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HomeMy WebLinkAboutVII (F) Design Fee Proposal - Phase 1 & 2 - Reclaimed Water System Agenda 4-18-2000 Item VII F "CENTER OF GOOD LIVING-PRIDE OF WEST ORANGE" MAYOR•COMMISSIONER Ocoee S. SCOTT VANDERGRIFT 0 o CITY OF OCOEE COMMISSIONERS „pp _ DANNY HOWELL .110 a 150 N. LAKESHORE DRIVE SCOTT ANDERSON D OCOEE, FLORIDA 34761-2258 RUSTY JOHNSON rr ���� (407)656-2322 NANCY J.PARKER Op G00��` CITY MANAGER ELLIS SHAPIRO MEMORANDUM DATE: April 7, 2000 TO: The Honorable Mayor and Board of City Commissioners FROM: James W. Shira, P.E., City Engineer/Utilities Director SUBJECT: Design fee proposal - Phase 1 & 2 - Reclaimed Water System On June 3, 1997, the City Commission approved a design fee proposal from Professional Engineering Consultants, Inc. (PEC) for the referenced project. The proposal was based on a design concept that was valid in early 1997. Their proposal was a percentage-of-construction-cost proposal, composed of two elements. First, PEC proposed to design the distribution system for a fee equal to 5.5% of the cost of construction of the distribution system. The estimated construction cost of the distribution system facilities was $1,150,000, and their estimated fee for the design of those improvements was $63,250. An award of this project in the amount of $978,273.70 to Prime Construction Group, Inc. was made by the City Commission on February 15, 2000. The difference between the estimated construction cost and the actual construction cost is $171,726.30. PEC's final fee amount will be adjusted downward as a result of this reduced construction cost. The amount of the design fee reduction will be 5.5% of the difference, or $9,444.95. Second, they proposed to design the storage and pumping facilities for a fee equal to 7% of the cost of construction of the storage and pumping facilities. The estimated construction cost of the storage and pumping facilities was $1,300,000, and their estimated fee for the design of those improvements was $91,000. Adding the two design fee components brought the design fee total to $154,250, to which a permitting allowance of $5,000 was added, bringing the total estimated design and permitting fee to $159,250. P Protect{knee's Water Resources R. Work on the storage and pumping facilities project is now complete, and a proposed adjustment to PEC's design fee for the storage and pumping system is discussed in detail below. Subsequent to approval of the estimated design fee on June 3, 1997, and prior to bidding the storage and pumping system improvements, several changes were made to the original design concept of the storage and pumping system. These changes were primarily related to the addition of the Ocoee / Winter Garden reclaimed water system interconnect. The concept for this interconnect was developed after the initial project design concept and fee had been approved. With the addition of the interconnect, there were additional requirements imposed by permitting agencies which also increased the scope of the design and permitting work. Because of these changes, the actual construction cost, determined by sealed bids, was significantly higher than the original estimate. It is important to note that these changes expanded the scope of the project beyond that which was anticipated by the original design concept. The various changes were all made a part of the plan set, and this plan set, incorporating all features of the expanded scope, was the one that all bidders used to prepare their respective bids. The low bid of $2,928,000 was awarded to Milmir Construction Company. The attached letter from Mr. Ken Hooper describes several of the changes between the originally conceived design parameters, and the final approved and constructed design. These changes resulted in a significant increase in the construction cost of the storage and pumping facilities above the originally estimated cost ($2,928,000 vs. $1,300,000). To expand on the explanations for the seven items listed in Mr. Hooper's letter: 1. When the reclaimed water storage and pumping system was originally conceived, a single reclaimed water ground storage tank was felt to be adequate, with additional storage to be provided in the southernmost existing pond on the wastewater treatment plant site. When it was determined that the wastewater treatment plant site would also become the site for the city's recreation center, it became clear that the potential liability of an uncovered reclaimed water storage pond in close proximity to the recreation building was too great. A second storage tank was then included in the design, which will allow us to stop using the existing pond as soon as there is significant reclaimed water flow to the distribution system. 