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4.7. SR 10-02-2017City of Elk - River Request for Action To Item Number Mayor and City Council 4.7 Agenda Section Meeting Date Prepared by Consent October 2, 2017 Justin Femrite P.E., City Engineer Item Description Reviewed by Change Order No. 2 for the 2017 Street Lori Ziemer, Finance Director Reviewed by Improvement Project Mark Thompson, Street Superintendent Cal Portner, City Administrator Action Requested Approve, by motion, Change Order No. 2 for the 2017 Street Improvement Project and requested increase in engineering fees for the project. Background/Discussion Pavement management preventative maintenance techniques have historically included seal coating to further the lifespan of our pavements. In recent years, we have scaled back our seal coating efforts until the industry can more definitively determine the cause of surface delamination problems found throughout the state on roadways that have been seal coated. We are experiencing these delamination issues on Highland Road between Jackson Street and Proctor Road. As such, street and engineering staff has reviewed this segment and we recommend a maintenance effort to include a full surface mill and repaving of this section of roadway. We have reviewed the request for increased engineering fees and find the request to be justified for the work involved. Some project areas did increase in scope from what was detailed in our original RFP as laid out in the attached letter from our consultant. Financial Impact Change Order No. 2 will increase the 2017 Street Improvement contract by $83,206.98 to a total of $3,962,564.20. In addition, this change and scope changes throughout the project have resulted in a requested engineering fee increase of $42,700. If the change and engineering fee increase are approved, the project will still remain below our projected pavement management investment level of $4,680,000 ($4,480,000 Improvement Project + $200,000 Preventative Maintenance) as detailed in the Capital Improvement Plan. Attachments Proposed Change Order Requested Engineering Fee Increase The Elk River Vision A avelcoming community avith revolutionary and spirited resourcefulness, exceptional p o w E A E u e r service, and community engagement that encourages and inspires prosperity ,� g /� 20015 Iguana Street NW, Suite 100 Nowthen, MN 55330 (763) 274-2580 Fax (763) 274-2584 Contact: LES BLOOM Phone: Fax: Quote To: CITY OF ELK RIVER Job Name: HIGHLAND STREET MILL & OVERL Date of Plans: 09/18/2017 Phone: Revision Date: Fax: INCLUDES FLAGGING. ITEM DESCRIPTION QUANTITY UNIT UNIT PRICE AMOUNT 100 1.5" MILL FULL WIDTH 13,156.00 SY 1.12 14,734.72 110 1.5" 12.5 WEAR 240B 1,140.00 TN 51.30 58,482.00 115 TACK COAT 1,105.00 GAL 3.08 3,403.40 120 4" DOUBLE SOLID LINE YELLOW EPDXY 3,448.00 LF 0.85 2,930.80 130 4" SOLID LINE WHITE EPDXY 530.00 LF 0.43 227.90 140 STOP BARS 78.00 LF 11.30 881.40 150 CROSSWALK BLOCKS EPDXY 288.00 SF 6.03 1,736.64 160 TRAFFIC CONTROL 1.00 LS 810.12 810.12 GRAND TOTAL $83,206.98 NOTES: BOND IS INCLUDED, CANNOT DEDUCT FOR ONE PRICE INCLUDES TAX RETAINAGE HELD PER OWNERS SPECIFICATIONS THIS QUOTE IS PER THE AGC STANDARD SUB -CONTRACT AGGREEMENT FOR HIGHWAY/HEAVY- INDUSTRIAL DIVISION (1956 EDITION, REVISED 1966, REVISED 1980 AND RIDER 1986 REVISION) UPON REQUEST, NORTH VALLEY, INC. SHALL BE PROVIDED WITH THE LEGAL DESCRIPTION OF THE PROPERTY, THE NAME AND ADDRESS OF THE OWNER. NORTH VALLEY, INC. SHALL NOT BE OBLIGATED TO COMMENCE OR CONTINUE SUBCONTRACT WORK UNLESS ADEQUATE ASSURANCE OF PAYMENT IS RECEIVED. QUOTE MAY BE WITHDRAWN IN TEN DAYS. RESPONSIBLE CONTRACTOR DOCUMENTATION AVAILABLE UPON REQUEST. BID IS FOR ITEMS AND MATERIALS LISTED ABOVE ONLY. DETAIL MILLING INCLUDED. 4% ASPHALa 100% RECYCLABLE Page 1 of 1 Affirmative Action / Equal Opportunity Employer 1�Hakanson 111Anderson August 29, 2017 Justin Femrite, City Engineer City of Elk River 13065 Orono Parkway Elk River, MN 55330 RE: 2017 Street Improvements Dear Mr. Femrite: Main Office: 3601 Thurston Avenue, Anoka, MN 55303 Phone: 763/427-5860 Fax: 763/427-0520 www.haa-inc.com r SENT VIA EMAIL: JFemrite(cr�,ElkRiverMN.gov We are pleased to continue to provide quality engineering, construction observation and construction staking services related to the 2017 Street Improvement Project for the City of Elk River. As discussed verbally, there have been a few items that have increased in scope making it necessary to request this consideration for an increase in the maximum not -to -exceed cost of our services. The most significant change to the scope of this project is the construction timeframe and resulting costs of construction observation and construction administration. At the time of our proposal, it was estimated that the construction timeframe would be 16 weeks total. We are now entering week 20 of construction and the project is projected to take approximately 5 additional weeks, for a total construction timeframe of 25 weeks. There were other smaller adjustments in scope as well, discussed in greater detail by project area as follows: Business Center Drive / Joplin Street / Orono Parkway Project Area At the time of our proposal, the construction method of this area was assumed to be a full depth reclamation and re -paving project with some curb replacement. Construction was anticipated to have a relatively quick timeframe (4 weeks). The construction process involved replacing the failed curb and gutter, removing the excess full depth