Title
Resolution to Approve Change Order No. 1 with Fonson Company, Inc. for the 2022 Valve Replacement Project; ($239,931.36 Increase, Total Contract Amount $1,490,903.36)
Memorandum
Attached for your review and approval is a change order to the construction contract with Fonson Company, Inc. for the 2022 Valve Replacement Project (ITB-4705).
Currently there are several water main valves throughout the City of Ann Arbor that do not function and would not facilitate the isolation of segments of the water main system in case of failure. In cases when a water main shut down is required, this may create additional inconvenience for the businesses and residents. Staff identified valves essential for the operation of the water system. This project included replacement of 17 valves at multiple locations throughout the City.
The replacement of existing valves in some areas was complicated by their location. The additional contract work also included placement of some additional valves at high priority locations and multiple additional line stops, which were necessary to stop the water flow in the pipes to allow for the work to proceed. The change order also includes some additional pavement, sidewalk, and curb replacement due to unforeseen conditions, and the balancing of some final pay items.
The initial contract award, including contingency equaled $1,350,972.00. The total change order amount for Change Order # 1 is $239,931.36, which exceeds the contingency originally approved by Council ($100,000.00). Change Order # 1 will bring the total contract amount to $1,490,903.36. This will be the final balancing change order for the project, and upon approval final payment can be made to the contractor and the project can be closed out.
Budget/Fiscal Impact: Funding for the project and this change order is available in the approved Water Supply System Fund Capital Budget.
Staff
Prepared by: Nicholas Hutchinson, P.E., City Engineer
Reviewed by: Brian Steglitz, Public Services Area Administrator
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, Many of the water main valves in the City’s system are currently not functioning and would not be able to isolate many parts of the water main in the case of a break;
Whereas, The new valves must be installed for appropriate operation of the water system;
Whereas, The work included in Change Order No. 1 was required to complete the project;
Whereas, The existing approved contingency amount of $100,000.00 is insufficient to cover the additional work in Change Order No. 1; and
Whereas, Funding for this change order is available from the Water Supply System Fund Capital Budget;
RESOLVED, That City Council approve Change Order No. 1 to the construction contract with Fonson Company, Inc. ($239,931.36 Increase, Total Contract Amount $1,490,903.36) for additional work on the 2022 Valve Replacement Project (ITB-4705); and
RESOLVED, That the City Administrator be authorized to take the necessary administrative actions to implement this resolution.