04-10 Resolution No. 04-10
RESOLUTION
APPROVING CHANGE ORDER NO. 2 AND FINAL IN THE CONTRACT WITH
SEAGREN CONSTRUCTION, INC. FOR THE AIRLITE WATER TREATMENT PLANT
IMPROVEMENTS—SECTION II
WHEREAS, the City of Elgin has heretofore entered into a contract with Seagren
Construction, Inc. for the Airlite Water Treatment Plant Improvements—Section II; and
WHEREAS,it is necessary and desirable to modify the terms of the contract as is described
in Change Order No. 2 and Final, attached hereto.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
ELGIN,ILLINOIS,that David M.Dorgan,City Manager,be and is hereby authorized and directed to
execute Change Order No. 2 and Final,a copy of which is attached hereto and made a part hereof by
reference.
s/Ed Schock
Ed Schock, Mayor
Presented: January 28, 2004
Adopted: January 28, 2004
Omnibus Vote: Yeas: 5 Nays: 0
Attest:
s/Dolonna Mecum
Dolonna Mecum, City Clerk
ELGIN,ILLINOIS
WATER WORKS IMPROVEMENTS
AIRT�ITE WTP IMPROVEMENTS
CHANGE ORDER NO.2-FINAL
SCOPE
This Change Order No.2-Final adjusts the Contract Price and Time to account for
additions and modifications as indicated below.
BASIS FOR CHANGE
1. Electrical Equipment Panel in Lime Storage Area. ATS-2,ELP 2,EPP 2 were
installed on a newly constructed Unistrut panel in lieu of the original wall mount
arrangement.Refer to the Contractor letter dated May 23,2002.
•
2. Excessive Shop Drawing Resubmittals. The Contractor is responsible for the
costs associated with the Engineer reviewing shop drawings that are resubmitted
more than once.Refer to Black&Veatch letter dated December 23,2002.
3. Rerouting Dehumidifier Intake and Exhaust Piping. The dehumidifier piping was
re-routed to the west of the new door on the north end of the filter gallery.Refer
to the Contractor letter dated June 27,2002.
4. Relocation of Sump Pump Line. The 1 %s"discharge pipe from the sump pump to
the sewer was relocated in order to accommodate the new ductwork.Refer to the
Contractor letter dated April 22,2002.
5. Relocation of the Backflow Preventer in the Boiler Room. The backflow
preventer in the 1"water line in the Boiler Room was relocated in order to
accommodate the new boiler.Refer to the Contractor letter dated April 22,2002.
6. Relocation of MAU-01. MAU-01 was relocated from the roof of the Chlorine
Storage Room to the ground west of the Chlorine Storage Room.Refer to
Contractor letter dated June 27,2002 and other related correspondence. .-
7. Vinyl Tile in Corridor. Vinyl tile was installed in the corridors of the operating
floor of the Airlite plant,as well as the restrooms and the Ammonia feed room.
Refer to Contractor correspondence dated August 5,2002.
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8. Floor Repair in the Filter Gallery. The flooring subcontractor repaired damaged
concrete and adjusted the elevation of the two sections of concrete subfloor.Refer
to Contractor correspondence dated September 27,2002.
9. By-pass piping for Sodium Hydroxide System. Modifications to the batch water
piping for the sodium hydroxide system at the Riverside WTP.Refer to
Contractor letter dated July 31,2002.
10. Ferric Sulfate Day Tank Level Indicator. The City determined that this piece of
equipment was not necessary and requested that Seagren provide a credit in lieu
of furnishing and installation.Refer to Contractor letter dated September 23,
2002.
11. Costs for Emptying and Cleaning the Sodium Hydroxide Tank. A credit equal to
the costs incurred by the City to do this work will be applied.
12. Seeding at the Riverside WTP. The Contractor seeded areas at the Riverside plant
in lieu of sodding. The Contractor has provided a credit for the price difference
between seeding and sodding.Refer to Contractor letter dated August 5,2002.
13. Damper A5CD-10. The Contractor installed a control damper in the duct work in
the chlorine feed room at the request of the Owner.This control damper was not
part of the work included in the Contract.Refer to the Contractor letter dated
October 14,2002.
