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HomeMy WebLinkAbout06-80 f t Resolution No. 06-80 RESOLUTION APPROVING CHANGE ORDER NO. 2 IN THE CONTRACT WITH TECNICA ENVIRONMENTAL, INC. FOR ENVIRONMENTAL REMEDIATION AT 464 McBRIDE STREET WHEREAS, the City of Elgin has heretofore entered into a contract with Tecnica Environmental, Inc. for environmental remediation at 464 McBride Street; and WHEREAS,it is necessary and desirable to modify the terms of the contract as is described in Change Order No. 2, attached hereto. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that Olufemi Folarin,City Manager,be and is hereby authorized and directed to execute Change Order No. ,a copy of which is attached hereto and made apart hereof by reference. s/Ed Schock Ed Schock, Mayor Presented: April 12, 2006 Adopted: April 12, 2006 Omnibus Vote: Yeas: 7 Nays: 0 Attest: s/Dolonna Mecum Dolonna Mecum, City Clerk Elgin, Illinois 464 McBride Street Site Remediation Change Order No. 2 CONTRACT: Environmental Remediation Services for 464 McBride Street Site with Technica Environmental Services, Inc. of Chicago, Illinois (TES) SCOPE: Change Order No. 2 will increase the quantities of some items as set forth in Attachment A hereto. REASON FOR CHANGE: Change Order No. 2 is in the best interests of the City of Elgin and is authorized by law; the changes necessitating this change order were unforeseeable at the time of the original agreement; and the changes provided for by this change order are germane to the original agreement. SUMMARY OF CHANGES IN CONTRACT AMOUNT: SEE ATTACHMENT A The original contract amount with TES is $1,696,700,Change Order No. 1 is with TES for$582,015.55. By reason of Change Order No. 2 the contract for the Remediation Services for 464 McBride Street will increase the amount of the original contract and Change Order No. 1. The contract amount, inclusive of Change Order No. 2 is Two Million Four Hundred Eighteen Thousand Three Hundred Thirty-one and 00/100 Dollars ($2,418,331). Change Order No. 1 represents a 34% increase in the original contract amount. Change Order No. 2 represents an 8% increase in the original contract amount. The combination of Change Order No. 1 and Change Order No. 2 represents a 42.5% increase in the original contract amount. The total amount of the increase of the amounts previously scheduled to be paid resulting from the Change Order is $139,615. COST SUMMARY FOR CHANGE ORDER NO.2 PROJECT: Elgin Salvage Yard-Site Remediation DATE: 3/15/2006 464 McBride St. Elgin,IL CURRENT CONTRACT(BASE BID+CO#1) rrEM NO. I DESCRIPTION CITY -­U-N-1r RAE otal Comments 1 Mobilization 1 LS $5 000.00 $ 51000.00 2 Demolition-Phase I(Buildings) 1 LS $40,000.00 $ 40,000.00 3 Demolition-Ph II Slabs&Footings) 1 LS $45,000.00 $ 45,000.00 4 Asbestos Abatement 1 LS $5,000.00 $ 5,000.00 5 Additional Floor Tile and Transite Removal 1 LS $2,714.25 $ 2,714.25 CO#1 6 UST Removal 1 LS $7,500.00 $ 7,500.00 7 Additional g 1 LS $2,679.00 $ 2,679.00 CO#1 8 Site Control 1 LS $7,000.00 $ 7,000.00 9 Site Controls 10 Water management 1 LS $13,200.00 $ 13 200.00 1 LS $9,700.00 $ 9,700.00 11 Special Waste Soils 55,194.00 Tons $29.14 $1,608,353.16 Base+CO#1 12 Special Waste Soils-Hard to handle 549.86 Tons $31.14 $ 17,122.64 CO#1 13 Concrete Removal 5,300 Tons $8.98 $ 47,594.00 14 Concrete Disposal 1,306 Tons $8.98 $ 11,727.88 C0#1 15 Contaminated Concrete Removal 3,700 Tons $31.21 S 115 477.00 16 Demolition of Buried, Hard to Handle Concrete 1 LS $18,330.00 $ 18,330.00 CO#1 17 Contaminated Concrete credit 3,351.76 Tons $31.21 $ 104,608.43 CO#1 19 Hazardous Soils 2,500 Tons $132.38 $ 330,950.00 20 Hazardous Waste Soils Credit 1 810.19 Tons $132.38 $239 632.95 CO#1 21 Backfill 15,000 Tons $12.91 $ 193,650.00 22 Special Waste Liquids 20,000 C$260.30 $ 6,000.00 23 Additional Liquid Disposal 86,550 .30 $ 25,965.00 00#1 24 Demurrage Time for Liquid Dis al 75.0 00 $ 6,375.00 C0#1 25 Trans ortation for Liquid Disposal 20 00 $ 5,200.00 CO#1 26 Free Product 500 50 $ 250.00 28 Securi Fencin 0 00 $ - Base Bid 29 Extraction Wells 1 O $ 4,000 30 Seeding 1 LS $17,750.0 $ 17,750 29 Bonds 1 LS $33,999.00 $ 33 999.00 30 Insurance 11 LS $42,420.00 $ 42,420.00 Subtotal $2,278,715.55 CHANGE ORDER NO.2 31 Extraction Wells -1 LS $4,000.00 $ (4,000) Delete 32 Remove 500 gal UST#6 11 LS $1,700.00 $ 1,700 33 Additional Special Waste Soils 11417 Tons $29.14 $ 41,291 34 Backfill 34A Credit for Stone Backfill Not Used -6,356 LS $12.91 $ (82,056) 34B Transport"Free"Fill Material 1,840 Loads $77.00 $ 141,680 34C Place"Free"Fill Material On-site 23 Days $1,700.00 $ 39,100 35 Security Fencing-East Perimeter 4 Months $900.00 $ 3,600 36 Railroad Spur Removal -1 