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
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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