2. The joint Ocoee / Winter Garden reclaimed water system is being lauded by both the St. John's River Water Management District and the Florida Department of Environmental Protection as a model of inter-governmental cooperation. Even so, the permitting for this system was much more complex and time consuming than was anticipated for the original concept. Pow Protect Ocoee's Water Resources 3. The master effluent pump station required by FDEP was much more complex than had been anticipated. Part of this complexity was a result of the additional system complexity resulting from the inter-city effluent transfer system. 4. The original design concept called for high service pumps and motors to be located outdoors. While this is not uncommon, it does lead to increased maintenance costs, and increases the likelihood of equipment failure. We needed to be sure that the reclaimed water system would be a reliable irrigation source. Based on our experience with similar high service pumps and motors at the water plants, we required that the design of the high service pumping facility be upgraded to include complete enclosure of the pumps and motors for protection from the elements. We also required the addition of a traveling bridge crane to facilitate pump and motor removal and replacement. 5. Because we were building two tanks instead of one, the site work involved increased proportionately. 6. The original concept called for the storage tanks to be located toward the south end of the wastewater plant site. The decision to use this area for the recreation center meant that the tanks had to be moved to the rear of the site, with a corresponding increase in piping, electrical and instrumentation costs due to the increased distance from the balance of the plant facilities. 7. FDEP required that we add redundant controls to the pumps that control the flow of reclaimed water between the Ocoee and Winter Garden systems. This was done to ensure that under any flow and weather condition, the appropriate flow direction and rate could be established and maintained from either the Ocoee or Winter Garden end, even in the event of an equipment failure at one end or the other. The bid amount for the storage and pumping facilities was $2,928,000 which is $1,628,000 above the original concept estimate. In accordance with the design proposal approved on June 3, 1997, PEC is entitled to be compensated for their design efforts related to this expanded project scope, according to the percentages set out in the proposal. The bid amount included $9,000 for Bid Alternate No.1, which was a substitution of one type of check valve for another. There was no actual design effort associated with this bid alternate, and PEC is therefore basing their request for additional compensation on the bid amount of $2,928,000 less the Bid Alternate No. 1 amount of $9,000, or $2,919,000 which is $1,619,000 above the original concept estimate of $1,300,000 for the storage and pumping system. Seven percent of $1,619,000 is $113,330. PEC presented a proposed invoice to the City on October 5, 1999 for this amount due them as a result of their increased design effort for the storage and pumping system facilities. A copy of this invoice is attached for PoWF' Protect Ocoee's Water Resources your review. This invoice was held until now in order to determine the actual final construction amount of both the storage and pumping facilities, and the distribution system facilities, and the corresponding fee adjustments to be made. As stated above, the fee adjustment for the distribution system facilities is a reduction of $9,444.95. The fee adjustment for the storage and pumping facilities is comprised of two components. The first component is related to the actual construction cost as established by the low bid. This component of the fee adjustment amount is the $113,330 referenced above. The second component of the fee adjustment amount is related to the changes brought before you on April 4, 2000 as Change Order No. 1 to the Reuse Pumping and Storage Project. Change Order No.1 consisted of 23 different items. Fourteen of the items were additions, totaling $81,016.00, and nine of the