LS $1,700.00 $ (1,700) Delete Subtotal $139,615 COST SUMMARY Original Contract Amount Change Order No.1 $1,696,700 Current Contract Amount(including change order#1) $582,016 $2,278,716 Net Change-Change Order No.2 $139,615 Revised Contract Amount(Incl.CO#2) $2,418,331 Change Order No. 2 April 12, 2006 Page 2 of 2 OTHER CONTRACT PROVISIONS: All other contract provisions shall remain the same. Agreed to this day of MI -, 2006 Recommended: Economic-D eI✓elopment Q By. Title: /Ji 2Q�f^c.7 �cor�ia--z� vC'�c�sit t� Date: Accepted: TECNICA ENVIRONMENTAL SERVICES, INC. (TES) Party of the Second Part (Contractor) By: a Title: _V_ce Pyres ICY►-igc��fuoc, Date: 7 Approved: CITY OF ELGIN Party of the First Party(Owner) By: Title: 7//7 Date: City of Elgin Agenda Item No. AM March 17, 2006 TO: Mayor and Members of the City Council ALIVE DOWNTOWN FROM: Olufemi Folarin, City Manager Raymond H. Moller, Director o Economic Development & Business Services SUBJECT: Change Order No. 2 with Tecnica Environmental Inc. for Environmental Remediation at 464 McBride Street PURPOSE The purpose of this memorandum is to provide the Mayor and members of the City Council with information to consider Change Order No. 2 with Tecnica Environmental Inc. in the amount of $139,615.00. RECOMMENDATION It is recommended that the City Council approve Change Order No. 2 with Tecnica Environmental Inc. in the amount of$139,615.00. BACKGROUND The City of Elgin is the owner of property located at 464 McBride Street (former Elgin Salvage Yard site and USEPA Super Fund site). The buildings on the seven acre site were demolished and the vast majority of contaminated soil has been remediated in order to include this parcel in the larger twenty acre residential redevelopment project that is envisioned for the area. The initial bid for the environmental remediation of the site was awarded to Tecnica Environmental Inc. on March 23, 2005 in the amount of$1,696,701. Change Order No. 1 in the amount of $582,015 was approved in August 2005. The clean up effort at the site began during the first week in May of 2005. The attached aerial photograph shows the extent of which buildings and other elements were present on the site. During the site environmental investigation phase, the Elgin Salvage Yard was in full operation. In the main yard area and inside some of the buildings, numerous large piles of scrap metal and other debris were present that significantly restricted the areas were investigation work could be performed. Further, the most active areas of the site were occupied by moving equipment (trucks, loaders, hydraulic equipment, etc.) which precluded conducting soil borings or other investigation activities due to safety considerations. Because the Salvage Yard owner continued Change Order No. 2 with TEI. for Environmental Remediation at 464 McBride Street March 17, 2006 Page 2 on-site operations until the end of November 2004, well past the City's acquisition of the property, the scope of the investigation work was constrained. The need for further investigation after the site was vacated by the salvage yard operator was considered. However, the grant funding available to the City to conduct remediation was expected to expire by July 2005. Accordingly, it was deemed necessary to proceed immediately with the initial phase of soil remediation, based on the information known and available at the time, rather than risk the possibility of loosing the grant funding. Under these timing and funding constraints, Terracon, environmental consultant, completed its site investigation report on October 1, 2004 obtained IEPA comments on the investigation report on January 12, 2005 and proceeded to issue the final contract documents for Building Demolition and Initial Remediation Activities on February 18, 2005. Terracon also evaluated the feasibility of conducting other types of investigation activities at the site to identify subsurface issues. It was Terracon's opinion that investigation techniques such as geophysical testing or magnetometer surveys would have increased the City's costs, but would not have provided beneficial information for this site. Such investigation tools would likewise have been constrained by the site operations; the location of buried concrete foundation slabs and discontinuities in the soil types would have adversely affected the results of geophysical testing; and the presence of mountains of scrap metal and other metal features on-site would have rendered magnetic testing methods useless. With respect to Change Order # 1, the approved work related to the removal of three additional underground storage tank and the removal of 29,244 tons of additional