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HomeMy WebLinkAbout5K Boudins Phase II Change Order 14646 Dakota Street SE Prior Lake, MN 5 53 72 CITY COUNCIL AGENDA REPORT MEETING DATE: JULY 23, 2012 AGENDA #: 5K PREPARED BY: SENG THONGVANH, PROJECT ENGINEER PRESENTER: SENG THONGVANH AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION APPROVING CHANGE ORDER 1 FOR THE BOUDINS PHASE II IMPROVEMENT PROJECT (CITY PROJECT #12 -011) DISCUSSION: Introduction The purpose of this agenda item is to approve a change order and reduction of construction contract amount for the Boudins Phase II Improvement Project. History At its May 7, 2012 meeting the City Council adopted Resolution 12 -066 authorizing a construction contract with Northwest Asphalt in the amount of $2,287,195.98. Project construction began on May 29, 2012 and with favorable working conditions the project is ahead of schedule. ISSUES: The lowest bid received for the project was over the engineer's estimate. Due to the higher than expected cost, City Staff and Northwest Asphalt (lowest responsible bidder) discussed cost saving measures that could be implemented without impacting City standards. City staff was directed to move forward with bituminous reclamation to be used as aggregate base for the project. At that time, the estimated savings was approximately $50,000. The $50,000 cost savings assumed use of reclaim aggregate base on the entire project. Due to the groundwater that was encountered on Boudin Street, it was determined that use of reclaimed aggregate base would not be ideal. Instead, Boudin Street from Watersedge Trail to Lois Street would use crushed limestone aggregate base. Reclaimed aggregate would be placed from Lois Street to the east of the project on Boudin Street. This change reduces the savings. The cost savings has been revised to $36,500.70 from $50,000. Reuse of onsite material has provided a cost savings as well as reduced transportation of materials on and off site. Reduction in truck traffic through the residential neighborhood has also been a positive benefit. Conclusion City staff recommends that the change order be approved and the construction contract revised to reflect the cost savings. FINANCIAL The use of salvaged material will provide a cost savings of approximately IMPACT: $36,500.70. The amount will be deducted from the construction contract with a revised contract amount of $2,250,695.28. ALTERNATIVES: The alternatives are as follows: 1. Approve Resolution 12 -XXX authorizing change order 1 and reduction of the construction contract by $36,500.70 to $2,250,695.28 for the Boudins Phase II Improvement Project (City Project #12 -011). 2. Deny this item for a specific reason and provide Staff with direction. 3. Defer this item until a future date. RECOMMENDED Alternative No. 1. MOTION: http: / /finance1 /teams /am /October 4 2010 /July 23, 2012 /Boudins ph 11 change order report.doc 2 r -1- � 4646 Dakota Street SE nvxsso_'r Prior La ke, MN 55372 RESOLUTION 12 -xxx A RESOLUTION APPROVING A CHANGE ORDER FOR THE BOUDINS PHASE II IMPROVEMENT PROJECT (CITY PROJECT #12.011) Motion By: Second By: WHEREAS, Pursuant to the City's standard construction contract with Northwest Asphalt for the Boudins Phase II Improvement Project (City Project #12 -011) which includes sanitary sewer, water main, storm sewer, aggregate base, concrete curb and gutter, bituminous pavement, turf restoration and appurtenant work; and WHEREAS, The lowest bid was above the engineer's estimate; and WHEREAS, City staff was directed to move forward with the use of reclaimed aggregate base as a cost saving measure. The use of reclaimed onsite material will save $36,500.70; and WHEREAS, The City Engineer recommends acceptance of the change order and reduction of the construction contract amount with Northwest Asphalt to $2,250,695.28. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. Change order #1 with a reduction of $36,500.70 from the construction contract is approved. 3. The construction contract with Northwest Asphalt is revised from $2,287,195.98 to $2,250,695.28. 4. The unit price for aggregate base reclamation and placement is agreed to be $5.90 /SY. PASSED AND ADOPTED THIS 23rd DAY OF JULY 2012. YES Kin M ser M ser Erickson Erickson Hedberg Hedber Keene Keene Soukup Souku Frank Boyles, City Manager CHANGE ORDER (Instructions on reverse side) No. 1 PROJECT: Boudin's Neighborhood DATE OF ISSUANCE: 7/13/12 Improvements, Phase II OWNER: City of Prior Lake (Name, 4646 Dakota St. S.E. OWNER's Project No. 12 -011 Address) Prior Lake, MN 55372 CONTRACTOR: Northwest Asphalt, Inc ENGINEER: City of Prior Lake 1451 Stagecoach Road 4646 Dakota St. S.E. Shakopee, MN 55379 Prior Lake, MN 55372 CONTRACT FOR: Boudin's Neighborhood ENGINEER's Project No. 12 -011 Phase II Improvements You are directed to make the following changes in the Contract Documents. Description: Use of reclaim bituminous pavement as aggregate base meeting MN /DOT specification 3138 Class 7. Quantity for bid item 2211.501 Aggregate Base Class 5 will be reduced from 9,632 Tons to 1,674 Tons. Quantity for bid item 2232.501 Mill Bituminous Surface will be reduced from 18,448 SY to 2,167 SY. A new bid item for Aggregate Base Reclaimation and Placement will be added to the bid tabulation. The estimated quantity is 16,281 SY at a cost of $5.90 /SY. Purpose of Change Order: Provide cost savings while utilizing available onsite material. Attachments: List documents supporting change) CHANGE IN CONTRACT PRICE: CHANGE IN CONTRACT TIME: Original Contract price Original Contract Time 2,287,195.98 days or date Previous Change Orders No. to No. Net change from previous Change Orders days Contract Price prior to this Change Order Contract Time Prior to this Change Order 2,287,195.98 days or date Net Increase (Decrease) of this Change Order Net Increase (Decrease) of this Change Order -36,500.70 days Contract Price with all approved Change Orders Contract Time with all approved Change Orders $ 2,250,695.28 - days or date RECOMMENDED: APPROVED: APPROVED: By By By Engineer Owner Contractor EJCDC No. 1910 -8 -B (1983 Editio 23 CHANGE ORDER INSTRUCTIONS A. GENERAL INFORMATION This document was developed to provide a uniform format for handling contract changes that affect Contract Price or Contract Time. Changes that have been initiated by a Work Directive Change must be incorporated into a subsequent Change Order if they Affect Price or Time. Changes that affect Contract Price or Contract Time should be promptly covered by a Change Order. The practice of accumulating change order items to reduce the administrative burden may lead to unnecessary disputes. For supplemental instructions and minor changes not involving a Change in the Contract Price or Contract Time, a Field Order may be used. B. COMPLETING THE CHANGE ORDER FORM Engineer initiates the form, including a description of the changes involved and attachments based upon documents and proposals submitted by Contractor, or requests from Owner, or Both. Once Engineer has completed and signed the form, all copies should be sent to Contractor for approval. After approval by Contractor, all copies should be sent to Owner for approval. Engineer should make distribution of executed copies after approval by Owner. If a change only applies to price or to the time, cross out the part of the tabulation that does not apply. 24