7670 - Change Order 1 Executed
Docusign City Council Transmittal Coversheet
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City Council Target Date
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DocuSign Envelope ID: 94F678F5-D65D-46A3-BD42-196B327FB50F
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Hickory GIS Substation, Change Order
1
7670
Christa Christian
FILE
AUGUST 16, 2022
N/A
22-1540
Beta Engineering 4725 Highway 28 East Pineville, LA 71360 318.487.9599 betaengineering.com
June 30, 2022
Denton Municipal Electric
1671 Spencer Road
Denton, TX 76205
Attn: Mr. Mark Zimmerer, PE
Subject: City of Denton Hickory GIS Substation Project
Beta Project No. B661
Dear Mark,
This letter serves as a formal request for a Contract Amendment to incorporate scope changes in the
Design Build Agreement for the Construction of the Hickory GIS Substation dated December 14th, 2021.
The additional scope items have been separated into three categories as follows:
A. Items to be Included in the Contract Amendment – Beta requests a Contract Amendment to
incorporate the following scope changes as soon as possible so that these items can be
incorporated in the project without delay.
Item Description Price
A1
As a result of a force-majeure event outside of Beta’s control, it is not possible
to achieve the Contract Completion Date of October 24, 2024 with Beta-
Purchased transformers GT-06111 and GT-06112 installed at the new Hickory
GIS Substation.
The new Hickory GIS Substation shall use Owner-Supplied transformers GT-
01950 and GT-02289. Unless otherwise noted, only the work performed by
Beta to complete integration of Owner-Supplied transformers to the new
Hickory GIS Substation shall be subject to a 3-year warranty period.
Owner-Supplied transformers GT-01950 and GT-02289 shall be inspected and
tested at McKinney Substation prior to disassembly and relocation to the new
Hickory GIS Substation. This testing shall be performed by Waukesha under
supervision by Beta at no additional cost to the contract. Upon reassembly at
the new Hickory GIS Substation, Owner-Supplied transformers GT-01950 and
GT-02289 shall be re-tested by Waukesha under supervision by Beta at no
additional cost to the contract.
$0
A2
"Per the definitions and Section 5.3(b)(6) of our design build Agreement:
""“Adjusted Reference Price” means the Reference Price for Copper, Steel and
PVC Resin adjusted up or down five percent (5%), as applicable.""
""“Commodity Price Change Order” means a change order pursuant to Section
5.3(b)(6) and shall be; (a) a credit to Owner for quantities of Copper, Steel and
PVC Resin, if the Copper Index Price, the Steel Index Price or the PVC Resin
Price is less than ninety five percent (95%) of the Reference Price for such
commodity on the day such commodity is purchased by Contractor for the
Work; and/or (b) a price increase to Contractor for the quantities of Copper,
($9,000)
DocuSign Envelope ID: 94F678F5-D65D-46A3-BD42-196B327FB50F
DME Hickory GIS Substation
Beta Ref. No. B661-L001
March 7, 2022
Page 2
Steel and PVC Resin, if the Steel Index Price, the Cooper Index Price or the
PVC Resin Price is greater than one hundred and five percent (105%) of the
Reference Price on the day such commodity is purchased by Contractor
for the Work. The Section 5.3(b)(6) Change Order shall be for the quantity of
the commodity purchased (Copper, Steel or PVC Resin) multiplied by the
difference between the Adjusted Reference Price and applicable Steel Index
Price, Copper Index Price or PVC Resin Price. Contractor shall provide
commercially reasonable documentation to Owner documenting the basis
for the Commodity Price Change Order associated with each requested Change
Order.""
""“Reference Price” means $4.74/lb for Copper, $1,330/ton for PVC Resin and
$1,919/ton for Steel.""
Based on Reference Price for copper of $4.74 per lb, the Adjusted Reference
Price is $4.503 per lb.