contaminated soil. The total for the Change Order was $582,027. Project Status: Evaluation of Key Work Items The Contractor's scope of work is substantially complete; the following punch list items for the authorized work are not finished. • Completion of fence removal around perimeter of site; and • Site seeding It is the Contractor's responsibility to complete these items under the base bid scope of work. Over the course of the last few months the following items have been identified to finalize the soil remediation work and conduct additional site preparation activities to prepare the site for eventual redevelopment and receipt of a"No Further Remediation" letter. These items include: ■ Removal of one remaining underground storage tank; ■ Completion of the removal and disposal of additional stockpiled contaminated soil; Change Order No. 2 with TEI. for Environmental Remediation at 464 McBride Street March 17, 2006 Page 3 • Placement of additional backfill soils; and • Providing for continued security fencing These additional work items are discussed below. A. Underground Storage Tanks (USTs) Under the original contract documents, two USTs were included in the Contractor's scope of work based on information obtained by the former site owner and available historical documentation. During the soil remediation work, four additional USTs were discovered for which no records were found. Several of these tanks were believed to be associated with historical operations that pre-dated the salvage yard. In August 2005, under Change Order # 1, the contract was modified to include removal of three additional USTs. As of today, the contractor has removed five USTs and one remains to be excavated and removed from the site. The cost proposed by Tecnica for removal of one remaining UST is $1,700. B. Contaminated Soils In August 2005, the authorized quality of contaminated soils for removal was increased to 55,744 tons. This estimated quantity was expected to be sufficient to complete soil remediation work at the site. As more remediation work was performed, a second large buried hydraulic baler unit was discovered in the northeast quadrant of the site. This baler was not previously identified by the site owner during review of the site history. Further, there were no observable surface features that indicated the presence of this unit. The baler was partially buried by scrap materials and foundation slabs at the time the site assessment work was performed. The concrete structure associated with the baler was demolished and removed, but the excavation area and depth needed to remove impacted soils around this unit exceeded expectations. Based on the completion of work to date, and with no additional soil remediation work planned, the total quantity of impacted soils (special waste) needed to be removed from the site is 57,161 tons, a 2.54% increase over the previously estimated quantity of 55,744 tons. Of these soils, all but 1,417 tons have been excavated and disposed. The remaining 1,417 tons includes soils anticipated to be excavated along with UST No. 6 as discussed above. The cost for removal and disposal of 1,417 tons of Special Waste soil is $41,291. This cost is based on the same unit rate as originally bid in March 2005. C. Additional Backfill Material The original contract documents called for the placement of 15,000 tons of backfill at the site. In an effort to keep project costs down, this quantity was not adjusted as part of Change Order # 1. Change Order No. 2 with TEI. for Environmental Remediation at 464 McBride Street March 17, 2006 Page 4 Recognizing the need to replace a large portion of the soils that were removed for disposal, the City, Terracon and the Contractor revised the backfill plan to obtain a more economical solution. Two sources of"free" material were identified, one at the Elgin Mental Health Center and one at a site on Big Timber Road. Tecnica transported and placed backfill from these sources at a reduced cost. At present, approximately 23,044 tons of backfill have been placed as compared to the contract quantity of 15,000 tons. The total backfill costs to date are $190,194 as compared to the estimated cost of$193,650. Based on meetings with the City staff in November 2005, it was determined that the final site grading should be modified to ensure that the maximum area of the site would be above the established flood plain elevation (714.00). Backfilling and re-grading the site to meet this elevation is anticipated to improve the redevelopment value of the property. The City obtained the services of a surveyor to establish the flood plain elevation on-site and Tecnica and reviewed by Terracon to