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of 11&0f Report Number 08-201 BRKAITON Agenda Section VI-6 the city that works for you Council Meeting Date July 22, 2008 REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: CONSIDERATION OF CHANGE ORDER 3 FOR PROJECT 07-12, NORTHWEST QUADRANT PHASE 2 DEMOLITION, SOIL CORRECTION, AND ENVIRONMENTAL REMEDIATION IMPROVEMENTS DEPARTMENT HEAD'S APPROVAL: CITY MANAGER'S APPROVAL: No comments to supplement this Comments attached Recommendation: To approve Change OrdUr in the amount of $87,432.15 to Project 07-12, Northwest Quadrant Phase 2 Demolition, Soil Correction, and Environmental Remediation Improvements. Legislative History: On September 11, 2007 Council ordered the project and awarded a construction contract to Belair Excavating on October 9, 2007. Financial Impact: The amount of Change Order 3 is 87,432.15. The City budgeted $177,521 for contingency items which was 10 percent of the original bid. The total change orders to date including this change order is $227,218 or $49,697 over budget. Some major bid items on this project appear to be significantly under running the estimated quantities which will allow us to cover the $49,697 over run. It is anticipated when this project is complete the projected budget will be within the allowable 10 percent project contingency. Explanation: Project 07-12 consists of the demolition of the remaining structures, and the environmental clean-up and soil correction, on the west side of the NWQ (Midwest Asphalt site). Change Order 3 adds 5 items to the existing contract with Belair. Please see the attached Change Order 3 summary for a complete description of each item. The majority of the additional work is to remove lead contaminated soils where old battery casings were found. This material is considered hazardous waste and must be chemically stabilized, tested, and disposed of off-site at an approved landfill. Before hauling to a landfill, the lead soils must be abated with a reagent to prevent leaching into the adjacent soils and groundwater. This process alone will cost $37,920. Attached is a letter from Belair describing this process. All work associated with the lead contaminated soils will be 100 percent reimbursable under the grants. Change Order 3 also adds 10 working days to the contract in order to complete the extra work resulting from this Change Order. This extends the final project completion date from August 15, 2008 to August 29, 2008. Costs and Funding: The construction portion of this project is being funded from a combination of funding sources including a DEED grant, a Metropolitan Council grant, and TIF Bond proceeds. Attachments Change Order 3 Belair Letter Dated