For the 138kV transmission cable, Beta's purchase order was based on a copper
price of $4.4659 per lb (please refer to the attached quote). Per the atached
clarifications, the cable price per foot is adjusted based on fluctuations in the
cost of copper as follows:
FP = BP - {Wtcu * (CPBid - CPOrder)} - {Wtal * (APBid - APOrder)} where
FP is Final Adjusted Price [$/ft]
BP is Bid Price [$/ft]
Wtcu is Amount of Copper used in the cable construction [lbs/ft]
CPBid is Copper Price base in the quotation [$/lb]
CPOrder is Copper price COMEX as per the hedge contract for the delivery
month [$/lb]
Wtal is Amount of Aluminum used in the cable construction [lbs/ft]
APBid is Aluminum price base in the quotation [$/lb]
APOrder is Aluminum Mid-West U.S. Transaction price as per the hedge
contract for the delivery month [$/lb]
Beta's purchase of 138kV cable was on a Bid Price of $155.68/ft
The Final Adjusted Price at $4.503/lb is $156.3605/ft
This results in a cost savings of $8,846 which will be credited back to DME as
the Commodity Price Change Order."
DocuSign Envelope ID: 94F678F5-D65D-46A3-BD42-196B327FB50F
DME Hickory GIS Substation
Beta Ref. No. B661-L001
March 7, 2022
Page 3
A3
"Per DME's direction given via Brian Ehsani email on 6/8/22 and subsequent
meetings, Beta is proceeding with modifications to the single line diagrams
(SOL and ROL drawings), panel elevations BOM drawings, and three line (TL
and PT) drawings detailed in Brian's email. In addition, Beta will include two
new ROL sheets that reflect only the MOD controls per B&V's comments to
Engineering Submittal #2. These modifications will consist of rearranging the
breaker numbering and bay positions on the one-lines and three-line diagrams
to reflect the physical arrangement of the GIS to ensure optimum functionality
for DME's operations team. This change will also require appropriately
rearranging the protection and control relaying to accurately reflect the new
arrangement of the bays. The panel elevation BOM drawings will be updated to
reflect DME's ring bus standard where the breaker panel protects the
descending asset.
The additional hours for these modifications are as follows:
Technician II – 66 hours
Engineer III – 74 hours
Engineer V – 42 hours"
$22,000
B. Items to be listed as “Optional” in the Contract Amendment – The following items shall be
listed as “Optional” items in the Contract Amendment. These items would not be incorporated
Beta’s scope until accepted by DME. These optional items are valid for acceptance through April
3, 2022.
Item Description Price
B1
The Beta-purchased SPX transformers GT-06111 and GT-06112 shall be
delivered to the McKinney Substation Site or Underwood Substation Site.
Transformers shall be assembled and tested by Manufacturer under supervision
by Beta. High/Medium voltage connections and control wiring to be installed
and tested by others.
$0
B2
Owner-Supplied transformers GT-01950 and GT-02289 shall be disassembled
and relocated to the new Hickory GIS Substation by DME.
Reassembly, testing, and pre-commissioning of Owner-Supplied transformers
at new Hickory GIS Site shall be performed by DME.
Any additional work performed by Beta to complete integration of Owner-
Supplied transformers to the new Hickory GIS Substation shall be subject to a
3-year warranty period.
$0
DocuSign Envelope ID: 94F678F5-D65D-46A3-BD42-196B327FB50F
DME Hickory GIS Substation
Beta Ref. No. B661-L001
March 7, 2022
Page 4
Item Description Price
B3
Owner-Supplied transformers GT-01950 and GT-02289 shall be disassembled
and relocated to the new Hickory GIS Substation by Beta.
Reassembly, testing, and pre-commissioning of Owner-Supplied transformers at
new Hickory GIS Site shall be performed by Beta. This work shall be subject to
a 1-year warranty.
Any additional work performed by Beta to complete integration of Owner-
Supplied transformers to the new Hickory GIS Substation shall be subject to a
3-year warranty period.
