Title
Consideration of Change Order No. 5 to Services Agreement AGR17-30 and Budget Revision 2019-16 for the Otowi Well #2 Design, Drilling and Development Project
Recommended Action
I move the Board of Public Utilities approve Change Order No. 5 to AGR 17-30 for the Otowi Well #2 Design, Drilling and Development Project in the amount of $446,490.16 and forward to County Council for approval. I further move the Board of Public Utilities approve Budget Revision 2019-16 as summarized on Attachment D, and forward to County Council for approval. I further move the budget revision be included in the minutes.
Utilities Manager's Recommendation
The Utilities Manager recommends that Council approve Change Order No. 5 and Budget Revision 2019-16 as requested.
Body
The drilling of Otowi Well #2 began on January 16, 2018. The drilling operation was originally schedule to take 60 days to complete the drilling and install the screen and casing. We have provide as Attachment A, a copy of the construction schedule issued on January 9, 2018. The driller was using the reverse rotary mud drilling method and encountered a fissured basalt geological formation at about 50 feet below ground level. The fissures in the basalt caused the drilling mud to be lost into the formation and drilling was stopped since the cuttings could not be removed from the bore hole due to the loss of circulation. Through February and March the contractor and the DPU negotiated the project's first change order that modified the drilling equipment to change the drilling technique to a dual pipe rotary air drilling methodology. This was a high cost change due to the need to custom fabricate some equipment, re-tool the drilling rig and increase the number of air compressors to drive the air circulation process. Beginning on April 1, 2018 work continued using a combination of the dual pipe rotary air and reverse rotary mud methodologies. Drilling fluid and recirculated air continued to be los...
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