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Exhibit 1 - Agenda Information Sheet - Change Order 1City of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement & Compliance ACM: David Gaines DATE: June 8, 2021 SUBJECT Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the approval of Change Order No. 1 to the contract between the City of Denton and John Burns Construction Company of Texas, Inc., for the construction of the Hickory Substation underground transmission and distribution duct banks; providing for the expenditure of funds therefor; and providing an effective date (RFP 7420 – Change Order No. 1 in the not-to-exceed amount of $110,775.30, for a total contract award aggregated to $922,146.00). The Public Utilities Board recommends approval (4 - 0). INFORMATION/BACKGROUND A contract was awarded on October 20, 2020, to John Burns Construction Company for the construction of specific sections of electrical transmission and distribution duct banks needed to support the new Hickory Gas Insulated Substation (GIS). A change order is requested for additional work required to install steel casing under sections of the duct banks in preparation for the North-South Watermain project located within Bonnie Brae Street. The City of Denton is currently updating utilities within Bonnie Brae Street in preparation for its reconstruction. The Street Department has worked to coordinate utility replacements, upgrades, and new installations ahead of repaving which is scheduled for later this year. The steel casing installation requested as a part of this change order must be installed before the electrical duct banks to prevent damage to the transmission duct bank structural integrity when the water line is eventually installed. As a result of the ongoing process to settle the termination of the original street construction contract and the need to negotiate a new construction contract, John Burns Construction Company has been requested to install the steel casing, so as not to delay the installation of the electrical duct banks. The locations for the steel casing and the electrical duct banks are shown in the contract. The initial contract includes the construction of duct bank sections extending from inside the new Hickory GIS Substation wall boundary to appropriate points outside the station and is required to facilitate future underground transmission and distribution circuits. These duct systems are mostly limited to the immediate Bonnie Brae area and extend west past the existing Hickory Substation. Completing this construction before the Bonnie Brae Street reconstruction will eliminate the potential of having to cut the newly reconstructed Bonnie Brae Street after its completion. Additional transmission and distribution duct bank construction will be required in other areas around the substation as the substation project progresses and will be included with the EPC contract for the construction of the Hickory GIS substation. Construction of the duct banks is the first step in beginning the project for the new Hickory GIS Substation. The Hickory GIS Substation is an approved CIP project, and the City Council has directed DME to use GIS City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com technology. The use of underground transmission conductors in combination with GIS provides greater aesthetic benefits. This will be DME’s first experience with transmission underground technology. The initial contract amount included a duct bank installation cost of $772,734 and a $38,636.70 contingency for a total contract amount of $811,370.70. The proposed cost to install the steel casing is $149,412. Utilizing the contingency amount included in the initial contract, the proposed change order is $110,775.30 for a revised total contract amount of $922,146. PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On October 20, 2020, City Council approved a contract with John Burns Construction Company of Texas, Inc., in the not-to-exceed amount of $811,370.70 (Ordinance 20-2063). On May 24, 2021, the Public Utilities Board (PUB) recommended this item to the City Council for consideration. RECOMMENDATION Award Change Order No. 1 with John Burns Construction Company of Texas, Inc., for the construction of the Hickory Substation underground transmission and distribution duct banks, in the not-to-exceed amount of $110,775.30, for a total amended contract amount of $922,146. PRINCIPAL PLACE OF BUSINESS John Burns Construction Company of Texas, Inc. Lewisville, TX ESTIMATED SCHEDULE OF PROJECT This project will be started upon approval with a completion date within 180 calendar days. FISCAL INFORMATION The costs for material and installation for the transmission duct banks will be funded as part of a Capital Improvement Project (CIP), and the cost will ultimately be recovered through the Public Utility Commission Transmission Cost of Service Program (TCOS). EXHIBITS Exhibit 1: Agenda Information Sheet Exhibit 2: Original Ordinance and Contract Exhibit 3: Ordinance and Change Order 1 Respectfully submitted: Lori Hewell, 940-349-7100 Purchasing Manager For information concerning this acquisition, contact: Mark Zimmerer, 940-349-7169. Legal point of contact: Marcella Lunn at 940-349-8333.