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Home My WebLink About191-23 RESOLUTION113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 191-23 File Number: 2023-1023 STRUCTURAL PRESERVATION SYSTEMS, LLC (CHANGE ORDER NO. 3): A RESOLUTION TO APPROVE CHANGE ORDER NO. 3 TO THE DESIGN -BUILD CONTRACT WITH STRUCTURAL PRESERVATION SYSTEMS, LLC IN AN AMOUNT NOT TO EXCEED $7,884,343.00 TO REHABILITATE THE SEWER PIPELINE AND STABILIZE THE TUNNEL UNDER THE SOUTHBOUND HIGHWAY 112 EXIT RAMP ON I-49, AND TO APPROVE A BUDGET ADJUSTMENT WHEREAS, on January 3, 2023, the City Council passed Resolution 6-23 authorizing Mayor Jordan to sign a design - build contract with Structural Preservation Systems, LLC (SPS) to develop a plan for repairs to the sewer pipe under the southbound Highway 112 exit ramp on I-49; and WHEREAS, during the investigation, SPS determined the pipe and tunnel system is "unsafe in its current condition" and "subject to imminent collapse" because of the lack of grouting in the space outside the pipe, between the pipe wall and the tunnel encasement and tunnel walls; and WHEREAS, SPS proposes to completely rehabilitate the pipeline and stabilize the tunnel, filling all void spaces which will require four months of additional construction time and a change order cost of $7,884,343.00; and WHEREAS, the Utilities Department has considered alternatives to this proposed change order but none resolves the issue as safely and efficiently as the SPS proposal. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves Change Order No. 3 to the design -build contract with Structural Preservation Systems, LLC, a copy of which is attached to this Resolution, in an amount not to exceed $7,884,343.00 to rehabilitate the sewer pipeline and stabilize the tunnel under the southbound Highway 112 exit ramp on I-49. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment, a copy of which is attached to this Resolution. PASSED and APPROVED on September 5, 2023 Page 1 Resolution: 191-23 File Number: 2023-1023 Approved: Attest: 1� an Paxton, City 40e.,Treasurer Page 2 CITY OF FAYETTEVILLE ARKANSAS MEETING OF SEPTEMBER 5, 2023 CITY COUNCIL MEMO TO: Mayor Jordan and City Council THRU: Susan Norton, Chief of Staff FROM: Tim Nyander, Utilities Director DATE: SUBJECT: Structural Preservation Systems, LLC - Change Order No. 3 RECOMMENDATION: 2023-1023 Staff recommends approval of a change order to the Design -Build contract with Structural Preservation Systems, LLC in an amount not to exceed $7,884,343.00, and approval of a budget adjustment. BACKGROUND: In 2021 City Water/Sewer Staff performed an inspection of the 48-inch gravity sewer line that extends from Gregg Avenue to Sunshine Road. Visual inspections of each manhole were conducted, and a `boat' was constructed to float down each line segment and record video. Overall, the line was in excellent shape, however, one area in the vicinity of Interstate-49 has experienced damage at some point during its 15-years of service. This segment of line cannot be repaired with typical excavation techniques due to its location under the Southbound Highway-112 Exit Ramp on 1-49. City Council approved a design -build contract (Res. 6-23) with Structural Preservation Systems, LLC (SPS), a national leader in trenchless pipe point repairs, to develop a plan for repairs in this location. Once mobilized, SPS created a bypass system to dry the work zone, then entered the pipe for initial shoring and sanitizing. Then a detailed engineering in -pipe investigation was conducted to determine exact location and extent of repairs necessary. During this investigation, the pipe and tunnel system were found to be "unsafe in its current condition" and "subject to imminent collapse." DISCUSSION: The root cause of the failure of this pipeline is the lack of grouting in the annular space outside the pipe, between the pipe wall and the tunnel encasement and tunnel walls. Without this grout