14. Vacuum Breaker in Sodium Hydroxide Piping, The Contractor installed a
vacuum breaker in the vent piping for the day tank in the sodium hydroxide feed
system at the Riverside plant.The vacuum breaker was not included in the
Contract.Refer to the Contractor letter dated October 31,2002.
15. MAU Control Panel Wiring. At the City's request,the Contractor installed the
control panels for the make-up air units(MAUs)inside the plant instead of
outside at the units as indicated in the Contract drawings.Refer to Contractor
letter sent January 8,2003.
16. Liquidated Damages. Failure of Contractor to substantially complete the Work
within the time frame required by the Contract Documents resulted in the
assessment of liquidated damages. Based on the contract requirements,the
established Substantial Completion date of December 5,2002,the established
Final Completion date of June 11,2003,and the contractual substantial and final
completion date time extensions granted under this change order to August 30,
2002;liquidated damages for 97 days for substantial completion and 188 days for
final completion could be assessed. The City has agreed to asses only 44 days for
substantial completion at$1,000.00/day or$44,000 of liquidated damages in
accordance with the Contract Documents.
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CHANGES IN CONTRACT AMOUNT
Adjustments to the Contract Price resulting from the aforementioned items shall be the
negotiated lump sum prices covering all compensation due for the work as shown in
Table 1.
CHANGE ORDER NO.2--FINAL .
Table f
Summary of Contract Price Changes
ITEM ' ADD DEDUCT
1.Electrical Equipment Panel in Lime Storage Area $3,218.00
2.Excessive Shop Drawing Resubmittals $3,198.00
3.Rerouting Dehumidifier Intake and Exhaust Piping $5,911.00
4.Relocation of Sump Pump Line $4,086.00
5.Relocation of the Backflow Preventer in the Boiler Room $420.00 '
6.Relocation of MAU-01 $6,478.00.
7.Vinyl.Tile in Corridor $1,708.00
8.Floor Repair in the Filter Gallery $11,413.00
9.By-pass Piping for Sodium Hydroxide System $1,434.00
10.Ferric Sulfate Day Tank Level Indicator $557.00
1.1.Costs for Emptying and Cleaning Sodium Hydroxide Tank $2,190.00
12.Seeding at the Riverside WI? $5,504.00
13.Damper A5CD-10 $1,886.00
14.Vacuum Breaker in Sodium Hydroxide Piping $2,683:00
15.MAU Control Panel Wiring $2,930.00
16.Liquidated Damages $44,000.00
TOTAL ADD $42,167.00
TOTAL DEDUCT $55,449.00
NET CONTRACT PRICE CHANGE $13,282.00
CURRENT CONTRACT AMOUNT $2,402,425.00
NET CONTRACT PRICE CHANGE ($13,282.00)
NEW CONTRACT AMOUNT $2,389,143.00.
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CHANGE IN CONTRACT TIME
The Contract Times for Substantial and Final Completion shall be extended due to
additional work items and negotiations with the City. The Contract Time for Substantial
Completion and for Final Completion shall be extended to August 30,2002 without any
adjustment in the Contract Price.
Change Order No.2--Final is necessary and proper due to the following:
• The above changes were not anticipated for the reasons listed at the time the
contract with Seagren Construction,Inc.was authorized.
• It is in the best interest of the Owner to approve the above changes.
• These changes are germane to the intent and scope of the original contract.
ACCEPTANCE
The changes and conditions set forth in this Change Order No.2—Final are hereby
accepted. All other provisions of the Contract remain unchanged.
SEAG CONSTRUCTION INC. CITY OF ELGIN.ILLINOIS
(Con *. / (Owner)
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By: • - B
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0/0 Date: /z ' '�- - 0 3 � Date: //3 0/0
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G \'y —City of Elgin Agenda item No. L
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January 9,2004
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TO: Mayor and Members of the City Council la
FINANCIALLY STABLE CITY OONEFINMENT
FFI-E IEN't SL-RVI(FS,
AND OIMUTYJNFRASTRUC1V RE
FROM: David M. Dorgan, City Manager ahif
Larry E. Deibert, Water Department Director
SUBJECT: Final Payment, Authorization of Change Order No. 2 and Acceptance of
Airlite Water Treatment Plant (WTP) Improvements—Section II
PURPOSE
The purpose of this memorandum is to provide the Mayor and members of the City
Council with information to consider final payment, authorization of Change Order No. 2,
and acceptance of Airlite WTP Improvements — Section II completed by Seagren
Construction.