items were reductions totaling $105,844.00. Of the $81,016 in additions, $6,655.00 required additional design efforts by PEC, so they are entitled to additional compensation of 7% of that amount, or $465.85. Of the $105,844.00 in reductions, $65,040.00 was for items that PEC performed design work on, and the City is entitled to a credit for 7% of that amount, or $4,552.80. The net fee adjustment due to Change Order No. 1 is thus a net credit to the City of $4,086.95. To summarize: Distribution System Facilities: Original Construction Estimate $1,150,000.00 Design Fee Percentage 5.5% Original Design Fee Estimate $ 63,250.00 Actual Bid Amount $ 978,273.70 Difference Between Estimated and Actual $ 171,726.30 5.5% of Difference $ 9,444.95 Net Credit Due City $ 9,444.95 Pumping and Storage Facilities Original Construction Estimate $1,300,000.00 Design Fee Percentage 7.0% Original Design Fee Estimate $ 91,000.00 Actual Bid Amount $2,928,000.00 Difference Between Estimated and Actual $1,628,000.00 PoWF Protect Ocoee's Water Resources Adjustment due to Add. Alt. No 1 ($ 9,000.00) Adjusted Difference $1,619,000.00 Fee based on 7.0% of Adjusted Difference $ 113,330.00 Fee Adjustment due to C.O. #1 ($ 4,086.95) Net Additional Fee Due PEC $ 109,243.05 Total Adjusted Fee ($109,243.05 less $9,444.95) = $99,798.10 Funding for the design of these improvements comes from the proceeds of the 1997 Utility Bond Issue. The available balance in this fund is $650,332.44. I recommend that the City Commission authorize payment to PEC in the amount of $99,798.10 for additional design services in accordance with the terms of the original design service approval of June 3, 1997. POvviik Protect Ocoee's Water Resources PEC OCT - 6 ' PROFESSIONAL ENGINEERING CONSULTANTS, INC. October 5, 1999 MK-04 Mr. James W. Shira, P.E. City Engineer/Utilities Director City of Ocoee 150 North Lakeshore Drive Ocoee, Florida 32761 Subject: Final Invoice Concerning Addendum 97-2 Reclaimed Water Program Phases 1 and 2 Re: Request for Additional Engineering Fees Dear Mr. Shira: This request to modify the final engineering fee invoice related to Addendum 97-2 is submitted based on several changes since the original authorization was approved June 3, 1997. Addendum 97-2 was authorized to provide the necessary engineering services (planning,preliminary design, permitting, final design)concerning the construction of one (1) reclaimed water ground storage tank, one(1) low pressure lift station, reclaimed water high service pumps and the reclaimed water distribution system (16,300 LF of 16" main and 2,500 LF of 12" main). The construction cost was estimated to be $2,450,000 (storage and pumping $1,300,000 and reclaimed mains $1,150,000). The cost of engineering/permitting was based on the "percent of construction" method. PEC was authorized a design fee of 7% of the construction cost of the reclaimed storage and pumping system (7% of$1,330.00 -- $91,000) and 5.5% of the construction cost of the reclaimed water mains 05% of $1,150,000 -- $63,250) and a permitting allowance of $5,000, for a total design fee of$159,250. GST and HS Pumps The awarded low bid for the construction of the reclaimed storage and pumping facility was $2,919,000 to Milmir Construction. The cost difference ($1,619,000) is primarily due to major changes in the scope of the reclaimed water project. Changed conditions that resulted in increased construction costs include the following: 1. Two ground storage tanks were constructed versus the single tank as earlier anticipated. 2. FDEP permitting was complex due to the addition of the Winter Garden Reclaimed Water Program and Lake Apopka wet weather discharge. engineers Engineering Our Community' planners surveyors 200 East Robinson Street • Suite 1560 • Orlando,Florida 32801 • 407/422-8062 • FAX 407/849-9401 • • Mr. James W. Shira, P.E. October 5, 1999 Page 2 3. FDEP permitting required the addition of a master effluent pump station. 4. Building enclosure and traveling bridge crane for reclaimed high service pumps was required. 5. Increased site plan costs (grading, sodding and stormwater improvements) due to a larger site needed for two ground storage tanks versus a single ground storage tank. 6. Increased cost for yard piping, electrical and instrumentation due to remote location of the ground storage tanks. 