03-268 Resolution No. 03-268
RESOLUTION
AUTHORIZING M. I .C. , INC . TO ENTER INTO A CONTRACT FOR
EXCAVATION AND SOIL REMEDIATION SERVICES FOR THE
ELGIN RIVERFRONT FESTIVAL PARK PROJECT PHASE ONE
WHEREAS, the City of Elgin has heretofore entered into a
contract with M. I .C. , Inc . to provide construction management
services for the Elgin Riverfront Festival Park Project Phase One;
and
WHEREAS, it is necessary and desirable to authorize M. I .C. ,
Inc . to enter into a contract for excavation and soil remediation
services for such project .
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF ELGIN, ILLINOIS, that M. I .C. , Inc . be and is hereby authorized
to enter into a contract with Onyx Industrial Services, Inc . , for
excavation and soil remediation services in the amount of $940, 928
for the Elgin Riverfront Festival Park Project Phase One .
s/ Ed Schock
Ed Schock, Mayor
Presented: October 8, 2003
Adopted: October 8 , 2003
Omnibus Vote : Yeas : 6 Nays : 0
Attest :
s/ Dolonna Mecum
Dolonna Mecum, City Clerk
H
Memorandum
%~# City of Elgin
September 19, 2003 t
�
TO: Mayor and Members of the City Council
1
-- ECONOMIC GROWTH
FROM: David M. Dorgan, City Manager
Raymond Moller, Director of Economic Development and
Business Services
SUBJECT: Proposal to Award a Contract Quote to Onyx Industrial
Services, Inc . for Festival Park/PAR Townhome Site
Earthwork and Excavation Services (Exception to the
Procurement Ordinance - 2/3 Majority Required)
PURPOSE
The pose of this memorandum is to provide the Mayor and
members of the City Council with information to consider an
award of a contract quote to Onyx Industrial Services, Inc . for
the Festival Park site environmental earthwork and excavation
services and environmental excavation at the townhome site .
BACKGROUND
Before the townhomes on South Grove Avenue can be constructed by
PAR Development, the site must be removed from the flood plain.
A significant amount of earth work is required because a
provision for some level of compensatory storage must be
provided for on Festival Park. In addition, the enhancement of
the bike path and river bank between Lake Street and Prairie
Street calls for the removal of soils . Because a portion of the
soils that must be handled are contaminated (petroleum product) ,
it is necessary to contract with a licensed "special waste"
excavator.
In July, 2003 , it was estimated that approximately 85, 447 cubic
yards of earth must be managed at the site . Of that amount,
approximately 35, 822 cubic yards of soil were estimated to be
contaminated and need to be excavated and disposed of offsite in
a licensed land fill . Since this process is very costly, the
City' s construction manager, M. I .C. Inc . , investigated potential
contractors for work in order to determine how this portion of
rthis project fits into the overall available budget .
M. I .C. solicited two quotes from experienced excavators : Plote
Construction Inc . and Onyx Industrial Services, Inc. Plote
ors. Proposal to Award a Contract Quote to Onyx Industrial Services
September 19, 2003
Page 2
submitted a combined quote that included both the general
excavation of the site and the excavation and removal of
contaminated soil as well as importing and distributing
structural fill . The Plote quote for the combined work was
$2, 388, 982 .25 . Of that amount, $2 , 099, 995 . 75 was for the removal
and disposal of the contaminated soil .
Onyx submitted a quote for just the excavation and disposal of
the contaminated soil as well as importing and distributing
structural fill . The Onyx quote was $1, 470, 957 . 80 . In comparing
just the excavation and disposal portions of the quotes, the
Onyx quote is $1, 470, 957 . 80 and the Plote quote is
$2, 099 . 995 . 75 . This is a difference of $629, 401 . 95 .
On July 18, 2003 , staff and the City' s environmental consultant
met with a representative of the Illinois Environmental
Protection Agency to review the site remediation plan for the
townhome site and future park. Based upon information received
from the IEPA, the consultant revised the earthwork requirements
for site remediation at the townhome and Festival Park sites .
