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DEPARTMENT OF WATER MANAGEMENT <br /> Memorandum No. 2014-15 <br /> July 1,2014 <br /> TO: Mayor Michael T.McElroy and City Council <br /> FROM: Ryan P. McCrady, City Manager <br /> Gregg D. Zientara,Director of Financial Management <br /> Keith D. Alexander,Director of Water Management <br /> SUBJECT: Contract Addendum No. 1 for Lake Decatur Dredging of Basins 1-4 and <br /> Rehabilitation of Oakley Sediment Basin-City Project W1314 <br /> SUMMARY RECOMMENDATION: <br /> Council adopt the attached Resolution authorizing Contract Addendum No. 1 for Lake Decatur Dredging <br /> of Basins 1-4 and Rehabilitation of Oakley Sediment Basin with Great Lakes Dredge &Dock Company, <br /> LLC for an estimated cost savings of$75,000 to$100,000. <br /> BACKGROUND: <br /> The current contract with Great Lakes Dredge & Dock (GLDD) requires GLDD to carry a contract bond <br /> for the entire amount of the contract work of $89,254,535.96. Contract bonds are required for City <br /> construction projects to ensure that the City's risk is minimized if a contractor defaults on the terms of a <br /> contract. <br /> GLDD proposed to the City that an estimated cost savings of$150,000 to $200,000 could be attained by <br /> having the contract bond structured in smaller components rather than bonding the entire project for the <br /> entire 6 year length of the contract. The components are: <br /> a. Project mobilization, Oakley Sediment Basin rehabilitation, dredging Basin 1 Areas 1 <br /> and 2. <br /> b. Dredging Sand Creek and Big Creek areas. <br /> c. Dredging Basins 2 and 3 and new water main construction. <br /> d. Dredging Basins 4 and 6, project demobilization and all other Contract work not <br /> described in the previous components. <br /> It is City staff's opinion that the proposal does not increase the City's risk and is a valid method to <br /> significantly reduce the City's cost of the project. Since GLDD voluntarily made this proposal to the City <br /> after the contract was authorized by the City Council, it is recommended that the actual cost savings be <br /> equally split between GLDD and the City. <br /> POTENTIAL OBJECTION: None foreseen. <br /> STAFF REFERENCE: <br /> Keith Alexander,Director of Water Management, 217-424-2863 or kalexander@decaturil.gov <br /> BUDGET/TIME IMPLICATIONS: <br /> It is estimated that the City's cost of this project will be reduced by$75,000 to $100,000. <br /> Attachments <br /> cc: Jon Nieman, GLDD <br /> Jerry Stevens, Engineering Services Coordinator <br /> Scott Clark, Risk Manager <br />