City of Lawrence

Utilities Department 

MEMORANDUM

TO:      David L. Corliss, City Manager

Cynthia Wagner, Assistant City Manager

                   Diane Stoddard, Assistant City Manager

FROM: John D. Shutak, Utilities Engineer

CC:      Dave Wagner, Director of Utilities

                   Mike Lawless, Assistant Director of Utilities

                   Philip Ciesielski, Assistant Director of Utilities

Beth Frailey Krishtalka, Management Analyst

Charles Soules, Director of Public Works

DATE: April 08, 2010

RE:                  Project UT0923DS Airport Watermain Extension – Approval of Change Order No.3

Please include the following item on the City Commission Agenda for consideration at the April 13, 2010 meeting:

Approval of Change Order No.3 to the construction contract with RD Johnson Excavating Co. for Project UT0923DS Airport Watermain Extension increasing the contract amount by $18,400.00.

Project Description

The airport is located north of US Route 24/40 about one-half mile east of Third Street. It is a valuable asset to the City, currently accommodating over 32,000 operations annually and generating over $9 million dollars in local revenue for the economy. The airport is approximately 500 acres, has two runways, a terminal, 36 t-hangars, and several small on-site aviation services and hangars used by local businesses and individuals. The airport is an “island’ of city property, located about a mile north of the City border.

While the airport provides a valuable service to the community, it is currently underutilized due in part to inadequate City infrastructure. The airport is served by an 8 inch waterline for basic office use, but is insufficient for fire suppression. Wells have had to be drilled for fire safety, and there may be a limit to the number of wells that can be drilled.

There is an immediate need for additional facilities at the airport. Some recent firm inquiries would require greater fire fighting capacity by as early as late spring of 2010. Also, a number of business inquiries have occurred over the last year for locations at the airport that suggest that the airport has more demand for business space than can be protected by the existing water service. The alignment of the proposed watermain extension is shown on the attached map.

Project History

On October 13, 2009 bids were received from the following (9) bidders.

RD Johnson

Emerson Construction

Emery, Sapp & Sons Inc.

Meadows Construction

Kahle, Inc.

Amino Brothers

Redford Construction

Garney Companies

Nowak Construction

A bid alternative utilizing Davis-Bacon wages was also requested as part of the bidding process.

RD Johnson was the apparent low bidder for the project based on the regular bid and Emery Sapp & Sons was the apparent low bidder for the project based on Davis-Bacon wages. On October 15, 2009 a review of bid alternative utilizing Davis-Bacon wages indicated no savings to the project would be realized utilizing this alternative. The regular bid option was selected for approval by City Commission.

On October 20, 2009 the project was awarded to RD Johnson in the amount of $599,901. Construction commenced November 16, 2009.

Project Status/ Details:

Installation of both 12 inch and 8 inch ductile iron pipe is complete. Water line has been installed from North Street to 24/40 along the west side of 1500 Road, from 1500 Road to Airport Road along the north side of 24/40, and from 24/40 to the terminal building of the airport along the west side of Airport Road. The installed waterlines have been pressure tested, chlorinated and have successfully passed bacteriological testing. The well-fed non-potable fire suppression system has been flushed, chlorinated, and converted to potable use.

The wells that provided water to the non-potable system have been removed from service and require abandonment. This will require the removal of the lineshaft turbine pumps, installation of chlorinated sand, bentonite clay cap, cement slurry, and a concrete cap. In addition, a well abandonment report will be filed with the State of Kansas.

City Staff will salvage useable materials and be responsible for the removal of surface features such as fencing, above ground piping, and electrical equipment.

Change Order No.3, attached, requests a net increase to the contract of $18,400.00 for the additional work to properly abandon the existing wells, no extension of the contract time is requested as part of this change order.

Construction Contract Costs:

Original Contract                          $599,901.00

Change Order 1                           $6,421.00

Change Order 2                           $3,814.68

Change Order 3                           $18,400.00

Current Contract Total                   $628,536.68

To date Change Order adjustments are 4.8% of the original contract amount.

Project Funding

Design and construction of the Airport Waterline Project is funded from general obligation bonds. Alternate funding, via economic development bonds authorized through the American Recovery and Reinvestment Act (ARRA) of 2009, was pursued and was found to have no tangible financial benefit.

Action Request: Approval of Change Order No.3 to the construction contract with RD Johnson Excavating Co. for Project UT0923DS Airport Watermain Extension increasing the contract amount by $18,400.00.

Thank you for your assistance. Please advise if you have any questions.