The URL can be used to link to this page

Home My WebLink About1998.06.16_OPWA AgendaPUBLIC NOTICE OF THE MEETING OF THE OWASSO PUBLIC WORKS AUTHORITY TYPE OF MEETING: Regular DATE: June 16, 1998 TIME: 7:00 p.m. PLACE: Council Chambers, Owasso Community Center Notice and Agenda filed in the office of the City Clerk and posted on the City Hall bulletin board at 4:00 p.m. on Friday, June 12, 1998. Marcia Boutwell, Authority Secretary AGENDA 1. Call to Order 2. Flag Salute 3. Roll Call 4. Consideration and Appropriate Action Relating to a Request for Approval of the Consent Agenda. All matters listed under "Consent" are considered by the Trustees to be routine and will be enacted by one motion. Any Trustee may, however, remove an item from consent by request. A motion to adopt the Consent Agenda is non - debatable. A. Approval of the Minutes of June 2, 1998 Regular Meeting. Attachment #4 -A B. Approval of Claims. Attachment #4 -B Owasso Public Works Authority ' June 16, 1998 Page 2 ' 5. Consideration and Appropriate Action Relating to the Award of a Contract for the ' Construction of the Elm Creek Interceptor Sewer. Mr Lutz Attachment #5 The staff has completed the bidding process, reviewed the bids received, and will recommend the award of a contract to HMG Inc, Kansas City, KS in the amount of ' $1,496,469.20, contingent upon receipt of funding for the project; and further recommends that staff be authorized to develop documents and conduct negotiations for a low interest bank loan and a revenue anticipation note. ' 6. Consideration and Appropriate Action Relating to Change Order #3, a Change Order to a Contract Between the Owasso Public Works Authority and Walters Morgan Construction Co for the Construction of Improvements to the Wastewater Treatment Facility. Mr Carr Attachment #6 The staff will recommend Authority approval of Change Order #3 containing changes to the contract as outlined in a letter dated June 9, 1998 and an acceptance letter dated June 10, 1998. 7. Consideration and Appropriate Action Relating to a Supplemental Appropriation to the Refuse Collection Department of the OPWA Fund. Ms Bishop Mr Carr Mr Ray The staff will recommend a supplemental appropriation in the amount of $25,000 to offset unanticipated equipment repairs and polycart purchases. Owasso Public Works Authority June 16, 1998 Page 3 8. Report from OPWA Manager 9. Report from OPWA Attorney 10. New Business 11. Adjournment OWASSO PUBLIC WORKS AUTHORITY MINUTES OF REGULAR MEETING Tuesday, June 2, 1998 The Owasso Public Works Authority met in regular session on Tuesday, June 2, 1998 in the Council Chambers at the Owasso Community Center per the Notice of Public Meeting and Agenda posted on the City Hall bulletin board at 4:00 p.m. on Friday, May 29, 1998. ITEM 1: CALL TO ORDER Chairman Bode called the meeting to order at 7:20 p.m. ITEM 2: FLAG SALUTE The flag salute was given during the City Council meeting preceding this meeting. ITEM 3: ROLL CALL PRESENT Denise Bode, Chair Mark Wilken, Vice Chair Mary Lou Barnhouse Trustee Melinda Voss, Trustee ABSENT Tracy Standridge, Trustee STAFF Rodney J Ray, City Manager Ronald D Cates, Authority Attorney Marcia Boutwell, Authority Secretary ITEM 4: CONSIDERATION AND APPROPRIATE ACTION RELATING TO A REQUEST FOR APPROVAL OF THE CONSENT AGENDA. A. Approval of the Minutes of May 19, 1998 Regular