the original steel tunnel liner plates have corroded and the tunnel has started to collapse, thereby crushing the sewer pipe. The original design -build contract cost (Res. 6-23) was $2,477,644.00 with a $375,000.00 contingency. SPS proposes a solution to completely rehabilitate the pipeline and stabilize the tunnel, filling all void spaces. This solution will require four months additional construction time and a change order cost of $7,884,343.00. Staff has considered alternatives to this proposed change order. For example, installing a new, independent sewer line in a new parallel tunnel. This option could be a lower cost at first glance. However, it would take approximately two years to design, permit, and construct. All the while the active sewer would be bypass pumping, at risk of failure, and at a significant operational cost. Furthermore, the existing line would still need a Mailing address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 high -cost grouting abandonment. Other pipe -lining technologies have been considered as well such as cured in place pipe. However, these technologies would likely create a very deformed final pipe shape due to existing deflections and failed pipe segments. Furthermore, these liners would not address existing void spaces nearby the tunnel that could contribute to surface settlement. Finally, these liners would require all existing safety shoring in the pipe to be removed, a very high life -safety risk. BUDGET/STAFF IMPACT: A budget adjustment is attached to move funds into the Sanitary Sewer Rehabilitation account within the Water & Sewer fund to pay for Change Order No. 3. ATTACHMENTS: SRF Structural Preservation Systems CO3, 2023-1023 BA Structural Preservation CO3, Change Order 3 (signed by sps), Change Order Request 635148-03 Mailing address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 == City of Fayetteville, Arkansas Y 113 West Mountain Street Fayetteville, AR 72701 (479)575-8323 - Legislation Text File #: 2023-1023 Structural Preservation Systems, LLC - Change Order No. 3 A RESOLUTION TO APPROVE CHANGE ORDER NO. 3 TO THE DESIGN -BUILD CONTRACT WITH STRUCTURAL PRESERVATION SYSTEMS, LLC IN AN AMOUNT NOT TO EXCEED $7,884,343.00 TO REHABILITATE THE SEWER PIPELINE AND STABILIZE THE TUNNEL UNDER THE SOUTHBOUND HIGHWAY 112 EXIT RAMP ON I-49, AND TO APPROVE A BUDGET ADJUSTMENT WHEREAS, on January 3, 2023, the City Council passed Resolution 6-23 authorizing Mayor Jordan to sign a design -build contract with Structural Preservation Systems, LLC (SPS) to develop a plan for repairs to the sewer pipe under the southbound Highway 112 exit ramp on I-49; and WHEREAS, during the investigation, SPS determined the pipe and tunnel system is "unsafe in its current condition" and "subject to imminent collapse" because of the lack of grouting in the space outside the pipe, between the pipe wall and the tunnel encasement and tunnel walls; and WHEREAS, SPS proposes to completely rehabilitate the pipeline and stabilize the tunnel, filling all void spaces which will require four months of additional construction time and a change order cost of $7,884,343.00; and WHEREAS, the Utilities Department has considered alternatives to this proposed change order but none resolves the issue as safely and efficiently as the SPS proposal. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves Change Order No. 3 to the design -build contract with Structural Preservation Systems, LLC, a copy of which is attached to this Resolution, in an amount not to exceed $7,884,343.00 to rehabilitate the sewer pipeline and stabilize the tunnel under the southbound Highway 112 exit ramp on I-49. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment, a copy of which is attached to this Resolution. Page 1 Tim Nyander Submitted By City of Fayetteville Staff Review Form 2023-1023 Item ID 9/5/2023 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 8/17/2023 WATER SEWER (720) Submitted Date Division / Department Action Recommendation: Staff recommends approval of a change order to the Design -Build contract with Structural Preservation Systems, LLC in an amount not to exceed $7,884,343.00, and approval of a budget adjustment. 