Minutes - Council - 04/08/2008 - Laserfiche WebLink

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Case #1: Consider Change Order for Former St. Paul Terminals Environmental Cleanup City Engineer Jankowski stated that the City had received a grant from the MPCA in an amount of $295,342 to clean up this site. He stated that the job was awarded to Team Earthworks and the work was completed in late 2006. He stated that they have asked for final payment and have submitted a change order in the amount of $14,107.50 because there was material that needed to be disposed of in a hazardous waste landfill according to the Toxic Substances Control Act (TSCA). He stated that the $14,107.50 is for compensation of extra costs associated with the disposal of this material. He stated that even with the additional cost of the change order, this project came in under the estimate and under the grant amount. Councilmember Jeffrey asked if the remainder of the money received from the MPCA could be applied to another project. Public Works Director Olson stated that this can be discussed with the MPCA, but he is unsure. Councilmember Look asked when the City was notified of this increased amount for the change order and whether there was a substantial amount of time between the clean up and the final billing. City Engineer Jankowski stated that there had been e-mail communications at the beginning of 2007, but the last invoice was dated on January 25, 2008. He stated that the project was completed in the late fall of 2006 and the City was notified in early 2007 that there would be additional costs. Councilmember Look asked if the City was aware of the additional costs for the clean up when there were discussions about the property being sold to Ace Solid Waste. Public Works Director Olson stated that the original estimate for the clean up costs were around $196,000 and now even with this change order, the total cost is coming in around $138,000, which is still much less than the City expected. Councilmember Dehen stated that he normally expects people to honor their contract unless there are unforeseen circumstances. Public Works Director Olson stated that they could not foresee what the contaminant was going to look like or what the quantity would be. He stated that according to MPCA policy the bidders were not allowed to conduct their own soil borings because of the hazardous nature of the material involved. Motion by Councilmember Elvig, seconded by Councilmember Strommen, to direct staff to prepare final payment to Team Earthworks which includes a Change Order in the amount of $14,107.50 contingent upon providing documentation of the disposal cost paid. City Council! April 8, 2008 Page 15 of 20