92-0122 Clark Dietz Adeendment 3 RESOLUTION
AUTHORIZING EXECUTION OF AMENDMENT #3 TO AN AGREEMENT WITH
CLARK DIETZ, INC. FOR THE SLADE AVENUE FACILITY
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,
ILLINOIS, that Larry L. Rice, City Manager, and Dolonna Mecum,
City Clerk, be and are hereby authorized and directed to
execute Amendment #3 to an Agreement on behalf of the City of
Elgin with Clark Dietz, Inc. for engineering services for the
Slade Avenue facility, a copy of which is attached hereto and
made a part hereof by reference.
s/ George VanDeVoorde
George VanDeVoorde, Mayor
Presented: January 22, 1992
Adopted: January 22, 1992
Omnibus Vote: Yeas 6 Nays 0
Recorded:
Attest:
s/ Dolonna Mecum
Dolonna Mecum, City Clerk
Engineering Services Contract Amendment #3
City of Elgin
Slade Avenue Facilities
The CONTRACT AMENDMENT #3, made as of the day of of
1992, by and between the City of Elgin, Illinois (hereinafter called
the CLIENT) and Clark Dietz, Inc. , Champaign, Illinois (hereinafter
called CDI) .
WITNESSETH, THAT WHEREAS, the CLIENT and CDI have previously entered
into an Engineering Service Agreement dated the 14th day of September,
1989 and Contract Amendment #1 dated the 31st day of October, 1990, and
Contract Amendment #2 dated the 22nd day of May, 1991, for professional
services on the design and construction of the Slade Avenue Facilities
(hereinafter called the PROJECT) for a lump sum of Three Hundred
Sixty-Five Thousand One Hundred Ninety-Four and No/100 Dollars
($365,194.00) .
Whereas, the Engineering Services Contract includes Sections covering
Additional Services of CDI and the Client's Responsibilities and
whereas CDI has identified the following additional services and
associated costs:
Additional Project Scope
1. The Engineering Services Agreement was
based on a construction period of nine
months. This nine months was chosen as
a basis for proposals, however due to
the nature of the 100 year old site,
i .e. buried pipe, extent of sludge
lagoon, the existence and extent of
which were not previously known,
several delays have been encountered
which could not have been anticipated.
Since construction will extend beyond
the nine month period, the Engineering
Service Agreement is modified to provide
additional inspection and construction
administration services such as payment
request, review of shop drawings, and
answering general construction questions
not to exceed $39,200.00. $39,200.00
2. Additional survey work for water main
crossing of Judson College property.
This work encompassed preparation of
easements for both the 24" replenishment
line which was thought to be able to
fit in an existing easement and a 20"
low service water main which constituted
an improvement over the original proposal
not previously considered by the City in
the original bid request and as required
by Judson College. 2,100.00
3. Upon review of a previous design
memorandum, Black & Veach raised the
height of a proposed elevated storage
tower on Shales Parkway by 15' . This
will better accommodate peak hour flows
to the low service district. Revisions
to the pump design were required as the
result of new information resulting from
the Black & Veach study of the City's
water system. 2,531.00
4. Revisions to the building design were
required by the City's Building Department.
Provisions for backflow prevention and
sprinkler system were not included in the
initial design due to oversite of the
Water Department. 2,160.00
5. The Engineering Services Agreement was
based on the completion of construction
not later than March 31, 1991. Escalation
in the costs of labor and services for the
extended construction period of $5,328 and
is germane to original contract as signed,
which provided for increased labor costs
in the event construction went beyond
March 31, 1991. 5,328.00
6. Project scope changed substantially during
design based on requests by the City.
Construction cost for the facility increased
approximately 40% as a result of increased
size and complexity of the project. This
resulted in additional engineering, shop
drawing and project administration amounting
to $27,500. Said scope change request by
the City was not reasonably foreseeable at
the time contract was signed and constituted
a change in the best interest of the City.
Subsequent to the signing of the original
contract, it became apparent that the original
contemplated design was inadequate due to
anticipated City growth. 27,500.00,
Total Engineering Cost Increase $78,819.00
The circumstances making these changes necessary were not reasonably
foreseeable at the time the contract was signed.
Therefore, the City of Elgin and Clark Dietz, Inc. mutually agree to
increase the total contract lump sum amount by $78,819.00 to Four
Hundred Forty-Four Thousand Thirteen and No/100 Dollars ($444,013) .
In witness whereof, the parties hereto have caused this AMENDMENT to be
executed as of the day and year hereinabove set forth.
