07-286 Resolution No. 07-286
RESOLUTION
APPROVING CHANGE ORDER NO. 1 AND FINAL IN THE CONTRACT WITH
MORSE ENERGY, L.L.P. FOR THE RIVERSIDE TREATMENT PLANT AND
SLADE AVENUE FACILITY BACKUP POWER PROJECT
WHEREAS, the City of Elgin has heretofore entered into a contract with Morse Energy,
L.L.P. for the Riverside Treatment Plant and Slade Avenue Facility Backup Power Project; and
WHEREAS,it is necessary and desirable to modify the terms of the contract as is described
in Change Order No. 1 and Final, attached hereto.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
ELGIN,ILLINOIS,that Olufemi Folarin,City Manager,be and is hereby authorized and directed to
execute Change Order No. 1 and Final,a copy of which is attached hereto and made a part hereof by
reference.
s/Robert Gilliam
Robert Gilliam, Mayor Pro Tern
Presented: November 28, 2007
Adopted: November 28, 2007
Omnibus Vote: Yeas: 6 Nays: 0
Attest:
s/Diane Robertson
Diane Robertson, City Clerk
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ELGIN, ILLINOIS
WATER DEPARTMENT BACKUP POWER PROJECT
CHANGE ORDER NO. 1 AND FINAL
SCOPE
This Change Order No. 1 and Final adjusts the contract price provided for by an original
agreement between the City of Elgin, Illinois, a municipal corporation (hereinafter referred
to as "Owner") and Morse Energy, LLC, an Illinois limited liability company (hereinafter
referred to as "Contractor"), dated April 13, 2006, to account for additions and modifications
to the aforementioned original agreement as provided below:
BASIS FOR CHANGE
1. On-site Disposal of Excess Excavated Material at Riverside WTP - The
original contract documents required off-site disposal of excess excavated material.
The Contractor offered a credit to dispose of the excess excavated material on-site by
adding to the berm at the Riverside Water Treatment Plant.
2. Reduction of Fuel Storage Tank Fill Lines From 3-Inch to 2-Inch Diameter -
The supplier of the fuel tanks recommended reducing the size of the tank fill lines
from 3-inch to 2-inch.
3. Deletion of Concrete Encasement of the Existing Utility Feeder Conduit for
the Riverside WTP Site - During excavation for the generator pad at the Riverside
WTP, it was discovered that the existing utility feeder conduit was already encased.
4. Furnish and Install Sheeting to Protect the Existing Building Foundation
from being Undermined at the Slade Avenue Site - This is necessary due to an
unforeseen underground condition consisting of 3 to 4 feet of loose 3-inch rock below
the building foundation.
5. Over-excavation of Existing Unsuitable Fill Material Beneath the
Equipment Pad at the Slade Avenue Site and Replacement with Compacted
Fill - This additional work is in accordance with the recommendations of
geotechnical consultant - Terracon.
6. Modifications Required to Resolve the Breaker Tripping Problem
Associated with the Existing Switchgear at the Riverside WTP - These
modifications are required because the new generator gear is not included in the
differential protection scheme that existed before the new gear was added and the
control power for the existing gear is derived from the line side of the main circuit
breaker.
7. Review of Second and Subsequent Shop Drawing Resubmittals - Per the
Contract Documents, the Contractor shall reimburse the Owner for the charges of
the Engineer for second and subsequent shop drawing submittals.
8. Additional Engineering Costs Incurred as a Result of Significant Delays
Associated with Completion of the Project - The contract substantial
completion date was September 25, 2006. Substantial completion has yet to be
achieved.
9. Performing a Coordination Study for the Purpose of Developing Setpoints
for the Protective Relays on the Existing 15KV Circuit Breakers Feeding
Transformers T2 and T6 at Riverside Water Treatment Plant.
Change Order No. 1 and Final is necessary and proper due to the following:
The circumstances necessitating the change in performance were not reasonably
foreseeable at the time the original agreement was signed; the changes provided for
herein are germane to the original contract as signed; and this Change Order No. 1
and Final is in the best interests of the City of Elgin and is authorized by law.
CHANGES IN CONTRACT AMOUNT
Adjustments to the Contract Price resulting from the aforementioned items shall be the
negotiated lump sum prices covering all compensation due for the work as shown in Table
1.
CHANGE IN CONTRACT TIME
The following adjustments to the Contract Times shall be given for Work completed under
this change order:
Original Adjusted
Completion Date Completion Date
Substantial Completion September 25, 2006 January 18, 2008
Final Completion November 25, 2006 January 27, 2008
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CHANGE ORDER NO. 1 AND FINAL
TABLE 1
SUMMARY OF CONTRACT PRICE CHANGE
ITEM ADD DEDUCT
1. On-site Disposal of Excess Excavated Material at $20,000.00
Riverside WTP
2. Reduction of Fuel Storage Tank Fill Lines from 3- $465.00
inch to 2-inch Diameter
3. Deletion of Concrete Encasement of the Existing $16,334.00
Utility Feeder Conduit for the Riverside WTP Site
4. Furnish and Install Sheeting to Protect the $10,390.00
Existing Building Foundation from being
Undermined at the Slade Avenue Site
5. Over-excavation of Existing Unsuitable Fill $12,875.00
Material Beneath the Equipment Pad at the Slade
Avenue Site and Replacement with Compacted Fill
6. Modifications Required to Resolve the Breaker $39,930.00
Tripping Problem Associated with the Existing
Switchgear of the Riverside WTP
7. Review of Second and Subsequent Shop Drawing $1,307.00*
Submittals
8. Additional Engineering Costs Incurred as a Result $28,220.94*
of Significant Delays Associated with Completion
of the Project
9. Performing a Coordination Study for the Purpose $6,750.00
of Developing Setpoints for the Protective Relays
on the Existing 15KV Circuit Breakers Feeding
Transformers T2 and T6 at Riverside Water
Treatment Plant.