As a result of the IEPA review, the quantity of soil to be
managed has changed from 85, 447 cubic yards to 56, 473 cubic
yards . In addition, the quantity of contaminated soil required
to be removed from Festival Park and the Townhome site has been
reduced from 35, 822 cubic yards to 14 , 289 cubic yards .
Based upon the changed earthwork requirements, revised quotes
were solicited from Onyx and Plote Construction. Currently
Plote' s quote is $1, 404 , 317 . The Onyx quote is $1, 150, 328 . The
Onyx quote is $253 , 989 less than Plote' s .
Following a thorough review of the quote and discussion between
staff, our consultant, PAR/Plote and Onyx, staff is recommending
that the portions of the earth work on the project be awarded to
both Onyx and Plote Construction.
Onyx' s expertise lies in the area of managing contaminated soil .
Their bid numbers reflect this fact . Staff is recommending that
all the earth work on Festival Park be awarded to Onyx
($870, 326) . In addition, Onyx will be responsible for removing
Proposal to Award a Contract Quote to Onyx Industrial Services
September 19, 2003
Page 3
1, 556 cubic yards of contaminated material from the townhome
site ($70, 602) . The award to Onyx would be $940, 928 .
While Onyx did submit a lower quote for the earth work on the
townhome site, both City staff and the construction manager feel
that in the best interest of achieving a successful building
construction project that Plote Construction should be awarded
the earth work contract for the townhome site, less the removal
of contaminated soil . The award amount to Plote Construction
would be $264 , 828 for Phase A of the Townhome Development
Project . The site work to be performed by Polte Construction
will be in phases .
Staff is in the process of finalizing a number of housekeeping
revisions to the development agreement with PAR Development .
The provision for designating Plote Construction as the entity
responsible for the townhome site earth work will be
incorporated within the revised development agreement . Site work
on the southern portion of the townhome parcel should begin this
year. An allowance for sharing the cost for spread footings has
been requested by the developer due to the load bearing capacity
of the soils at the site . Provision for this request along with
the authorization for Plote Construction to perform the earth
work on the townhome site will be included in a proposed
amendment to the development agreement . The City share of the
spread footing allowance is estimated at $300, 000 .
M. I .C. Inc . is the construction manager for the Festival Park
project, thus the earthwork contract with Onyx, Inc . would be
between M. I .C. Inc . and Onyx, Inc . The city would adjust its
contract with M. I .C. Inc . in order to provide for the award of
the environmental soil earthwork contract .
The cubic yard quantities identified for soil excavation are
based upon engineer estimates . A contingency allowance of 10%
has been added to the excavation cost estimates in order to
allow for a variance in actual quantities excavated. If soil
excavation is less than the estimated quantities, the cost will
be reduced. If excavation exceeds the estimated costs, the
amount paid to the contractor will need to be increased.
Proposal to Award a Contract Quote to Onyx Industrial Services
September 19, 2003
Page 4
The base construction management contract with M. I .0 is
currently for $393 , 135 . A change order to the M. I .C. contract
will be required if the earth work quote is approved. The
contract with M. I .C. will increase by $940, 928 plus 3% for the
contractor' s contingency ($28, 227 . 84) and a 2% owners
contingency ($18, 818 . 56) . M. I .C. is not authorized to spend
either the contractor contingency or the owner' s contingency
without the authorization of the City. The change order with
M. I .C. will total $987, 974 .40 .
In addition to the earth work and environmental costs, there
will be other construction related costs for Festival Park that
will be presented in the future to the City Council . In order
to complete the base bid elements for Festival Park, a ten foot
wide concrete pathway will be constructed. Also, electrical,
storm sewer, landscaping, and environmental services will be
required. It is estimated that these costs should not exceed
$750, 000 . The cost of acquiring 122 South Grove Avenue will also
be allocated to the Festival Park budget .
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
None.