OWNER ENGINEER
CITY OF ELGIN — CLARK DIETZ, INC. /
41110 _ _
By: ' _ . By• ,I G��_
���9� - n p /7((Attest: � + ''� Attest: � c . �0`
S:122091M1
•
in
;� °== , Agenda (tern No.
_rk w
TO: Mayor and Members of the City Council
FROM: City Manager
DATE: November 14, 1991
SUBJECT: CHANGE ORDER #3 WITH CLARK DIETZ, INC. , FOR
ENGINEERING SERVICES FOR THE SLADE AVENUE FACILITY
PURPOSE:
This memorandum will provide the Mayor and Council with
information to consider authorizing further payments to Clark
Dietz, Inc. , (CDI) for additional engineering services at the
Slade Avenue facility.
BACKGROUND:
fek The attached letter from CDI dated October 14, 1991, delineates
areas where additional engineering services have been provided
or will be required for resident engineering inspection and
related office services due to the nature of this project. In
1989 at the inception of this project, a period of nine months
was chosen by the department as sufficient for all engineering
firms offering a proposal on this project on which to base their
resident engineering inspection time. As explained, the nature
of this project and the problems encountered with this
100-year-old plus site have extended this time. The issue as to
whether the general contractor has been performing expeditiously
will be addressed at the conclusion of this project with the
possibility of a claim that would recapture some of these
additional engineering services .
Three of the items listed in the CDI letter--the additional
survey at Judson College, pump changes, and permit review
changes--were done at the direction of the Water Department.
ew
Page 2
Negotiations between the City and CDI have limited billing of
resident inspection and office services man hours to actual
hours worked rather than a guaranteed amount and reduced the
inflation factor used to arrive at a cost due to the extended
contract period to four percent annually rather than the five
percent shown.
FINANCIAL IMPACT:
The total not to exceed compensation requested by CDI at this
time should read $78,819 . These funds will be provided from
water capital projects in the current favorable construction
climate.
RECOMMENDATION:
It is recommended that the Council authorize the Water
Department to proceed with the preparation of a change order for
these a ditio ;1n eering services by CDI .
Cit alter
LLR:LED: jk 01141114 .391
cc: Melford A. Dahl, City Engineer
Attachments
I
cCLARK DIETZ, INC.
emk
October 14, 1991
Mr. Larry Deibert
City of Elgin
150 Dexter Court
Elgin, IL 60120-5555
Re: Elgin Slade Avenue
Dear Larry:
This letter is to confirm our conversation on October 9 and formally
request a contract amendment for the referenced project. Following is a
summary of the additional professional fee we believe Clark Dietz is due
on this project. More detail is attached for each item in the summary.
Description Amount
Extended Construction Duration $ 39,200.00
Additional Survey At Judson 2,100.00
Pump Changes 2,531 .00
Permit Review Changes 2, 160.00
Extended Contract Period -6,659 7-@O- v 3 0C.L`c
Additional Shop Drawing and Administration 27,500.00
Total $_-8 +5&-eO 7 , 8/`," L
With this contract amendment, our contract amount will be 11.5% of the
current construction contract amount. This percentage is still below the
12% to 15% normally expected for engineering design and construction
services for a project of this scope. When the anticipated construction
cost of the gravity replenishment line and reservoir are included, our
contract amount will be far below the normal percent of construction cost.
We must also note that our costs for the remainder of this project are
substantially dependent upon the contractor's progress. If the contractor
completes his work in February as the current schedule indicates, it
should not be necessary to request another contract amendment for
construction inspection. If construction continues beyond mid-February,
we will need to be reimbursed for additional construction phase services.
We also must still address the engineering cost of rebidding and
inspection of the construction of the gravity replenishment line, since
that work will be performed after the Slade Avenue construction is
complete.
Clark Dietz, Inc.
1817 S. Neil, Suite 100
P.O. Box 676
Champaign, IL 61824-0676
217/373-8900 ENGINEERS ARCHITECTS
Mr. Larry Deibert
October 14, 1991
Page 2 of 2
As we discussed last week, we still must complete the design of a water
storage tank as part of this contract. It is our understanding the tank
will probably be a reinforced concrete structure in lieu of the
prestressed tank included in our contract. If this understanding is true,
the City will need to exercise the contract option for a reinforced
concrete tank, which will increase the engineering fee by $12,000. At the
time the decision is made to begin design of the tank, we will need to
discuss the additional costs associated with inflation and the added
inspection costs resulting from the delay in construction.
Please call if we can provide further information or assistance in
resolving this contract amendment to allow us to continue work on this
project.
