ITEM 3.4A WWTF change order #3OtsegoTF
MINNESOTA
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT.
REQUESTOR; MEETING DATE:
Public Works
City Engineer Wagner March 11, 2013
PRESENTER(s):
REVIEWED BY: ITEM #:
Consent Agenda
3.4 A
AGENDA ITEM DETAILS
A) City Staff recommends payment in the amount of $43,246.37 for the Repair of Various Buildings.
Payment is to Erickson Builders.
B) Staff also recommends approval of Change Order #3 in the amount of $23,131.00 for
replacement of siding on the west side of the West WWTF buildings rather than the specified
north side.
C) Staff is also recommending the council direct the City Attorney to initiate legal action against the
engineering firm (Stantec fka Bonestroo) who prepared plans and specifications and provided
the inspection services for both the East and West WWTF for failure to notify the City of work
not meeting specifications.
ARE YOU SEEKING APPROVAL OFA CONTRACT? ISA PUBLIC HEARING REQUIRED?
NO I NO
BACKGROUNDIJ USTIFICATION:
A) Erickson Builders has completed the repair of the siding of East Pretreatment Building
and a majority of the East GBT, East Chemical and the East Control buildings.
B) CO #3 is a result of the contractor discovering that the side shown and specified in the
plan, the north side, was not the storm damaged side. The west side was the damaged
side and the area of the west side versus the north side on all of the 4 buildings is greater.
The buildings are at approximately a 45 degree angle to having a side face directly north
which may have been the issue with the referencing of a particular side. The City, the
contractor and the League of MN City's Insurance (LMNCI) met and the LMNCI has
accepted the change order and the additional costs associated with it. The costs will
become a pass through to the LMNCL
The City. Attorney has put the engineering firm that provided the inspection for the
building, Stantec, on notice that the council may consider action against them for failure
to inform the City that the contractor was not meeting all of their obligations. A potential
cost for all of the items that have been discovered is $160,897.72. The issues that have
been discovered while completing the residing was both the lack of any moisture barrier
and or the improper installation of moisture barrier. Moisture barrier was a specified
item in all of the contracts and is part of the Uniform Building Code after 2003. The
siding contractor has been taking photos of the issues. Due to the improper or lack of
moisture barrier some wood material has contained rot and removal and replacement has
been necessary. Also, all of the roofs at the West WWTF are being replaced due to
improper fastening of the sheathing. Stantec has not acknowledged any responsibility for
failing to enforce specification during construction and the City has not relinquished its
claim of damages.
SUPPORTING DOCUMENTS: X ATTACHED NONE
• Pay Estimate #2
• Change Order #3
• Memo to Public Works
• Estimated cost of potential damages from lack of or improper installation of moisture barrier
and improper fastening of roof sheathing.
MOTION: (Please ward motion as you would like it to appear In the minutes.)
Motion to approve Change Order #3 in the amount of $23,131.00 and
Motion to approve payment to Erickson Builders in the amount of $43,246.37 for the Repair of Various
Buildings and
Motion to direct the City Attorney to initiate legal action against Stantec for failure to notify City of
Contractors lack of meeting Specifications.
BUDGET INFORMATION
FUNDING: BUDGETED: X YES
LMC Insurance
Sewer Fund n NO
Water Fund
ACTION TAKEN
❑ APPROVED AS REQUESTED ❑ DENIED n TABLED ❑ OTHER (List changes)
COMMENTS:
PAY ESTIMATE 02
CITY OF OTSEGO
Repair Various City Buildings
March 3, 2013
Honorable Mayor & City Council
City of Otsego
8899 Nashua Avenue NE
Otsego, MN 55330
RE: Repair Various City Buildings
Contractor: Erickson BuMlers and Co„ Inc.
Contract Amounl: $261,318.00
Award Date: November 14, 2012
Completion Date: June 1, 2013
Dear Honorable Mayor and Council Members:
The following work has been completed on the above -referenced project by Erickson Builders and Co., Inc.
Bid Schedule "A' - Insurance Items
CONTRACTOR
ITEM
NO.
