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RB CASE WATER UTILITY IMPROVEMENTS By: Steve Jankowski, City Engineer Background: At the March Road and Bridge Committee meetings, a case was prepared which provided background on a number of projects which all had the common purpose of providing additional sources of water for the City's rapidly growing water utility. All of these projects are also being managed by BRA Inc. The purpose of this case is to report on the progress of each project and to review and authorize change orders associated with these projects. Well No. 3;. The construction of Well No. 3 has been the major focus for increasing the City's water source supply. This work was awarded to Alberg Water Services LLC on September 9, 1996. Change Order No. 1, which was approved on March 11, 1997, extended the completion date to February 15, 1997. Alberg's work has been determined to be complete as of March 24, 1997. Test pumping shows that the well will deliver 1,200 gallons per minute (gpm) of sand-free water, which exceeded the desired target of 1,000 gpm. BRA is putting together pay estimates covering the actual quantities for the work associated with the construction of Well No. 3. We have also been asked by the contractor for consideration on the liquidated damages which amounts to $7,600 (38 days at $200 per day). His letter of March 24 is attached. Recommendation: Liquidated damages are incorporated into the standard conditions in construction contracts to assure timely completion of the project. Although actual costs incurred by an owner for the late completion of a project are difficult to quantify, they are nonetheless real. At a minimum, late projects cost the owner additional staff and consultant time. Liquidated damages provide an efficient and legally defensible means for the owner to recover these costs. I must credit Alberg for taking measures necessary for competing the work and producing the desired product. In reviewing his letter, I can certainly sympathize with the circumstances he describes. Nonetheless, I would recommend that we collect the liquidated damages as specified in the contract, and advise Alberg that he should attempt to reclaim them from the City of Elgin project since they caused his delay. Well House No. 2; This contract was awarded to M.C. Magney on November 12, 1996. The major elements of this contract include installing the watermain to connect Well No. 3 to the distribution system, to construct the well house, and furnish and install mechanical and electrical equipment, including the well pump and chemical feeds. The connecting watermain was installed last fall. Work on the pump house foundation and under-floor piping has commenced the week of March 24. Attached is a letter dated March 18, 1997, from Daryl Kirschenman, which identifies several small changes amounting to an increase in cost of $276.