Meeting and May 26, 1998 Special Meeting. B. Approval of Claims C. Action Relating to the Extension of a Contract for Commercial Refuse Service. Mr Wilken moved, seconded by Ms Voss, to approve the consent agenda. The consent agenda included minutes of the May 19, 1998 regular meeting and May 26, 1998 special meeting, by reference made a part hereto. Item B on the consent agenda included the following claims: (1) OPWA Fund $34,001.94; (2) OPWA Capital Improvement Fund $50,106.35; (3) OPWA Sales Tax Fund $85,595.42; (4) Interfund Transfers $37,447.83; (5) Payroll $26,117.87. Item C was a request to extend a contract with Waste Management for commercial refuse collection for one year, with a 3.3 % increase in rates for the time period July 1, 1998 through June 30, 1999. Owasso Public Works Authority AYE: Wilken, Voss, Barnhouse, Bode NAY: None Motion carried 4 -0. ITEM 5: REPORT FROM OPWA MANAGER No report. ITEM 6: REPORT FROM OPWA ATTORNEY No report. ITEM 7: NEW BUSINESS None. ITEM 8: ADJOURNMENT Mr Wilken moved, seconded by Ms Barnhouse, to adjourn. AYE: Wilken, Barnhouse, Voss, Bode NAY: None Motion carried 4 -0, and the meeting was adjourned at 7:21 p.m. Marcia Boutwell, Authority Secretary 2 Denise Bode, Chairperson June 2, 1998 CITY OF OWASSO OWASSO PUBLIC WORKS AUTHORITY A/P CLAIMS REPORT APAPVR PAGE: PO # VENDOR DESCRIPTION AMOUNT OPWA ADMINISTRATION 980036 980036 RONALD D CATES LEGAL SERVICES 545.00 98O221 AT&T WIRELESS SERVICES PHONE USE-CARR 35.01 980221 AT&T WIRELESS SERVICES PHONE USE-ROBERTS 1O.65 982689 ENGINEERING NEWS RECORD ANNUAL SUBSCRIPTION 74.00 982762 OFFICE DEPOT CARD PLAN OFFICE SUPPLIES 26.94 98280 7 WAL-MART OFFICE SUPPLIES 2O.84 982812 MAXIMUM CONTROL, INC. SVS AIR CONDITIONER 40 00 982828 TREASURER PETTY CASH REIMB PETTY CASH 20 .00 982828 TREASURER PETTY CASH REIMB PETTY CASH 2.00 982828 TREASURER PETTY CASH REIMB PETTY CASH 12.69 982859 PSO 5/98 USE 102.99 98286O SOUTHWESTERN BELL TELE 5/98 PLEXAR 94.6O -------------- DEPARTMENT TOTAL 1 684 72 UTILITY BILLING ------------------------------ 982628 MARK MEYER METER READER 276.75 982729 TYRONE DINKINS METER READER READER 354.90 153.90 98273O BRAD SPARKMAN METER — 982731 RANDY ALEXANDER METER READER . 169 O5 — 982732 BRANDON HAMILTON METER READER 77.85 982733 OSCAR MCLAURIN METER READER 183.6O DEPARTMENT TOTAL ====> 1 216 .. O5 WATER ______________________________ 980221 AT&T WIRELESS SERVICES PHONE USE-ALL 10.65 980423 WATER PRODUCTS INC YALE UNIFORM RENTAL WATER METERS 3/18/97 UNIFORM CLEAN/RENT 3,173.20 94.00 980656 982622 CITY OF TULSA 04/98 WATER PURCHASE 89,222.08 982652 GO SYSTEMS FUEL O5/98 167.31 982653 CITY GARAGE REPAIRS 05/98 SUPPLIES 163.71 86.79 982687 KIMBALL ACE HARDWARE MAINT/REPAIR 982690 AMERICAN WATER WORKS MEMBERSHIP RENEWAL 9O.0O 982693 GEORGE & GEORGE SAFETY SAFETY EQUIPMENT TUITION REIMBURSEMENT 79.45 180.00 982719 --- ERIC AYRES — 982797 COOPER WHOLESALE HYDRANT EXT KIT 3O7 90 982828 TREASURER PETTY CASH MEETING EXPENSE 5/98 USE 28.97 204.48 982859 PSO CITY OF OWASSO OWASSO PUBLIC WORKS AUTHORITY 6/12/98 9:O3:O3 A/P CLAIMS REPORT APAPVR PAGE: PO # VENDOR DESCRIPTION AMOUNT ---------- ------------------------- ------------------------- ------------- 982860 SOUTHWESTERN BELL TELE 5/98 PLEXAR 10.65 51.30 982861 SOUTHWESTERN BELL TELE 5/98 NON-PLEXAR 982530 63.95 SAFETY LIGHTS 409.95 982652 GO SYSTEMS FUEL 05/98 222.24 