Signed Contracts_Water Pollution Control Plant Update_Change Order #5Masterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manager
FROM: Steve Sampson Brown, Project Manager
SUBJECT: Water Pollution Control Plant Upgrade Project
DATE: February 9, 2011
Attachs.
Dubuque
All-America Cily
1111 f
2007
Attached is Change Order No. 5 in accordance with the letter dated February 1,
2011 between Miron Construction, Inc. and the City for the Water Pollution Control
Plant (WPCP) Modifications Project. This is a supplement to: Item 2a including in
Change Order No. 2 which added $250,000 to the contract price for mercury- related
clean -up costs; and Change Order No. 4 that added another $250,000 to the
contract price for mercury- related clean -up costs.
Change Order No. 5 of $1,000,000 relates to the following mercury- related activities:
- $1,000,000 City authorized Contractor to increase the contract limits with North
Shore Environmental Construction to $2,000,000 for services related to
mercury clean - and also agreed to reimburse Contractor for 100
percent (100 %) of the cost of that work via change order to the contract.
This change order has been reviewed and approved by City Attorney Barry Lindahl.
ACTION TO BE TAKEN
The execution of Change Order No. 5 of the Miron Construction, Inc. contract is
requested.
STRAND
ASSOCIATES. INC.*
E N G I N E E R S
910 West Wingra Drive
Madison, WI 53715
Phone: 608-251-4843
Fax: 608-251-8655
Office Locations
Madison, WI
Joliet, IL
Louisville, KY
Lexington, KY
Mobile, AL
Columbus, IN
Columbus, OH
Indianapolis, IN
Milwaukee, WI
Cincinnati, OH
Phoenix, AZ
www.strand.com
February 3, 2011
CHANGE ORDER NO. 5
PROJECT:
OWNER:
CONTRACT:
CONTRACTOR:
Water Pollution Control Plant Modifications
City of Dubuque
1 -2010
Miron Construction Co., Inc.
Description of Change
5a This is a supplement to item 2a included in Change ADD
Order No. 2 and item 4a in Change Order No. 4. In
accordance with the letter from DeWitt Ross &
Stevens S.C. to the Dubuque City Attorney dated
February 1, 2011 (attached), Owner agrees to pay
100 percent of the mercury- related cleanup costs in
excess of $1 million through change order to this
Construction Contract 1 -2010. This change order
includes $1 million in addition to the amounts
previously included by change order, which
equates to a total mercury- related cleanup cost of
$2 million. If the total cost of the mercury cleanup
exceeds $2 million, the parties will execute a future
change order to the contract. In addition, if the total
cost is less then $2 million, a deductive change
order will be executed. The total cost of this work is
undefined at this time, and the responsibility for this
work is also contested. Both Contractor and Owner
have filed claims that relate to this change, and
execution of this change order is not an admission by
the Owner of any responsibility for the mercury spill
or for any of the cleanup costs and related expenses.
TOTAL VALUE OF THIS CHANGE ORDER:
GWT:skb \S:\MAD \1100 -- 1199 \1154 \023 \Wrd \Change Orders \CO 5.mercury#3.docx
F
FEB 0 4 2011
MIRON CONSTRUCTiOra
COMPANY INC
ADD
$
$1,000,000
sa
STRAND
ASSOCIATES. INC..
E N G I N E E R S
City of Dubuque —Miron Construction Co., Inc.
Contract 1 -2010, Change Order No. 5
Page 2
February 3, 2011
Contract Price Adjustment
Original Contract Price
Previous Change Order Adjustments
Adjustment in Contract Price this Change Order
Current Contract Price including this Change Order
Contract Completion Date Adjustment
Original Contract Completion Date
Contract Completion Date Adjustments due to previous Change Orders
Contract Completion Date Adjustments due to this Change Order
Current Contract Completion Date including all Change Orders
This document shall become a supplement to the Contract and all provisions will apply
hereto.
The total cost of this work may be undefined at this time, and the responsibility for this work
is also contested. Both Contractor and Owner have filed claims that relate to this change, and
execution of this change order is not an admission by the Owner of any responsibility for the
`` ssI ,, mercury spill or for any of the clean up costs and related expenses.
' .(aCOMMENDED
= WIRTZ i z j i , (7.4)1(
16137 n,.. Z/
• ' GINEER—Strand Assoo1at Inc. Date
APPROVED
c ,
CONTRACT IZ —Miron
Construction nstruction Co., Inc.
APPROVED
OWNER —City of Dubuque
GWT:Ir \S:\MAD \1100 -- 1199 \I 154 \023 \Wrd \Change Orders \CO 5.mercury#3.docx
z-(4/t(
Date
ate
$49,750,000
$ 1,121,603
$ 1,000,000
$51,871,603
August 31, 2013
None
None
August 31, 2013
ROSS \\ C
ROSS &STE ITE.
4 W F• N N
www dewdtross.com
February 1, 2011
Barry Lindahl
City Attorney
City of Dubuque
50 West 13 Street
Dubuque, IA 52001
RE: Mercury Remediation
Dubuque Water Pollution Control Plant
Dubuque, Iowa
Dear Barry:
Capitol Square Office
Two East Mifflin Street
Suite 600
Madison, WI 53703 -2865
Tel 608.255 -8891
Fax 608 -252 -9243
Please respond to: Capitd Square Office
Dired line: 608-2529353
Email: vem@danittross.com
Metro Milwaukee Office
13935 Bishop's Drive
Suite 300
Brookfield, WI 53005 -6605
Tel 262- 754 -2840
Fax 262 -754 -2845
We are documenting our position expressed at the January 25, 2011 meeting with the
City and further correspondence I sent on January 26, 2011. Miron's October 14, 2010
correspondence to the City was an initial device to continue remediation of the original
spill and Project activities with as little delay as possible. The original 50/50 cost
sharing split in that correspondence was never deemed a determination of the parties'
assessment of their respective liability at that point.
The latest facts indicate high levels of undisclosed historical mercury are present in
sediment throughout the tanks, possibly in influent and effluent pipes, and in areas
outside the tanks which were never affected by the September 23, 2010 spill. The
scope of the necessary remediation due to the presence of this historical mercury has
been dramatically increased. Miron disclaims any responsibility for any remediation of
mercury on the Project.
Miron further asserts that dispute resolution processes related to this matter through a
mediator appointed by the AAA must immediately go forward. Our position is clear —
we need not wait for Strand to make any determination under the original Agreement
language. Please let us know the City's position on this contention.
Miron confirms that each party maintains its right to assert that responsibility for the
September 23, 2010 spill and the historical mercury found at the site lies with the other
party or its agents, and that the City's agreement to fund 100% of the ongoing
remediation costs is not its assessment of its respective liability at this point.
DEWITT
ROSS &STEVENS.
L A W F 1 k M
Barry Lindahl
February 1, 2011
Page 2
This letter serves as the addendum to Jonathan Daniels' October 14, 2010
correspondence to Steve Brown, and the October 15, 2010 reply from Mr. Brown.
Further, this letter may serve as the basis for Change Order No. 5 in lieu of Mr. Randy
Wirtz's proposed reference to your January 26, 2011 email correspondence in his initial
draft of same.
Please feel free to contact me to further discuss these issues. Thank you.
Sincerely,
DEWITT ROSS & STEVENS s.c.
/S/
William E. McCardell
WEM:kjs
cc: Dave Voss (via email only)
Dean Basten (via email only)
Royce Alsbach (via email only)
Tim Kippenhan (via email only)
Jonathan Daniels (via email only)