Tricon Construction Settlement Agreement_Library RennovationTHE CITY OF
Dui
Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Carnegie -Stout Public Library Renovation Project
Contract No. 1 - General Construction
(CIP 7001961)
DATE: February 13, 2013
Dubuque
kital
All- America City
II 111!
2012
City Engineering Gus Psihoyos recommends City Council approval of an Agreement
that provides the final resolution of disputed work items related to the acceptance of the
construction contract for the Carnegie -Stout Public Library Renovation Project —
Contract No. 1 (General Construction) and authorization of payment of the contract
retainage in the amount of $54,713.77 to Tricon Construction.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
kr,„709,,,
Michael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Gus Psihoyos, City Engineer
Masterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manager
FROM: Gus Psihoyos, City Engineer _0-3
SUBJECT: Carnegie -Stout Public Library Renovation Project
Contract No. 1 — General Construction
(CIP 7001961)
DATE: February 13, 2013
INTRODUCTION
Dubuque
hitil
Al-America CRy
1I I I II
e
2012
The attached Agreement provides for the final resolution of disputed work items related
to the acceptance of the construction contract for the Carnegie -Stout Public Library
Renovation Project — Contract No. 1 (General Construction).
BACKGROUND
The Carnegie -Stout Public Library Renovation Project included:
— A complete renovation of all public and staff spaces.
— Update of the obsolete HVAC system to one that is designed to be environmentally
efficient.
— New furnishings and equipment.
— Expanded wireless access and computer services.
— New roof on the original building
— New sidewalk and steps including a snow melt system for the newer building.
— Upgraded security system.
— Reopening of the stairwell to the second level in the original building.
— Reopening of the original mezzanine and uncovering of the rear skylight in the
original building.
Multiple prime construction bids were awarded for this project. Contract No. 1 — General
Construction was awarded to Tricon Construction (Tricon) in the amount of
$1,107,920.00.
Page 1 of 3
DISCUSSION
The Carnegie -Stout Public Library Renovation Project — Contract No. 1, was originally
awarded to Tricon Construction of Dubuque, Iowa in December 2, 2008. All five phases
of the project were substantially completed in September of 2010. At the time of
Substantial Completion, city staff and the representatives of the Library worked with
Tricon to resolve numerous items on the project punch list during the winter of 2010-
2011. By the spring 2011 it clear that material differences existed between the City and
Tricon as to who was responsible for the remaining outstanding items on the punch list.
As a result of having unaddressed items on the project punch list, the City held
$64,713.77 in retainage money from the contract.
Starting in the summer of 2011 and continuing through the year of 2012, the City and
Tricon met numerous times in an attempt to negotiate a resolution to the outstanding
items on the punch list. Some deficient work was eventually corrected by Tricon,
however there remained five issues that could not be resolved (see attached Marty
Johnson letter). In an effort to avoid a costly litigation process, the City and Tricon
agreed to mediate the unresolved issues. Marty Johnson of Straka Johnson Architects,
P.C. was selected as the mediator. On January 25, 2013 City Attorney Barry Lindahl
and Project Manager Steve Sampson Brown attended a mediation session with Tricon
Construction. The attached Agreement resolves all outstanding issue between the
parties. The Library Board has met to review the results of the mediation and has voted
unanimously to support signing the Agreement.
A summary of mediation settlement is as follows:
Current retainage holding by the City
Payment to Tricon for Delay Claim
Payment to City for Veneer =
Payment to City for Minor Items =
City Retainage Payment to Tricon
$64,713.77
+ $10,000.00
$74,713.77
- 17,000.00
- 3,000.00
$54,713.77 *
* City will withhold $2,500.00 out of this amount until May 24, 2013 for the plaza
limestone blocks. Tricon must repair them to the satisfaction of Marty Johnson or they
will not receive the final $2,500.00 due to them.
RECOMMENDATION
recommend that the City Council accept the Agreement and authorize the payment of
the contract retainage in the amount of $54,713.77 to Tricon Construction for the
Carnegie -Stout Public Library Renovation Project — Contract No. 1, General
Construction.
Page 2 of 3
ACTION TO BE TAKEN
The City Council is requested to adopt the attached Agreement and authorize the
payment of the contract retainage in the amount of $54,713.77 to Tricon Construction
for the Carnegie -Stout Public Library Renovation Project — Contract No. 1, General
Construction.
Attachment
cc: Jenny Larson, Budget Director
Susan Henricks, Library Director
Steve Sampson Brown, Project Manager
Page 3 of 3
Masterpiece on the Mississippi
Mr. Marty Johnson AIA
Principal
Straka Johnson Architects, P.C.
