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File #: 2505-2014    Version: 1
Type: Ordinance Status: Passed
File created: 10/22/2014 In control: Public Utilities Committee
On agenda: 12/8/2014 Final action: 12/10/2014
Title: To authorize the Director of Public Utilities to modify and increase the construction contract with Kenny-Obayashi Joint Venture in the amount of $29,500,000.00 for additional work needed on the OSIS Augmentation & Relief Sewer (OARS) Phase 1 project and to settle and release on behalf of the City claims related to the additional work; to authorize the appropriation, transfer, and expenditure of up to $29,500,000.00 from the Sewer System Reserve Fund to the Ohio EPA Water Pollution Control Loan Fund (WPCLF); to amend the 2014 Capital Improvements Budget; to apply for, accept, and enter into an Ohio Water Pollution Control Loan Fund Supplemental Loan Agreement with the Ohio Environmental Protection Agency and the Ohio Water Development Authority in order to complete the construction of the OSIS Augmentation & Relief Sewer (OARS) Project Phase 1; to designate a dedicated source of repayment for the loan; and to declare an emergency. ($29,500,000.00)
Attachments: 1. ORD 2505-2014 Information.pdf

Explanation

1. BACKGROUND: This Ordinance authorizes the Director of Public Utilities to modify and increase the construction contract with Kenny-Obayashi Joint Venture for the OSIS Augmentation & Relief Sewer (OARS) Phase 1 project for the Division of Sewerage and Drainage; and to apply for, accept and enter into a Water Pollution Control Loan Fund (WPCLF) Supplemental Loan Agreement totaling $29,500,000.00 to finance the completion of this project.

ADDITIONAL INFORMATION

The contract modification is a result of a settlement agreed to by all parties to cover the costs of the redesign of the Tunnel Boring Machine and related work due to subsurface conditions found after the project had commenced. The contractor has continued working throughout the project though the conditions have changed.

1.1 Amount of additional funds to be expended: $29,500,000.00
Original Contract Amount: $264,506,000.00
Modification No. 1 (this Mod.): $29,500,000.00
Total (Orig. + Mod. 1) $294,006,000.00

Modification No. 1 (current) is needed to increase Contract No. EL010880 by $29,500,000.00 for the following item:

OARS1-RFP-024 - Tunnel Groundwater DSC Claims - $28,500,000.00; Additional Contingency: $1,000,000.00.
The contract documents do not provide baseline groundwater inflows for the tunnel profile as a whole, but focus on inflows for discrete water producing zones. The contract specifications did not preclude the use of a multi-mode Tunnel Boring Machine (TBM), which could operate in both the open and closed mode. The contractor selected a TBM with the intent to operate primarily in open-mode based on the data provided in the contract documents. During the first few months of TBM mining groundwater inflows were not discrete or isolated events, instead these water producing solution features turned out to be essentially significant and constant subsurface conditions.

After 10 months of mining rock averaging a 23-feet-per-day production rate with continuous ...

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