Tim Gleason, City Manager

Keith Alexander, Director of Water Management

Jerry Stevens, P.E., Engineering Services Coordinator

Lake Decatur Dredging and Oakley Sediment Basin Rehabilitation  Professional Engineering Services Agreement Change Order #1 with Chastain & Associates LLC City Project W1314

City Council adopt the attached Resolution authorizing Lake Decatur Dredging and Oakley Sediment Basin Rehabilitation Professional Engineering Services Agreement Change Order #1 with Chastain & Associates LLC for a cost not to exceed $293,695.88.

In October 2013 the City Council approved a 5 year professional engineering services agreement with Chastain & Associates LLC (Chastain) to provide the following services for Lake Decatur Dredging and Oakley Sediment Basin Rehabilitation for a cost not to exceed $897,900:

• Administration and Management
• Completion of 2013 Contract Documents for Dredging
• Rehabilitation of Oakley Sediment Basin
• Construction Administration of Dredging

In February 2014 the City Council awarded a 6 year contract to Great Lakes Dredge & Dock Co. (GLDD) to rehabilitate the Oakley Sediment Basin and dredge Lake Decatur Basins 1-4.  

Therefore, Change Order #1 is required as the original agreement with Chastain anticipated that the entire project would take 5 years to complete from late 2013 to late 2018.  Since the dredging contract with GLDD is for 6 years, the entire project will most likely not end until mid 2020 (6.5 years) to allow for post dredging tasks such as demobilization, land based dredging operations site reclamation, contractor pay application processing and related items.  These all require additional professional engineering services hours (at a cost not to exceed $293,695.88) and a completion date extension of 546 days until June 30, 2020.

COST SAVINGS:

To find potential construction management cost savings for the second half of the dredging project, a Request for Proposals was issued in November 2016.  Chastain submitted the only proposal.  Change Order #1 was negotiated with Chastain which resulted in a cost savings of $6,345 by reducing Chastain’s inspection of the Oakley Sediment Basin from weekly to biweekly.  City staff will inspect the Basin on the alternating weeks.

Therefore, including Change Order #1:

• Construction management services cost will be $1,152,620.88 or 1.29% of the entire project’s construction cost.  This is well below the industry average of 2% to 4%.
• Total project contingency will be an extremely low $793,695.88 or 0.875% of the project’s total cost.  Contingencies for large construction projects typically vary from 0% to 10% of the total cost.

Attached for reference are the following documents:

• Resolution
• Change Order #1
• Chastain Change Order Request Letter
• Chastain Change Order Budget

This expenditure will be paid from Water Construction Bond Fund 89.  Approval of this change order will increase project costs no more than $293,695.88 and enable it to continue on schedule.

Gregg Foltz, Chastain & Associates

Randy Miller, Water Services Manager