5400.720.5700-5815.00 Account Number 02017.1 Project Number Budgeted Item? Yes Does item have a direct cost? Yes Is a Budget Adjustment attached? Yes Purchase Order Number: Change Order Number: Original Contract Number: Comments: Budget Impact: Water/Sewer Fund Sanitary Sewer Rehabilitation Total Amended Budget Expenses (Actual+Encum) Available Budget Item Cost Budget Adjustment Remaining Budget Project Title $ 7,218,253.00 $ 4,949,784.91 2,268,468.09 $ 7,884,343.00 $ 7,300,000.00 1,684,125.09 V20221130 2023-205 Previous Ordinance or Resolution # 06-23 3 Approval Date: 2023-11 City of Fayetteville, Arkansas - Budget Adjustment (Agenda) Budget Year Division Adjustment Number WATER SEWER (720) /Org2 2023 Requestor: Cheryl Partain BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION: A budget adjustment is needed in the Sanitary Sewer Rehabilitation project to cover the cost for the Change Order No. 3 to the Design -Build contract with Structural Preservation Systems, LLC for engineering and construction services related to the emergency trenchless repair of a 48-inch diameter sanitary sewer line under Interstate 49. Moving budgeted funds from multiple Water/Sewer projects to cover the emergency repair. COUNCIL DATE: ITEM ID#: 9/5/2023 2023-1023 Holly Black 0/16'/2023 11:56 ql;l RESOLUTION/ORDINANCE Budget Division Date TYPE: D - (City Council) JOURNAL#: GLDATE: CHKD/POSTED: TOTAL Account Number - - Increase / (Decrease) Expense Revenue Project.Sub# Project Sub.Detl AT v.202388 Account Name 5400.720.5700-5815.00 7,300,000 - 02017 1 EX Improvements - Sewer 5400.720.5600-5808.00 5400.720.5600-5808.00 (228,364) - (1,171,636) - 12009 12009 1700 EX 1 EX Improvements - Water Line Improvements - Water Line 5400.730.5800-5801.00 5400.730.5800-5818.00 (200,000) - (300,000) - 13018 13018 1 EX 1 EX Fixed Assets Wastewater Treatment Plant - Improvemei 5400.720.5600-5808.00 5400.730.5800-5801.00 (500,000) - (4,000,000) - 14010 15023 1 EX 1 EX Improvements - Water Line Fixed Assets 5400.720.5600-5808.00 (900,000) - 17004 1 EX Improvements - Water Line I of 1 Ii Change Order No. CITY OF FAYETTEVILLE ARKANSAS CHANGE ORDER Contract Title: Date of Issuance: Design -Build Contract: Emergency Sewer Line Repair To Contractor: Structural Preservation Systems, LLC. ORDINANCE/RESOLUTION: 6-23 Effective: January 3, 2023 The Contract is changed as follows: August 4, 2023 Bid Bid Previous Unit Contract Revised Revised Original Revised Item Item Estimated of Unit Estimated Unit Estimated Estimated No. Description Quantity Measure Price Quantity Price Cost Cost Submittals, Engineering and up- 1 front Project Planning 1 LS $ 63,250.00 1 $ 63,250.00 $ 63,250.00 $63,250.00 2 Mobilization 1 LS $ 299,499.80 1 $ 299,499.80 $ 299,499.80 $299,499.80 Bypass System Installation and 3 Pressure Testing 1 LS $ 567,000.00 1 $ 567,000.00 $ 567,000.00 $567,000.00 Bypass System with Rental, 4 Fueling and Pump Watch 40 DAYS $ 12,556.53 40 $ 12,556.53 $ 502,261.20 $502,261.20 5 Rescue Team 1 LS $ 143,545.00 1 $ 143,545.00 $ 143,545.00 $143,545.00 Pipeline Sanitizing and Safety 6 Shoring 1 LS $ 71,050.00 1 $ 71,050.00 $ 71,050.00 $71,050.00 Inspection & Design 7 Modifications 1 LS $ 86,275.00 1 $ 86,275.00 $ 86,275.00 $86,275.00 8 CFRP Materials Delivered to Site 0 LS $ 175,000.00 0 $ 175,000.00 $ - $0.00 9 CFRP Installation 0 LF $ 5,234.05 0 $ 5,234.05 $ - $0.00 10 Demobilization 1 LS $ 30,193.20 1 $ 30,193.20 $ 30,193.20 $30,193.20 11 Closeout Report 1 LS $ 16,164.80 1 $ 16,164.80 $ 16,164.80 $16,164.80 COLT Feasibility and Shoring Design 1 LS $ 50,000.00 1 $ 50,000.00 $ 50,000.00 $50,000.00 Updated Shoring - materials, CO2.1 freight, re -mobilization, 1 LS $ 715,000.00 1 $ 715,000.00 $715,000.00 