Water Pollution Control Plant Modifications_Miron ConstructionMasterpiece on the Mississippi
Dubuque
LOW
All -Ame caCity
1
2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Water Pollution Control Plant Modifications Miron Construction Co., Inc. -
Mercury Spill at Trickling Filters
DATE: December 15, 2010
On September 23, 2010, a mercury spill occurred while Miron was deconstructing a
long -time decommissioned trickling filtering system at the Water Pollution Control Plant.
Due to this spill, the City entered into an agreement on October 15, 2010, with Miron to
share 50% of the initial clean -up costs in an amount not to exceed $500,000.
City Engineer Gus Psihoyos recommends the City Council authorize the City Manager
to execute a letter amending the October 15, 2010 agreement to raise the cost - sharing
up to $1 million. At the end of the clean -up work, the City will seek to be reimbursed for
all costs related to this work through the claims resolution clause contained in the City -
Miron contract.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Gus Psihoyos, City Engineer
Micha I C. Van Milligen
Masterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manage
FROM: Gus Psihoyos, City Engineer
SUBJECT: Water Pollution Control Plant Modifications
Miron Construction Co., Inc. — Mercury Spill at Trickling Filters
DATE: December 13, 2010
INTRODUCTION
BACKGROUND
DISCUSSION
Dubuque
AI- America City
1 '
2007
This memorandum requests the authorization of the City Manager to execute a letter
amending the October 15, 2010 agreement between the City of Dubuque and Miron
Construction Inc. to raise the cost - sharing up to $1 million for the mercury spill
associated with the Water Pollution Control Plant (WPCP) Modifications Project.
On September 23, 2010, a mercury spill occurred while Miron was deconstructing a
long -time decommissioned trickling filtering system at the Water Pollution Control Plant.
Due to this spill, the City entered in an agreement on October 15, 2010, with Miron to
share 50% of the initial clean up costs in an amount not to exceed $500,000.
On December 6, 2010, the City received notification from Miron that North Shore
Environmental Construction, Inc. (North Shore), has expended the "not -to- exceed" limit
of $500,000 in its clean -up efforts. As a result, Miron has requested that the existing
clean up agreement terms be amended to raise the not to exceed limit to $1,000,000
and that City agrees to reimburse Miron for 50% of the cost of the work.
The amended agreement would be contingent on the condition that the City will
continue to reimburse Miron for 50% of the cost of the work via a contract change order.
Additionally, the City per the attached claim letter, at the end of the clean up work will
seek to be reimbursed for all costs related to this work through the claims resolution
clause contained in the City — Miron contract.
RECOMMENDATION
I recommend that the City Council authorize the City Manager to execute the attached
letter amending the October 15, 2010 agreement between the City of Dubuque and
Miron Construction Inc.
BUDGET IMPACT
This agreement will initially be funded by the contingency funds for the WPC Plant
Modifications Capital Improvement Project (CIP 7101837). However, it is the intent of
the City to recoup all these costs as part of the mercury spill claims resolution process.
ACTION TO BE TAKEN
The execution of letter amending the October 15, 2010 agreement between the City of
Dubuque and Miron Construction Inc. is requested.
cc: Barry Lindahl, City Attorney
Jenny Larson, Budget Director
Jonathan Brown, Water Pollution Control Plant Manager
Steve Brown, Project Manager
Attachs.
K: \PROJECTS \Water Pollution Control Plant Replacement\ Construction Admin\ WCD's_CO's & _CCD's\ MIRON -
Change Order Request\2010 12 -13 -10 Council Memo re WPCP Mercury Spill Agreement Amendment.doc
Masterpiece on the Mississippi
Mr. Jonathan C. Daniels
Miron Construction Co., Inc.
1471 McMahon Drive
Neenah, WI 54945
RE: Mercury Spill at Trickling Filters
Water Pollution Control Plant Modifications Project
(Response to December 6, 2010 Letter)
Dear Mr. Daniels:
cc: Barry Lindahl, City Attorney
Jenny Larson, Budget Director
Gus Psihoyos, City Engineer
Jonathon Brown, Water Pollution Control Plant Manager
Steve Sampson Brown, Project Manager
Sincerely,
City Manager's Office
City Hall
50 W. 13th Street
Dubuque, Iowa 52001
563.589.4110
563.589.4149 (fax)
December 20, 2010
Pursuant to your letter dated December 6, 2010, this letter serves as written notification
that the City consents to amending the previously agreed contract limit indicated in the
City's October 14, 2010 to Miron Construction, Inc. The City consents to raising the
North Shore contract limit to an amount that shall not exceed $1,000,000 for work
related to clean -up of the mercury spill.