TOTAL ADD $69,945.00
TOTAL DEDUCT $66,326.94
NET CONTRACT PRICE CHANGE $3,618.06
CONTRACT AMOUNT $1,676,330.00
NET CONTRACT PRICE CHANGE $3,618.06
NEW CONTRACT AMOUNT $1,679,948.06
PERCENTAGE OF NET CONTRACT
PRICE CHANGE 0.02%
* The sum of Items Nos. 7 and 8, which totals $29,527.94, is being deducted from the
payment to the Contractor and used to reimburse Rezek, Henry, Meisenheimer and
Gende, Inc. for the additional engineering costs incurred for Items Nos. 7 and 8.
ACCEPTANCE
The changes and conditions set forth in this Change Order No. 1 are hereby
accepted. All other provisions of the Contract remain unchanged.
MORSE ENERGY, L.L.C. CITY OF ELGIN, ILLINOIS
(Contractor) (Owner)
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Date: X0/6/240 7 Date:
November 9, 2007 -
TO: Mayor and Members of the City Council
FROM: Olufemi Folarin, City Manager
Kyla Jacobsen, Water System Superintendent
SUBJECT: Change Order No. 1 (Final)with Morse Energy for the Backup Power Project
PURPOSE
The purpose of this memorandum is to provide the Mayor and members of the City Council with
information to consider authorization of Change Order No. 1 with Morse Energy LLC for the
Riverside Treatment Plant and Slade Avenue Facility Backup Power project.
RECOMMENDATION
It is recommended that the City Council authorize the execution of Change Order No. 1 with
Morse Energy LLC for the Riverside Treatment Plant and Slade Avenue Facility Backup Power
project for a total cost of$3,618.
BACKGROUND
In June 2002, Black & Veatch, the consulting engineer, completed the emergency power study.
The study provided two alternatives for supplying the 2020 emergency water requirements.
Alternative one provided for emergency generation facilities such that the Riverside Water
Treatment Plant (WTP) would provide the total emergency water demand of 20.3 mgd for year
2020. Alternative two provided for emergency generation facilities such that Riverside WTP
would provide 16.0 mgd and Airlite provide up to 7.0 mgd of the total emergency water demand
of 20.3 mgd for year 2020.
On July 13, 2005, the City Council awarded phase one of the project to Cummins N Power.
Phase one included the procurement of two generators at Riverside and one generator for Slade
Avenue pump station and wells.
On March 22, 2006, the City Council awarded phase two of the project to Morse Energy LLC.
The work for phase two consisted of the installation of three 1250 KW engine-generators. Two
generators, two neutral grounding resistors, load bank, medium voltage switchgear, 5000 gallon
above ground fuel storage tank and remote fill station were installed at the Riverside WTP. One
generator, neutral grounding resistor, transformer, switchgear, 2500 gallon above ground fuel
Change Order No. 1 with Morse Energy LLC—Backup Power Project
November 9, 2007
Page 2
storage tank and remote fill station were installed at the Slade Avenue facility. At each site, the
installation also consisted of concrete pad construction, associated electrical gear, controls,
connections to exiting utilities and site work. The work also included the installation of a
manual transfer switch and portable generator connection at three elevated storage tank
locations. This work has all been completed.
Change Order No. 1 includes nine (9) items that were not anticipated at the time that the contract
with Morse Energy was authorized and are in the best interest of the City. These items are:
1. On-Site Disposal of Excess Excavated Material at Riverside WTP ($20,000 deduct);
2. Reduction of Fuel Storage Tank Fill Line from 3-inch to 2-inch Diameter ($465
deduct);
3. Deletion of Concrete Encasement of the Existing Utility Feeder Conduit for Riverside
WTP Site ($16,334 deduct);
4. Furnish and Install Sheeting to Protect the Existing Building Foundation from being
Undermined at the Slade Avenue Site($10,390 add);
5. Over-excavation of Existing Unsuitable Fill Material Beneath the Equipment Pad at
Slade Avenue Site and Replacement with Compacted Fill ($12,875 add);
6. Modifications Required to Resolve the Breaker Tripping Problem Associated with the
Existing Switchgear of the Riverside WTP ($39,930 add);
7. Review of Second and Subsequent Shop Drawing Submittals ($1,307 deduct);
8. Additional Engineering Costs Incurred as a Result of the Significant Delays
Associated with Completion of the Project ($28,221 deduct); and
9. Performing a Coordination Study for the Purpose of Developing Setpoints for the
Protective Relays on the Existing 15KV Circuit Breakers Feeding Transformers T2
and T6 at Riverside WTP ($6,750 add).
The net change order is an additional $3,618. A copy of the Change Order No. 1 is attached for
your review.
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
None
FINANCIAL IMPACT
The total cost for Change Order No. 1 with Morse Energy LLC is $3,618. There are sufficient
funds budgeted ($400,000) and available ($4,104) in the Water Fund, account number 401-4002-
771.92-46, "Capital Additions/Other Equipment," project number 409018, to fund this change
order.
. .
Change Order No. 1 with Morse Energy LLC—Backup Power Project
November 9, 2007
Page 3
LEGAL IMPACT
None
ALTERNATIVES
1. Authorize Change Order No. 1 as recommended.
2. Do not authorize Change Order No. 1 at this time.
Respectfully submitted for Council consideration.
KBJ
Attachment