Owner supplied transformers shall be subject to section 2.20 “Owner-Supplied
Equipment” and related Section 2.13 “ Care, Custody and Control/Risk of Loss”
shown in the Design Build Agreement.
$372,000
B4
Per Siemens Energy quote and technical exceptions, the GIS equipment located
inside the GIS Equipment Room is rated for a maximum temperature of 40 C.
Based on our discussions, HVAC in the GIS Equipment Room had been
previously considered but was removed from the project scope as unecessary.
Kirkpatrick Architecture Services has determined that an additional 60 tons of
cooling capacity would be required to maintain a temperature of 85 F in the GIS
Equipment Room. Five (5) 15-ton Bard Wall mount units are proposed with one
(1) unit acting as a spare.
This proposal is for the addition of the five (5) 15-ton Bard wall mount units,
and associated GIS building electrical modifications, per the attached quote.
No additional substation modification will be required for this addition.
There is an estimated schedule impact of 2 weeks for revisions to the GIS
Building construction drawings.
There is a 30-week lead time for the additional A/C units and 2 weeks required
for installation.
$426,000
Please issue a letter confirming acceptance of the “A” items included in this request and indication of the
“B” items Beta should proceed with. We will add a single Milestone Payment for the “A” items. This
Milestone Payment” would be called “Change Order No. 1 – Commodity Change Order and Drawing
Updates”. We anticipate invoicing for 100% of this milestone in August 2022.
If you would like Beta to proceed with option B3, I would suggest the addition of a single Milestone
Payment. Milestone Payment would be called “Changes Order No. 1 – Owner-Supplied Transformer
Relocation”. We anticipate invoicing for 100% of this milestone in February 2023, following the testing,
disassembly, relocation, reassembly.
DocuSign Envelope ID: 94F678F5-D65D-46A3-BD42-196B327FB50F
DME Hickory GIS Substation
Beta Ref. No. B661-L001
March 7, 2022
Page 5
If you would like Beta to proceed with option B4, I would suggest the addition of a single Milestone
Payment. Milestone Payment would be called “Changes Order No. 1 – GIS Equipment Room AC
Addition”. We anticipate invoicing for 100% of this milestone in June 2023, following the installation of
AC Units in the GIS Equipment Room.
Upon receipt of your response, I will prepare and submit the Change Order Form in accordance with
Article V of the Design Build Agreement.
Please call me if you have any questions.
Sincerely,
Jeremy Katusak, PE, PMP
Project Manager
DocuSign Envelope ID: 94F678F5-D65D-46A3-BD42-196B327FB50F
DocuSign Envelope ID: 94F678F5-D65D-46A3-BD42-196B327FB50F
Executive Vice PresidentGeorge Brashear
Senior Buyer
Christa Christian
THIS AGREEMENT HAS BEEN
BOTH REVIEWED AND APPROVED
as to financial and operational obligations
and business terms.
_______________ ________________
SIGNATURE PRINTED NAME
__________________________________
TITLE
__________________________________
DEPARTMENT
CITY OF DENTON, TEXAS
BY: _____________________________
SARA HENSLEY
CITY MANAGER
ATTEST:
ROSA RIOS, CITY SECRETARY
BY: _______________________________
APPROVED AS TO LEGAL FORM:
MACK REINWAND, CITY ATTORNEY
BY: _______________________________
DocuSign Envelope ID: 94F678F5-D65D-46A3-BD42-196B327FB50F
DME General Manager
Antonio Puente
Electric
Certificate Of Completion
Envelope Id: 94F678F5D65D46A3BD42196B327FB50F Status: Completed
Subject: Please DocuSign: City Council Contract 7670 - Change Order 1
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901B Texas Street
Denton, TX 76209
Christa.Christian@cityofdenton.com
IP Address: 198.49.140.104
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7/15/2022 11:20:34 AM
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Christa.Christian@cityofdenton.com
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City of Denton
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