Title
Resolution to Approve Construction Contract Change Order No. 1 with Gerace Construction Company, Inc. for the Barton Dam Air Shaft Repairs Project ($74,900.00) and to Appropriate Funding (8 Votes Required)
Memorandum
This memorandum and resolution requests approval to award contract change order No. 1 for the Barton Dam Air Shaft Repairs to Gerace Construction Company, Inc. (Gerace) ($74,900.00). Change order No. 1 will add to the scope of services in the Geddes Dam Gate Recoating and Repairs Project (Resolution R-19-195; 5/6/19; $828,000.00) to repair issues in the Barton Dam Air Shaft.
The Barton Dam is one of the two hydroelectric power generating facilities owned by the City of Ann Arbor (City). The hydroelectric facility generates approximately 4,200 MWh/year and typically contributes revenue of over $300,000.00 to the City per year. The Barton Dam was originally constructed in 1912. It is classified as a high hazard dam and is regulated by the Federal Energy Regulatory Commission (FERC).
The interior of the dam is entered by a concrete access shaft, approximately 30-feet deep, located at the end of the dam. The bottom of the access shaft is experiencing concrete deterioration, with significant concrete loss to the wall thickness. Water is currently leaking through the deterioration. The deterioration was noted as part of the FERC Dam Safety Inspection in 2018 and is considered a safety concern. The Inspection Report recommended to install temporary risk reduction measures while planning a permanent repair.
As part of Resolution R-19-195, the City awarded the Geddes Dam Gate Recoating and Repairs Project to Gerace Construction Company, Inc. (Gerace) on May 6, 2019. Gerace’s area of expertise is dam repairs and they have performed work on many of the City’s dam projects, including the Barton Dam Concrete Repairs in 2011. Gerace possesses the expertise to complete the design of the temporary repair system, and to construct the repairs. They are uniquely positioned to complete this design and repair work quickly as they are currently under contract with the City. Their quote to complete the work was less than the Engineer’s Estimate of $80,000.00.
The scope of this project includes the design and construction of the temporary repair measures. The repair measures include an internal steel bracing system designed and sealed by a Professional Engineer.
The original contract with Gerace for the Geddes Dam Gate Recoating and Repairs Project was approved for $828,000.00 as part of Resolution R-19-195. It is recommended that Change Order No. 1 in the amount of $74,900.00 be approved and amended to the Geddes Dam Gate Recoating and Repairs Project. This resolution will bring the total value of services with Gerace to $902,900.00.
Gerace complies with the City’s Conflict of Interest, Living Wage and Non-Discrimination Ordinances.
Budget/Fiscal Impact: Barton Dam serves dual purposes, as both a reservoir for the City’s water supply and to retain the Barton Pond which drives the hydroelectric turbine. Therefore, expenses for the Dam and any repairs are split evenly between the General Fund and the Water Supply System Fund.
The $37,450.00 is available in each of the FY20 General Fund and Water Supply System Budget for a total of $74,900.00. City staff is requesting that $37,450.00 in revenue and expenses be appropriated from the General Fund Budget to the Barton Airshaft Repair project budget, which is established in the Water Supply System Budget.
Staff
Prepared by: Brian Steglitz, Water Treatment Services Unit Manager
Reviewed by: Craig Hupy, Public Services Area Administrator
Approved by: Howard S. Lazarus, City Administrator
Body
Whereas, It is necessary to repair significant concrete deterioration at the bottom of the access shaft at the Barton Dam;
Whereas, The Barton Dam is critical infrastructure and is classified as a high hazard potential dam;
Whereas, The deterioration was noted in the FERC Dam Safety Inspection Report in 2018 and is considered a safety concern that requires remediation;
Whereas, Gerace Construction Company, Inc. (Gerace) was awarded the Geddes Dam Gate Recoating and Repair Project as part of Resolution R-19-195 on May 6, 2019;
Whereas, Gerace is uniquely positioned to provide the design and construction services quickly and efficiently as they are currently under contract with the City and have experience working on Barton Dam; and
Whereas, Funding in the amount of $74,900.00 is available in the approved FY20 General Fund and Water Supply System Operations and Maintenance Budgets; and
Whereas, Gerace complies with the City’s Conflict of Interest, Living Wage and Non-Discrimination Ordinances;
RESOLVED, That the Change Order No. 1 in the amount of $74,900.00 to the Contract with Gerace for the Geddes Dam Gate Recoating and Repairs Project be approved;
RESOLVED, That a contingency in the amount of $7,500.00 be approved to finance change orders to be approved by the City Administrator;
RESOLVED, That $37,450.00 be appropriated from the FY20 General Fund Operations and Maintenance Budget to increase the revenue and expense budget of the existing Water Fund Barton Dam Airshaft Repair project budget;
RESOLVED, That should the $7,500.00 contingency need to be expended, that an additional $3,750.00 be appropriated from the FY20 General Fund Operations and Maintenance Budget to increase the revenue and expense budget of the existing Water Fund Barton Dam Airshaft Repair Project Budget;
RESOLVED, That the Mayor and City Clerk bee authorized and directed to execute the Change Order to the Contract after approval as to substance by the City Administrator and approval as to form by the City Attorney;
RESOLVED, That the funds for this project are available for the life of the project without regard to fiscal year; and
RESOLVED, That the City Administrator be authorized to take the necessary administrative actions to implement this resolution.