POLICY COMMITTEE AGENDA REPORT

Transcription

1 POLICY COMMITTEE AGENDA REPORT Meeting Date: September 3, 2015 Tab No: 3 Subject: Recommended Action: Background and Discussion: Alternatives, Pros and Cons of Each Alternative: Concurrence: Fiscal Impact: Terminal Reservoir Valve Replacement and Bypass Installation Project Concur to recommend that the MID Board formally accept the work for the Terminal Reservoir Valve Replacement and Bypass project in the construction contract with KG Walters Construction, Inc., ( KGW ) and record a notice of completion within 15 days following such action. On April 8, 2014,the MID Board of Directors ( Board ) authorized the General Manager to execute a contract with KG Walters Construction (KGW) for the construction of the Modesto Irrigation District Terminal Reservoir Valve Replacement and Bypass Installation, for an amount not-to-exceed $2,423,400 and an additional change order authority of ten percent (10%)of the construction contract amount; provided that such change orders have been approved through the process described in the Amended and Restated Treatment and Delivery Agreement with the City of Modesto. KGW has completed the work and met their obligations covered by the construction documents for the Terminal Reservoir Valve Replacement and Bypass Installation Project. In accordance with specification section Final Completion and Payment, the Owner s Representative shall recommend to the MID Board to formally accept the project. After which time MID will file a notice of completion with the county. MID will release final retention to KGW promptly and no later than 35 days after the board accepts the project. The start date for the project warranty for the equipment in Valve Vault 1 is May 6, 2015 and the start date for all other equipment is April 10, Valve vault 1 startup was delayed to accommodate the Reservoir Recoating Project. The Covello Group, as the Project s Construction Manager, recommends acceptance of this work, which includes the concurrence of Carollo Engineers. MID staff, along with Ewing Construction Services, concur with this recommendation. Upon Technical Committee acceptance, this item will be presented for consideration to the Policy Committee and then to the MID Board. The Covello Group, as the Project s Construction Manager, recommends acceptance of this work, which includes the concurrence of Carollo Engineers. MID staff, along with Ewing Construction Services, concur with this recommendation. Upon Technical Committee acceptance, anticipated on August 31, this item will be presented for consideration to the Policy Committee and then to the MID Board. The original contract value was $2,423,400. The change order budget of $242,340 was split $220,985 for bypass pipeline and $21,355 valve replacement changes in accordance with the loan agreement between MID and the City. There were 15 change orders authorized for an amount of $124, of which $87, was funded from the Bypass CCO budget, a credit amount of $12, (through contract deductions for) has been added back to the Valve Replacement CCO budget and $49, was funded from the O&M Budget to replace breakers on existing pumps, so the final contract amount is $2,547,577.79, which is nearly $385,000 below the maximum project budget. 1

2 POLICY COMMITTEE AGENDA REPORT Recommendation: Attachments: Upon formal acceptance $200,574.41, the final amount of the ball valve replacement portion of the contract shall be noted in the Phase 2 Expansion Budget Sheet and the unused CCO budget amount of approximately $34k shall be put back into the Project s unallocated contingency budget. Thus, this portion of the rework for the Phase 2 Expansion was completed under it s projected cost within the $9M overall estimate for the Project. Concur to recommend that the MID Board formally accept the work for the Terminal Reservoir Valve Replacement and Bypass project in the construction contract with KG Walters Construction, Inc., ( KGW ) and record a notice of completion within 15 days following such action. Supporting documents attached: Presentation Other supporting docs None attached 1) Covello Recommendation, CCO Summary Sheet 2

3 MID Terminal Reservoir Valve Replacement and Bypass Installation TO: Greg Dias, P.E., MID Project Manager FROM: Chris Davenport, P.E., Construction Manager DATE: August 28, 2015 SUBJECT: Recommendation to Accept the Project INTRODUCTION: KGW has completed the Terminal Reservoir Valve Replacement and Bypass Installation Project. In accordance with specification section Final Completion and Acceptance, this memo serves as the formal notice from the Construction Manager to the owner, that the work is complete in accordance with the contract and the project is ready for formal acceptance. RECOMMENDATION: Have the MID Board of Directors formally accept the project and file the notice of completion. DISCUSSION: The District awarded a construction contract to KGW to build the Terminal Reservoir Valve Replacement and Bypass Installation. The work included replacing the two existing ball valves that control flow into each of the terminal reservoirs with new plunger style valves and installing a new bypass pipe between the 60-inch waterline coming from the treatment plant to the 54-inch pipeline connecting to the City of Modesto s water system. KGW has completed all of the work, including items listed on the punch list in accordance with the contract and therefore, the project is ready for the MID Board to accept it. No stop notices were submitted on this project. KGW completed the work timely, with care and quality and submitted no claims. Final Contract Cost: The final contract amount is $2,547, There where fifteen change orders issued in an amount of $124, of which $87, was funded from the Bypass CCO budget, a credit amount of $12, (through contract deductions) has been added back to the Valve Replacement CCO budget and $49, was funded from the O&M Budget. The final funding split therefore is the following: Funded from: Loan Phase 2 O&M Budget Original Bid Amount - $2,209, $213, $49, Change Orders - $87, $12, $0.00 Total - $2,297, $200, $49, Final Contract Dates: The final contract dates for the contract are, Substantial Completion - April 10, 2015 Final Completion - June 24, 2015 Prepared by: cd Attachments: Spec section

