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Home My WebLink About2014-09-03 PACKET 04.I. REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA MEETING ITEM # � I DATE 9/3/14 ' a PREPARED BY: Community Development Jennifer Levitt ORIGINATING DEPARTMENT STAFF AUTHOR *************************************�**�******* COUNCIL ACTION REQUEST Consider approving Change Order No. 1 for the 2014 Pavement Management Project in the value of ($41,216.96). STAFF RECOMMENDATION Approve Change Order No. 1 for the 2014 Pavement Management Project. BUDGET IMPLICATION: $2,511,649.48 $(41,216.96) Various BUDGETED AMOUNT ACTUAL AMOUNT FUNDING SOURCE ADVISORY COMMISSION ACTION DATE REVIEWED APPROVED DENIED ❑ PLANNING ❑ ❑ ❑ ❑ PUBLIC SAFETY ❑ ❑ ❑ ❑ PUBLIC WORKS ❑ ❑ ❑ ❑ PARKS AND RECREATION ❑ ❑ ❑ ❑ HUMAN SERVICES/RIGHTS ❑ ❑ ❑ ❑ ECONOMIC DEV. AUTHORITY ❑ ❑ ❑ ❑ ❑ ❑ ❑ SUPPORTING DOCUMENTS � MEMO/LETTER: Memo from Jennifer Levitt dated 8/26/14 Letter from Michael Boex, Bolton & Menk dated 8/19/14 ❑ RESOLUTION: ❑ ORDINANCE: ❑ ENGINEERING RECOMMENDATION: ❑ LEGAL RECOMMENDATION: � OTHER: Change Order No. 1 ADMINISTRATOR'S COMMENTS m � t , __ /L � � �� I ity Administrator Date ************************************************ COUNCIL ACTION TAKEN: ❑ APPROVED ❑ DENIED ❑ OTHER Cottage / Grove � Pride anapCOSperity Meet TO: Honorable Mayor and City Council Ryan Schroeder, City Administrator FROM: Jennifer Levitt, Community Development Director/City Engineer DATE: August 26, 2014 RE: Change Order No. 1— 2014 Pavement Management Background/Discussion The City became aware of an error in paving on July 10, 2014 that took place on the 2014 Pave- ment Management Project. The error involved the placement of 1,771.6 tons of lower wear course paving instead of placing upper wear course paving on July 7 and 8. The error involved numerous parties working on the project. Even with multiple check points in the inspection and pavement monitoring process, an error was made in the delivery of the incorrect mix to the site. The only difference in the property of the mixes is the use of recycled asphalt pavement (RAP). The spec- ifications did not allow for the use of RAP in the upper wear course pavement. All other properties . of the mix are correct and all necessary testing of the material meet the project specifications. The cost difference in the mix designs are noted below: Upper wear course paving =$73.65/ton x 1,771.6 tons =$130,478.34 Lower wear course paving =$65.60/ton x 1,771.6 tons =$116,216.96 The current locations where the error took place have been evaluated in great detail, and there is no recycled material visible at the surFace. The overall properties of the asphalt are all within acceptable limits. The actual finished mat of the asphalt is excellent. There were three options to resolve this matter: 1. Cause the contractor to remove and replace with the correct mix. 2. Accept the paving at the lower wear course paving price that includes RAP. 3. Negotiate a penalty payment for RAP in the upper wear course paving. There are many challenges with removing asphalt and replacing it with the correct mix. The resi- dents would be greatly impacted by such a process, and the overall cost-benefit ratio cannot be justified for removal and replacement. Plus, there are legal challenges with this proposed remedy. It would not be acceptable to only pay the lower unit price for lower wear course paving since it was not contractually correct. As a solution, the City negotiated a settlement for the error from two parties. The first party responsible for the error is the contractor, Valley Paving Inc.; they will be deducted $41,216.96 from the mix for the lower wear course paving value. The lower wear course paving unit price was $65.60/ton. The value of the paving was 1,771.6 tons times $65.60 for a total of $116,216.96. Honorable Mayor, City Council, and Ryan Schroeder Change Order No. 1— 2014 Pavement Management August 26, 2014 Page 2 of 2 After applying this change order, the City will pay only $75,000 for the asphalt placed in error (a 35.5 percent reduction). The second party involved in the error was the engineering consultant, Bolton & Menk, Inc. They will be contributing $25,000 to mitigate the error in the reduction in engineering services for the project. This will mean $80,748.34 in total project savings, which benefits the City and the residents. This savings reduces residents' assessments from the pro- jected $3,100 assessment estimated value at the time the project was ordered. Recommendation It is recommended to approve Change Order No. 1 in the value of a$41,216.96 deduction and accepting a$25,000 deduction in engineering services from Bolton & Menk, Inc. related to the placement of the 1,771.6 tons of lower wearing course in lieu of the specified upper wear course paving. •� Bt� !_TC�N � i�/I � N K, I N�, � Cc�nsulfing Engin�ers � Surveyors " 2035 County Road D East • Suite B• Maplewood, MN 55109-5314 Phone (651) 704-9970 • Fax (651) 704-9971 www.bolton-menk.com August 19, 2014 Ms. Jennifer Levitt, PE Community Development Director/City Engineer City of Cottage Grove 12800 Ravine Parkway South Cottage Grove, MN 55016 RE: 2014 Pavement Management Project Change Order No. 1 Project No. N15.106799 Dearlennifer: Transmitted with this letter are three (3) copies of Change Order No. 1 for the above referenced project. This change order represents a reduction in payment for the placement of 1,771.6 tons of lower wearing course in lieu of the specified upper wearing course. This will resuit in a net payment of $75,000 for the 1,771.6 tons placed. A detailed description and calculation is included on the attached change order. It is recommended that the City of Cottage Grove approve this change order. Please execute and distribute accordingly. If you have any questions, please call me at 651-968-7674. Sincerely, BOLTON & MENI<, INC. �� . Michael Boex, PE Senior Project Manager Enclosure Cc; File DESIGNING �OR A BETTER TOMORROW Bolton & Menk is an equal opportunity employer OWf18( Eng(neer Conlractor Contractor's Bond(ng Co. CHANGE ORDER NO. 1 PROJECT: 2014 Pavement Management Project DATE: 8/19l2014 BMI PROJECT NO.: N15.106799 OWNER: City of Cottage Grove CONTRACTOR: Valley Paving, Inc. Th(s change order is a reduction (n payment for the placement of 1,771.6 tons of lower wearfng course In Ifeu of the specifled upper wearing course. Payment for the 1,771.6 tons of bituminous placed Is being made under Bid item #24: Type SP 9.5 DESCRIPTION Lower Wearfng Course Mixture (3,C) in the amount of $116,216.96 (1,771.6 ton x$65.60/ton =�116,216.96). Applying this change order resuits fn a net payment of $75,000.00 ($116,216.96 -$41,216.96 =$75,000,00), Item Estimated Unit Change in No. Descri tion Quantit Unit Price Contract Amount 1 Bituminous Wear Course (Reduction) 1 L.S. -$41,216.96 -$41,216.96 Subtotal $ 41,216.96 Original Contract Amount $2,511,649.48 Change Order No. 1 -$41,216.96 Revised Contract Amount $2,470,432.52 APPROVED: Bolton & Menk, Inc.: � ��' �' � -� � % EC--fI � � �� a TiUe Date Valley Paving, Inc. � " z� — �� Narr9 Title Date Cfty of Cottage Grove: Jennifer Levitt City Engineer Date m:lbrrelfom�s�nicrosoft�Pay &fimates�Change ordecxls