September 20, 1999

 TO:Works Committee

FROM:Commissioner, Works & Emergency Services

SUBJECT:Engineering Services to Complete the Replacement of Sludge Dewatering

Centrifuges Contract at the Highland Creek Treatment Plant

Purpose:

To authorize additional engineering fees for general administration and site supervision services related to Contract WPC-8-97, "Replacement of Centrifuges for the Sludge Treatment Building at the Highland Creek Treatment Plant".

Funding Sources:

Funding is available in the approved 1999-2003 Water and Wastewater Services Division Capital Works Program, Water Pollution Control, Highland Creek Treatment Plant, Equipment Replacement Account C-WP050.

Recommendations:

It is recommended that authority be granted to extend the previously engaged services of the engineering firm of Proctor & Redfern Limited for general administration and site services during construction of the Replacement of Sludge Dewatering Centrifuges project at the Highland Creek Treatment Plant, for a fee not exceeding $72,000.00, including all applicable taxes and disbursements, based on the previously authorized contingency unit rate of $4,500.00 per week.

Background:

Metropolitan Council on August 10, 1994, by adoption of Works Committee Report No. 14, Clause 16, authorized the engagement of the firm of Proctor & Redfern Limited (P&R) to provide engineering design services in connection with this project, composed of two contracts, one for the supply, delivery, supervision of installation and commissioning of two centrifuges (WPC-1-96) and the other for the installation of centrifuges, including provision for sludge feed and polymer systems and commissioning of the replaced sludge dewatering system, (WPC-8-97).

 With the report for the award of the equipment supply contract in the amount of $1,693,000.00, Metropolitan Council on August 14, 1996, by adoption of the Environment and Public Space Committee Report No. 13, Clause No. 10, authorized the extension of P&R's services to include contract administration services for the supply contract in the amount of $9,700.00 including taxes.

As the procurement of the centrifuge equipment was secured, the installation contract was awarded on September 24, 1997, by Metropolitan Council in the amount of $1,645,000.00 by adoption of Environment and Public Space Committee Clause No. 14, Report No.12. The Report also authorized the extension of P&R's services to include general administration and site services during construction of the Centrifuges Installation Contract in the amount of $320,000.00, including taxes, based on an anticipated tendered construction period of 52 weeks, with the provision for further extension at a contingency rate of $4,500.00 per week for continuation of services beyond the 52 weeks, if necessary and as authorized by the Commissioner of Works, all under the terms of the existing engineering services agreement.

The new sludge dewatering centrifuge system has been operating since February 9, 1999, with only a partial automated control system due to unexpected problems encountered during the integration with the existing control system. Investigation of the control system and upgrading of some of the existing computer hardware by companies having expertise in communications and software systems, was necessary to allow resumption of contractual site activities and completion of the new control system integration with the existing.

Contractual completion is now expected by the end of September 1999, with no delay claims, as this Department, with the assistance of our consultants, reached an agreement with the contractor involved, allowing a control system audit and upgrade by a third party to proceed with the contractor's commitment of no delay claim submissions. Therefore, the completion date of contract WPC-8-97, originally tendered as November 16, 1998, will now be extended to the end of September 1999, or an extension of 46 weeks, due to unexpected site conditions.

During the extended construction period, the City's consultant, Proctor & Redfern Limited, have been involved only on as needed basis with the project and are requesting additional fees in the amount of $72,000.00, including taxes and disbursements, equating to a time period of 16 weeks at the unit rate of $4,500.00 per week, previously authorized for such extensions of services. The additional fees will bring the total of contract administration and site supervision engineering services to an amount of $401,700.00, including taxes and disbursements, on a total awarded contract amount of $3,338,000.00, including both the equipment supply and installation contracts.

Conclusions:

In view of the unexpected site conditions encountered in the integrating the new control system with the existing system, requiring a third party investigation and a limited upgrade of the existing system, Contract WPC-8-97 was unavoidably prolonged by 46 weeks, extending the requirements of contract administration and site supervision on an as needed basis by 16 weeks.

Accordingly, the engineering fees for Proctor & Redfern Limited should be increased by $72,000.00, including applicable taxes and disbursements.

Contact Name and Telephone Number:

Adrian Piccolo, P.Eng.

Senior Project Engineer

Plant & Facility Construction

416-392-8853

   T.G. Denes, P.Eng.B.H. Gutteridge

Executive DirectorCommissioner of Works & Emergency Services

Technical Services Division

 AFP/ph

Attachment

File 1020.50-1-2