DEPARTMENT TOTAL ====> CITY GARAGE _____________ 93,923.79 122.50 982684 WOODS PORTABLE WELDING MOUNTING BRACKETS 45.00 982687 WASTEWATER ______________________________ TREATMENT PLANT 375.58 982693 GEORGE & GEORGE SAFETY 980656 YALE UNIFORM RENTAL UNIFORM CLEAN/RENT AMERICAN HOSE & SUPPLY 93.60 981574 FHC INC WW MASTER PLAN 12/5/95 3,000.0O 130.00 982051 ADVANCED CHEMICAL CHLORINE 540.34 405.00 982652 GO SYSTEMS FUEL 05/98 31.21 982653 CITY GARAGE REPAIRS 05/98 4.64 982691 ZEE MEDICAL SERVICE FIRST AID SUPPLIES 25.60 982693 GEORGE & GEORGE SAFETY SAFETY EQUIPMENT 29.65 982742 ROSE STATE COLLEGE TUITION-SIMMS 100.00 982859 PSO 5/98 USE 6,103.49 982860 SOUTHWESTERN BELL TELE 5/98 PLEXAR 47.30 ------------- WASTEWATER COLLECTION ------------------------------ 980221 AT&T WIRELESS SERVICES PHONE USE-ALL 10.65 980656 YALE UNIFORM RENTAL UNIFORM CLEAN/RENT 78.00 982530 AW DIRECT SAFETY LIGHTS 409.95 982652 GO SYSTEMS FUEL 05/98 222.24 982653 CITY GARAGE REPAIRS 05/98 122.50 982684 WOODS PORTABLE WELDING MOUNTING BRACKETS 45.00 982687 KIMBALL ACE HARDWARE MAINT/REPAIR SUPPLIES 375.58 982693 GEORGE & GEORGE SAFETY SAFETY EQUIPMENT 79.45 982753 AMERICAN HOSE & SUPPLY JETTER RODDER HOSE 25.00 982800 JONNY ON THE SPOT RENTALS-TOILET 130.00 982859 PSO 5/98 USE 540.34 982861 SOUTHWESTERN BELL TELE 5/98 NON-PLEXAR 324.59 DEPARTMENT TOTAL =:> 2,363.30 REFUSE COLLECTIONS ------------------------------ 980656 YALE UNIFORM RENTAL UNIFORM CLEAN/RENT 93.20 982476 WILLIAMS REFUSE EQUIPMENT GREEN POLYCARTS 7/15/97 5,700.00 982530 AW DIRECT SAFETY LIGHTS 409.95 982561 WILLIAMS REFUSE EQUIPMENT RED POLYCARTS 3/18/97 2,950.00 CITY OF OWASSO OWASSO PUBLIC WORKS AUTHORITY PAGE: 6/12/98 p:O3:03 A/P CLAIMS REPORT APAPVR PO # VENDOR DESCRIPTION AMOUNT 982561 WILLIAMS REFUSE EQUIPMENT HALF-HINGES FOR LIDS COMMERCIAL REFUSE 5/98 18O.00 14,O43.81 982644 WASTE MANAGEMENT OF OKLA 982652 GO SYSTEMS FUEL O5/98 459.81 982652 GO SYSTEMS FUEL 05/98 185.33 982653 CITY GARAGE REPAIRS 05/98 75O.92 35O.81 982653 CITY GARAGE REPAIRS O5/98 982687 KIMBALL ACE HARDWARE MAINT/REPAIR SUPPLIES 26.O4 982692 DOZIER PRINTING ROUTE CHANGE NOTICES 39.65 38.97 982693 GEORGE & GEORGE SAFETY SAFETY EQUIPMENT 982727 ALSUMA TRUCK REPAIR INC REPAIR 2 TRUCKS 871.O5 TMENT TOTAL ====> DEPARTMENT 6 , 099 . 54 RECYCLE CENTER -----------------_------------ 98O65 6 YAE UNIFORM RENTAL UNIFORM CLEAN/RENT SUPPLIES 18.4O .99 982687 KIMBALL ACE HARDWARE MAINT/REPAIR 9828O1 RAINBOW CONCRETE CO CONCRETE 61.5O 982859 98286O PSO SOUTHWESTERN BELL TELE 5/98 USE 5/98 PLEXAR 1O6.57 23.65 .................................................... DEPARTMENT TOTAL ====> 11 11 2 . ------------- FUND TOTAL ====> 13 5 339 0O CITY OF OWASSO OPWA CAPITAL IMPROVEMENT FUND 6/12/98 9:O3:0 3 A/P CLAIMS REPORT APAPVR PO # VENDOR AMOUNT DEBT SERVICE 982778 BANK ONE ADMINISTRATION FEE 1,50 O.O0 DEPARTMENT TOTAL ====> 1,5OO.00 WASTEWATER 980309 HUB + GARVER WWTP CONST 9103196 6,24O.00 DEPARTMENT TOTAL ====> 6,24O.00 WWTP IMPROVEMENTS 980023 WALTERS MORGAN C0�STRUCTI WWTP IMP 111/05/96 10 0 ,278.39 DEPARTMENT TOTAL ====> 100, 27f FUND TOTAL ====> ------------- 108,018.39 CITY OF OWASSO OPWA SALES TAX FUND 6/12/98 9:O3:03 A/F CLAIMS REPORT DESCRIPTION REVENUE BONDS AMOUNT 980002 BANK ONE TRUST CO, NA DEPARTMENT TOTAL FUND TOTAL ====> GRAND TOTAL ====> 97 REVENUE BONDS 89,550.00 ------------- 89,550.O0 ------------- 