Sincerely,
/ C) --
Charles E. Park
cc: Mr. John Callan/CDI 47)
Mr. Richard Christensen/CDI
Mr. A. E. Albrecht/CDI
Mr. C. J. Johnson/CDI
Mr. Larry Deibert
October 11, 1991
e.► Attachments
Page 1 of 4
ADDITIONAL COSTS DUE TO CONSTRUCTION DURATION
The Engineering Services Agreement for this project was based on a
construction period requiring a resident inspector on site for 9 months.
Through September 30, 1991, we have expended 1,289.5 hours of resident
inspection. Based on 2,080 hours per year, the budget for resident
inspection is 1,560 hours. There are 270.5 hours remaining, which
represents 1-1/2 months time. Therefore, the contracted construction
phase services will be depleted about November 15, 1991 .
In addition to the resident inspection services, there are additional
project costs for construction administration work performed by office
personnel . We must continue to attend project meetings, process pay
requests, answer questions from the contractor and City personnel , process
submittals, etc. The engineering contract for this project was to be
based on a 9 month construction period. Therefore, we believe the
additional services required of office personnel should be covered by the
contract amendment.
Currently, the WilFred's contract requires Substantial Completion by
December 12, 1991 and Final Completion by August 11, 1992. However,
WilFred's latest schedule shows Substantial Completion during the first
week of February 1992.
Based on the three months in WilFred's schedule, we estimate the cost of
the extended construction phase services to be as follows:
Resident Inspection Manhours:
Hours/Month 174
Times 3 Months 3
Total Hours 522
Times Factored Salary/Hour $ 41 .25
Total Factored Labor $ 21,532.50
Office Services Manhours:
Hours/Month 100
Times 3 Months 3
Total Hours 300
Times Factored Salary/Hour $ 52.25
Total Factored Labor $ 15,675.00
Total Labor $ 37,207.50
Estimated Expenses $ 2,000.00
Total Labor and Expenses $ 39,207.50
r
Mr. Larry Deibert
October 11, 1991
Attachments
Page 2 of 4
Please note that the monthly amount estimated above is less that our
monthly costs have been over the past months. This decrease is based on
the fact that we are near the end of shop drawing review for this project.
It is also important to note that, if the construction continues beyond
early February, we will need to be compensated for the additional
construction services beyond that date.
As we discussed last week, the City may be able to recover part of these
additional costs from the construction contractor. The construction
agreement specifies liquidated damages of $250 per calendar day. In
addition, the contract specifies that the contractor will be liable for
all engineering costs beyond substantial or final completion. I am
certain you understand, however, that the construction contractor possibly
has legitimate grounds for some time extension as the result of changes
requested by the City. Time extensions are always very difficult to
negotiate because of the many factors affecting construction completion,
including factors we could question about the contractor's organization
and operation. In the end, however, the amount of delay is a battle
between our opinion and the contractor's opinion. This is why liquidated
damages are seldom actually collected.
ADDITIONAL SURVEY AT JUDSON PROPERTY
In June 1991 we submitted an estimate of $ 2,100 for field work and
surveyor costs related to crossing of the Judson property. On June 20,
1991, Larry Deibert approved those costs as an addition to the Slade
contract. A copy of the letter and conversation record are attached.
PUMP CHANGES
On April 25, 1991, I submitted a request to Dennis King for an additional
$2,531 as a result of the change in pump head recommended by Black and
Veach. Dennis, Larry Deibert and I subsequently discussed this item but
did not come to a conclusion.
This request is based on the following:
CDI based the design of the pumps at Slade Avenue on the best
information available at the time of the design. The pumps matched
the existing Slade Avenue pumps, which are currently operating in a
satisfactory manner. The study of the Elgin water system by Donahue
and Associates did not address changes in the Slade Avenue pumps and
did not provide data that would lead us to change the pump
characteristics.
After completion of our design and during review of the shop drawings
for the new pumps, we received an indication from the City that a
report being prepared by Black & Veach would recommend a change in the
characteristics for the Slade Avenue pumps.
Mr. Larry Deibert
October 11, 1991
Attachments
Page 3 of 4
We expended substantial effort evaluating data available to us and
working with Black & Veach and City personnel to change the
specifications for the pumps and assure minimal disruption to the
Slade Avenue construction as the result of the change.
We were able to complete the changes without a change in the construction
cost or time. We should be reimbursed for the additional costs incurred.
PERMIT REVIEW CHANGES
On April 25, 1991, I submitted a request to Dennis King for an additional
$2,160 as a result of the permit review of the City, which occurred after
construction began.
