Scot Wrighton, City Manager

Matthew C. Newell, P.E., Public Works Director

Resolution Approving Change Order No. 22 to the Contract with Great Lakes Dredge and Dock, LLC for Lake Decatur Dredging of Basin 1 -4 and the Rehabilitation of the Oakley Sediment Basin

City Project W1314

It is recommended that the City Council approve the attached Resolution authorizing the Mayor to sign, and the City Clerk to attest, Change Order No. 22 to the Contract between the City of Decatur and Great Lakes Dredge and Dock, LLC.  The Change Order is in the amount of $1.45 million to settle contract claims for insufficient capacity, project delays and extra mobilization related to work removing silt and sediment from Lake Decatur and depositing it at the Oakley Sediment Basin Site.  The claim payment is within the $89,504,535.96 authorized contract limit.   

In the summer of 2017, it was determined that there was insufficient capacity in the Oakley Sediment Basin (OSB) to allow the dredging project to be completed as designed.  In order to complete the project, the berms were raised at the sediment site by 4 feet.  This work was performed in 2018.  Dredging of the lake was completed in December, 2018.

On March 22, 2019, Great Lakes issued a cost claim to the City for project delays and the extra work they believe to be necessary in dealing with the limited capacity of the site.  The cost claim amounted to $2,401,064 and is attached as Exhibit #1.  City Staff reviewed the claims and has negotiated an agreement with Great Lakes to settle all the outstanding claims, for $1.45 million.  Change Order 22 authorizes the claim payment to GLDD and outlines the final payments for the overall project. 

It is currently estimated that the City will complete the project with nearly $1.57 million left of the approved project funding.  After payment of the claim and possible minor change order work for restoration of damaged areas in the spring, the project should end with approximately $300,000 remaining of the approved funding (i.e., the project will finish only slightly under budget).

February 14, 2014 – City Council approved Resolution R2014-08 authorizing a contract with the Great Lakes Dredge and Dock Company, LLC for a price not to exceed $89,254,535.96. 

December 15, 2015 – City Council approved Resolution R2015-140 authorizing a contract increase of $250,000 to pay for an additional project contingency.

Budget Impact:  The final authorized contract amount of $89,504,535.96 is not changed by Change Order No 22.

Staffing Impact:  Staff time is allocated to manage the project. 

SCHEDULE:  All dredging is complete, and demobilization is scheduled to be complete by December 31, 2019.  Final restoration of Oakley Sediment Basin site and other areas disturbed by the project will be completed by August 1, 2020.