ITEM DESCRIPTION
ESTIMATED
QUANTITY
UNIT
CONTRACT UNIT
PRICE CONTRACT AMOUNT
USED TO
DATE
EXTENSION
1
East Blower Building
1
LUMP SUM
$12,300.00
12 390.00
1.00
12 390,00
2
East OBT Building1
West W Building, Roof Sheathing/Shingle Roof System
LUMP SUM
$18305.00 $
19305.00
0.76 $
14476.75
3
EastContfol
1
LUMP SUM
$27168.00 $
27168.00
0,75
20378.00
4
East PreireatmentfDisinfectantlUV BulldlnR
1 I
LUMP SUM
13 541,00 $
13 641.00
1.00 $
13 641,00
5
East Chemical Building
1
LUMP SUM
$9,039.00
,030,00
0.76 $
6,779.25
s
iWest Pretreatment Bultdim
1
LUMP SUM
$23,305.00
..9
23 365.00
0.00 $
7
West Control Building
1
LUMP SUM
$31,418.00 $
31 418.00
0.00 $
8
West UV Building
1
LUMP SUM
$10,001.00
18 001.00
0,00 $
9
West Blower BvIlding
1
LUMP SUM
$10,848.00 $
16,046.001
0.00 $
10
West Well # 4 Pump douse 3
1
LUMP SUM
$J6.435.00 $
18435.00
0.00 $
Total Bid Schodul , "A" $ 185,310.00_10,00 S 67 66x,00
Bid Schedule "S" - Roof Issues
ITE14
I
ESTIMATED
UNIT
CONTRACT UNIT
CONTRACTAMOUNT
USEDTO
EXTENSION
NO.
ITEM DESCRIPTION
QUANTITY
UNIT
PRICE
CONTRACTAMOUNT
DATE
EXTENSION
West W Building, Roof Sheathing/Shingle Roof System
Demolition and Now SheathinglShingle Roof System
11
Replacement
1
LUMP SUM
$13.450.00
$ 13 450.00
$
Wat Pretreatment Building Roof Sheathfngl5hingle Roof
System Damolitlon and New Sheathing Shingle Roof
TLUMPSUM
12
tem Replacement
1
LUMP SUM
$14,816,00
$ 14 818.00
2
West Control Building Roof SheaOtingiShinglo Roof
$23.601
$ 23.50
System Demolition and New SheathinglShingis Roof
13
System ReDlacement
1
I LUMP SUM
$23,842.001
$ 23 842.00
$
West Blower Bulkfing Roof ShaaWriglShfngle Roof System
Demoliticn and Now SheathinglShingle Roof System
i4
Re acement
1
LUMP SUA1
$20,fiO4.00
$ 20 604.00
$
16
East Well # 2 Pump House
1
LUMP SUM
$3,293.00
$ 3,200,001
Total Bid Schedule "S"-78u008.OQ $
Bid Schedule "C" -Alternate to Schedule 8 Using Set Repairs
ITEM
NO.
ITEM DESCRIPTION
ESTIMATED
QUANTITY
UNIT
CONTRACT UNIT
PRICE
CONTRACTAMOUNT
USED TO
DATE
EXTENSION
U-1 Total Cost per SP to Include maledals, labor, overhead
and profit for removal of and disposal of deteriorated wood
roof deck and repIaca with newdec<
1
1
LUMP SUM
$3,60
340
$
U-2 Total Cost par SF to include materials, labor, overhead
and profit for removal of and disposal of deteriorated wood
TLUMPSUM
roof deck and replace with now deck
2
$23.601
$ 23.50
Total Bid Schedule "C" $
OT901-2013 - PE - Repair Various City Buildings PE- 1
S
PAY ESTIMATE #2
CITY OF OTSEGO
RepalrVarlous City Buildings
Channa nrdp.e Nn. i
CONTRACTOR
ITEM
NO.
ITEM DESCRIPTION
ESTIMATED
QUANTITY
UNIT
CONTRACT UNIT
PRICE CONTRACT AMOUNT
USED TO
DATE EXTENSION
1
Gutter and Downspouts
130
LP
$10,00 $
1300.00
0 $
2
10% Profit and Overhead
1
LS
1030-".4
130,00
0 $
3
Bond Cost 2%
1
LS
$28.617 $
28.60
0
4
Bufldlnn Permits - 7551 Lancaster Ave.
