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99-78 Resolution No. 99-78 RESOLUTION APPROVING CHANGE ORDER NO. 1 IN THE CONTRACT WITH KARL-STEFANS CONSTRUCTION, INC. FOR THE HOLMES ROAD DETENTION PROJECT WHEREAS, the City of Elgin has heretofore entered into a contract with Karl-Stefans Construction, Inc. for the Holmes Road Detention Project; and WHEREAS, it is necessary and desirable to modify the terms of the contract as is described in Change Order No. 1, attached hereto. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Joyce A. Parker, City Manager, be and is hereby authorized and directed to execute Change Order No. 1 , a copy of which is attached hereto and made a part hereof by reference. s/ Kevin Kelly Kevin Kelly, Mayor Presented: March 10, 1999 Adopted: March 10, 1999 Omnibus Vote: Yeas 6 Nays 0 Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk I - ji ►v ELGIN, ILLINOIS HOLMES ROAD DETENTION PROJECT PROJECT #429505 CHANGE ORDER NO. I SCOPE: This Change Order No. 1 will provide additional items necessary to complete the project. The general contractor for this project is Karl-Stefans Con- struction Inc . , of Batavia, Illinois . REASON FOR CHANGE: This Change Order is required for the addition or change in items necessary to adjust payment for substandard work on the forming of the concrete swale. SUMMARY OF CHANGES IN CONTRACT AMOUNT: The awarded contract will be changed to include the additional items listed below: ITEM COST 1 . ) Deduction for improperly $9,250.00 constructed concrete swale. The original contract with Karl-Stefans Construction, Inc. is for $30, 705 . 00 . The Contractor has submitted an extra work claim of $6 , 045 . 00 for extra embankment required to bed the swale bringing the total amount of billing to the City to $36 ,750 . 00 . By reason of this Change Order No. 1, the con- tract for the Holmes Detention Basin Project will be decreased in the amount of nine thousand two hundred fifty and 00/100 dollars ( $9 ,250 . 00) . The final contract amount inclusive of Change Order No. 1 is twenty-seven thousand five hundred and 00/100 dollars ( $27 ,500 . 00) . CHANGE ORDER NO. 1 February 17, 1999 Page 2 The circumstances which necessitate this change order were not reasonably foreseeable at the time the contract was signed. OTHER CONTRACT PROVISIONS: All other contract provisions shall remain the same. Agreed to this day of , 1999 . Recommended: PUBLIC WORKS DEPARTMENT T i e 44-i5 Date: z/25/91 Accepted: KARL-STEFANS CONSTRUCTION, INC. Party of e S- • /d e (Contractor) By: 4. Title: Date:_ 2-2..S- t Approved: CITY OF ELGIN Part •f the /Firs Part (Owner) By: .p LL.. Title: _a..., / Date: 3 - KARLSTEF.CO/TEXT071/CHANGOR.99 OF Etc crm,stt, City of Elgin Agenda Item No. February 18 , 1999 TO: Mayor and Members of the City Council FROM: Joyce A. Parker, City Manager SUBJECT: Authorization of Change Order No. 1, Final Payment and Acceptance of Holmes Road Detention Project PURPOSE The purpose of this memorandum is to provide the Mayor and members of the City Council with information to consider acceptance of the Holmes Road Detention Project and the authorization of Change Order No. 1 and final payment . BACKGROUND The City of Elgin awarded a contract to Karl-Stefans Construc- tion, Inc. of Batavia, Illinois on August 26 , 1998 . The �w contract in the amount of $30, 705 was for the installation of 400 lineal feet of concrete drain swale in the detention basin on Holmes Road. The purpose of the project was to facilitate the flow of stormwater through the basin. The work has been performed, but the work was not consistent with the construction documents . The swale was constructed of concrete in the correct location, but it was not built in the shape specified. The constructed concrete swale in a U-shape will convey the stormwater, but the conveyance will be slight- ly less efficient as the specified V-ditch. Considerable negotiations between the City and the contractor have occurred. These negotiations have resulted in a proposed settlement contained in the attached letter dated January 21, 1999 from the contractor. The contractor submitted a Request for Payment in the amount of $36, 750, an increase of $6 , 045 above the original contract amount . The increase requested was due to extra embankment material supplied during construc- tion. The proposed settlement amount of $27, 500 equals a reduction of $9, 250 . This adjustment reflects a contractor reduction of $6, 045 for the extra work disputed by the City plus a deduction of $3 , 205 by the City for work performed but not in conformance with the contract document, specifically the concrete swale. Authorization of Change Order No. 1 February 18 , 1999 Page 2 This negotiated settlement of $27, 500 to the contractor represents full and complete payment by the City and is documented in Change Order No. 1 (attached) . The contractor will grant the City a Final Waiver of Lien upon payment of this amount . The City will be responsible for the general cleanup of the detention basin and removal of excess spoil . This effort by City forces is estimated to take less than three days to complete . COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED None . okL FINANCIAL IMPACT /�" Final cost on the project will be $27, 500 from the Sewer Operating Fund, account number 430-4202-772 . 92-80, project number 429505 . Funds were encumbered in 1998 for this project . 101 ,/LEGAL IMPACT 10100/ None . ALTERNATIVES There are two alternatives that have been evaluated. First, the City can authorize the payment of $27, 500 to Karl-Stefans Construction, Inc. as full and complete for the captioned project . This payment includes a credit of $9, 250 from the contractor. A copy of correspondence dated January 21, 1999 from Karl-Stefans Construction, Inc . outlining the proposed contract completion accompanies this memorandum. This alternative avoids litigation and additional significant costs . The costs incurred will be appropriate for the func- tional value of the improvement . Second, the City could pursue complete performance of the contract in accordance with the contract documents . This alternative would almost certainly result in litigation. In other words, the contractor would have to remove the current concrete swale and replace it with one that fully meets the specifications at no additional cost . Authorization of Change Order No. 1 February 18, 1999 Page 3 r RECOMMENDATION It is recommended that the City Council authorize execution of Change Order No. 1, accept the completed project and authorize the final payment of $27, 500 to Karl-Stefans Construction, Inc . Respectfully submi ed, Jo e Parker City Manager DV:cm attachments t r