RECOMMENDATION
It is recommended that the City Council accept the completed Airlite WTP Improvements
— Section II project and authorize the final payment to Seagren Construction in the
amount of $89,616, and to the Sub-Contractor Edwards Engineering in the amount of
$30,203, and the execution of Change Order No. 2 in the amount of$13,282 (Deduct) with
Seagren Construction. Approval of this final Change order No. 2 is in the best interest of
the City.
BACKGROUND
On July 25, 2001 the Mayor and the City Council awarded a contract for Airlite WTP
Improvements — Section II to Seagren Construction, Elgin, Illinois. On May 8, 2002 the
Mayor and the City Council approved Change Order No. 1 in the amount of$30,225.00.
Change Order No. 2 (Final) includes 16 work items (11 items added cost to the contract in
the amount of $42,167 and 5 items deducted cost from the contract in the amount of
$55,449) which results in a net contract price decrease of$13,282. A copy of Change Order
No. 2 (Final) and Black & Veatch's letter dated July 16, 2003 are attached for your
convenience.
The Project was not substantially complete on time. The original contract documents
established June 3, 2002 as the Substantial Completion Date and August 2, 2002 as the
Final Completion Date for the work. Verbal agreement was reached with the Contractor
rChange Order No. 2 Airlite WTP
January 9, 2004
Page 2
to extend both the Substantial and Final Completion dates to August 30, 2002. This
Change Order No.2 addresses the additional work items which resulted from this
extension.
The contract documents provide for the application of liquidated damages in the event the
Contractor does not complete the project within the specified time.
It is not the City's intent to assess all of the potential liquidated damages against the
contractor, but rather to recover the additional actual costs incurred by the city in the
form of additional fees expended by the engineer. This amounts to $44,000. On September
10, 2003, the Mayor and the City Council authorized Amendment No 8 with Black &
Veatch which accounted for these additional engineering fees and which subtracted them
from the final payment due Seagren Construction.
This results in an adjustment to the contract price as follows:
Original Contract Amount $2,372,200
Change Order No. 1 (Add) $ 30,225
Previous Payments $2,269,324
Change Order No. 2 (Deduct) ($ 13,282)
Amount due to the Contractor $ 119,819
The amount due to the contractor will be distributed as follows:
Final Payment to the Contractor $89,616
(Seagren Construction)
Amount to the Subcontractor $30,203
(Edward Engineering)
This project was completed by Seagren Construction, however not within the time frame of
the contract. A mechanics lien was filed against the project by one of the sub-contractors,
Edward Engineering, in the amount of $30,203. A $30,203 direct payment to Edward
Engineering will be deducted from the amount originally to have been paid to Seagren
Construction, by agreement between the City, the Contractor, and the subcontractor.
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
None
ruk
Change Order No. 2 Airlite WTP
jek January 9, 2004
Page 3
ifFINANCIAL IMPACT,
The final accounting for project number 409543 is as follows:
Budget
Account Number Amount
380-4000-795.92-36 2000 Bond—Building & Structures $1,393,000
381-4000-795.92-36 2001 Bond— Building & Structures 435,000
381-4000-795.92-41 2001 Bond—Distribution Systems 8,700
395-4000-795.92-36 1995 Bond—Building & Structures 375,000
398-4000-795.92-36 1998 Bond—Building & Structures 75,000
401-4002-771.92-36 Water Operating—Bldg. & Structures 350,000
420-0000-771.92-36 Water Development—Bldg. & Structures 295,000
Total Budget $2,931,700
Expenditures
Seagren Construction $2,389,143
Black &Veatch 521,432
Testing Service Corporation 3,180
Miscellaneous 10,680
Total Expenditures $2,924,435
Funds Remaining $ 7,265
The balance of the remaining funds will be reprogrammed for future projects.
LEGAL IMPACT
\1\141V None
ALTERNATIVES,
1. Accept this deductive change order.
2. Do not accept this deductive change order.
Respectfully submitted for Council consideration.
LED/PLB
re, Attachments