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
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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.
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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.
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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