03-05-10 BPU RPT 07 - Laserfiche WebLink

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W A T E R I E N E R 5 Y , L I F E RIVERSIDE PUBLIC UTILITIES Board Memorandum P U B L I C U T I L I T I E S BOARD OF PUBLIC UTILITIES DATE: March 5, 2010 ITEM NO: 7 SUBJECT: APPROVAL OF CHANGE ORDER NO.2 FOR THE UTILITIES OPERATIONS CENTER FIRE SUPPRESSION SYSTEM UPGRADE PROJECT ISSUE: Board of Public Utilities approval is requested for Change Order No. 2 for the Utilities Operations Center Fire Suppression System Upgrade Project with Paul C. Miller Construction Company, Inc. (PCM), to extend the project schedule by 53 calendar days and increase the contract amount by $8,211. RECOMMENDATIONS: That the Board of Public Utilities: 1. Approve Change Order No. 2 for the Utilities Operations Center Fire Suppression System Upgrade Project with Paul C. Miller Construction Company, Inc.to extend the project schedule for 53 calendar days and increase the contract amount by $8,211; 2. Approve an increase in the capital expenditure amount for the Utilities Operations Center Fire Suppression System Project from $427,771 to $450,000; and 3. Authorize the Public Utilities General Manager, or his designee, to approve up to$17,670 in change orders for additional work that may be identified during inspection and commissioning. BACKGROUND: On June 5, 2009, the Public Utilities Board approved the award of bid to PCM, in the amount of$427,771, including 10% change order authority. A Notice to Proceed for the project was issued on June 23, 2009 for completion within 180 calendar days or completion by December 20, 2009. On September 17, 2009,the Public Utilities Deputy General Manager authorized Change Order No. 1, in the amount of$35,236, or 9.06% of the original contract value, to expand the scope of the project to include upgrading the fire suppression system in the tape storage room adjacent to the computer room. This change in scope provides additional protection for critical back up and archive data needed to restore the water and electric SCADA systems in the event of a major failure. This change order included a 10 working day extension of contract time or completion by January 5, 2010. On December 9, 2009, Power Resources staff requested that the project be placed on hold to allow additional time to relocate critical power trading computer systems and infrastructure prior to planned electric outages required for the computer room fire suppression system modification. Relocation of the critical computer systems was completed on January 31, 2010 for a total delay of 53 calendar days. Staff negotiated the additional cost for demobilization and re-mobilization with PCM and received a proposal for $8,211, or 2.11% of the original contract value, which is reasonable and based on actual costs incurred for the delay. The revised completion date for the project is now projected for February 27, 2010. Since the total amount of change orders to date would exceed the original limit of 10%, Board approval is needed.