Title
A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A CHANGE ORDER WITH DUNLOP AND JOHNSTON FOR THE EXCESS SOILS GENERATED AT THE PUBLIC WORKS FACILITY AND ENTER A REIMBURSEMENT AGREEMENT WITH XL SPECIALTY INSURANCE COMPANY; AND DECLARING AN EMERGENCY.
Brief Description: This resolution is needed to address an excess soils condition caused by a discrepancy in survey data encountered during excavation work at the Public Works Facility site. The resulting costs are being reimbursed by the insurance carrier representing the design team.
Body
Legislative History
Ordinance No. 23-82 authorized the purchase of the Hudson Drive parcels for $1,900,000
Ordinance No. 23-116 authorized the issuance of $1,900,000 in notes for the purchase of the land
Ordinance No. 24-80 authorized the contract with Brandstetter Carroll, Inc for the design of the new facility
Ordinance 24-114 authorized the issuance of $3,295,000 in notes for the purchase of land and cost of design of the new facility
Ordinance 25-131 an ordinance providing for the issuance and sale of not to exceed $31,000,000 of notes, in anticipation of bonds, for the purpose of paying costs of construction, furnishing and equipping a facility.
Ordinance 25-156 a resolution authorizing the City Manager to advertise for competitive bids and to enter into a contract for the construction of the Hudson Public Works Facility Project
Purpose & Explanation
During the site grading process, discrepancies were identified between the design elevations and the actual field conditions. These elevation differences generated significant volumes of excess soil that are now impeding construction activities. Because the amount of excess soil is substantial and cannot be placed onsite without negatively affecting the project, it must be removed from the site.
A detailed investigation determined that incomplete elevation data had been used to develop the site grading plan. This error resulted in the current issue and has led to a claim under a professional services errors and omissions insurance policy. The current estimated amount for reimbursement and the associated change order is $1,435,615.69, though this figure may change depending on the insurance company’s approval timeline.
Legal Authority for Proposed Legislation
Pursuant to Charter Section 6.04:
Competitively bid and advertised for three consecutive weeks; bid tab attached: [Yes/No/NA])
Joint or Cooperative Purchase Program
Professional Services
X Other [change order to existing construction contract]
Fiscal Impact
Currently Budgeted
X Supplemental Appropriation Required (Reappropriation of the insurance reimbursement)
Appropriation Not Required.
Does this legislation require use of an emergency clause?
X Yes - timing constraints for excavation work
No
Recommendation
Suggested Action
Staff recommends that City Council approve this Resolution authorizing the City Manager to execute a change order with Dunlop and Johnston for the excess soils and enter a reimbursement agreement with XL Specialty Insurance Company. Staff requests an emergency clause be added to this legislation in order to avoid further cost escalation.
Submitted by,
Thomas J. Sheridan, City Manager
Kevin Powell, Public Works Director
Tim Velbeck, Assistant Public Works Director