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HomeMy WebLinkAbout~Master - Change Order to Professional Services Agreement for new Water Plant design RESOLUTION NO. 13-414 RESOLUTION APPROVING CHANGE ORDER TO PROFESSIONAL SERVICES AGREEMENT FOR NEW WATER TREATMENT PLANT DESIGN FOR THE CITY OF AMES, IOWA WHEREAS,staff and the City's consulting engineers are seeking to apply value engineering principles to the new water treatment plant,providing an updated cost estimate for the new plant, and recommending approval of a major change order to the engineering services agreement; and, WHEREAS, the effect of these efforts is an estimated net savings to the project of approximately $4,000,000; and, WHEREAS,on August 28,2012,Council approved a professional services agreement with FOX Engineering for the final detailed design of the new water treatment plant, including bidding and construction phase services, and as a part of that agreement, FOX was to provide an updated Opinion of Probable Construction Costs (OPCC) as the design phase reached the 40%, 80%, and 100% stages; and, WHEREAS, prior to that time, cost estimates for the project had been prepared based on limited information, and the design at that level included definitions of the plant capacity, block schematics of the treatment process, flow and hydraulic diagrams for main process systems, and preliminary equipment lists; and, WHEREAS, at that level of detail, the cost estimate was a parametric estimate, with some budget-level pricing from vendors included for major materials and equipment; and, WHEREAS,that was the available level of detail when the cost estimate was prepared for the 2012-2017 Capital Improvements Plan (CIP), and because of the lengthy delay in land acquisition, little additional design detail was developed during the following year; and, WHEREAS, as a result, the cost estimate used in the 2013-2018 CIP was simply an inflation adjustment from the prior year's estimate; and, WHEREAS, in April of this year, the design work reached the 40% threshold, and the design team undertook the first cost opinion based on an actual set of working plans and specifications; and, WHEREAS, the 40% cost opinion was prepared by HDR Engineers, a sub-consultant to FOX Engineering; and, WHEREAS, HDR's design-build team prepared the cost estimate, and this provided the advantage of having the cost estimate prepared in the same fashion as a contractor would prepare its bid; and, WHEREAS, to obtain the total project cost, the 40% cost opinion was combined with the cost of engineering services, land acquisition, environmental assessments, easements, and other non-construction expenses,and the resulting total project cost estimate now stands at$77,795,000; and, WHEREAS, this is an increase of$9,677,000 over what is shown in the 2013-2018 CIP, and of that increase, $5,116,000 is attributable to inflation-related adjustments from the October 2012 cost estimate to the anticipated mid-point of construction; and, WHEREAS,the original design process for the project included a"value engineering"(VE) session that was to be conducted at the 80% complete stage at an estimated cost of$500,000; and, WHEREAS, after receiving the 40% cost estimate, however, staff determined that it was necessary to begin a comprehensive re-evaluation of the design immediately, looking for ways to reduce the cost without sacrificing the fundamental mission of the facility; and, WHEREAS, nearly all of the cost saving ideas that made it to the end of the value engineering process were recommended by staff for adoption into the final design of the new facility, with an estimated gross reduction of$3,474,855 from the 40% cost opinion; and, WHEREAS,this estimate is based on direct construction costs only,and do not include roll- ups such as the contractor's overhead and profit, and have not been inflated to the future bid date; and, WHEREAS, by developing a value engineering process utilizing internal resources to identify cost-saving design modifications instead of hiring outside consultants, the process immediately saved the $500,000 included in the 40% cost opinion estimate for independent VE consulting, and this brings the overall gross project savings generated by this process to an estimated $3,974,600; and, WHEREAS, staff has worked with the consulting team to define the level of additional design work needed to incorporate the changes from the value engineering process, and FOX Engineering has submitted a proposed change order to Task Order 4.1 to incorporate the design changes in the amount of$529,745; and, WHEREAS,.This includes$71,300 authorized by Council on August 13,and the terms and conditions of the Master Agreement with FOX remain in place; and, WHEREAS, staff believes the proposal to be an appropriate reflection of the additional work being requested, and recommends that the City Council approve the change order to Task Order 4.1. NOW,THEREFORE,BE IT RESOLVED,by the City Council of the City of Ames,Iowa, that the change order to Task Order 4.1 under the Master Agreement with FOX Engineering for the design, bidding, and construction of the new water treatment plant in an additional lump sum amount of$529,745 is hereby approved. ADOPTED THIS 27ffi day of August, 2013. C-1A, f7 ) P.-441"o A. tx • Diane R. Voss, City Clerk Ann H. Campbell, Mayor Introduced by: Davis Seconded by: Orazem Voting aye: Davis, Goodman, Larson, Orazem, Szopinski Voting nay: None Absent: Wacha Resolution declared adopted and signed by the Mayor this 27t1i day of August, 2013.