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Home My WebLink AboutAgenda - 10-07-2014 - 6hORD- 2014 -03 6 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: October 7, 2014 Action Agenda Item No. 6 -h SUBJECT: Buckhorn Mebane Phase 2 Utilities — Final Adjusting Change Order and Approval of Budget Amendment #1 -C DEPARTMENT: Planning, Financial Services, PUBLIC HEARING: (Y /N) No Asset Management Services (AMS) ATTACHMENT(S): INFORMATION CONTACT: 1) Project Map Craig Benedict, Planning, (919) 245- 2592 Clarence Grier, Manager's Office /Financial Services, (919) 245- 2453 Kevin Lindley, Planning, (919) 245 -2583 Jeff Thompson, AMS, (919) 245 -2658 PURPOSE: To consider approving the final adjusting change order for the Buckhorn Mebane Phase 2 Utilities Capital project and Budget Amendment #1 -C to pay for this final change order. BACKGROUND: This project has been underway since the Spring of 2013. The project is 100% complete and consists of three distinct parts: 9,000 linear feet of 18" gravity sewer line, 14,000 linear feet of 16" water line, and 5,700 linear feet of 8" and 12" gravity sewer line. These water and sewer lines will serve the areas designated for economic development and growth near Mebane and along the Interstate corridor in the western portion of Orange County (see Attachment 1). A final adjusting change order is typically done on unit price contracts like this project, where the contractor is paid a specified unit price for all work done of a certain type. The amount of each type of work, e.g. setting a sewer manhole, installing silt fence, installing water line, etc., is estimated by the County's consulting engineer at the beginning of the project. These estimated quantities, along with the contractor's bid upon price for each item, constitutes the estimated contract price. At the end of the project, a final tally is taken across all line items to determine the net change required to "zero" out all of the line items. For many line items, the estimated quantity does not match exactly with the actual quantity, resulting in a higher or lower value than anticipated. The final adjusting change order makes it clear that the project is complete and no more work is anticipated. Also, it shows that the Contractor is not owed any more money. The County's engineering consultant, Hobbs, Upchurch and Associates, has reviewed the contractor's final pay request and agrees that it is accurate and all the items have been accounted for properly. The final adjusting change order shows a net increase of $56,016. The main reasons for this net increase are highlighted below. • The estimated amount of rock along the 18" sewer line, for which Change Order #4 was approved on December 2, 2013, was slightly larger than estimated ( +$23,880); • The estimated amount of rock along the 12" sewer line was larger than estimated ( +$167,353); • The amount of select fill (material brought in to replace rock removed or other unsuitable soil) needed was higher than originally estimated, due to increased rock excavation ( +$64,500); • Field conditions along the path of the 12" sewer line near a large pond required a more expensive construction technique than originally estimated ( +$36,764); • A portion of the 8" sewer line was cut from the originally bid scope of work, with approximately 700 linear feet left in the contract. However, when the unit price sheet establishing the contract amount was developed, the 8" gravity sewer line from the original bid was mistakenly left out. Therefore, the budget for the project was developed around an artificially low contract amount. The work was added back to the contract amount as Change Order #5 ( +$42,359.35); • Field conditions allowed for use of a much less expensive technology to cross three streams with the 16" water line (- $265,134). As mentioned above, these are the items that had the most influence on the amount of the adjusting change order. The substantial savings realized by changing the type of bore used on the water line should be noted. The net amount of these six items, along with the adjustments needed to zero all the rest of the line items in the contract, makes up the final adjusting change order amount. The amount of the final adjusting change order is within the Manager's dollar amount to approve, but approval of the additional money would exceed the project's budget. Therefore, the change order must be approved by the BOCC and a budget amendment is required to increase the budget to cover the additional cost. FINANCIAL IMPACT: This project currently has an overall budget of $5,013,046. The overall project budget will need to be increased by $56,016 to a total of $5,069,062 in order to cover the cost of the final adjusting change order. The additional funds to cover the change order would come from revenues received from the Article 46 Quarter -Cent Sales Tax. Budget Amendment #1 -C provides for the additional funds of $56,016 from Article 46 Sales Tax proceeds, and amends the Capital Project ordinance as follows: Buckhorn Mebane Phase 2 ($56,016) - Project # 30040 Revenues for this project: FY 2014 -15 Current Budget Oct. 7, 2014 Amendment FY 2014 -15 Revised Budget Alternative Financing $412561046 $0 $412561046 Appropriated Fund Balance $2001000 $0 $2001000 From General Fund $1351500 $0 $1351500 Article 46 Sales Tax Proceeds $4211500 $561016 $4771516 Total Project Funding $510131046 $561016 $510691062 3 Appropriations for this project: RECOMMENDATION(S): The Manager recommends that the Board approve Budget Amendment #1 -C as outlined above for the Buckhorn Mebane Phase 2 Utilities project and authorize the Manager to sign the final adjusting change order. FY 2014 -15 Current Budget Oct. 7, 2014 Amendment FY 2014 -15 Revised Budget Professional Services $4751000 $0 $4751000 Construction $414401288 $561016 $414961304 Easements, CMT, C &A Study, Wetlands Mitigation $971758 $0 $971758 Total Costs $510131046 $561016 $510691062 RECOMMENDATION(S): The Manager recommends that the Board approve Budget Amendment #1 -C as outlined above for the Buckhorn Mebane Phase 2 Utilities project and authorize the Manager to sign the final adjusting change order. Buckhorn- Mebane EDD Phase 2 Water &Sewer Improvements 4 1 I_ �I I I I I I I— \ II 1 I /1111 ►�� G � e 18" Sewer Fe_]Existing Pump Station Sewer City Limits Completed Existing Water Water Completed ri r I I I o ik 16" Water I I � D3 ATTACHMENT1 8" & 12" Sewer 1 I C D1 =WEST i TEN -RUB= tang¢ �Ory 1 V ��G 1 inch = 2,000 feet 0/ 1r ,z 0 500 1,000 1,500 Feet z�Qrrf eLarn�'�q Orange County Planning and Inspections Department GIS Map Prepared by Brian Carson. 9/12/2014