FINANCIAL IMPACT
The total budget for this project is $3 . 64 million and includes
$2, 570, 000 from the Riverboat Fund, $570, 000 from the South
Grove TIF Fund and a $1 million State of Illinois DCCA grant (of
which $500, 000 has been received) . The project budget currently
has $2, 325, 112 available .
The cost of this contract with M. I .C. /Onyx, Inc . will be
$940, 928 plus $47, 046 .40 for the contractor and owner
contingencies, for a total of $987, 974 .40 . This contract will be
charged to Riverboat Fund account number 275-0000-791 . 92-35,
project number 039520 (Budget $2 , 518, 952 , Available $1, 755, 112) .
In addition to the $1 . 0 Million DCCA Grant (of which $500, 000
has been received) , a $250, 000 contribution is anticipated for
riverfront projects in 2004 under the Ameren Peaker Plant
folk
Proposal to Award a Contract Quote to Onyx Industrial Services
September 19, 2003
Page 5
Development Agreement . Staff is also finalizing a HUD Grant,
secured through the assistance of Speaker Hastert for $402 , 367 .
This grant is also designated for riverfront improvements .
LEGAL IMPACT
�r
A change order with M. I .C. , Inc. would require an exception to
the procurement ordinance. Such an exception would require a
two-thirds vote by the City Council .
ALTERNATIVES
1 . Authorize a change order to the contract with M. I .C. Inc .
for the sites' excavation . and disposal services in an
amount of $987, 974 .40 .
2 . Do not authorize the change order and proceed with the
competitive bid process for the excavation and disposal
services .
RECOMMENDATION
It is recommended to make an exception to the procurement
ordinance and authorize a change order with M. I .C. Inc . in the
amount of $987, 974 .40 .
Respectfully submitted for Council consideration.
RM/dr
Attachments
FESTIVAL PARK - PART A, BASE BID
(with 33%soil compaction/expansion factor)
September 17,2003
023001 ARTHWORK
t?wnees Siddees Plote Plote Onyx On,Yx
t,` uani li t. rltt t"l-'extenovokoUL
k
Area A;Non-impacted Area
stockpile topsoil +/-9" 3,270 3,270 CY $ 2.00 $6,540 $ 2.90 $9,483
redistribuetopsoil 3,270 3,270 CY $ 3.50 $11,445 $ 3.25 $10,628
excavate&dispose off-site(unsuitable fill material) 3,176 4,235 CY $ 15.00 1 $63,518 $ 14.25 $60,342
excavate&distribute on-site 3,176 3,176 CY $ 9.00 1 $ 10.75 $34,142
Area'A'Subtotal: 13,951 CY $110,087 $114,595
Area 'B,Environentall Impacted
N stockpile topsoil +/-9" 1,995 1,995 CY $ 2.00 $3,990 $ 2.90 $5,786
redistribute to soil 1,995 1,995 CY $ 3.50 $6,983 $ 3.25 $6,484
CL excavate&dispose off-site(environmental areas) 1,520 2,027 CY $ 56.00 $113,490 $ 41.25 $83,598
excavate&distribute on-site 1,520 1,520 CY $ 9.00 $13,680 $ 10.75 $16,340
>_ import&distribute structural fill (clay) 2,978 2,978 CY $ 16.00 $47,648 $ 12.25 $36,481
N Area'B'Subtotal: 10,515 CY $185,791 $148,688
Li Area'C,Environmental Remediation
excavate&dispose off-site(environmental areas) 8,030 10,706 CY $ 56.00 $599,558 $ 41.25 $441,639