estimate the additional soil quantities necessary to meet the flood plain elevation. This remaining quantity is estimated at 12,400 cubic yards (yd3), or approximately 1,040 truckloads of soil. Terracon has checked with representatives of Bell Land Development, the provider of the free soils at the Big Timber Road site. As of 2/28/06, this source is still available, but is expected to be depleted by the April to May timeframe. If backfill materials need to be purchased for the site, the estimated costs will increase to approximately $150 to $175 per load. Costs for transporting and placement of backfill from the Big Timber site is proposed by Tecnica at$102,180. D. Security Fencing Tecnica has provided security fencing on the east side of the site since project start up. As the project has continued over the winter months, the cost of extending the fencing has accrued in the amount of$900 per month. Tecnica has requested compensation for four additional months (January through April 2006) of security fencing in the amount of$3,600. In order to meet the City's objective of completing the soil remediation phase of work, and to facilitate completion of Terracon's reporting to the Illinois EPA regarding the environmental status of the site, Terracon recommends proceeding with a Change Order to Tecnica's contract for the additional UST removal and contaminated soil disposal (items A and B above). These two work items, less the cost of two minor work deductions, net to $37,291. Change Order No. 2 with TEI. for Environmental Remediation at 464 McBride Street March 17, 2006 Page 5 Terracon concurs with the City's objective of modifying the site grade to improve the site's redevelopment potential. Assuming additional clean soil materials can be imported from the Big Timber site, it appears that the cost of the additional backfill quantities represents a cost effective means of improving the site prior to its redevelopment. Assuming the City elects to proceed with additional backfill, Terracon recommends expediting the approval of a Change Order with Tecnica so that the currently available source of backfill materials can be utilized and thus reduce the costs incurred by the City. Based on the estimated soil quantities, a total of$105,780 is needed to undertake the additional backfill work and site fencing as outlined under Items C and D above. The following table summarizes the proposed adjustments to the project authorization to Tecnica's contract. It should be noted that Tecnica Inc. is maintaining the unit cost charges for all elements of the Change Order as bid in March of 2005. Description Change Qty. Unit Unit Cost Total Comp. Comment Type Extraction Wells Deduct -1 LS Deleted from $4,000 -$4,000 NC Scope Remove Railroad Spur Deduct -I LS Deleted from $1,700 -$1,700 NC Scope UST removal Add 1 UST $1,700 $1,700 NC Extra Work Special Waste Soils Add 417 Tons $29.14 $12,151 C Extra Work Special Waste Soils Add 1,000 Tons $29.14 $29,140 NC Extra Work Backfill-Purchased Mat'I Deduct -6,356 Tons Reduced Work $12.91 -$82,056 NC Qty. Backfill-Transport "Free" Substituted Mat'l Add 800 Loads $77.00 $61,600 C Work Backfill-Place "Free"Mat'] Add 10 Days Substituted Y $1,700.00 $17,000 C Work Backfill-Transport "Free" Substituted Mat'1 Add 1,040 Loads $77.00 $80,080 NC Work Backfill-Place "Free"Mat'1 Add 13 Days Substituted Y $1,700.00 $22,100 NC Work Security Fencing Add 4 Months $900 $3,600 NC Extended Work Total Net Change to Contract Change Order No.2 $139,615 Current Contract Amount Including CO#1 $2,278,716 Revised Contract Amount With CO#2 $2,418,331 Change Order No. 2 with TEI. for Environmental Remediation at 464 McBride Street March 17, 2006 Page 6 COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED None FINANCIAL IMPACT The proposed Change Order with Tecnica Environment Inc. totals $139,615. There is currently $4,850,000 budgeted and $188,714.87 is available in the 'Riverboat Fund, Elgin Salvage Redevelopment project (account number 275-0000-791.92-35, project number 039565- Riverfront/Center City Improvements) to the proposed change order with Tecnica Environmental Inc. LEGAL IMPACT W)M/None ALTERNATIVES 1. Authorize the proposed Change Order. 2. Choose not to authorize the ro osed Change Order p p g Respectfully submitted for Council consideration. RHM/jr Attachment N � 1 k T MEAS I £ qx h J # � of +L S+ y a t "n J �e N tl! =mss. y�. R, I {h I M1 r b a k6A t u' r a" AREAS REWIRING FURTHER BACMLL ELGIN SALVAGE REDEVELOPMEI'Ir SITE MrHRIOE 57REEf r�nGEL Q 60 ELGIk,0.LNq$ ® � — JMN nm�ec+r 11057021 A pp r oxmate Sp le °r1q"0°y 1ferrecon i: As SHW (Feet) a...�°r. 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