Title
Verde Water Treatment Plant Facilities Demolition and Site Restoration Construction Manager at Risk Construction Phase Services Change Order 2 - WS85200010 (Ordinance S-44781)
Description
Request to authorize the City Manager, or his designee, to execute construction Change Order 2 to Contract 140324 with Hunter Contracting Company in support of the Verde Water Treatment Plant (WTP) Facilities Demolition and Site Restoration project. Further request authorization for the City Controller to disburse all funds related to this item. The fee for additional services will not exceed $350,000.
Report
Summary
The Verde WTP is located near the confluence of the Salt and Verde rivers on land leased from the Salt River Pima-Maricopa Indian Community (SRPMIC). Treated water from the plant originally flowed by gravity through 22 miles of Verde Transmission Main to storage reservoirs at 64th Street and Thomas Road in Scottsdale, Ariz. The plant and the transmission main were physically removed from the City's water distribution system on Dec. 31, 2011, and are no longer in service. On April 14, 2014, SRPMIC requested the City remove all buildings and other improvements placed on the leased premises and restore the leased site as nearly as possible to its original condition. The Construction Manager at Risk (CMAR) has begun demolition and removal of the entire Verde WTP facilities including structures, tanks, pavement, buildings, and piping, as well as above-ground structures and appurtenances in the Verde 48-inch/60-inch transmission line. After demolition is complete, the CMAR will grade, landscape, and hydroseed the Verde WTP site to match similar conditions that existed prior to original construction.
After the project began, the CMAR discovered a 150-foot tunnel and additional “Above-Ground Structures,” which were not identified in the original scope of work. SRPMIC requested these be included in the project's demolition, removal and restoration work. These changes significantly increased the scope of work and there were significant delays in obtaining an agreement with the Fort McDowell Yavapai Nation (FMYN) to allow use of Yavapai Coral Road for transport of demolition debris.
This change order addresses costs associated with the additional work requested by SRPMIC, that was not included as part of the original bid.
Procurement Information
Hunter Contracting Company was selected for this project using a qualifications-based selection process according to section 34-201 of the Arizona Revised Statutes. Scoring and selection were made in conjunction with the CMAR design phase services procurement process.
Contract Term
The term for additional services is expected to take approximately 277 calendar days to complete, revising the substantial completion date from Dec. 18, 2018, to Sept. 11, 2019, and also revises the final completion date from Jan. 7, 2019, to Oct. 11, 2019. Contract work scope identified and incorporated into the contract prior to the end of the contract may be agreed to by the parties, and work may extend past the termination of the contract. No additional contract work scope changes may be executed after the end of the contract term.
Financial Impact
- The initial contract for CMAR Guaranteed Maximum Price (GMP) preparation services was established at an amount not-to-exceed $13,359.31.
- Amendment 1 was approved for CMAR construction phase services for an additional amount not-to-exceed $15 million and Change Order 1 was approved for an additional amount not-to-exceed $1.45 million, for a total not-to-exceed contract amount of $16,463,359.31.
- Change Order 2 will increase the contract amount by an additional $350,000 for a new total not-to-exceed contract amount of $16,813,359.31, including all subconsultant, subcontractor, and reimbursable costs.
Funding is available in the Water Service Department’s Capital Improvement Program budget. Contract payments may be made up to the contract limits for all rendered contract services, which may extend past the contract termination.
Concurrence/Previous Council Action
The City Council approved:
- CMAR construction phase services Contract 140324 (Ordinance S-41568) on March 25, 2015;
- CMAR construction phase services Contract 140324 - Amendment 1 (Ordinance S-43437) on April 19, 2017; and
- CMAR construction phase services Contract 140324 - Change Order 1 (Ordinance S-44503) on May 2, 2018.
Location
North Fort McDowell Road and Route 87 (Salt River Pima - Maricopa Indian Community)
Council District: Out of City
Department
Responsible Department
This item is submitted by Deputy City Managers Karen Peters and Mario Paniagua, the Water Services Department, and the City Engineer.