06-80 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
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