engineering, labor, installation, entire 925-LF $ 715,000.00 CO2.2 Extended Bypass Pumping 13 DAYS $ 7,155.00 13 $ 7,155.00 $93,015.00 Duration be and 40-da s $ 93,015.00 Page 1 of 3 CO2.3 On -site supervision and facilities 40 DAYS $ 656.00 40 $ 656.00 $26,240.00 costs while de -mobilized $ 26,240.00 CO3.1 Rescue Team Additional Days 0 DAYS $ - 64 $ 3,589.00 $ - $229,696.00 CO3.2 Bypass Pumping Additional Days 0 DAYS $ - 94 $ 7,155.00 $ - $672,570.00 CO3.3 Secondary Bypass System for Wet 0 LS $ - 1 $ 520 000.00 $520 000.00 Weather $ - ' CO3.4 Polyurethane Foam Bulkhead 0 LS $ - 1 $ 423 000.00 $423 000.00 Installation $ - ' CO3.5 Cellular Concrete Annular 0 LS $ - 1 $ 830,000.00 $830,000.00 Grouting$ - 0O3.6 Sail Stabilization (up to 25,000 0 LS $ - 1 $ 1,266,447.00 $1,266,447.00 $ - CO3.7 CFRP Materials Delivered to Site 0 LS $ - 1 $ 175,000.00 $ $175,000.00 Establish Environmental CO3.8 Conditions and Install CFRP on 0 LF $ - 100 $ 5,234.05 $523,405.00 ,Original 100-LF $ - CFRP Rehabilitation on All CO3.9 ungrouted Sections of HOBAS 0 LF $ - 755 $ 2,970.00 $2,242,350.00 Pie $ - CO3.10 Bypass Pumping, Additional Days 0 DAYS $ - 30 $ 7,155.00 $214,650.00 for Secondary Bypass System $ - CO3.11 Soil Stabilization Allowance (up 0 GALLONS $ - 25000 $ 21.73 $543,250.00 to 25,000 add'1gallons)$ - 0O3.12 CFRP Rehabilitation in grouted 0 LF $ - 70 $ 2,970.00 $207,900.00 areas near manholes $ - 0O3.13 Daily Rate for Second Pump 0 DAYS $ - 15 $ 2,405.00 $36,075.00 Watch DuringRain Events $ - Summation of Cost $ 2,663,494.00 $10,547,837.00 Net Cost for this Change Order $7,884,343.00 Not valid until signed by the Owner The original Contract Price was $ 2,477,644.00 Net change b previously authorized change orders 185 850.00 g Yp Y g $ The Contract Price prior to this Change Order was 2 663 494.00 P g $ > The Contract Price will increase by $7,884,343.00 Page 2 of 3 The new Contract Price including this Change Order will be The Contract Time(s) will increase by Required dates of Completion as of the date of this Change Order therefore are: 10,547,837.00 0 calendar days Substantial Completion n/a Final Completion n/a NOTE: This summary does not reflect changes in the Contract Price or Time(s) which have been authorized by Work Change Directives not incorporated in this or previous Change Orders. Structural Preservation Systems, LLC. CIT YOF FA B' DATE BAY Jeffrey M. Venanzi - President ,� Oq /05 W23 DATE Page 3 of 3 StructuraK'l PROJECT NAME/ADDRESS: City of Fayetteville Design -Build 48" HOBAS Sewer Repair Client: City of Fayetteville 113 West Mountain Street Fayetteville, AR 72701 The contract is changed as follows: STRUCTURAL to Initiated by: OWNER ❑ CONTRACTOR SUBCONTRACTOR ❑ CHANGE ORDER REQUEST CHANGE ORDER NUMBER: 635148-03 DATE OF CHANGE ORDER: 8/03/23 CONTRACT DATE: 1/3/23 CONTRACT SCOPE: IDB 48" HOBAS Sewer Repair • Provide 64 Additional Days of Confined Space Rescue Team* • Provide 94 Additional Days of Primary Critical Bypass System* • Install secondary 13MGD Bypass System and operate for 60 Days per owner's direction • Install Polyurethane Foam Bulkheads as necessary to support successful annular grouting operation • Fill annulus space between 48" HOBAS Pipe ad 72" Steel Casing with cellular, sulfate -resistant grout • Perform soil stabilization around the 72" Steel Tunnel using cementitious grout and sodium silicate injection • Install CFRP Stand-alone rehabilitation of damaged HOBAS Piping *Billed at daily rates Cost Summary: Total change order amount reflects highest assumed durations and material quantities in SOV. Work will be billed per the pricing table attached. Total Change Order Amount: $7,884,343.00 Original Contract Sum.................................................................................................$2,477,644.00 Net change by previously authorized Change Orders...............................................