4 found which prevent such use or occupancy, the Construction Manager shall notify the Contractor in writing of such items by issuing a Corrective Work Item List. Upon the completion of such corrective work, the Contractor shall so notify the Construction Manager in writing. The Construction Manager, the Owner and/or the Engineer shall inspect the Work to determine its acceptability for Substantial Completion and for determination of other items which do not meet the terms of the Contract. Upon verification that the Work is substantially complete the Construction Manager shall prepare a Certificate of Substantial Completion and the Punch List (see Form CERTIFICATE OF SUBSTANTIAL COMPLETION found in Section REFERENCE FORMS). The Certificate shall establish the date of Substantial Completion and the responsibilities of the Owner and Contractor for security, maintenance, heat, utilities, damage to the Work and insurance, commencement of warranties required by the Contract Documents, and shall fix the time, not to exceed 60 days, within which the Contractor shall finish all items on the Punch List or remaining work or administrative requirements accompanying the Certificate. When the preceding provisions have been approved by both the Owner and the Contractor, they shall sign the Certificate to acknowledge their written acceptance of the responsibilities assigned to them in such Certificate. By such acknowledgment, the Owner has the right to retain withheld monies due the Contractor to pay the Owner's actual costs including, but not limited to, charges for engineering, inspection and administration incurred due to the failure to complete the Punch List within the time period provided in the Certificate of Substantial Completion, which costs the Owner may deduct from amounts due or that may become due the Contractor under the Contract. 9.7 Final Completion and Payment When the Work is fully completed, Contractor shall provide Owner with a Certificate of Final Completion and shall request final inspection in writing. Additionally, Contractor shall provide legally effective releases or waivers satisfactory to the Owner of all stop payment notice and payment bond claim rights in connection with the Work. Within ten (10) calendar days of receipt of such completed request form, the Owner shall make final inspection. The Certificate, consistent with California Public Contract Code Section 7100, shall state that acceptance of the final payment described below shall operate as and shall be, a release to the Owner, the Construction Manager, the Engineer, and their duly authorized agents, from all claim of and/or liability to the Contract arising by virtue of the Contract related to undisputed contract amounts. Disputed Contract claims in stated amounts previously filed as provided in Section , Resolution of Disputes, may be specifically excluded by the Contractor from the operation of the release. Upon receipt of the Certificate of Final Completion, the Construction Manager, the Owner s Representative(s) and the Engineer will make the final inspection, to determine if the Work is fully completed in accordance with the terms of the Contract. If materials, equipment, workmanship or administrative requirements are found which do not meet the terms of the Contract, the Construction Manager shall prepare a Final Inspection List of such items and submit it to the Contractor. Following completion of the work to correct all items in the Final Inspection List the Contractor shall notify the Construction Manager. The Construction Manager shall, in turn, notify the Owner that the Work has been completed in accordance with the Contract. The Owner s Representative will recommend to its Board of Directors to accept the Work as complete. Acceptance of the Project for final completion requires formal acceptance by Owner's Board of Directors. If Owner determines that the Work is not complete after receipt of certification, Contractor shall be notified in writing of deficiencies. After the deficiencies have been corrected, the procedure for final inspection as set forth above shall again be initiated by Contractor. In the event Owner s Representative determines the Work is then fully completed, January A20 pw://carollo/documents/client/ca/mid/8600a20/specifications/trps Bypass and Valve Replacement/00700 (Final_BidSet)