89,55O.00 ------------- 399,993.49 OWASSO PUBLIC WORKS AUTHORITY PAYROLL PAYMENT REPORT PAY PERIOD ENDING DATE 06/06/98 OVERTIME TOTAL DEPARTMENT EXPENSES EXPENSES OPWA Ad nunstrat 0.00' $5,006 67 Utility Billing 0.00 3.704.85 Wastewater 421.26 6,037.17 Wastewater Collection : ;::393 81 5,638 97 Refuse 135.71 3.985.52 FUND'rQfiAL $3p06 43 $32,459 91 APPROVED: 06/16/98 Chairman Trustee Trustee MEMORANDUM TO: HONORABLE CHAIR AND TRUSTEES OWASSO PUBLIC WORKS AUTHORITY FROM: F. ROBERT CARR, JR., P.E. PUBLIC WORKS DIRECTOR SUBJECT: ELM CREEK INTERCEPTOR SEWER CONTRACT AWARD DATE: June 10, 1998 BACKGROUND: The impact of growth places demands on the infrastructure of the city, specifically on the wastewater collection and treatment system. It is the policy of the Owasso Public Works Authority to be proactive, rather than reactive in matters of growth and development. On January 6, 1998, Owasso Public Works Authority Resolution No. 98 -01 adopted the 1997 Wastewater Master Plan as a policy statement for the extension, expansion and development of privately - financed and publicly - financed improvements of the City of Owasso municipal wastewater collection and treatment system. System needs are detailed in the Master Plan based on the present, 5 -, 10- and 20 -year growth projections. Proposed development in the Elm Creek drainage area has been occurring as described in the Master Plan. Development plans have been submitted that will require wastewater collection for essentially the entire undeveloped area south of 86th Street North between North 129th E. Avenue and North 145 E. Avenue (Albertson's and Owasso Golf and Athletic Club). Other development is likely to occur north and east of 86th Street North and North 145th E. Avenue, as well as with continued development north of 86th Street North west of North 145th E. Avenue (Silvercreek Addition). Recent activity involving the undeveloped area south of 86th Street North between North 129th E. Avenue and North 145 E. Avenue (Albertson's and Owasso Golf and Athletic Club) has resulted in a long -term method to provide wastewater collection. Consulting engineers (Grafton, Tull & Associates, Inc.) for Lindsey Properties (Owasso Golf and Athletic Club) have determined that constructing the interceptor would eliminate costs of constructing interim lift stations presented in the Master Plan that are intended to be rather short - lived. The majority of expense of lift station and force main construction would be lost once the interceptor is ultimately constructed. Crafton, Tull has proposed that Lindsey construct the portion of the interceptor from 76th Street North to a point on the south side of the Owasso Golf and Athletic Club property. The portion of the interceptor from the 117th E. Avenue lift station to 76th Street North would be constructed by the City of Owasso. Construction of the interceptor in this ELM CREEK INTERCEPTOR AWARD JUNE 10, 1998 PAGE 2 manner (i.e., from south to north) will enable wastewater collection to be accomplished without the need for interim facilities and enable the system easily to be extended north. Costs of construction will be allocated to appropriate undeveloped property in the basin in order to proportionately distribute engineering, easement acquisition and construction expenses to present and future users of the interceptor. ELM