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4.6. SR 07-18-2016City of Elk — River Request for Action To Item Number Mayor and City Council 4.6 Agenda Section Meeting Date Prepared by ConsentJuly 18, 2016 Justin Femrite, P.E., City Engineer Item Description Reviewed by Change Order No. 2 and Engineering Fees for Matt Stevens, Chief Operator Wastewater Treatment Facility Improvements Reviewed by Cal Portner, City Administrator Action Requested Approve, by motion, Change Order No. 2 for a contract time extension for the Wastewater Treatment Facility Improvement project and increase in engineering fees. Background/Discussion The attached change order and letter from Rice Lake Construction Group details the request for change to the contract completion date. Seth Peterson, our project manager, and our staff have reviewed this request with Rice Lake Construction Group and recommend the increase in contract duration of 35 days. The contract time extension will not cause any missed timelines for compliance with our discharge permit. If this change order is approved, the total contract duration for the project will have increased from 700 days (original contract) to 873 days (after CO #1 and CO #2). These additions have led to additional engineering observation and administration on the project. Bolton & Menk, Inc. is requesting an increase to their fees to account for these changes in the project timeline. Staff had originally discussed this with Bolton & Menk, Inc. at the time of processing Change Order #1 in March, 2015. Being early in construction, Bolton & Menk, Inc. was willing to see how the project progressed in potentially not needing to request additional compensation for that contract change. Staff has reviewed their request and recommends its approval. Financial Impact There is no requested change in contract pricing associated with approval of Change Order No. 2 for Rice Lake Construction. Staff anticipates the increased engineering fees of $186,450 for Bolton & Menk, Inc. will not increase the overall project budget. Being the project has progressed with few changes, there remains unassigned contingency within the project budget sufficient to cover the increase. Attachments Change Order No. 2 Letter form Rice Lake Construction Group Letter from Bolton & Menk, Inc. P a w E A E U s r NaA f RE] SECTION 00991— CHANGE ORDER PROJECT: WWTF Improvements DATE OF ISSUANCE: 7/6/2016 OWNER: City of Elk River, Minnesota ENGINEER'S Project No.: T21.106811 EFFECTIVE DATE: 7/6/2016 No. 2 CONTRACTOR: Rice Lake Const. Group ENGINEER: Bolton & Menk, Inc. You are directed to make the following changes in the Contract Documents. Description: The Contractor experienced delays with establishing the correct microbiology in the aeration basins and it took nine (9) weeks for the Contractor to establish the correct microbiology to produce good biologic treatment. Typically it takes approximately four (4) weeks to establish the correct microbiology. Reason for Change Order: The aeration basins were started during the winter (December 2015) and the cold weather inhibited the microorganisms from growing quickly causing the extra time. Attachments: (List documents supporting change) See attached letter from Rice Lake Construction Group dated May 3, 2016. CHANGE IN CONTRACT PRICE: CHANGE IN CONTRACT TIMES: Original Contract Price Original Contract Times Substantial Completion :740 days or dates $16,525,200.00 Ready for final payment :700 days or dates Net changes from previous Change Orders No. 1 to No. 1 Net changes from previous Change Orders No.1 to No. l $16,785,191.59 138 days Contract Price Prior to this Change Order Contract Times prior to this Change Order Substantial Completion :838 days or dates $16,785,191.59 Ready for final payment :838 days or dates Net Increase of this Change Order Net Increase of this Change Order $0.00 35 days Contract Price with all approved Change Orders Contract Times with all approved Change Orders Substantial Completion :873 days or dates $16,785,191.59 Ready for final payment :873 days or dates RECOMMENDED: A—? J By: Engineer (Authorized Signature) Dake: 7/6/2016 EJCDC No. 191008-13 (1990 Edition) APPROVED: By: Owner (Authorized Signature) ACCEP7D: By: Contractor (Authorized Signature) 7A Itr, Prepared by the Engineers Joint Contract Documents Committee and endorsed by The Associated General Contractors of America. T21.106811 — Elk River, MN CHANGE ORDER Wastewater Treatment Facility Improvements PAGE 00991-1 cLAKIE CONSTRUCTION GROUP May 3, 2016 Bolton & Menk, Inc. 12224 Nicollet Ave. Burnsville, MN 55337 ATTN: Seth Peterson, PE RE: Elk River Wastewater Treatment Facility Improvements RLCG Project No. 1422 Aeration Basin Startup Delay Seth, As you are aware, during the startup of the Aeration Basin the bug growth was significantly slower than usual. The basins were put online on 12/21/15, and were determined fully functional on 2/25/16 (approximately 9 weeks later). In past experience, Rice Lake has found that it typically takes 3-4 weeks to grow the bugs needed during startup. Due to the 5 week delay, Rice Lake was not able to start the scheduled succeeding work as planned. This caused the schedule to fall behind by approximately 5 weeks. Therefore, Rice Lake is requesting the Substantial Completion date be extended by 5 weeks. If you have any questions, or require additional information, do not hesitate to contact us. Sincerely, Rice Lake Construction Group Matt Perpich Project Manager • BC> L—TON & M r-= N K Consulting Engineers & Surveyors " 12224 Nicollet Avenue • Burnsville, MN 55337 Phone (952) 890-0509 • Fax (952) 890-8065 www.bolton-menk.com July 6, 2016 Mr. Justin Femrite, P.E. City Engineer City of Elk River 13065 Orono Parkway Elk River, MN 55330 RE: Elk River WWTF WWTF Improvements Project Project No.: T21.106811 Dear Mr. Femrite: NG® The purpose of this letter is to request additional engineering fees for the construction portion of the wastewater improvements project related to additional days added to the contract time for change