5 Owner s Representative shall initiate the process of recommending to its Board of Directors to accept the Project. Following receipt of all required submittals and the Construction Manager's written statement that construction is complete and recommendation that the Owner accept the project, the Owner s Board of Directors will take formal action on acceptance. The final payment shall not be due and payable until the expiration of sixty (60) days from the Owner's acceptance of the Project. Acceptance of final payment by Contractor shall constitute a waiver of all claims by Contractor, except those previously made in writing in conformity with the Agreement and identified as unsettled at the time of final payment or those related to final payment or items of Work that are incomplete at the time of Final Acceptance. The Owner will pay the Contractor in lawful money such sums of money as may be due the Contractor including all sums retained but excluding such sums as have previously been paid the Contractor and as may be needed to cover outstanding stop notices. This payment will constitute the final payment to the Contractor under this Contract. 9.8 Warranties and Bonds The Contractor hereby agrees to make, at its own expense, all repairs or replacements necessitated by defects in materials or workmanship, supplied under terms of this Contract, and pay for any damage to other works resulting from such defects, which becomes evident within one (1) year after the date of acceptance of the project or within such longer period of time as may be prescribed by law or by the terms of any applicable special guarantee required by the Contract Documents. The Contractor further assumes responsibility for a similar guarantee for all work and materials provided by subcontractors or manufacturers of packaged equipment components. The Contractor also agrees to indemnify, defend, and hold the Owner harmless from liability of any kind arising from damage due to said defects. The Contractor shall execute and submit a completed WARRANTY FORM found in Section 01999, REFERENCE FORMS for the Work. The Warranty Form shall be submitted prior to the final acceptance of the project. The Contractor shall, upon the receipt of notice in writing from the Owner, promptly make all repairs arising out of defective materials, workmanship, or equipment. The Owner is hereby authorized to make such repairs, and the Contractor and its Surety shall be liable for the cost thereof, if ten (10) days after giving of such notice to the Contractor, the Contractor has failed to make or undertake the repairs with due diligence. In case of emergency, where in the opinion of the Owner delay could cause serious loss or damage, repairs may be made without notice being sent to the Contractor, and the expense in connection therewith shall be charged to the Contractor, and its Surety shall be liable for the cost thereof. Prior to the expiration of the Warranty period, the Owner reserves the right to hold a meeting and require the attendance of the Contractor. The purpose of the meeting is to review warranties, bonds and maintenance requirements and determine required repair or replacement of defective items. For the purpose of this paragraph, acceptance of the Work or a portion of the Work by the Owner, shall not extinguish any covenant or agreement on the part of the Contractor to be performed or fulfilled under this Contract which has not, in fact, been performed or fulfilled at the January A20 pw://carollo/documents/client/ca/mid/8600a20/specifications/trps Bypass and Valve Replacement/00700 (Final_BidSet)

6 MID Terminal Reservoir Valve Replacement and Bypass Installation Change Order Status and Contract Value Total Bypass Valve Repl Other Original Contract $2,423, $2,209, $213, $0.00 Authorized Contingency $242, $220, $21, $49, Total Authorized Project Budget $2,665, $2,430, $234, $49, Executed/Authorized Change Orders CCO Amt Bypass Valve Replmnt Breaker Rplcmt O&M New Contr Total Rem Total CCO Budget Rem Bypass CCO Budget Rem Valve Rep CCO Budget 1 Hyd Tank Air Comp Conc Pad $3, $3, $0.00 $2,426, $239, $217, $21, Valve Vault Changes $14, $14, $0.00 $2,441, $224, $202, $21, Tee to Nozzle Connections -$11, $11, $0.00 $2,430, $235, $214, $21, P3 and P4 Replacement Breakers $47, $0.00 $0.00 $47, $2,477, $235, $214, $21, Duel Feed UPS System $28, $26, $2, $2,506, $206, $188, $18, Bypass Connection Additional Work $11, $11, $0.00 $2,518, $195, $176, $18, Valve Vault Ductbank Deletion -$20, $0.00 -$20, $2,497, $215, $176, $39, UPS Mods $4, $4, $ $2,502, $210, $171, $38, HMI Substitution $4, $3, $ $2,506, $206, $168, $38, Add P3 and P4 Breakers to Short Circuit Study $1, $1, $2,508, $204, $168, $38, Singer RCV Rep Add'l Site Visit $3, $3, $ $2,511, $201, $165, $38, Pump Station Electrical Changes $24, $22, $2, $2,536, $177, $142, $35, Misc Mechanical Changes $3, $3, $ $2,540, $173, $139, $35, CMU Sound Wall $6, $6, $ $2,547, $166, $132, $34, Plunger Valve Drain Pipe Extensions $ $0.00 $ subtotal $124, $87, $12, $49, $2,547, $165, $132, $34, $2,547, $2,297, $200, $49, Rem Bypass CCO Budget Rem Valve Rep CCO Budget Executed Field Orders FO Amt Bypass Valve Replmnt Breaker Rplmt New Contr Total Rem Total CCO Budget FO 1 CP1 Wiring Investigation - closed via CCO 12 $0.00 FO 2 Res Level to Singer Valve Piping - closed via CCO 13 CP1 Wiring Changes - closed via CCO 12 subtotal $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Potential CCOs CCO Amt Bypass Valve Replmnt Breaker Rplmt New Contr Total Rem Total CCO Budget Rem Bypass CCO Budget Rem Valve Rep CCO Budget $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 subtotal $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00