Explanation
1. BACKGROUND:
A. Need: This legislation authorizes the Director of Public Utilities to modify the construction contract with Liberty Mutual Insurance Company for the Wastewater Treatment Facilities Instrumentation and Control (I&C) System Upgrade Project. The original contract was signed with The Superior Electric Company, which defaulted on the contract. The Completion Surety, Liberty Mutual Insurance Company, entered into a Take-over Agreement with the City for the completion of the Contract Work. The Contract Work is being completed by the Surety's Completion Contractor, The Superior Group. The Liberty Mutual Insurance Company modification amount requested under this ordinance is $855,557.00. The contract total including this modification is $11,484,157.00. These additional funds will provide for the cost of several changes in contract work that have become necessary to complete the I&C Upgrade and to settle several Contractor's claims for compensation. Due to the complex and comprehensive nature of this project, this additional work could not be foreseen, and it is not practical or feasible to undertake a new procurement to deliver these services. This legislation will additionally authorize the expenditure of funds within the Sanitary Sewer Bond Fund.
B. Contract Compliance No.: The Contract Compliance No. for the Completion Contractor is 200354904 (MAJ).
C. Emergency Designation: The Division of Sewerage and Drainage hereby requests City Council to concur in the designation of this ordinance as an emergency measure, in order to assure that the construction contract work may proceed uninterrupted and avoid possible delays, thereby assuring minimum final costs to the City in the establishing of these vital plant facilities.
2. FISCAL IMPACT: Monies for this project were included in the recent bond sale and sufficient authority is in the 2006 Capital Improvements Budget.
3. PROJECT LOCATION: This project is located at the...
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