Okaloosa County BOCC — July 7, 2015 — Gulf Coast Underground Contract Renewal & Change Order #2 — agenda request

BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: July 7, 2015 TO: Honorable Chairman and Members of the Board FROM: Jeff Littrell SUBJECT: Gulf Coast Underground Contract Renewal & Change Order #2 DEPARTMENT: Water and Sewer BCC DISTRICT: All STATEMENT OF ISSUE: Approve Contract Renewal for Contract #C13-2066-WS with Gulf Coast Underground for an additional two year period (as permitted by the original contract language) with no adjustment in price. Concurrently, approve Change Order #2 to add additional scope of work for rehabilitation of manholes throughout OCWS’s service areas (Phase III of this maintenance contract). For your review, attached are the Contract Renewal Form (with Contract Review Coordination Sheet), Certificate of Insurance, Change Order #2 Form, and Change Order #1 & 2 Summary. BACKGROUND: An annual maintenance contract with a two-year initial contract period for the rehabilitation of manholes and lift station wet wells was awarded on October 1, 2013. The initial phase, consisting of 13 manholes, was completed in late 2013. OCWS staff was satisfied with the quality of work performed on the original phase and added to the contract with Change Order #1, to facilitate the rehab of 25 more existing manholes and the new Emerald Breeze Lift Station wet well (on Okaloosa Island) before it was placed in service. This work was completed in 2014 and was also to the satisfaction of OCWS staff. The original contract was awarded to Gulf Coast Underground, LLC. of Mobile, AL in the amount of $46,195.00 in Oct 2013. Change Order #1 added $74,835.00 to the original contract, for a revised contract total of $121,030.00. Change Order #2 will add another $198,895.00 to the contract to facilitate the rehabilitation of approximately another 800 vertical feet of deteriorated manholes throughout OCWS’ service areas during the next phase of sewer rehabilitation. Although this is called a "change order", no changes are being made to the contract terms and conditions, time, or unit prices. This change order simply adds quantities, as was originally intended for this phased maintenance contract, which includes mission critical work to address major issues related to aging sanitary sewer collection system infrastructure. By rehabilitating gravity sewer lines and manholes, several things are accomplished: 1) adds a significant amount of useful life to the infrastructure, 2) reduces infiltration and inflow into the system (less wastewater we have to treat) and 3) minimizes the risk of system buildup, blockages (because roots won't be infiltrating joints every 4 feet), and sewer spills. In OCWS' 2015 budget, the following dollars are available for gravity sewer rehabilitation: 1) $450,000 from state appropriation (via FDEP grant agreement), 2) $510,423 allocated from the 2012 bank loan, and 3) $500,000 in the CIP (cash/rate model). To accomplish the work in Change Order #2, the contract needs to be renewed for an additional two years, as outlined in the original contract. The contractor has not requested a price increase and as a result, this renewal will "lock in" the original unit prices through Sept. 30, 2017. OPTIONS: Approve or deny. RECOMMENDATIONS: OCWS requests BCC approval to authorize the Chairman to execute the Contract Renewal and Change Order #2 to Contract # C13-2066-WS with Gulf Coast Underground, adding $198,865.00 in scope of work for the rehabilitation of gravity sewer manholes and lift stations (Phase III of maintenance contract). RECOMMENDED BY: APPROVED BY: John Hofstad, County Administrator