1
LS
$1,655.741 $
1,655.74
1 $ 1,055.74
5
BOW. Permitts - 5850 Randolph Ave.
1
LS
$1,020.001 $
1,020.00
1 $ 1,020,00
Change Order No.1 $ 4.134.334 $ 2,676,74
'Change, Order insurance Item
Chahna nrdar Nn_ 9
ITEM
NO,
ITEM DESCRIPTION
ESTIMATED
QUANTITY
UNIT
CONTRACT UNIT
PRICE CONTRACTAMOU14T
USER TO
DATE
EXTENSION
1
Repair rotten wood neer bottom sill on Westslde of the
East GBT Bulldi see attached lctures
1
LS
380.tl0 $
380.00
1 $
.360.00
2
Add house wrap to the With and West s#de of the East
GBT Building see attached lclures
1
LS
$42$.00 $
425.00
i
425.00
3
Overhead and Profit t0A
1
LS
$79.00
79.00
1 $
79.00
4
Bonding (2%
f
LS
$17.001$
17.00
11 s
17.00
Change Order No.2 $ 881.0 $ 881,00
411— onnrd"r Mn a
ITEM
$
ESTIMATED
Bid Schedule "B"
1CONTRACTUNIT
76,008.00
USED TO
2,676.74
NO,
ITEM DESCRIPTION
QUANTITY
UNIT
PRICE
CONTRACT AMOUNT
DATE
EXTENSION
$
West UV Bullding (RP -109) Replace
TOTAL.
$
288,464.34
all siding an the west elevation (270 sq. ft.)
1
Do not replace s!diag on the north elevatiMjL0 s . ft.
1
LS
$4,760.00
$ 4,760,00
0
$
West Blovsr Building (RP -110) Replace
all stding on the vrest efevailon (124 sq. ft.)
2
Do not replace sid€ o e north elevation 2
1
LS
$4,410.00
$ 4,410.00
D
S
West Pretreatment Bullding (RP -107)
Replace all siding on the west elevation (1236 sq, ft.)
3
Do not raplace siding o !he north elevation 399 s
1
LS
$10,415.00
$ 10 415.00
0
$
West Control Building (RP -108) Replace
all siding on the west elovatlon (373 sq. fL)
4
Do not replace s€dlng on the north elevation 310 sq. ft.
1
LS
$0.00
0
$
6
P(oloct Mane ement
16
HR
$65.00
S 1,040.00
0
$
6
Overhead and Profit 10%"
1
LS
$2 002.00
$ 2,062.00
0
$
7
Bonding 2°k
1
LS
$454.00
$ 454,00
0
$
Change Order No. 2
Bid Schedule "A"
$
185,310.00
Bid Schedule "B"
$
76,008.00
Bid Schedule "C"
2,676.74
$
Change Order No.1
$
4134.34
Change Order No. 2
$
881.00
Change Order No. 3
$
23,131.00
TOTAL.
$
288,464.34
Total Work Completed to Date
LESS Pay Estimate #1
LESS 5% RETAINAGE:
WE RECOMMEND PAYMENT OF;
OT001.2013 - PE - Repair Various City Buildfngs PE -2
S
$
67,665,00
S
$
2,676.74
$
881.00
$
74,121.74
$
71,121.74
$
24,319.28_
�$
3,866.09
$ 43,246.37
PAY ESTIMATE #2 CONTRACTOR
CITY OF OTSEGO
Ropatr Various City Buildings
APPROVALS:
CONTRACTOR: FRf 6K,901$ffUIJ DERS AND CO., INC.
certify that all items and amounts are correct for the work completed to date.
ENGINEER: HAKANSON ANDERSON
Certification by Engineer:,We ryvommend payment for work and quantities as shown.
OWNER: CITYOFOTSEGO
Signed:
Title: Date
M01-2013 - PE - Repair Various City Buildings PE -3
'Hakanson
mm
Elm
'111Anderson
CONTRACT CHANGE ORDER
Project: Repair of Various City Buildings
Owner: City of Otsego
Order No. 3
Date: 1121113
To: Erickson Builders
(Contractor)
You are hereby requested to comply with the following changes from the contract plans and specifications;
North elevation of West WWTF buildings called out in pians as needing siding replacement. During
measurements to order material contractor discovered west elevation is the side of the buildings needing
siding replacement.