$185,850.00 Contract Sum prior to this Change Order...................................................................$2,663,494.00 Amount of increase authorized by this Change Order .............................................$7,884,343.00 New Contract Sum including this Change Order.....................................................$10,547,837.00 NOTE: This summary does not reflect adjustments in Subcontract Sum or Subcontract Time for changes authorized by Construction Change Directive but not yet finalized by Contractor and Subcontractor. The adjustments to the contract, if any, specified above shall constitute a full and final settlement of any and all claims arising out of or related to the change set forth herein, including claims for impact and delay costs. Except as expressly modified herein, all terms and conditions of the contract remain unchanged and in full force and effect. CITY OF FAYETTEVILLE m STRUCTURAL PRESERVATION SYSTEMS, LLC BY: DATE: DATE: Item No. Cost UOM Quantity Extended Cost 1 Submittals, Engineering, and up -front Project Planning $ 63,250.00 LS 1 $ 63,250.00 2 Mobilization $ 299,499.80 LS 1 $ 299,499.80 3 Bypass System Installation and Pressure Testing $ 567,000.00 LS 1 $ 567,000.00 4 Bypass System with Rental, Fueling and Pump Watch $ 12,556.53 Days 40 $ 502,261.20 5 Rescue Team $ 143,545.00 LS 1 $ 143,545.00 6 Pipeline Sanitizing and Safety Shoring $ 71,050.00 LS 1 $ 71,050.00 7 Inspection and Design Modifications $ 86,275.00 LS 1 $ 86,275.00 10 CFRP to Site F Demobilization 5,000.00 234.05 $ 30,193.20 LS LF LS 0 1 $ $ 30,193.20 11 Closeout Report $ 16,164.80 LS 1 $ 16,164.80 Original Contract Value: $ 1,779,239.00 co1.1 Feasibility and Shoring Design $ 50,000.00 LS 1 1 $ 50,000.00 Change Order 01: $ 50,000.00 Total Contract With Change Order 01: $ 1,829,239.00 co2.i Shoring Materials, Freight, Re -Mobilization, Engineering, Labor, Installation $ 715,000.00 LS 1 $ 715,000.00 CO2.2 Extended Bypass Pumping Rental, Fueling, and Pump Watch Beyond 40 Days $ 7,155.00 Days 13 1 $ 93,015.00 CO2.3 CO3.1 On -Site Supervision and Facilities Costs While De -Mobilized otal Rescue Team (After 40 days captured on line item 3) $ 656.00 RW Contract With $ 3,589.00 1 Days Change Change DAY 40 Order 02: Order 02: 64 $ 26,240.00 $ 834,255.00 $ 2,663,494.00 $ 229,696.00 CO3.2 Bypass Operation of Original Bypass System (in addition to the 40 days captured on line item 4) $ 7,155.00 DAY 94 $ 672,570.00 CO3.3 Secondary Stand Alone Bypass (Installation and 60 days of Bypass Operation) $ 520,000.00 LS 1 $ 520,000.00 CO3.4 Bulkheads for Annular Grouting (Polyurethane Foam): $ 423,000.00 LS 1 1 $ 423,000.00 CO3.s Annular Grouting (Cellular Concrete): $ 830,000.00 LS 1 $ 830,000.00 CO3.6 Soil Stabilization (Lump Sum up to 25,000 Gallons) $ 1,266,447.00 LS 1 $ 1,266,447.00 CO3.7 CFRP Materials Delivered to Site $ 175,000.00 LS 1 $ 175,000.00 COM Establish Environmental Conditions and Install CFRP on Original 100LF $ 5,234.05 LF 100 $ 523,405.00 CO3.9 CFRP Rehabilitation on All Un-Grouted Sections of HOBAS Pipe $ 2,970.00 LF 755 $ 2,242,350.00 003.10 Bypass Operation of Secondary Bypass System (After 60 days captured on line item 18) $ 7,155.00 DAY 30 $ 214,650.00 003.11 Soil Stabilization Allowance (Up to 25,000 Additional Gallons) $ 21.73 GALLON 25000 $ 543,250.00 c03.12 CFRP Rehabilitation From Manhole to Manhole (Additional 70LF) $ 2,970.00 LF 70 $ 207,900.00 CO3.13 Daily rate for second Pump Watch during Rain Events $ 2,405.00 DAY 15 $ 36,075.00 Change Order 03: $ 7,884,343.00 Total Contract With Change Order 03: $ 10,547,837.00 Owner Option: $ 1,001,875.00 Potential Final Contract Value: I $ 9,545,962.00 STRUCTURAL will make every effort to expedite the project to minimize days of Bypass operation. Line Items 3.1, 3.2, 3.10, and 3.13 will be invoiced for Days used so this is a potential area of savings. For example, if the project is completed 3 days ahead of schedule, there are potential large savings from this final contract value.