Title
Approval and Ratification of Amendment No. 1 to AGR20-23 Engineering Services for the Otowi Well No. 2 and Otowi Well No. 4 MCC Replacement Project with Wilson & Company Inc., Engineers and Architects.
Recommended Action
I move that the Board of Public Utilities approve and ratify Amendment No. 1 to AGR20-23 Engineering Services for the Otowi Well No. 2 and Otowi Well No. 4 MCC Replacement Project with Wilson & Company Inc., Engineers and Architects, in the Amount of $27,040.41 for a total agreement cost of $232,853.95, plus Applicable Gross Receipts Tax, and forward to Council for approval.
Utilities Managers Recommendation
The Utilities Manager recommends that the Board approve as presented.
Body
The engineering service agreement for the Otowi Well No. 2 and Otowi Well No. 4 MCC Replacement project was awarded in June 2021. The primary tasks included an initial evaluation of powering the new well by either electricity or by natural gas, based on the evaluation results proceed to preliminary and final design of the project, bidding support and construction engineering services. The additional work performed that make up this Amendment No. 1 are summarized below. The power options evaluation was expanded to included a third option which included an electric motor driven well with a natural gas generator that could serve as a back-up power supply or provided power to the well when economic conditions were more favorable using natural gas. There was extensive discussion during the presentation of the power evaluation study to the Utility Board focused on the water supply redundancy and resilience. The Utility Board directed staff to design the building to accommodate the generator and bid the generator as an additive alternate. In addition, the Utility Board directed staff to include in the presentation to award the construction contract an evaluation of the water supply redundancy and resilience to power outages and natural disasters to assist in the decision to award the additive alternate for the generator. A third party was hired to prepare a resilience and redundancy evaluation of the water supply which recommended the generator was not warranted now. The Utility Board proceeded to not award the additive alternate for the generator. The additional cost for this work is $6,743.72. The second item requiring additional work was due to the well house building doubling in size to accommodate a new natural gas powered generator (note that the option to power the well with an electric motor equipped with a natural gas generator was chosen). The architectural, electrical and mechanical elements of the project required additional design/engineering from what was represented in the request for proposals. The additional cost for this work is $4,620.54. The third item requiring additional work was primarily due to the project extending from 255 days to 689 days due to electrical equipment delays due to supply chain disruption caused by the COVID-19 pandemic. Administering the project an additional 434 days along with some challenges in SCADA coordination and material changes are the basis of $15,680.09 in cost increases.
Agreement AGR20-23 expired on December 31, 2023 due to coordination/clarification discussions with the vendor during the amendment preparation and modified Utility Board and Council calendars in December of 2023. For transparency and to avoid possible audit findings, this amendment is being presented for approval to the Utility Board and Council to ratify the contract.
Alternatives No.
If Amendment No.1 is not approved staff will work with procurement to close out the agreement.
Fiscal and Staff Impact/Planned Item
The cost increase of $27,040.41 related to Amendment No.1 will be funded from the $35,000 of contingency approved with award of the agreement.
Attachments
A - AGR20-23-A1 Wilson & Company