Memo - Change Orders - Parking Lot 500/600 & 10th and 11th Aves Improvements
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Public Works Department
Memorandum
To:
Honorable Mayor and Members of the City Council
Sleven J. Stadler, Public Works Direclo~
Steven C. Mielke, City Manager
From:
Copy:
Date:
October 26,2001
Change Orders - Parking Lot 500/600 & 10th and 11th Aves Improvements
Subject:
The purpose of this work session item is to present and discuss increased costs on the
subject project. Staff is hopeful that after City Council understands the cost increases,
Council will be able to approve them at the November 7 City Council meeting.
Attachment 1 is a project budget summary that shows the original construction contract
award and engineering agreements, the previous change order no. 1 and the pending
change order no. 2 and engineering services fee request to be presented at the October
30 worksession.
Attachment 2 is a letter from RLK-Kuusisto, Ltd. describing the rationale for their request
for $22,000 in additional engineering services (construction inspection) fees.
The two largest change orders are the soil corrections in lot 500 ($30,674.75) and
additional gravel required due to not reclaiming the asphalt from lot 500 ($23,114.00).
Regarding the soil corrections, the two soil borings from lot 500 did not reveal the extent of
poor soils encountered. The additional excavation and gravel prices did not exceed the
bid prices. In fact, the contractor agreed to a $3,000 reduction in these costs due to the
increased quantity of work. The additional cost incurred by not reclaiming the lot 500
asphalt was necessary to maintain adequate open parking areas during construction and
to maintain a reasonable schedule.
In regards to the engineering fees, the 23.5% fee is reasonable considering the increased
scope of services required on this high-profile project. Specifically, the engineering
services included several elements not normally included in street improvement projects
such as the traffic and parking analysis, numerous public meetings and follow-up work to
develop alternative assessment formulas and continuous on-site communication and
newsletter notifications to business owners. In way of comparison, the engineering fees
on the 2001 street/utility improvement project are 18% of construction cost.
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Parkina Lot 500/600 & 10th/11th Avenue Improvement Proiect
PROJECT BUDGET SUMMARY
Original construction contract amount:.......................... ...$472,597.00
Engineering Fees:..................................................... ...$113,194.40
Feasibility Report & surveying: $29,100
Design: $25,400
Construction services: $49,438
Additional expenses: $9,256.40
ORIGINAL TOTAL PROJECT COST:...........................$639,824.40
(construction contract amount x 1.35 to cover engrg + contingencies)
Total project contingency:............................................ ..$52,686.00
Change Order No.1: (approved August 7}..........................$36,519.16
Pending Change Order No.2:............ ............ ............... ...$65,725.16
(see attached change order form, descriptions and detailed costs)
Additional Engineering Services Fee request:.................... ..$22,000.00
(see attached RLK-Kuusisto, Ltd letter, dated October 24)
REVISED TOTAL PROJECT COST:.............................$710,035.72
Total storm sewer utility additional construction costs:.........$38,385.01
Project costs that exceed contingency and that would have been subject to
assessment formulas:.................................................. ..$34,511.91
Proposed total engineering fees = $135,194.40 or 23.5010 of construction cost
ATCH 1
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CHANGE ORDER
No.
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DATE OF ISSUANCE 10-26-01
OWNER City of Hopkins
CONTRACTOR DMJ
Contract: 9812
Project: Hopkins Lots 500 & 600
OWNER's Contract No. 2000-411m
ENGINEER RLK Kuusisto Ltd.