reclamation material, and re -paving the bituminous courses. Instead, this project area increased in scope to a partial reconstruction. During the design phase, it was determined that the existing thickness of the pavement and aggregate base was not sufficient to meet pavement design thicknesses as required by Mn/DOT design standards based on the projected traffic over the next 20 years. Therefore, after reclaiming the bituminous pavement it was necessary to remove the entire thickness (9" - 10") of full depth reclamation material, then subcut the existing subgrade (4"- 6") then replace the full depth reclamation material to prepare for the bituminous pavement. This construction process increased the construction timeframe by approximately 6 weeks and slightly increased the design effort. It is estimated that this change in scope resulted in an increase in cost of approximately $32,000. At the time of the proposal reclaiming and paving of the bituminous trail on Joplin Street and Orono Parkway was not anticipated. While we agree that it was logical to include the trails in the project, the addition slightly increased the design effort as well as the construction timeframe. It is estimated that the addition of the trail resulted in an increase in cost of approximately $4,500. At the time of the proposal, drainage improvements were not anticipated on Orono Parkway. However, during the design phase it was discovered that improvements could be made to improve the safety and ride. Storm sewer was added at strategic locations which slightly increased the design effort as well as the construction timeframe. It is estimated that the addition of the drainage improvements resulted in an increase in cost of approximately $6,500. Justin Femrite August 29, 2017 Page 2 198th Avenue, 197th Circle, Troy Street and Victoria Street Project Area At the time of our proposal, construction of this area was assumed to be a bituminous overlay. It was known that there were some areas of poor drainage and it was assumed that there would be some associated profile milling to improve the drainage, particularly in the area of the Troy Street and 1981h Avenue intersection. During our design, it was determined that there was not enough grade to improve drainage with profile milling and a more extensive design was necessary. Further, poor soils were encountered during construction in this area which increased the construction timeframe. There were also a few isolated stretches of bad pavement in which additional work effort was required (i.e. full depth reclamation and profile raising) to increase the pavement strength and longevity which slightly increased the design effort, construction timeframe, and required construction staking. It is estimated that the additional work on this project area resulted in an increase in cost of approximately $8,000. 178' Street There was no change in scope for 178' Street. The construction of 178' Street went well and is completed. 185' Street Although the curb replacement on 185' Street was more extensive than originally anticipated, there was not a significant change in scope on 185' Street. Local Reconstruction Area - 194" Avenue NW, Irving Circle NW, Lowell Street NW, 193rd Lane NW, 192nd Avenue NW, 193rd Avenue NW, King Circle NW, Norfolk Street NW, Oxford Avenue NW The timeframe for the construction of the local reconstruction area is projected to be slightly longer than anticipated at the time of our proposal. At the time of our proposal, we estimated a construction timeframe of 9-10 weeks. This area is currently under construction and we are entering the 9' week of construction. Some areas of poor soils have been encountered which has extended the construction timeframe. It is estimated that construction may be completed during the week of September 25', which correlates to a total construction timeframe of 13 weeks. It is estimated that the longer construction timeframe will result an in increase in cost of approximately $15,000. 209' Avenue There was no change in scope on 209"' Avenue. Evans Street There was a decrease in scope on Evans Street. At the time of our proposal, it was assumed that the construction of Evans Street would be a full depth reclamation. However, during the design phase the pavement condition was reviewed and it was determined that a bituminous overlay with isolated patching was the most cost effective and the appropriate treatment method. It is estimated that the construction timeframe will be reduced by approximately one week which results in a decrease in cost of approximately $5,000. Hal(anson IIIAnderson Justin Femrite August 29, 2017 Page 3 Summary As described above, there were several factors which resulted in an increase of scope that were not known and could not be known at the time of our proposal. It is estimated that the change in scope resulted in a cost increase of approximately $61,000. However, it is our goal to be an exceptional partner with the City of Elk River. Therefore, we would propose that the City consider an increase of $42,700 to our maximum cost not -to -exceed amount, which is 70% of the estimated cost increase stated above and will cover most of our hard costs associated with the additional work. We thank you for the opportunity to serve the City of Elk River and look forward to our continued relationship. If you have any questions please call me at 763-852-0479. Sincerely, Hakanson Anderson Z' zV ..r/L ane Nelson, P.E. Vice President Hakanson Anderson