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HomeMy WebLinkAbout64-87 RESOLUTIONRESOLUTION 64-87 No resolution written for this. • September 1, 1987 SPRINKLER BIDS Public Works Director Burch reported bids were opened today on 280.1 the sludge management irrigation equipment which had been rebid. Speaking for CH2M Hill, Dennis Sandretto reported one bid was 280.2 received from Hobbs -Adams, which had submitted one of the initial bids. He said bid documents had been modified, in that delivery time has been shortened from 180 days to 90 days. He reported the bid was $302,'800, as opposed to their earlier bid of $329,322, a decrease of $26,432, resulting in a savings of about $22,000. Director Marinoni, the award of bid the motion passed, seconded by Kelley, made a motion to approve to Hobbs -Adams for $302,800. Upon roll call, 7-0. TREATMENT PLANT SURETY CONTRACT Public Works Director Burch told the Board that the surety on the treatment plant project, USF&G, has been contacted by Olson Construction Company and notified that Olson cannot financially complete the project. He said he, the City Attorney, and Sandretto have been working on a new construction contract which they expect to have •available in the morning. Burch asked the Board to approve a resolution authorizing a contract. He said a new contractor could begin the day following Labor Day. He said Olson's workers have "pulled off the job and the project is dead in the water". Burch explained the agreement would be a three-way agreement between the City, USF&G and the new contractor being recommended, Hubert, Hunt and Nichols. He said the new contract is not much different in scope, with the bonding company still responsible for fines and penalties. He explained that, as part of a "walk away,. no claims against the City from Olson" concession to the City which was negotiated, the staff wishes to pay a bill owed to CH2M Hill for resident overtime due them from 1985 in the amount of $44,517. He added that the contract price has not increased. The City Attorney said the new contract contains the original contract price plus change orders to date, the new contractor will. complete the 'contract and correct any defects in construction Olson made, the City will realize $403,000 to be used to pay additional engineering costs, is released from claims by Olson _for alleged additional work, alleged right to extension of completion date, the City and the engineer are released from any alleged improper administration of the contract, and the City will not have to fund excess costs of completing the project. He 280.3 280.4 280.5 280.6 2. September 1, 1987 281.1 said the surety will have to pay a substantial amount for this aspect. 281.2 Kelley asked why the engineer did not have legal action against Olson for the $44,517.. McCord said Olson was unable to pay, and this was part of the settlement reached with USF&G which is making the cash settlement. He added that Olson released its claim that the City wrongfully withheld contract funds for delays. 281.3 Director Hess, seconded by Lancaster, made a motion to approve a resolution authorizing the Mayor and City Clerk to execute an agreement with USF&G and HH&N for completion of the wastewater treatment plant project. Upon roll call, the motion passed, 6-0- 1, Director Bumpass abstaining because of an attorney-client relationship with one of the parties. RESOLUTION NO. 64-87 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK CHANGE ORDER II1.4 Burch introduced Contract Modification No. 21 resulting in a deduct to the contract price of $24,824 due toless quantities of slurry. • 281.5 Director Kelley, seconded by Johnson, made a motion to approve the change order. Upon roll call, the motion passed,16-0-1, with Director Bumpass abstaining. 281.6 Director Martin noted the completion date of the project, according to the modification, has been changed to June 1, 1988.. He commented that CH2M Hill's letter of August 4 included a statement that "The City has experienced a series of unfortunate events on the treatment plant and sludge management projects" and that "Olson Construction Company has been less than cooperative throughout the project." Martin said if they had been less than cooperative throughout the project the City should have put an end to it early on. Martin quoted from the letter " ..their workmanship has been poor." He said that was apparently not a new discovery, he said the City had told the public the plant would be completed 18 months late, and has spent hundreds of thousands of dollars on consultants, engineers and staff to get the job done. He said the City had failed abysmally and "he hoped the public. was sick and tired of this stupid project dragging along because of "unfortunate events". He asked for some responsiveness from the consultants and staff, and for a weekly report. He said it was absurd that the community taxes • itself to the tune of millions of dollars and there were overruns of 18 months.