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CC - Approval of a Change Order to the Existing Contract with Southwest Pipeline and Trenchless Corp in the Amount of $833,350 for the Construction of the Sewer Main Lining Rehabilitation Project (Phase 4), PZ-906.
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Contact Person/Dept: Hong Wang / PW
Phone Number: (310) 253-5604
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [] Attachments: Yes [] No [X]
Commission Action Required: Yes [] No [] Date:
Commission Name:
Public Notification: (E-Mail) Meetings and Agendas - City Council (10/22/15)
Department Approval: Charles D. Herbertson, Public Works Director/City Engineer (10/14/15)
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RECOMMENDATION
Staff recommends the City Council approve a change order in the amount of $833,350 to the existing contract with Southwest Pipeline and Trenchless Corp for the Sewer Main Lining Rehabilitation Project (Phase 4), PZ-906.
BACKGROUND
On December 8, 2014 the City Council awarded a construction contract to Southwest Pipeline and Trenchless Corp (Southwest Pipeline) in an amount of $3,769,000 ($3,141,590 bid plus $627,410 in change order authority) for the Sewer Main Lining Rehabilitation Project (Phase 4), PZ-906.
Approximately 17 miles of sewer mains are identified to be rehabilitated with this phase of the sewer lining project due to their aging structural condition and root intrusion. Since 2009, Phases 1, 2 and 3 of the Sewer Main Rehabilitation Project, PZ-906 have successfully installed approximately 19 miles of sewer lining cured-in-place pipe.
To date, this Phase 4 project is approximately 75% complete. Southwest Pipeline has performed exceedingly well in terms of quality of work, scheduling, and customer care. Staff finds the company to be one the most qualified in the sewer lining industry in southern California.
DISCUSSION
As part of this project, defective sewer lateral connections to the sewer main with root intrusion will receive a “top hat” trenchless lateral sealing system at the main line connection point.
The original bid schedule contains 100 top-hat lateral sealing locations. Upon closer review of the pre-lining inspection videos, staff identified an additional 630 sewer laterals (including 230 from Phase 1 of Sewer Main Lining Project) that should be properly sealed at the lateral connection to the City’s mainline. Left unchecked, this condition may cause a sewer backup. It is the homeowner’s responsibility to maintain their sewer lateral from the building to the City’s sewer main (except the connection at the sewer main), per Culver City Municipal Code Section 5.02.007.
Staff has negotiated with the contractor for a reduction of $100 (from the original $1,800 bid amount to $1,700) for each top hat installed beyond the original bid quantity. For the sewer connection located in backyard easement, the negotiated unit price is $2,145 due to the extra cleaning effort and access difficulty. Staff proposes to fund 230 top-hats ($340,000) from the original contingency amount. The $287,410 remaining in original contingency amount has been and will continue to be used toward any sewer point repairs or any unforeseen field conditions.
Staff recommends that the City Council approve a change order for the remaining 430 top-hats (including 230 from easement sewer lines) in the amount of $833,350. This amount is above and beyond the original contingency amount and requires the City Council’s approval. To excavate the street and replace the wye connection would cost an average $6,000~$8,000 at each location. This trenchless technology is enabling the City to perform the work at considerable savings.
The proposed extra work will extend the project completion by approximately 4 months, to the end of April 2016.
Staff plans to request the necessary funding in the FY16-17 budget to install the estimated 800~1000 top-hats necessary for previous Phases 2 and 3 of the Sewer Main Lining Project.
FISCAL ANALYSIS
There is sufficient funding included in the City Council Adopted Budget for Fiscal Year 2015/2016 (Sewer Enterprise Fund - account 20480000.730100.PZ906) to fund the proposed change order.
Funds Available (Funding Source) Amount
Sewer Enterprise Fund (20480000.730100.PZ906) $5,842,000
Total Funds Available $5,842,000
Estimated Project Expenses Amount
Southwest Pipeline’s Contract Amount $3,141,590
Original Change Order Contingency
($340,000 for additional 200 top hats and
remaining $287,411 for unforeseen conditions) $627,410
Current Change Order Request
(Additional 430 top-hats) $833,350
Construction Management and Inspection,
and Testing Services $475,000
Total Estimated Expenditure $5,077,350
Funds not encumbered by this contract remain available for other projects in the Sewer Enterprise Fund.
ATTACHMENTS
None
RECOMMENDED MOTIONS
That the City Council:
1) Approve a change order in the amount of $833,350 to the existing contract with Southwest Pipeline for the construction of Sewer Main Lining Rehabilitation Project (Phases 4), PZ-906; and,
2) Authorize the Public Works Director/City Engineer to execute the change order on behalf of the City.