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12. Resolution 4390 - Woodland Court Change OrderAgenda -January 5, 1998 AGENDA ITEM 12 - CHANGE ORDER/ FINAL PAYMENT- THOMAS, DEAN & HOSKINS-WOODLAND COURT BACKGROUND/CONSIDERATION: I have enclosed, within the bills, a final billing from Thomas, Dean & Hoskins for the Woodland Court project. This billing has been held for several months to allow additional discussions and research to determine the factors involved in the additional costs for service from the engineer. This billing, together with one of the contractors submissions for additional work, has been reviewed by the staff, the attorney, and other sources of information to determine why the City had extra costs. Upon a thorough review, the City Attorney has advised that the additional work and hours submitted were completed and apparently justified within this project. (I have enclosed the latest memo from the City Attorney.) RECOMMENDATION: Based upon a lengthy and thorough review of this bill and request for a change order, I must recommend that the change order be approved and the final payment for the additional dollars be paid. This is a project that was started approximately three years ago. At that time a decision was made to "split" the contract by "cherry -picking" the sections of the low bids rather than awarding the bid to the over-all single low bidder. This decision, in my opinion, rather than creating the desired savings, actually created administrative and engineering inefficiencies that over -run the potential cost savings. ACTION REQUIRED: Approval of the change order is required by RESOLUTION 4390. Incorporated 1892 Office of the City Attorney Glen Neier, City Attorney Richard Hickel, Asst. City Attorney Theresa White, Legal Secretary January 2, 1998 TO: Mayor, Council and Manager FROM: Glen Neier, City Attorn� Re: Woodland Court Change Order Telephone (406)758-7708 P.O. Box 1997 Kalispell MT 59903-1997 Fax (406)758-7758 Please note the amount change in Paragraph 1, last sentence of my memo. The latest "Addendum D" is also enclosed. RESOLUTION NO. 4390 A RESOLUTION TO ALTER AND AMEND THE CONTRACT WITH THOMAS, DEAN & HOSKINS, INC. ON THE WOODLAND COURT/TETON TERRACE PROJECTS. WHEREAS, the City on May 5, 1994 did enter into a contract with Thomas, Dean & Hoskins, Inc., for the construction of certain improvements connected with the Woodland Court/Teton Terrace Projects, and WHEREAS, certain elements in the project required additional work, as well as time to complete; and said additional work and time requirements could not have been necessarily foreseeable when the original construction contract was entered into, and said changes are contained in Addendum "D", attached hereto and are by this reference made a part hereof; and WHEREAS, upon the advise and recommendation of Roger Sommerville, of Thomas, Dean and Hoskins, Inc., (the City`s Consulting Engineers) it appears in the best interests of the City to approve said changes and alterations. NOW THEREFORE, pursuant to the provisions of Section 7-5- 4308(1) MCA be it hereby resolved: 1. The alterations and modifications of the contract between the City of Kalispell and Thomas, Dean & Hoskins, Inc., dated January 6, 1997, as set out in Addendum "D" attached hereto are hereby approved, and 2. As soon as the alterations and modifications are agreed to in writing, signed by the City Manager, as hereby approved by the Council, this approval thereof shall be in effect. PASSED AND APPROVED BY THE CITY COUNCIL AND MAYOR OF THE CITY OF KALISPELL THIS DAY OF , 1998 William E. Boharski, Mayor ATTEST: Debbie Gifford, CMC/AAE Clerk of Council j \wp\res\chngtdh ADDENDUM "D" The Agreement dated the 5th day of May, 1994, by and between the City of Kalispell and Thomas, Dean & Hoskins, Inc. is hereby amended as follows: Part II - Payment for Services Paragraph F, add the following: The fee for construction management services for the Woodland Court Project shall not exceed fifty-nine thousand, two hundred and twenty-five and NO/ 100 dollars ($59,225.00). Fee shall be billed at two times payroll plus out of pocket expenses at actual cost plus ten percent (10%). Mileage shall be charged at a rate of $0.35 per mile. The fee for construction management services for the Teton Terrace Project shall not exceed twenty-five thousand, three hundred and NO/100 dollars ($25,300.00). Fee shall be billed at two times payroll plus out of pocket expenses at actual cost plus ten percent (10%). Mileage shall be charged at a rate of $0.35 per mile. In Witness whereof the parties hereto have executed this amendment to the contract this the _ day of , 1996. THOMAS, DEAN & HOSKINS, INC. Michael W. Fraser Vice President CITY OF KALISPELL, MONTANA Clarence Krepps City Manager Addendum "D" Incorporated 1892 Office of the City Attorney Glen Neier, City Attorney Richard Hickel, Asst. City Attorney Theresa White, Legal Secretary December 31, 1997 TO: Mayor, Council and Ma. FROM: Glen Neier, City Atto Re: Woodland Court Change Telephone (406)758-7708 P.O. Box 1997 Kalispell MT 59903-1997 Fax (406)758-7758 On October 31, 1997 this office informed the Council as to the status of the above entitled change order request by Thomas, Dean and Hoskins. TD&H provided design and inspection services on the Woodland Court Project. According to information provided to PECDD and this office, TD&H provided inspection services for a total of 122 days on a contract which provided for 60 working days to complete. As a result of the delay in contract completion, TD&H's actual expenses exceed their estimated fee by $31,355.00. Resolution No. 4390, in your packet, authorizes amending the contract with TD&H and allowing payment. It is my understanding that the Woodland Court project has funds available to make this payment. NuPac also has a claim pending against the City and has requested a change order. We are at impasse in negotiations on the claim and will probably proceed to litigation or arbitration. is\wp\fraiser1.wpd The City_ of K�isnell Incorporated 1892 Office of the City Attorney Telephone (406)758-7708 Glen Neier, City Attorney P.O. Box 1997 Richard Hickel, Asst. City Attorney Kalispell MT 59903-1997 Theresa White, Legal Secretary Fax (406)758-7758 December 31, 1997 TO: Mayor, Council and Manager FROM: Glen Neier, City Attorney Re: Woodland Court Change Order Amendment On October 31, 1997 this office informed the Council as to the status of the above entitled change order request by Thomas, Dean and Hoskins. TD&H provided design and inspection services on the Woodland Court Project. According to information provided to PECDD and this office, TD&H provided inspection services for a total of 122 days on a contract which provided for 60 working days to complete. As a result of the delay in contract completion, TD&H's actual expenses exceed their estimated fee by $25,197.59. Resolution No. 4390, in your packet, authorizes amending the contract with TD&H and allowing payment. It is my understanding that the Woodland Court project has funds available to make this payment. NuPac also has a claim pending against the City and has requested a change order. We are at impasse in negotiations on the claim and will probably proceed to litigation or arbitration. is\wp\fraiser1.wpd The Agreement dated the 5th day of May, 1994, by and between the City of Kalispell and Thomas, Dean & Hoskins, Inc. is hereby amended as follows: Part III - Payment for Services Paragraph F, add the following: The fee for construction management services for the Woodland Court Project shall not exceed Fifty Two Thousand, Three Hundred, Sixty Two and 59/100 Dollars ($52,362.59). Fee shall be billed at two times payroll plus out of pocket expenses at actual cost plus ten percent (10%). Mileage shall be charged at a rate of $0.35 per mile. In Witness whereof, the parties hereto have executed this Amendment to the contract this _ day of , 1997. THOMAS, DEAN & HOSKINS, INC. Vl, Michael W . Fraser Vice President CITY OF KALISPELL, MONTANA Clarence Krepps City Manager