Title
Verde Water Treatment Plant Facilities Demolition and Site Restoration - Construction Manager at Risk Construction Services Amendment 2 - WS85200010 (Ordinance S-46303)
Description
Request to authorize the City Manager, or his designee, to execute an amendment to Agreement 140324 with Hunter Contracting Co. to provide additional Construction Manager at Risk (CMAR) construction services for the Verde Water Treatment Plant Facilities Demolition and Site Restoration project. Further request to authorize execution of amendments to the agreement as necessary within the Council-approved expenditure authority provided below, and for the City Controller to disburse all funds related to this item. The additional fee for services included in this amendment will not exceed $6,850,000.
Report
Summary
The purpose of this project is to demolish the Verde Water Treatment Plant (WTP) and restore the land-leased site to its original condition as much as possible, at the request of the Salt River Pima-Maricopa Indian Community (SRPMIC). The site is located near the confluence of the Salt and Verde Rivers. In an Oct. 7, 2011 letter, the City gave the SRPMIC notice of its intention to cease the plant operations and remove it from the City's water distribution system on Dec. 31, 2011 and turn the plant over to the SRPMIC on Dec. 31, 2014.
This amendment is necessary because based on sampling of soil for arsenic levels, it was discovered that remediation of arsenic soils near the percolation pond needed to be expanded and excavation depth increased to meet the arsenic level agreed to by the City and SRPMIC. The soil remediation area has increased in volume from 55 tons to approximately 150 tons. The contaminated soil will be removed and replaced with clean backfill and landscape will be added to the extended areas of excavation. This amendment will provide additional funds to the agreement.
Contract Term
The original contract term remains the same. 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 agreement for CMAR Construction Services was executed for a fee not-to-exceed $13,391.63, including all subcontractors and reimbursable costs.
- Amendment 1 increased the agreement value by $14,984,709.95, including all subcontractors and reimbursable costs.
- Change Orders 1 through 3 increased the agreement value by $2,350,000, including all subcontractors and reimbursable costs.
- Amendment 2 will increase the agreement by an additional $6,850,000, for a new total not-to-exceed agreement value of $24,198,101.58, including all subcontractors and reimbursable costs.
Concurrence/Previous Council Action
The City Council approved:
- Design Services Agreement 140252 (Ordinance S-41532) on March 18, 2015;
- CMAR Design Phase Services Agreement 140253 (Ordinance S-41533) on March 18, 2015;
- CMAR Construction Services Agreement 140324 (Ordinance S-41568) on March 25, 2015;
- CMAR Construction Services Agreement 140324 Amendment 1 (Ordinance S-43437) on April 19, 2017;
- Construction Administration and Inspection Services Agreement 144857 (Ordinance S-43444) on April 19, 2017;
- CMAR Construction Services Agreement 140324 Change Order 1 (Ordinance S-44503) on May 2, 2018;
- CMAR Construction Services Agreement 140324 Change Order 2 (Ordinance S-44781) on June 20, 2018; and
- CMAR Construction Services Agreement 140324 Change Order 3 (Ordinance S-45845) on June 26, 2019.
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.