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Signed Contract_WPCP Modifications Change Order #6Masterpiece on the Mississippi TO: FROM: SUBJECT: DATE: INTRODUCTION DISCUSSION Michael C. Van Milligen Steve Sampson Brown, Water Pollution Control March 10, 2011 , City Manager Project Manager Plant Modifications Project Dubuque AFAmedca 2007 This memorandum is to request execution of Change Order No. 6 between Miron Construction, Inc. (Miron) and the City for the Water Pollution Control Plant (WPCP) Modifications Project. This change order request in the amount of $600,000 is a supplement to the following changes orders for mercury- related, clean -up costs: Change Order No. 2, Item 2a ($250,000); Change Order No. 4, Item 4a ($250,000); and Change Order No. 5, Item 5a($1,000,000). Change Order No. 6 for $600,000 relates to the following mercury- related activities: ADD $600,000 City authorizes Miron Construction to increase the contract limits with North Shore Environmental Construction to $2,600,000 for services related to mercury clean -up and also agreed to reimburse Contractor for 100 percent (100 %) of the cost of that work via change order to the contract. On March 4, 2011, it was requested that the original contract be increased by $600,000 (extra work based on associated mark -up, bond, and related items). North Shore has discovered additional quantities of historical elemental mercury at the bottom of the south trickling filters. This request also includes work related to the Iowa Department of Natural Resources' requirement that the troughs on the east side of both trickling filter tanks be cleaned to remove mercury contaminated sediment. (Note letter attachment.) This change order has been reviewed and approved by City Attorney Barry Lindahl. BUDGET IMPACT With the attached Change Order No. 6 of $600,000, change orders to date total $2,100,000 for the mercury spill clean -up. This change order will be paid for by using contingency funds from the construction project. ACTION TO BE TAKEN The execution of Change Order No. 6 in the amount of $600,000 of the Miron Construction, Inc. contract is requested. cc: Barry Lindahl, City Attorney Jenny Larson, Budget Director Gus Psihoyos, City Engineer Jonathan Brown, Water Pollution Control Manager Attachments K: \PROJECTS \Water Pollution Control Plant Replacement\ Construction Admin\ WCD's_CO's & _CCD's \Change Orders\2011 02 -10 -11 MVM Memo re Miron Change Order No. 6.doc Sa. STRAND ASSOCIATES. INC.* E N G I N E E R S 910 West Wingra Drive Madison, WI 83715 Phone: 608- 251 -4843 Fax: 608- 251 -8655 Office Locations Madison, WI Joliet, L Louisvige, KY Lexington. KY Mobile, AL Columbus, IN Columbus. OH Indianapolis, IN Milwaukee. WI Cincinnati, OH Phoenix, AZ www.strand.com March 10, 2011 CHANGE ORDER NO. 6 PROJECT: OWNER: CONTRACT: CONTRACTOR: Water Pollution Control Plant Modifications City of Dubuque 1 -2010 Miron Construction Co., Inc. Description of Change Ga This is a supplement to item 2a included in Change ADD Order No. 2, item 4a in Change Order No. 4, and item 5a in Change Order No. 5. In accordance with the letter from DeWitt Ross & Stevens S.C. to the Dubuque City Attorney dated February 1, 2011 (enclosed), 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. According to the letter dated March 4, 2011, from Miron to the City of Dubuque (enclosed), this current change order includes $600,000 in addition to the amounts previously included by change order, which equates to a total mercury- related cleanup cost of $2.6 million. If the total cost of the mercury cleanup exceeds $2.6 million, the parties will execute a future change order to the contract. In addition, if the total cost is less then $2.6 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 order, 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 TI-HS CHANGE ORDER: $600,000 ADD $600,000 ASSOCIATES. INC.+ ENGINEERS 1 ' .pk ; o �,, �RECOMMENDED w RA DA L A. r NRTZ .: z 1M 137 1>�x '1./ �fruiiii�lP1'��APPRO + D City of Dubuque —Miron Construction Co., Inc. Contract 1 -2010, Change Order No. 6 Page 2 March 10, 201 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 order, 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 clean up costs and related expenses. NEER — Strand Ass APPROVED c° CONTRACTOR —Miron Co 1 ruction Co., Inc. Date David G' Voss, Jr. President O WT:clm1S:1MAD\I 100- -1 I9911151\0231Wrd1Changc Ordcrs\CO e..docx 340 tto t I Date s 1 / August 31, 2013 None None August 31, 2013 2 OWNER —City o ubuque Dat e $49,750,000 $ 2,121,603 $ 600,000 $52,471,603 March 4, 2011 Steve Brown City of Dubuque 50 West 13 St. Dubuque, IA 52001 Steve; Cc: Dave Voss Tim Kippenhan Dean Basten Royce Alsbach Paul O'Brien Re: Mercury Spill at Trickling Filters Dubuque Water Pollution Control Plant Dubuque, Iowa Northshore has requested that their contract be increased by Five Hundred Thousand Dollars ($:500,000) due to the fact that there was much more historical elemental mercury at the bottom of the South trickling filter tank then Northshore had expected, also the IDNR is requiring :Northshore to clean the troughs on the East sides of both trickling filter tanks. Miron requests a change order to Miron's contract with the City in the 11M01.4 of Six Flundred Thousand Dollars ($600,000) to include the extra work for Northshore as described abo$ a as well as the associated markup, bond, and related items. Miron requests this change order to be issued by Wednesday, March 9' 2011 in order to keep Northshore working. Please respond as soon. as possible. Sincerely, Jonathan C. Daniels Miron Construction Co., Inc. Miron Construction Co , Inc. • 1471 McMahon Drive. Neenah WI 54.955 920,!g69.7000 • fx 924.969.7393 Miron•Construction.com Neenah Wausau Madison Mtlwaukee Cedar Rapids I).EWrr. r ROSS &STEvENS.. wen derettross.com February 1, 2011 Barry Linclahl City Attorney City of Dubuque 50 West 13 Street Dubuque, IA 52001 RE: Mercury Remediation Dubuque Water Pollution Control Plant Dubuque, Iowa Dear harry: Capita Square Mice Two East Main Street Sude GOD Madison, WI 53703 -2865 Tel 608-255-8891 Fax 608- 252.9243 Please respond to capitd Square Office tared line: 608.2252 -9353 Errol: marts) tNross.00m Metro Mihraukoo Office 13935 Bishop's Drive Suds 300 Brookfield, Wt 530056605 TeI262- 754.2840 Fax 262-754 -2645 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 spitl 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 e 1 lt R 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. /SI William E. McCardell WEM:kjs cc: Dave Voss (via email only) Dean Basten (via email only) Royce Alsbach (via email only) Tiny Kippenhan (via email only) Jonathan Daniels (via email only