EFFECTIVE DATE 10-30-01
ENGINEER's Contract No. 9812
You are directed to make the following changes in the Contract Documents:
Description: See attachment
Reason for Change Order: See attachment
Attachments: (List documents supporting change)
CHANGE IN CONTRACT PRICE:
CHANGE IN CONTRACT TIMES:
Original Contract Price
Original Contract Times:
Substantial Completion:_ August 31, 2001_
Ready for final payment_September 21,2001
(days or dates)
$_472,597.00
Net Increase (Decrease) from previous Change
Orders No._l_to_l_:
Net change from previous Change Orders No._l_to
NO.1:
Substantial Completion:_ 21
Ready for final payment:_21
(days)
$_36,519.16
Contract Price prior to this Change Order:
$ 509.116.16
Contract Times prior to this Change Order:
Substantial Completion:_August 31, 2001_
Ready for final payment_September 21,2001
(days or dates)
Net increase (decrease) of this Change Order:
$_65,725.16
Contract Price with all approved Change Orders:
Net increase (decrease) this Change Order:
Substantial Completion:
Ready for final payment
(days)
$_574,841.32
Contract Times with all approved Change Orders:
Substantial Completion:_September 21,2001
Ready for final payment;_October 12, 2001
(days or dates)
RECOMMENDED:
By:
ENGINEER (Authorized Signature)
APPROVED:
ACCEPTED:
By:
CONTRACTOR (Authorized Signature)
By:
OWNER (Authorized Signature)
Date:
Date:
Date:
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City of Hopkins
Lots 500 & 600, 10th and 11 th Avenues
City Project Number 98-12
Additional Cost Required for Soil Corrections in Lot 500 & Lot 600
Item
Common Excavation
Common Excavation
A re ate CL 5
Fabric
Descri tion
Soil Corrections Lot 600
Soil Corrections Lot 500
Fill Material
Geotech Fabric laced in lot 500
Quanti
21
778
1522
378
Unit
CY
CY
TN
SY
Unit Price
$ 11.25
$ 11.25
$ 14.00
$ 1.00
Sub Total
$ 236.25
$ 8,752.50
$21,308.00
$ 378.00
Grand Total
$30,674.75
Costs Associated to Abandoned Oil Tank in Lot 500
Item Description Quantitv Unit Unit Price Sub Total
Exploratorv Dia Excavation of oil tank 1 HR $ 250.00 $ 250.00
Labor Tank Removal MPS' 11.5 HR $ 60.00 $ 690.00
MonitorinQ Eauipment Tank Removal MPS' 1 LS $ 85.00 $ 85.00
Materials-Drv Ice Tank Removal MPS' 1 EA $ 37.50 $ 37.50
Vac truck Tank Removal MPS' 4 HR $ 97.75 $ 391.00
Vac truck Tank Removal MPS' 0.5 HRIOT) $ 146.62 $ 73.31
Waste Service Charae Tank Removal MPS' 1 LS $ 17.25 $ 17.25
Tank Disposal Tank Removal MPS' 1 LS $ 230.00 $ 230.00
SludQe Disposal Tank Removal MPS' 50 GAL $ 8.50 $ 425.00
Oil Disposal Tank Removal MPS' 167 GAL $ 2.00 $ 334.00
Soil SamplinQ Tank Removal MPS' 1 LS $1,019.00 $ 1,019.00
Soil TestinQ Tank Removal MPS' 2 EA $ 54.00 $ 108.00
General Contractor 5% Tank Removal MPS' 1 LS $ 165.10 $ 170.50
Grand Total $ 3,830.56
. Minnesota Petroleum Service
Additional Costs Required for Storm Sewer Installation
Item Quantit Unit Unit Price Sub Total
Connect Storm Drain drain 1 EA $ 250.00 $ 250.00
Watermain 1 LS $1,142.71 $ 1,142.71
Watermain Labor, Buildin and Installin Section 4.5 HR $ 350.00 $ 1,575.00
General Contractor 5% Watermain Dro 1 LS $ 127.14 $ 127.14
Install 12" RCP Storm Sewer 79 LF $ 25.00 $ 1,975.00
Install 15" RCP Storm Sewer 10 LF $ 28.00 $ 280.00
Install 1 0" PVC Storm Sewer 124 LF $ 17.00 $ 2,108.00
Install R3065 Castin Storm Sewer 1 EA $ 320.00 $ 320.00
Install 2x3 CB Storm Sewer 1 EA $1,260.00 $ 1,260.00
R1733 MH Castin CB-11A and Access to PVC 2 EA $ 320.00 $ 640.00
Grand Total $ 9,677.85
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City of Hopkins
Lots 500 & 600, 10th and 11th Avenues
City Project Number 98-12
Reduction in Mobilization Due to Constructing Lot 600 in One Phase
Item
Mobilization
Grand Total
Additional Gravel Required Due to Removing Pavement Instead of Reclaiming
(Due to Scheduling Issues)
Item
A re ate CL5
Descri tion
Base Material
Grand Total
Additional Excavation Due to Moving Storm Sewer Location North of Alley and
Changing Grade of Parking Lot
Item
Common Excavation
Descri tion
Grade Chan e in Lot 500
Grand Total
Net Change in Contract Price
Sub Total
$ 6,000.00
$ 6,000.00
Sub Total
$23,114.00
$23,114.00
Sub Total
$ 4,428.00
$ 4,428.00
$65,725.16
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CHANGE ORDER
No.
