R2015-140 AUTHORIZING LAKE DECATUR DREDGING BASINS 1-4 & OAKLEY SEDIMENTATION BASIN REHABILITATION

Home Browse Search

DEPARTMENT OF WATER MANAGEMENT Memorandum No. 2015-21 December 15, 2015 TO: Mayor Julie Moore Wolfe and City Council FROM: Tim Gleason, City Manager Keith Alexander, Director of Water Management Jerry Stevens, Engineering Services Coordinator SUBJECT: Lake Decatur Dredging Basins 1-� & Oakley Sedimentation Basin Rehabilitation - City Project 2013-14 Great Lakes Dredge & Dock Co. Contract Pay Item Increase SUMMARY RECOMMENDATION: Council adopt the attached Resolution authorizing a Contract Pay Item Increase with Great Lake Dredge & Dock Co. at a cost not to exceed $250,000. BACKGROUND: In February 2014 the City Council authorized a six year $89,254,535.96 Lake Decatur dredging contract to Great Lakes Dredge & Dock Co. that contained a$250,000 contingency pay item for alterations, cancellations, extension, deductions and extra work. This pay item amount was extremely small for such a long term high dollar construction contract and was only 0.28% of the total contract price. Construction contingencies are project specific and typically vary from 1% to 10%. The construction phase of the project began in Apri12014. Since then there have been eleven contingency pay item change orders as described in the attached "Pay Item XX 101793 Status Summary". Since Great Lakes Dredge & Dock has been very cooperative in reducing expenses when possible, some change orders were a cost savings to the City and some were cost increases. To date, the net increase for these change orders is $120,650.99 above the original contingency amount of$250,000. Since the project will not be completed for another four years, it is anticipated that there will be several more cost increase and cost decrease change orders throughout the project's lifespan. Therefore it is recommended that the contingency pay item be increased by a cost not to exceed $250,000. This will increase the contract price by $250,000 from $89,254,535.96 to $89,504.535.96. The contingency pay item will still be a very insignificant 0.56% of the total contract price. POTENTIAL OBJECTION: None foreseen. STAFF REFERENCE: Keith Alexander, Director of Water Management, 217-424-2863 or kalexander@decaturil.gov Jerry Stevens, Engineering Services Coordinator, 217-424-2833 or jstevens@decaturil.gov