Until responsibility for the mercury clean up costs can be ultimately resolved through the
claims resolution clause contained in the City — Miron contract, the City agrees to
reimburse Miron for 50% of the cost of the work provided that the work be paid by the
City to Miron via change order.
Michael C. Van Milligen
City Manager
City Manager's Office
City Hall
50 West 13th Street
Dubuque, lows 52001-4864
(563) 589 -4110 phone
(563) 589 -4149 fax
(563) 690 -6678 TDD
ctyrngr@cityofdubuque.org
Mr. Glenn Tranowski
Strand Associates, Inc.
910 West Wingra Dr.
Madison, Wisconsin 53715
Dear Mr. Tranowski:
November 8, 2010
RE: Mercury Spill and Trickling Filters
Dubuque Water Pollution Control Plant
Dubuque, Iowa
The City reserves the right to supplement or amend this claim.
T I I E CITY OF
I_ )ti B C Q t
Please accept this letter as the claim of the City of Dubuque under specification
00700 Section 10.05 against Miron Construction Co. under the construction contract for
the Dubuque Water Pollution Control Plant Modifications effective June 30, 2010 and as
the City's response to a claim made by Miron Construction dated October 22, 2010.
The entire responsibility for the release of mercury in the course of demolition
falls upon Miron Construction under Specification 0700 Section 4.06 H because the
release is a "Hazardous Environmental Condition created by Contractor or by anyone for
whom Contractor is responsible." The City of Dubuque under this provision is entitled to
be fully indemnified and held harmless. Under Specification 01010 -3 Section 7c Miron
had specific notice of the presence of mercury in the turntable assembly and that work on
removal of the Excess Flow Equalization tank was not to proceed until mercury had been
removed by another specified contractor.
In addition to the above, under Specification 02050 -1 Section 1.03 all demolition
was to be performed in accord with applicable federal and state code requirements.
Miron failed to follow this specification. Therefore, to the extent the City of Dubuque is
found to have violated any federal or state regulation as a result of the mercury release
the City is entitled to be reimbursed for all its costs and expenses by Miron.
For all the reasons stated above any claim by Miron must be denied and the City
must be found to be entitled to be fully indemnified and held harmless.
Service People Integrity Responsibility Innovation Teamwork
The City requests under Specification 00700 Section 10.05 that the engineer allow
the City additional time to submit additional or more accurate information. Such
extension of time should be sufficient so that after completion of remediation of the
mercury release the City will have a reasonable time to gather cost information and any
other necessary documentation.
N 674472.1
City of Dubuque
2
Michael Van Milligen
City Manager
City of Dubuque
December 6, 2010
Steve Brown
City of Dubuque
50 West 13 1i St.
Dubuque, IA 52001
Re: Mercury Spill at Trickling Filters
Dubuque Water Pollution Control Plant
Dubuque, Iowa
Steve;
Pursuant to your letter dated October 15 2010, further written consent of the parties is needed to
amend the agreement between the City and Miron to split costs for the cleanup work performed by
North Shore or contractors working with them. We believe we should raise the not to exceed limit to
$1,000,000. This is in response to North Shore's cost projection of approximately $950,000, sent to the
City on November 8, 2010.
The City and Miron would continue to split the costs as previously agreed in your October 15' 2010
letter.
Finally, Miron proposes that a second change order raising the limit to $1,000,000 be issued.
Please get hack to me at your earliest convenience.
Sincerely,
Jonathan C. Daniels
Miron Construction Co., Inc.
Cc: Dave Voss
Tim Kippenhan
Dean Basten
Royce Alsbach
Paul O'Brien
Josh Michalkiewicz
Miron-Construction.com
Masterpiece on the Mississippi
Mr. Jonathan C. Daniels
Miron Construction Co., Inc.
1471 McMahon Drive
Neenah, WI 54945
October 15, 2010
Engineering Department
City Hall.
50 W. 13th Street
Dubuque, Iowa 52001
563.589.4270
563.589.4205 (fax)
www.cityofdubuque.org
RE: Mercury Spill at Trickling Filters
Water Pollution Control Plant
Dear Jonathan:
This is in response to your October 14, 2010 letter to me.
The proposed allocation of costs of 50% for the City is acceptable, subject to the terms
of the formal agreement to be worked out between the parties and the following
comments. We hope to receive a draft of that agreement from you today.
The agreement with the City must provide that the total North Shore's costs will not
exceed $500,000 without the further written consent of the parties and that the City's
allocation of the costs be paid by the City to Miron by change order to the City -Miron
contract.
Sincerely,
Steve Sa pson Brown
Project Manager