3555 Digital Drive
Dubuque, IA 52003
Engineering Department
City Hall
50 W. 13th Street
Dubuque, Iowa 52001
563.589.4270
www.cityofdubuque.org
January 23, 2013
RE: City of Dubuque Carnegie -Stout Public Library Renovation Project
Dubuque, Iowa
Summary of Outstanding City Claims vs.Tricon General Construction
The following information represents City of Dubuque's (City) position regarding the
disputed work items at the Carnegie -Stout Public Library.
Issue # 1
Issue #2
Veneer Damage
City Position: The City proposes that Tricon accepts one -third (1/3)
responsibility for the failure of the veneer. The City proposes a $27,000
credit toward the veneer repair.
Cut Limestone at Steps — Exterior Plaza & Plaza Punchlist
City Position: The City proposes a 70% credit based on the value of the
materials and labor cost to install the limestone blocks. The City would
allow Tricon to try repairing the stone damage to see if a satisfactory
result can be achieved. Additionally the remaining punchlist items for the
outdoor plaza need to be addressed and completed.
Issue #3: Antique Shelf Brackets
City Position: The City would accept a credit of $1,350.
Issue #4: Auditorium Carpet Subfloor
City Position: The City accepts Tricon's November 30, 2010 proposal to
provide a five -year warranty.
Issue #5: Tricon Counter Claim for Schedule Delay
City Position: Contractor claim of $29,037.00 is was not submitted in a
timely basis and is unsubstantiated.
Section 00700, Article 4.7 CLAIMS AND DISPUTES of the General
Conditions states the following:
"§ 4.7.3 Time Limits on Claims. Claims by either party must be made
within 21 days after occurrence of the event giving rise to such Claim or
within 21 days after the claimant first recognizes the condition giving rise
to the Claim, whichever is later. Claims must be made by written notice.
An additional Claim made after the initial Claim has been Implemented by
Change Order will not be considered unless submitted in a timely maner."
Additionally Section 00700, Article 4.7 CLAIMS AND DISPUTES of the
General Conditions states the following:
"§ 4.7.1 Definition. A Claim is a demand or assertion by one of the parties
seeking, as a matter of right, adjustment or interpretation of Contract
terms, payment of money, extension of time or other relief with respect to
the terms of the Contract. The term "Claim" also includes other disputes
and matters in question between the Owner and Contractor arising out of
or relating to the Contract. Claims must be made by written notice. The
responsibility to substantiate Claims shall rest with the party making
the Claim." (emphasis added)
Steve Sampson Brown
Project Manager
Attach.
AGREEMENT
BETWEEN
THE CITY OF DUBUQUE, IOWA
AND
TRICON GENERAL CONSTRUCTION, INC.
Whereas, the City of Dubuque, Iowa (City) and Tricon General Construction, Inc.
(Tricon) entered into an Improvement Contract dated December 2, 2008 for the Carnegie
Stout Public Library Renovation Project (Project); and
Whereas, during the course of construction of the Project, Issues have arisen
between the parties with respect to the Project; and
Whereas, the parties now desire to resolve all such issues with respect to the Project
as set forth herein.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
1. In consideration of the agreements and covenants set forth herein, the
undersigned hereby release and forever discharge each other, their agents, officers and
employees, and all other persons, firms or corporations liable or who maybe claim to be
liable, none of whom admit liability, but all expressly deny any liability from any and all
claims, demands, damages, actions, causes of action or suits of any kind or nature
whatsoever and particularly on account of any claims, known or unknown, which have
resulted or may in the future develop from the construction of the Project.
2. The undersigned hereby declare that the terms of this agreement have been
completely read and are fully understood and voluntarily accepted for the purpose of
making a full and final settlement of any and all claims, disputed or otherwise, on account
of the claims above mentioned.
3. City will pay to Tricon out of the retainage held by City and as full compensation
for Tricon's performance in the Project the sum of $54,713.77, minus $2,500.00 which will
be retained as provided in Paragraph 4.
4. City will retain $2,500.00 from the payment to Tricon for the cost of repair of
damage to the limestone blocks. If Tricon completes the repair of the limestone blocks by
not later than May 24, 2013 to the full satisfaction of Architect Marty Johnson, City will
release the $2,500.00 to Tricon. If Tricon does not repair the limestone blocks to the full
satisfaction of Architect Marty Johnson by such date, Tricon releases any and all claims of
any kind it has to the $2,500.00 retainage.
5. Tricon has previously made repairs to the flooring in the meeting room of the
third level of the Library to address issues raised by City and which Tricon represents it has
resolved. Tricon agrees that for a period of five (5) years from November 30, 2010, Tricon
012913ba1
will, at Tricon's sole costs, correct any defective condition in the flooring to the full
satisfaction of Architect Marty Johnson.
6. The parties agree to share equally the costs of the mediator.
CITY OF DUBUQUE, IOWA TRICON GENERAL CONSTRUCTION,
INC,
Michael C. Van Milligen
City Manager
Ron Richard
Owner
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