ESTIMATE OF COST
Added items
Change Order
ITEM
UNI
NO,
ITEM.NAME
T
QUANTITY
UNIT PRICE
AMOUNT
West UV Building (RP -109)
1
Replace all siding on the west elevation (270 sq. ft,)
LS
1
$4,750.00
$4,750.00
Do not replace siding on the north elevation (90 sq. ft.)
West Blower UV Building (RP -110)
2
Replace all siding on the west elevation (124 sq, ft.)
LS
1
$4,410.00
$4,410.00
Do not replace siding on the north elevation (27 sq. ft.)
West Pretreatment Building (RP -107)
3
Replace all siding on the west elevation (1236 sq. ft.)
LS
1
$10,415.00
$10,415.00
Do not replace siding on the north elevation (399 sq. ft.)
West Control Building (RP -108)
4
Replace all siding on the west elevation (373 sq. ft.)
LS
1
$0.00
$0.00
Do not replace siding on the north elevation (310 sq, ft.)
5
Project Management
HR
16
$66.00
$1,040.00
6
Overhead and Profit (10%)
LS
1
$2,062,00
$2,062.00
7
Bonding (2%)
LS
1
$454,00
$454.00
Total
$23,131.00
Original Contract Amount
Change in Contract due to Change Order #1
Change in Contract due to Change Order #2
Change in Contract due to Change Order #3
Total Contract Amount
$261,318.00
$ 4,134.34
$ 881.00
$ 23,131.00
$289,464.34
Issued by:
Project Engi�ef' Date
Approved by: .4
Otsego i y Offi ' Date
Accepted by: /?
C ntrac s ut orized Representative Date
Due to the change order, the contract period wiil remain the same
MEMORANDUM
TO: Public Works Sub -Committee
FROM: Ronald J. Wagner, P.E., City Engineer
DATE: February 14, 2013
RE: Change Order 43 — Repair of Various Otsego Buildings
The contractor was preparing to order the materials needed for the siding replacement at the West Waste
Water Treatment Facility. At that point he noticed the side of the buildings called out in the plans (north
side) did not match the side of the buildings that had damage from hail, which was the West side. The
contractor called me immediately and I requested he determine the changes in material and work and
submit a cost to me. He sent that information to me along with the extra square footage required, I asked
the architect who drew up the plans how the discrepancy occurred. He stated he followed the information
he received from the League of MN Insurance agency (LMCI), I asked him to send any data he had
supporting that. I also asked him to review the costs of the change order and determine if the extra costs
were in line. He reviewed it and stated the extra area and extra costs appeared reasonable. We then sent
the Change Order to the LMCI to have it approved prior to bringing it forward to the PW Sub or the
Council for approval.
The LMCI responded that they needed to have a meeting to determine how this happened and was even
considering rebidding the project due to the error in the plans. A meeting was held February 13 with the
Architect, the LMCI, City of Otsego and the contractor all present. The City of Otsego representatives
pointed out that the next low bidder, even with the CO#3 added on was still nearly $25,000 more. We
also pointed out the contractor could have completed the North undamaged side and we would even have
a larger issue. The LMCI representative wanted to know how the contractor attended the mandatory pre-
bid meeting and still did not notice the wrong side shown in the pians or did not measure the correct side
in the field rather than bid off the plans. We pointed out to the LMCI representative that none of the
contractors attending the meeting recognized or pointed out the plan versus actual error. It seemed the
issue for the LMCI was they have a contingency for possible change orders for each of their claims but
the $23,000 change order exceeded that amount by a magnitude of nearly 4 as it was nearly 15% of the
original bid for the claim. We explained that we were very concerned that rebidding would likely result
in a much higher cost which the LMCI would still be paying for.
After some phone calls and some consternation the LMCI agent was given authority to approve the
change order. Written confirmation via email came early the next day. The costs will be a pass through
therefore we recommend the council approve the change order.
OT910pwsubmemo - CO#3 Repair of Varios Buildings Page 1 of 1
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