Approval Sheet

CITY OF GILLETTE
201 E. 5th Street
Phone (307)686-5200
CITY OF GILLETTE


www.gillettewy.gov

 
DATE: 7/21/2020 7:00:00 PM
SUBJECT:
Council Consideration of a Change Order for Adjustments to the Contract for Test Pumping Equipment Cost Escalation, and Time Extension for the Gillette Madison Pipeline Project, Contract 2a with Layne Christensen Company, in the Amount of $472,644.87.
BACKGROUND:

The construction contract for Contract #2a will include the drilling of three new wells into the Madison aquifer. The majority of the drilling operations were completed in October, 2017, but the project has been on hold while the State of Wyoming Department of Environmental Quality (WDEQ) completed an investigation for groundwater quality and level impacts in the surrounding area.  The study determined that drilling operations for wells M-13, M-14, and M-15 did not directly cause the low pH condition and that there is no hydraulic relationship between the shallow domestic well water bearing formations and the Madison aquifer.  Additionally, the study determined that the integrity of the cementing operations on all three wells was adequate. The study identified in-situ oxidation of native iron pyrite as the cause of the low pH conditions. Oxidation of the native iron pyrite may have occurred from long-term natural recharge, natural and pumping influenced fluctuations in groundwater levels, local impacts of domestic well construction, and locally enhanced recharge from the drilling and testing discharges from the City wells. The full results of the study can be found on the WDEQ website: http://deq.wyoming.gov/wqd/gillette-madison-well-field-project/

Change Order 06 provides additional Contract Price for necessary changes for discharging water associated with pump testing wells M-13, M-14, and M-15 to an offsite location per WDEQ requirements, a cost escalation factor due to the extended shut down period, and a Contract Time extension.

ACTUAL COST VS. BUDGET:

The original contract amount for this project was $14,027,028.00.  There are five change orders prior to Change Order 06 for a net added cost to the project of $653,051.19.  Below is a summary of these change orders:

Change Order Description Contract Time Amount
01 Piping Modifications No Change $   7,245.00
02 Additional Contract Time for Loss Circulation Events on M-14 and M-15. +82 Days $          0.00
03 Payment of Subcontractor and Material Costs Associated with M-14 Well Cementing Operations +158 Days $ 14,216.19
04 Additional Cleaning and Logging for Wells    M-13, M-14, and M-15 No Change $624,135.00
05 Extension of SWPP Requirements No Change $    7,455.00
06 Adjustments to Test Pumping Equipment and Adjustments for Time Extension and Cost Escalation of the Project  +120 Days  $472,644.87

This Change Order is eligible for reimbursement from the Wyoming Water Development Commission to cover 67% of the total cost. Revenue generated from the 1% Capital Facilities Tax (CAP Tax) will cover the remaining 33%.

SUGGESTED MOTION:
I Move for Approval of a Change Order for Adjustments to the Contract for Test Pumping Equipment Cost Escalation and Time Extension for the Gillette Madison Pipeline Project, Contract 2a with Layne Christensen Company, in the Amount of $472,644.87.
STAFF REFERENCE:
Michael H. Cole, P.E., Utilities Director
ATTACHMENTS:
Click to download
Change Order