,
additional bond and insurance costs, and loss of revenue.
Delay Claim
$21,720.00
These changes result in the following adjustment of contract price and contract time:
Contract Price Prior to this Change Order $ 776, 867.00
Contract Price Including Previous Change Orders $ 925, 018.05
Current Contract Price Including this Change Order $ 946, 738.05
The above changes are agreed upon:
Legacy Contracting, LP
Contractor
li
Date: 1 2011
Page 1 of 2
The above changes are recommended:
Cit� of Southlake
City
By:
Title: City Engineer
II]
City of Southlake
City
li
Title: Project Manager
Date: 1 2011
Citj� of Southlake
City
By:
Title: Director Public Works
2011 D
2011
The above changes are approved: City of Southlake
City
By:
Title: Manor
II]
Page 2 of 2
2011