2002 AGN OCT 15 I20 - Laserfiche WebLink

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CITY OF COLTON Item 920 AGENDA REPORT For the Colton Utility Authority Meeting of October 15, 2002 TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE COLTON UTILITY AUTHORITY FROM: ERIC FRASER, DIRECTOR OF WATER AND WASTEWATER OPERATIONS SUBJECT: APPROVAL OF CHANGE ORDER #1 IN THE AMOUNT OF $287,451.32 TO THE KRIEGER & STEWART, INC., FOR CONSTRUCTION MANAGEMENT AND INSPECTION OF PHASE 2 OF THE WASTEWATER TREATMENT PLANT EXPANSION. DATE: September 23, 2002 BACKGROUND: Krieger & Stewart Inc. was selected by the City of Colton to provide design and construction engineering services for the City's Wastewater Treatment Plant Expansion Project. Phase I of the project included the services necessary to increase plant capacity by 2 million -gallons -per -day (MGD). Phase 2 encompassed the addition of two treatment modules to replace the aging Plant 1 in order to maintain adequate capacity. DISCUSSION/ANALYSIS: By Council action on March 21, 2000, an emergency change order in the amount of $3,500,000 was issued to AmeriCon Constructors, Inc. to construct two additional treatment modules to replace Plant 1. This amount was based upon Americon's February 29, 2000 proposal letter to the City (Attachment A). As stated in the letter, the proposal did not include the cost of construction management and inspection services being provided by Krieger & Stewart and/or the City of Colton. This issue was not specifically addressed by Council action at the March 2000 meeting. The design for Phase 2 of the project was included in the initial $700,000 purchase order for Phase I (Attachment B). By letter dated April 28, 2000, Krieger & Stewart advised the City that the estimated cost of the additional services to construct phase 2 would be $260,000 and $320,000 (Attachment C). City staff advised Krieger & Stewart to proceed with the Phase 2 work with the understanding that the initial purchase order did have excess funds available for contingencies and change orders. The total cost for services for Phase 1 and Phase 2 was $987,451.32. It should be noted that the total amount of the project was well within the estimate as provided by Krieger and Stewart, Inc. As such, the total amount $987,451.32 is $287,451.32 in excess of the initial $700,000 purchase order. Of this amount, $919,733.64 has been paid. The final payment now due and payable is $67.717.68. Formal Council action is required to ratify the prior payments and approve a change order to the professional services component of the project in the amount of $287,451.32. ALTERNATIVES: Not pay for services rendered and risk potential litigation over said services. FINANCIAL IMPACT: Funds are available in the Waste Water Treatment Plant Capital Projects Bond Funds Account 552-8200- 8204-3890-1000-000. ENVIRONMENTAL IMPACT: There are no environmental impacts associated with the change order.