import&distribute structural fill(clay) 3,3331 3,333 CY $ 16.00 $53,3281_$ 12.25 $40,829
Area'C'Subtotal: 14,039 CY $652,886 $482,468
Bond Cost Included $50,000
Contingency/Allowance 10% $94,876 10% $74,575
Total-Festival Park 38,505 CY $1,043,641 $870,326
Townhouse, Non-Im acted Area
import&distribute structural fill(clay) 7,626 7,626 CY $ 16.00 $122,016 $ 12.25 $93,419
m import&distribute fill 4,582 4,582 1 CY 1 $ 16.001 $73,3121 $ 12.25 $56,130
N
import&distribute topsoil 650 650 CY $ 25.00 $16,250 $ 21.50 $13,975
m Townhouse, Non-impacted Subtotal: 12,858 CY $211,578 $163,523
fA Townhouse, Environmental Remediation
M excavate&dispose off-site(environmental areas) 1,167 1,556 CY $ 56.00 $87,134 $ 41.25 $64,183
C excavate&distribute on-site 1,167 1,167 CY $ 9.00 1 $10,503 $ 10.75 $12,545
F
import&distribute structural fill(clay) 1,167 1,167 CY 1 $ 16.00 1 $18,672 $ 12.25 $14,296
Townhouse,Environmental Subtotal: 3,890 CY $116,309 $91,024
Bond Cost Included See Above
Contin enc /Allowance 10% $32,789 10% $25,455
Total-Townhome Site 16,748 CY $360,676 $280,002
Total: 55,253 CY Plote: $1,404,317 Onyx: $1,150,328
Onyx Recommended Total All of Festival Park Site earthwork plus Townhouse Site environmental areas w/10%cont. : $940,928
Plote Recommended Total(Townhouse earthwork excluding environmental areas w/10%cunt.): $264,828
Total O pinion of Project Cost $1,205,756
=!T!7
LDING 6
BUILDING 112 TOWNHOME
REDEVELOPMENT
SITE 'T
BUILDING 2
i (CITY OF ELGIN)
BUILDING 8
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BUILDING 111 114G
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ING 4
BUILDING 4
BUILDING 110
-- --: Z---- --- -- .............. ... ............
SOUTH GROVE AVENUE
— SHOP
CONFIRMATION SAMPLING PLAN
SOURCE:PAR DEVELOPMENT
TOWNHOME REDEVELOPMENT SITE
LEGEND .11- -
EPM
ELG N lLL S
SUBJECT SITE BOUNDARY
• -w JMN PmNa Na 44037034
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App'"(F=)Scale c—By ININ AUG 2003
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LEGEND
-- SUBJECT SITE BOUNDARY
NOTES
———PROPERTY LINE
1)NON-IMPACTED AREA MEETS TIER I RESIDENTIAL MONITORING WELL LOCATION
RISK BASED SOIL OBJECTIVES AND IS UNRESTRICTED ❑O BORING LOCATION(WARD ENVIRONMENTAL)
FOR OFF-SITE DISPOSAL BORING LOCATION(ENSR) SOIL REMEDIATION PLAN
PREVIOUS BORING LOCATION(PATRICK ENGINEERING) FESTIVAL PARK REDEVELOPMENT SITE
2)CONTRACTOR TO REGRADE SOILS FROM RESTRICTED FlELD SCREENING LOCATION Cm Or ELGIN
SOIL ZONE TO THE SOIL PLACEMENT AREA.REFER TO ELGIN.I—CAS
CONTRACTDRAMNGS FOR FINAL SITE GRADES ® RESTRICTED SOIL ZONE—
mesa N.°r PmMa No.
44037074
SOIL MAY BE RELOCATED O JMN
SITE BUT MUST BE DISPOSED Ir®rnacon s
O BO OF AS SPECIAL WASTE IF REMOVED AS SHOVVN OVED FROM SITE u••,yiiO er JMN
® 3)SEE FIGURE 7 FOR SECTIONS A-A AND B-B ® SOIL REMOVAL ZONE o. e, F 1
KJR »s..c.,.w.,o,... 4?37034-FP-FIG5
(FBBI) OB APPROXIMATE DEPTH OF EXCAVATION(FEET)BELOW EXISTING GRADE cN.o.a by JMN .�r-.cos.° D.. AUG 2003
O SOIL PLACEMENT AREA Appro..0 III
JMN figure No. 5-ReV.2