TRANSMITTAL LETTER FOR BOARD MEETING OF OCTOBER 1, 2026
COMMITTEE ON PROCUREMENT
Mr. John P. Murray, Executive Director
Title
Authority to decrease Contract 01-103-AS 39th Street Conduit Rehabilitation - Phase II, SSA, to Michels Trenchless, Inc. in an amount of $312,723.41, from an amount of $40,433,262.16, to an amount not to exceed $40,120,538.75, Account 401-50000-645700, Purchase Order 4000119
Body
Dear Sir:
On October 17, 2024, the Board of Commissioners authorized the Director of Procurement and Materials Management to award Contract 01-103-AS 39th Street Conduit Rehabilitation - Phase II, SSA, to Michels Trenchless, Inc., in an amount not to exceed $39,418,164.03, plus a five (5) percent allowance for change orders in an amount of $1,970,908.20, for a total amount not to exceed $41,389,072.23. The scheduled contract completion date is December 5, 2026.
As of September 18, 2026, the attached list of change orders has been approved.
Original Contract Amount $39,418,164.03
Date of Board Approval 10/17/2024
Cumulative Change Order (9/18/2026) $1,015,098.13
% Change of Original Contract Value 2.58%
Current Contract Value $40,433,262.16
Requested Decrease $312,723.41
New Contract Value $40,120,538.75
% Change of Current Contract Value -0.77%
Total % Change of Original Contract Value 1.78%
Item 1: The contract documents specified removal and replacement of existing concrete steps within connecting structures CN-5 and CN-6. Based on field observations, the existing local sewer connections enter the structures at locations that do not require removal of the existing steps. Accordingly, this change order provides for the deletion of the concrete step removal and associated concrete repair work from the contract scope.
Item 2: The contract documents specified rehabilitation of two manholes and an associated manhole step replacement at CN-4. Based on field observations, the southwest manhole was previously abandoned, and the southeast manhole was previously replaced as part of the city of Chicago’s sewer work. Accordingly, this change order provides for the deletion of surface preparation, liner installation, and manhole step replacement at these two manholes from the contract scope.
Item 3: The contract documents specified abandonment of an existing 8-foot-diameter sewer segment. However, field observations identified an active local storm sewer was connected to this segment. As such, the sewer segment cannot be abandoned. Accordingly, this change order provides for the deletion of the specified 150 psi flowable fill to plug this section of pipe.
The contractor submitted a cost proposal (CO-7) for an extra in the amount of $0 and a credit in the amount of $194,013.53, for a net credit in the amount of $194,013.53. The Engineer reviewed the proposal, found it to be reasonable, and stated via correspondence CO07 that the Engineering Department would recommend its approval.
Item 4: The contract documents specified rehabilitation of two manholes at the east end of the District-owned portion of the 39th Street Conduit mainline. Based on field verification, these manholes were located just east of the District’s sewer and are attached to the city of Chicago’s conduit segment. Accordingly, this change order provides for the deletion of surface preparation, liner installation, and manhole step replacement at these two manholes, as well as the work associated with uncovering one of the manholes from beneath the street surface. The city of Chicago was notified of the findings and the condition of their manholes.
The contractor submitted a cost proposal (CO-8) for an extra in the amount of $0.00 and a credit in the amount of $118,709.88, for a net credit in the amount of $118,709.88 for item 4. The Engineer reviewed the proposal, found it to be reasonable, and stated via correspondence CO08 that the Engineering Department would recommend its approval.
These change orders are in compliance with the Illinois Criminal Code since the changes are due to circumstances not reasonably foreseeable at the time the contract was signed and is in the best interest of the District.
It is hereby recommended that the Board of Commissioners authorize the Director of Procurement and Materials Management to execute these change orders to decrease Contract 01-103-AS in an amount of $312,723.41 (-0.77% of the current contract value), from an amount of $40,433,262.16, to an amount not to exceed $40,120,538.75.
Funds will be restored to Account 401-50000-645700.
Requested, Catherine A. O’Connor, Director of Engineering, KMF:LS
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Precious Brady-Davis, Chairperson Committee on Procurement
Disposition of this agenda item will be documented in the Official Regular Board Meeting Minutes of the Board of Commissioners for October 1, 2026
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