This request is based on the following:
During the design of this facility, we submitted design documents to
the City for review. During that time, the documents should have been
reviewed by the Building Department. The agreement between the City
of Elgin and CDI specifically states that the City was responsible for
coordinating all local or intercity permit reviews. After award of
the construction contract, it was discovered that the necessary
reviews had not been completed. As a result, it was necessary for CDI
to respond to reviews and make changes to the documents to comply with
the desires of the Building Department.
Our contract specifically states that we are due additional compensation
for out of sequence work.
EXTENDED CONTRACT PERIOD
Our contract specifies that we are due additional compensation if the
completion of construction is extended beyond March 31, 1991. The current
date for final completion is August 11, 1992, which is 16.5 months beyond
the contractual date.
As a result, we should be due inflation in salaries and other costs for
the period beyond March 31, 1991. In addition, we will have increased
inspection and administration costs between Substantial Completion and
Final Completion.
And estimate for this item follows:
Contract Amount Remaining after March: $ 96,870 ■
Times 6:28-7-54 (53/.,annual , 16.5 months) 6-87- a C '-fi k?'"-
I n f l a t fo n due /70 $ 6;6-5-9—
r
Mr. Larry Deibert
October 11, 1991
Attachments
Page 4 of 4
ADDITIONAL SHOP DRAWING AND ADMINISTRATION
During the design phase, the scope of the project increased
substantially. Construction cost increased by approximately 40% as the
result of the increased scope and complexity of the project. We received
a contract amendment for the additional design costs. The subject of
added construction phase costs was deferred to a later date. The result
of added construction scope is a proportional increase in the cost of shop
drawing review and project administration.
We have exceeded the expected amount of labor for shop drawing review and
administration by $27,500. We attribute the excess shop drawing and
administrative expense to the increased scope and complexity of the
design.
41)
CDI CLARK DIETZ, INC.
r
June 20, 1991
Mr. Larry Deibert
Director of Water Operations
City of Elgin
150 Dexter Court
Elgin, Illinois 60120-5555
Dear Larry:
As per your phone request last week, Clark Dietz is submitting costs for
your approval for preparing legal easement plats. The two (2) easements
would encompass separate projects. The first project is the Gravity
Replenishment Line from the Riverside Treatment Plant to the Slade Avenue
Plant. The easement area concerns the portion of the project that
encroaches on Judson College property. The second project is a future
20-inch diameter water main. The proposed route begins at an existing
30-inch main on Judson College property and proceeds across college
property to Jerusha Avenue. The easement area concerns the portion of the
project that encroaches on Judson College property.
Clark Dietz proposes to enlist the services of a Registered Land Surveyor
to prepare the documents. Clark Dietz personnel will gather the field
data. The cost for the field work will be a not to exceed figure of
$600.00 and the cost for the land surveyor is a not to exceed figure of
$1,500.00. It is our intent, with your concurrence, to perform the field
work the week of July 1, 1991. I will be on site at the Slade Avenue
Facility and will enlist the services of one of our field crew members
located in Aurora. This arrangement will minimize the cost of gathering
the field information.
If this proposal is satisfactory, please respond as soon as possible so we
may finalize the arrangements. We also need to discuss whether this work
is to be performed as a contract amendment to the Slade Avenue project or
as a separate project.
•
If you have any questions, please do not hesitate to contact either
Charlie Park or myself. We are looking forward to performing. these
additional services for the City of Elgin.
Very truly yours,
Martin R. Vogel
Clark Dietz, Inc.
T:0620-pl
Clark Dietz, Inc.
1817 S. Neil, Suite 100
PO. Box 676
Champaign, IL 61624-0676
2171373-8900 ENGINEERS ARCHITECTS
Taken By:
M Telephone Date: N
R\ ❑❑Conference ❑ Incoming ❑Outgoing 2-o at t
7
Contact Name: Organization: Phone: Z
LrWY7 !J e 1-L. r N
Project Name: ,\1,-1-.) P.ep(,n sImere + No. 6z14 412 L j
Summary of Issues / Decisions: � _.
-4a1 1 �- r o` w l r
Gin Ge r ti �r� G 0 ( r� pc6-7- �n `e�' -S-Q p„^-n,�t.- p /s cc P
I men n 7 rz9sy ()c.), °1<'l 6:///e_
A. (4 ^ 6 ire �
Ao. (''g-sze___. �
1-10- 47). • Ar\
rl
�r1 -$ S
r -e -e
o w ( 1 C o CA-)0') f C
,p J �� d
1 CC
`) I 0
U
w
CC
z
0
CC
w
z
/0,
Action Taken U
--� -of