7. FDEP permitting required redundant control systems for low lift pump station. Based on the engineering fee methodology approved in Addendum 97-2, PEC's compensation should be adjusted in the amount of$113,330 (i.e., 7% of$1,619,000) for the increased services. Enclosed is an invoice for the increased engineering fees. Please contact me if you have any questions. Sincerely yours, PROFESSIONAL ENGINEERING CONSULTANTS, INC. 7r1h — K Hoope KH/kh G:\CLER\EN V\MK\MK-04\031P.LTR cc: Art Austin, P.E. Katie Gierok, P.E. c,-- . ii-=', p,7,7 F.--:- ,,,--.) PEC 0 r PROFESSIONAL ENGINEERING CONSULTANTS, INC. gOCT - 6 ��q � 1 _. ::0) INVOICE --7— Y;)/e City of Ocoee Customer Number: CIT019 g, 150 North Lakeshore Drive Job No.OE-290. 03 . 000 732020 Ocoee, Florida 34761 Invoice No. 3287Z Date 09/30/99 Attention: Mr. James W. Shira, P.E. ************************************************************ FINAL BILLING ADDENDUM 97-2 - RECLAIMED WATER PROGRAM PHASES 1 AND 2 SCOPE OF WORK: See attached letter. AMOUNT DUE THIS INVOICE $113,330. 00 08/31/99 engineers "Engineering Our Community" planners surveyors 200 East Robinson Street • Suite 1560 • Orlando,Florida 32801 • 407/422-8062 • FAX 407/849-9401 ADDENDUM NO. 97-2 TO AGREEMENT FOR CONSULTING ENGINEERING SERVICES INCLUDING DESIGN AND CONSTRUCTION OF THE PHASE 1 AND PHASE 2 RECLAIMED WATER PROGRAM This Addendum No. 97-2 hereinafter called the Addendum, as of this 7th day of May, 1997, shall constitute an Addendum to the Agreement for Consulting Engineering Services between the City of Ocoee, Florida (the CITY) and Professional Engineering Consultants, Inc., 200 East Robinson Street, Suite 1560, Lake Eola Centre, Orlando, Florida (the CONSULTANT), dated the 21st day of August, 1984, hereinafter referred to as the AGREEMENT. WHEREAS, the CITY and CONSULTANT entered into an AGREEMENT whereby the CITY retained the CONSULTANT to provide professional engineering services as required from time to time, and WHEREAS the CONSULTANT will perform consulting engineering services for the CITY as herein defined. NOW THEREFORE, in consideration of the mutual covenants and promises hereinafter set forth on the part of both parties to be kept and performed, the parties do mutually agree as follows: Section 1 - Services of the Consultant 1.1 The CONSULTANT shall perform the Engineering services as outlined in the attached proposal P-6175R, dated May 7, 1997 relative to the provision of consulting engineering services to the CITY. Section 2 - Compensation 2.1 Compensation by CITY for engineering services provided under this Addendum shall be computed under Paragraph 6.1.2.3 of the Agreement, utilizing the Percentage of Construction Value (Lump Sum) Method of Compensation with the compensation for this additional authorization not-to-exceed $159,250.00 as outlined in the attached proposal, without further authorization from the CITY. Section 3 - Time of Completion 3.1 The CONSULTANT shall provide the services within six (6) months as described in the attached proposal. IN WITNESS WHEREOF, the parties have executed this Addendum No. 97-2 the day the year hereinabove set forth. ATTEST: PR FESSIONA NGINEERING CONSULTA TS, INC. By: • Kenneth R. Hooper, Principal Date: , / � / ATTEST: BOARD OF CITY COMMISSIONERS CITY OF OCOEE, FLO DA 1,1 ST-By: 1gi, t,(<:i it S. Scott Vander rift , � Mayor, g Yor Date: J U10E 7 /99 For the use and reliance of City of Ocoee only. Approved as to fo n and legality this 3 day , 1997. City Attorney G:\cler\env\oe\ocoee\97-2.ADN -2- OE(04/08/97) PEC PROFESSIONAL ENGINEERING CONSULTANTS, INC. May 7, 1997 P-6175R Mr. James W. Shira, P.E. City Engineer/Utilities Director / City of Ocoee 'i // 150 North Lakeshore Drive A! MAY Ocoee, Florida 34761 Ur ), Re: Phase 1 and Phase 2 \ Reclaimed Water Program _ Dear Jim: We are pleased to present this modified proposal for engineering and permitting services related to the design of the Phase 1 and Phase 2 Reclaimed Water Program. Capital funding for the design and construction of the Reclaimed Water Program was included in the Series 1997 Water and Sewer Revenue Bond Issue. The initial phases of the Reclaimed Water Program includes the following components: 1. 3.0.- 4.0 million gallon reclaimed water ground storage tank; 2. Reuse high service pumps and/or low lift pump station; 3. 