orders. The design documents included a construction schedule of 700 days and there has been one approved change order to date adding 138 days (4.50 months) to the construction schedule. The contractor has requested another change order, change order 2, for a request of 5 additional weeks (1.15 months) due to delays in getting the correct microbiology started in the aeration basins. The total time added to the construction contract from these two change orders is 175 days (5.65 months) and will result in additional engineering fees that were not originally included in our proposal. Our original construction fee was for $429,415 for a period of 13 months which equals approximately $33,000/month. Based on the addition of the 173 days (5.65 months) to the construction contract we are requesting additional fees in the amount of $186,450. I have included a copy of the two change orders with this letter for your reference. We appreciate your consideration of our request and I am hopeful we can come to an agreement regarding our construction services. If you have any questions regarding any of the above please do not hesitate to give me a call. Sincerely, BOLTON & MENK, INC. Seth A. Peterson, E. Principal Engineer Enclosures G:\ElkRiver\121106811\1 Corres\femrite ltr 06july2016.docx DESIGNING FOR A BETTER TOMORROW Bolton & Menk is an equal opportunity employer PROJECT: WWTF Improvements DATE OF ISSUANCE: 2/19/2015 SECTION 00991— CHANGE ORDER EFFECTIVE DATE: No. 1 OWNER: City of Elk River, Minnesota ENGINEER'S Project No.: T21.106811 CONTRACTOR: Rice Lake Const, Group ENGINEER: Bolton & Menk, Inc. You are directed to make the following changes in the Contract Documents. Description: The project was bid in June 2014 and Notice to Proceed was not received until October 2014. This delay was due to the MPCA not having the NPDES permit and EAW approved. Plan and specification approval was not granted until October 28, 2014. At that time construction could start. Shortly after construction started a black cinder material was found in the excavation area and this material required special disposal. There were time delays due to testing of the material and determining locations where the material could be disposed. Due to these delays the contractor is requesting additional costs and time extension. We recommend Option I as outlined in Rice Lake's letter. Reason for Change Order: Delay in obtaining plan and specification approval, the NPDES permit and EAW from the MPCA. Also, black cinder material was discovered in the excavation area and required special disposal. Attachments: (List documents supporting change) See attached letter from Rice Lake Construction Group dated Jan. 27, 2015. CHANGE IN CONTRACT PRICE: CHANGE IN CONTRACT TIMES: Original Contract Price Original Contract Times Substantial Completion :730 days or dates $16.525.200.00 Ready for final payment :700 days or dates Net changes from previous Change Orders No. _ to No. 1 Net changes from previous Change Orders No. to No. I $0 U days Contract Price Prior to this Change Order Contract Times prior to this Change Order Substantial Completion :O days or dates s]6,525.200.00 Ready for final payment :O days or dates Net Increase of this Change Order Net Increase of this Change Order $259 991.59 138 days Contract Price with all approved Change Orders Contract Times with all approved Change Orders Substantial Completion :838 days or dates 516.785.191.59 Ready for final payment :838 days or dates RECOMMENDED: A—r APPROVED- ACCEPTED: Engineer (Atn prized Signature) Owner (Authorized Signature) Contractor (Aufftized Signature) Date: 2/19/2015 Date:— Date: 3/s/(5 EJCDC No. 191OC8-B (1990 Edition) Prepared by the Engineers Joint Contract Documents Committee and endorsed by The Associated General Contractors of America. T21.10681 l —Elk River, MN CHANGE ORDER Wastewater Treatment Facility Improvements PAGE 0099 1 -1 SECTION 00991— CHANGE ORDER PROJECT: WWTF Improvements DATE OF ISSUANCE: 7/6/2016 OWNER: City of Elk River, Minnesota ENGINEER'S Project No.: T21.106811 EFFECTIVE DATE: 7/6/2016 No. 2 CONTRACTOR: Rice Lake Const. Group ENGINEER: Bolton & Menk, Inc. You are directed to make the following changes in the Contract Documents. Description: The Contractor experienced delays with establishing the correct microbiology in the aeration basins and it took nine (9) weeks for the Contractor to establish the correct microbiology to produce good biologic treatment. Typically it takes approximately four (4) weeks to establish the correct microbiology. Reason for Change Order: The aeration basins were started during the winter (December 2015) and the cold weather inhibited the microorganisms from growing quickly causing the extra time. Attachments: (List documents supporting change) See attached letter from Rice Lake Construction Group dated May 3, 2016. CHANGE IN CONTRACT PRICE: CHANGE IN CONTRACT TIMES: Original Contract Price Original Contract Times Substantial Completion :740 days or dates $16,525,200.00 Ready for final payment :700 days or dates Net changes from previous Change Orders No. 1 to No. 1 Net changes from previous Change Orders No.1 to No. l $16,785,191.59 138 days Contract Price Prior to this Change Order Contract Times prior to this Change Order Substantial Completion :838 days or dates $16,785,191.59 Ready for final payment :838 days or dates Net Increase of this Change Order Net Increase of this Change Order $0.00 35 days Contract Price with all approved Change Orders Contract Times with all approved Change Orders Substantial Completion :873 days or dates $16,785,191.59 Ready for final payment :873 days or dates RECOMMENDED: A—? J By: Engineer (Authorized Signature) Dake: 7/6/2016 EJCDC No. 191008-13 (1990 Edition) APPROVED: By: Owner (Authorized Signature) ACCEP7D: By: Contractor (Authorized Signature) 7A Itr, Prepared by the Engineers Joint Contract Documents Committee and endorsed by The Associated General Contractors of America. T21.106811 — Elk River, MN CHANGE ORDER Wastewater Treatment Facility Improvements PAGE 00991-1