Agenda - Council - 06/22/2010 - Laserfiche WebLink

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CASE # '1~df CONSIDER CONTRACT REVISIONS FOR CITY PROJECT #10-23, EAST MEANDERING COMMONS PARK By: Tim Himmer, City Engineer Background: A contract to construct East Meandering Commons Park was awarded to W. Gohman Construction on April 13, 2010 in the amount of $2,138,913.05. At that time there were outstanding issues with the Lower Rum River Water Management Organization (LRRWMO) regarding the existing mitigation permit, in favor of Ramsey Town Center LLC, for all wetland impacts within the Town Center development. Due to this matter the wetland component located at the east end of the park, and all associated infrastructure (60' pedestrian bridge and 2 observation platforms), were not awarded at that time. The contract included language that reserved the right for the City to change order in the lump sum alternates that were not initially chosen at the prices listed on the bid form. This item was discussed in work session on June 1,2010, and the legal advice received at that time was that we could not hold the contractor to the original lump sum bid prices due to existing case law. The direction from that meeting was to investigate options to incorporate the lump sum alternates, associated with the wetland construction, into the project while active construction was taking place on the site. After reviewing the situation again with legal counsel it was determined that we could change order these items into the existing contract but at negotiated prices; the contractor would have the ability to provide a proposal for consideration instead of honoring their original prices in the bid form. Attached is the proposal received from W. Gohman to change order lump sum alternates I (observation platform A), J (observation platform B), and L (60' pedestrian bridge) into their existing contract. A separate matter associated with this project was discovered while excavating for the amphitheater and retaining walls. Approximately 6,200 cubic yards of poor soils were encountered and had to be removed prior to construction. These quantities were unforeseen at the time of project award and staff has been working with the contractor to find cost savings in the project to offset some of these costs. In going through this exercise another mistake was discovered in that the grading plan called for an estimated 7,500 cubic yards of import that was not included in the bid quantities. Staff was able to address this matter by using existing soils stockpiled near the site, and correct the problem in a timely manner to keep the project advancing. The cost of this additional work is proposed to be paid at the contracted unit bid prices for common borrow and sub grade excavation, totaling $67,567.08 (see attached grading change order request). We will continue to evaluate potential cost savings within the existing park contracts, three in all, but it will be difficult to make up this dollar amount. Observations: The original bid prices of the proposed lump sum change order alternates were $96,000 for the 60' pedestrian bridge, $45,500 for observation platform A, and $45,000 for observation platform