2
DATE OF ISSUANCE 10-26-01
OWNER City of Ho{)kins
CONTRACTOR DMJ
Contract: 9812
Project: Hopkins Lots 500 & 600
OWNER's Contract No. 2000-411m
ENGINEER RLK Kuusisto Ltd.
EFFECTIVE DATE 10-30-01
ENGINEER's Contract No. 9812
Description: Additional Cost Required for Soil Corrections in Lot 500 & 600, Cost
Associated to Abandoned Oil Tank in Lot 500, Additional Costs Required for Storm
Sewer Installation, Reduction in Mobilization Due to Constructing Lot 600 in One Phase,
Additional Gravel Required Due to Removing Pavement Instead of Reclaiming (Due to
Scheduling Issues), and Additional Excavation Due to Moving Storm Sewer Location
North of Alley and Changing Grade of Parking Lot
Reasons for Change Order:
The Additional Cost Required for Soil Corrections in Lot 500 & 600: During
excavation efforts in Lot 500 & 600 unsuitable soil containing organic material was
discovered. In order to insure a solid subbase the unfavorable soil was excavated and
replaced with gravel. The result of the soil corrections is a more solid, longer lasting
parking lot surface.
Cost Associated to Abandoned Oil Tank in Lot 500: During the excavation of Lot 500
an abandoned oil tank containing service drain oil was discovered. The tank was
considered a hazardous material and had to be removed according to Minnesota State
regulations. Minnesota Petroleum Services removed the hazardous materials and the
tank.
Additional Costs Required for Storm Sewer Installation: The storm sewer system was
modified during the course of the project. The changes resulted in an overrun in the
original pipe length and storm structures quantities. The changes resulted in a better
more efficient storm sewer system.
Reduction in Mobilization Due to Constructing Lot 600 in One Phase: The phasing
schedule for Lot 600 changed during the course of construction. Originally Lot 600 was
going to be constructed in two phased in order to increase parking in the area during the
project. After discussing the phasing schedule with local businesses and considering the
additional time required to reconstruct the lot in two phases a decision was made to
construct the lot in one phase. This decision saved DMJ (contractor) time and money,
which resulted in a reduction in mobilization costs.
Additional Gravel Required Due to Removing Pavement Instead of Reclaiming (Due
to Scheduling Issues): The scope of the project concerning required gravel quantity
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changed during the course of construCtion. Originally Lots 500 & 600 were going to be
reclaimed, meaning that the existing asphalt would be reused as gravel. During the
course of the project the decision was made to remove the asphalt in both parking lots
and use gravel from an outside source. The reason for this decision was based on the
thickness of the asphalt in the parking lot, scheduling issues, and quality of finished
product. The asphalt in the parking lots was very thin in several places making it
unfeasible to reclaim. The scheduling for the reclaiming would have held up the project.
Replacing the gravel versus using reclaim provides a better-finished product.
Additional Excavation Due to Moving Storm Sewer Location North of Alley and
Changing Grade of Parking Lot: The location ofthe storm sewer in lot 500 was moved
from the curb along the south end of lot 500 to 30 feet north of the curb. The change in
sewer location resulted in a grade change in lot 500 that increased the amount of required
common excavation. The result of this decision reduces the amount of water in front of
the buildings facing Lot 500 on the south side during a heavy rainfall.
