HomeMy WebLinkAbout12-Consideration of an Increase in the Change Order Authorization for SCADA Reliability Improvement Project - Phase 3Agenda Item # 12
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Public District
ACTION
To: Board of Directors
From: Sanna Schlosser
Date: December 18, 2013
Subject: Consideration of an Increase in the Change Order Authorization for
SCADA Reliability Improvement Project - Phase 3
1. WHY THIS MATTER IS BEFORE THE BOARD
Board approval is required to increase an authorized change order allowance.
2. HISTORY
The SCADA Reliability Improvement Project - Phase 2 was awarded to Terry Hansen
Electric (THE) on June 6, 2012. During construction of this project, THE encountered a
number of difficulties. Ultimately, this led to the District filing a Notice of Default on
May 1, 2013. Subsequent to this notice, the District negotiated an acceptable Contract
Addendum and Remediation Plan with THE and their surety company. This addendum
was issued on June 7, 2013.
On August 7, 2013, the Board awarded the contract for SCADA Reliability
Improvement Project - Phase 3 to Curtis and Sons (CSC) in the amount of $328,041,
plus a 10% change order authorization for an amount not to exceed $360,845.
3. NEW INFORMATION
Terry Hansen Electric (THE), the Phase 2 contractor, has verbally indicated that they
will do no further work associated with that project. Upon inspection, there are
deficiencies which need to be addressed for project completion. Staff proposes
negotiating a deductive change order with THE for this work and closing the project.
Staff anticipates presenting the Phase 2 closeout at the January 15, 2014 Board
meeting.
Construction is currently underway for the Phase 3 project. Change orders have been
issued to address needed changes to the project scope. The executed change orders
total approximately $14,000.
Staff proposes to transfer the remaining work associated with the Phase 2 project to
CSC. This change will require an increase in the change order allowance for Phase 3.
The scope of this work includes retesting approximately 150 fibers and performing
necessary repairs.
4. FISCAL IMPACT
CSC has submitted an estimate for this work of $44,526. Staff is requesting an
increase of $50,000 to the change order allowance. Sufficient funds exist in the
Electric Capital budget.
5. RECOMMENDATION
Authorize an increase in the change order allowance to Curtis and Sons for SCADA
Reliability Improvement Project - Phase 3 from $32,804 to $82,804, for a project total
not to exceed $410,845.
Stephen Hollabaugh
Assistant General Manager
Michael D. Holley
General Manager