16,300 L.F. of 16-inch reclaimed water main and 2,500 L.F. of 12-inch reclaimed water main east along A.D. Mims Road and north and south along Clarke Road. The estimated cost of construction of Phases 1 and 2 Reclaimed Water Improvements as defined in the Engineer's Report of the recent Water and Wastewater Revenue Series 1997 Bond Issue is $2,450,000 (Phase 1 - $1,600,000 and Phase 2 - $850,000). The estimated cost of the storage pumping and control system is $1,300,000 and the estimated cost of the distribution system is $1,150,000. The reclaimed water ground storage tank and reuse high service pumps are to be located on the City-owned wastewater treatment site on A.D. Mims Road. The specific location will be determined after completion of the preliminary engineering report. The reclaimed water distribution system will be placed east along A.D. Minis Road to Clarke Road and continue north and south along Clarke Road. These proposed improvements will allow the City to supply reclaimed water to new developments along Clarke Road from Clarcona-Ocoee Road south to S.R. 50. Examples of areas to be served reclaimed water include: Prairie Lake PD; Lake Johio Shores; Whitehill property; Mulrey property; Lake Lotta Center, West Oaks Mall and the medians along Clarke Road. As we have discussed, we propose an innovative approach to value the cost of preliminary design, final design, and permitting for this reclaimed water project. Previously we have developed a scope of work and estimated the number of hours necessary to complete the various tasks associated with the design of a capital project. engineers planners surveyors 200 East Robinson Street • Suite 1560 • Orlando, Florida 32801 • 407/422-8062 • FAX 407/849-9401 Mr. James W. Shira, P.E. May 7, 1997 Page 2 We have entered into professional services contracts based on an estimated number of manhours multiplied by an hourly rate resulting in a not-to-exceed amount as the maximum fee for providing the engineering services. Our proposed new methodology is based on a fixed percentage of the construction cost with an absolute ceiling of the design cost. For the level of complexity of this design, we propose to complete the preliminary design, final design, preparation of contract drawing and specifications for a guaranteed maximum of 7.0% of the cost of construction of the storage and pumping facilities and 5.5% of the cost of the construction of the distribution system. The proposed design fee for the storage and pumping facility is $91,000 and the proposed design fee for the distribution system is $63,250. A not-to-exceed amount of $5,000 is requested for the FDEP permitting requirement for a total fee of $159,250.00. In preparation of the Engineers Report for the Series 1997 Issue, we projected a total engineering cost for the Reclaimed Water Project(including design, permitting, bidding, and construction) of $340,000. This proposal does not include fees for construction phase services which the City may or may not want to engage the services of PEC. Under the proposed methodology the maximum fee for design services is $159,250.00. This methodology will result in a savings to the City of approximately 15% of the design fee. In summary, we propose to complete the design of the Phase 1 and Phase 2 Reclaimed Water Program for a lump-sum fee not-to-exceed 7% of the construction value of the storage and pumping facility and 5.5% of the construction value of the distribution system. Including the $5,000 fee for permitting, we estimate the total engineering fee to be $159,250.00. Please review this proposal and provide comments as necessary. Very truly yours, PROFESSIONAL ENGINEERING CONSULTANTS, INC. ie,./Zie,(42(7.1/4.524=!' v Kenneth R. Hooper Project Manager KRH/bk g:\cler\env\pro97\p-6175R.Itr 0Coee City of Ocoee ►t Jean Grafton 0 150 NORTH LAKESHORE DRIVE City Clerk `'t ��° OCOEE, FLORIDA 34761-2258 'f*of coon`�, (407) 656-2322 FAx(407) 656-5725 June 5, 1997 Kenneth R. Hooper, P.E. Professional Engineering Consultants, Inc. 200 East Robinson Street, Suite 1560 Orlando, Florida 32801 Re: Addendum No. 97-2 to Agreement for Consulting Engineering Services including Design and Construction of the Phase 1 and Phase 2 Reclaimed Water Program Dear Mr. Hooper: In regular session on Tuesday, June 3, 1997 the Ocoee City Commission approved Addendum No. 97-2 for engineering and permitting services related to the above referenced project for a not-to-exceed amount of $159,250.00. One executed original of the Addendum is enclosed, and the second original is retained for our files. Sincerely, s• 3t1'1/41/1f\61L-- Grafton ity Clerk mg Enclosure cc: Jim Shira, City Engineer/Utilities Director (with enclosure) Wanda Horton, Finance Director (with enclosure) "PRIDE OF WEST ORANGE"