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RI.X. ,Engineering. Planning'., Surveying. Landscape Arc,hitecture
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October24,200r.
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Mr.. Steve Stadler
Public "Works Director
City of Hopkins
1010 1st Stre~fSouth
Hopkins,MNS5343-9475 ,
R~:
Engineering. Invoices . for Construction. Observation! Administration
Lot 500al1d LQt600 I lOth and 11th Avenues
RLK-Kuusisto,Ltd.ProjectNo.2000-411-M
. Dear Steve:
The proposed construction schedule forthe above-referenGed project was originally anticipated at 9~
weeks,RLK-Kuusisto,Ltd. is now in our 16th week ,of construction services, notinc1uding the weeklo,st
due to the Raspberry Festival. .
RLK's ,originalbudget'forthisphaseofthe project was$49,438.00and was based. on the 9-week ,
schedule; this original figure inc1uded$13,OOO.OO for staking and '$2,890 for record drawings. Based on.
these computations, $33,548.00 of our total budget pr$3, 727. 5 O!week for 9-weeks, was for our on~site
inspector, COl}structionadministration and.weekly updates to the affe,cted property owners andCity staff.
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l~.S '.ve disGussed la~tweek, cormmmicatio!'swent verywel! on theprojectco)1sicieringhowmany
businesses were impacted. . There were 'some businesses frustrated toward the end of the project as the
contractor placed the final. lift, butfor the most part the property owners were very'satisfied with the
.. quality and 'progress' made by the contractor. '
Field changes required earlyin the ptojeytas we uncovered telephonevaults thatendedup too clos,e to the
proposed storm Sewer system contributed toproject delays. Tht;)se particular changes could not have,be~n"
anticipated llntil the streetwas removed, discovery of the vaults delayed the project approximate,ly 3- '
:weeks; Additionally, tl).e scheduling of phases, such as splitting the parking lot into two phases to ,
,maintainasl11uchparking as possible during construction further delayed progress more than an)! of us
anticipated. The contractor deserves much credit for keeping the project moving, as tight scheduling of
their subcontractors (such as curb and gutter installers, sidewalk installers, electricians, watenllld storm
'sewer installers, landscaping crews and brick paver installers) demanded the project stay.onirack. ..
Offices:Hibbing~ Minnetonka ' .5t.Paul . Twin Ports
(952) 933-0972 ' 6110 BlueCircleDrive '.Suite 100 ,'Minnetonka,MN 55343 . FAX (952) 933-1153
EqualOpportunity Employer
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~ngineeriffg inv(jices for Construction Observation! Administration
Lot 500 and Lot 600/ Wthand nth Avenues
October 24, 2001
Page2of2...
Although we have reach~d our16th week of construction, the, ptoject still necessitated an inspector to
yoord~nate c()nstructibnactivi~ies with the wishes and desires oftheproperty owner~... This additional..
time and effort involved to observe thecontr~ctor andio keep the property owners iriforll!ed required and
additiona17-weeksof engineering/observatiop till!e or $26;092.85. However; RLK recognizesthat the
ChyofHopkinshaslimited funds fora project SU9h as this; RLK woulclJike to. proposea reduced .. .
amendment to out contract in the amount of $22, oob~Oo. As discussed.in the past,RLK' s actual hourly
cost was. considerably higher th,mthis amount; however, we would like to propose this as a compromise
.to our actuaL cOst. . ,
RI.,K is ~roud .ofthe fhiaLproduct. . In. addition to complying with generally accepted engineering
standards; RLKconsiders this project a creditable demonstration of how a plan can provide aUthe
necessary and desirable features a well~maintaineddowptownarea req~ires. The projectprovides
. motorists with a\v,ell-lit, easy todriye through downtown and a safe placetopatkand access the parking
areas. .
. Please contact me to discuss processing the proposed contract amendment.
. '. Sincerely,
RLK4(uusisto, Ltd.
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. Senior Professional Engineer
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I:I:\ADMIN-D()c;S\My Docunients\2000-411~M\Ltr Stadler invoices iO-~4-0 l:doc