CREEK INTERCEPTOR PROJECT DESCRIPTION: The interceptor is sized and designed to carry additional flows for the total area to be served ultimately. The interceptor has been designed as 21 -inch diameter and essentially is to be built adjacent to Elm Creek in the flood plain. The concept for construction is shown on the attached Location Map. BID ANALYSIS: Crafton, Tull & Associates have developed design documents and specifications for the interceptor. Public Works Department Engineering Division staff have reviewed the documents. The final plans were approved by Engineering and an advertisement was published on May 7, 1998. A Pre -bid Conference was conducted on May 27, 1998. Bids were opened on June 9, 1998. Five (5) bids were received and summarized as follows: Bidder Base Bid Deductive Alternate F Total Bid HMG, Inc. (Kansas City, KS) $1,551,469.20 $55,000.00 $1,496,469.20 McGuire Brothers (Tulsa, OK) 1, 816, 049.00 15, 000.00 1, 801, 049.00 Ram Engineering and Construction (Tulsa, OK) 1,684,170.90 10, 000.00 1,674,170.90 T -G Excavating (Catoosa, OK) 2, 073, 039.00 40, 000.00 2, 033, 039.00 Tam Har, Inc. (Sapulpa, OK) Not submitted 35,000.00 1,612,580.00 7 0I The solicitation required submittal of a base bid (for construction of cast -in -place concrete ' manholes) and a deductive alternate bid (for construction of pre -cast concrete manholes). The apparent low bid was received from HMG, Inc., Kansas City, Kansas for both the base and deductive alternate bids. Staff will recommend that the award be made based on the deductive ' alternate bid. The Engineer's estimate is $1,587,382.00. I I ELM CREEK INTERCEPTOR AWARD JUNE 10, 1998 PAGE 3 PROJECT SCHEDULE: The proposed schedule for the project is as follows: Notice to Proceed June 24 Construction Complete November 21 (150 calendar days) The developer desires to have the first phase of apartments completed around October 1st. As a result, means to expedite construction will be evaluated. PROJECT FUNDING: The City has historically required those infrastructure improvements necessary to the development of property to be funded by the developer. The only exception to that policy was the construction of the "Ranch Creek" interceptor (built in the early eighties and located on the western border of the city). In that case, the City paid for the improvements using the proceeds of a bond. In this case, the staff has recommended, and the Trustees have reviewed a plan that will provide the initial capital cost through the public sector, with an eventual recouping of those funds through an assessment to each piece of property located in the line's service area. The concept is to require each tract of land to pay its share of the cost of the project when the property is developed and "tie in" to the system is requested. This concept allows the City to avoid temporary facilities and lift stations in favor of a permanent solution. The staff has researched the options available and will recommend that the project be funded through the combined use of a low- interest private sector loan and "revenue anticipation note" issued by the OPWA to the City of Owasso (essentially a self - funded loan from the City's various fund reserves). Under this concept, approximately one million dollars would be borrowed from a local bank at a low- interest rate (loans to the OPWA are tax exempt for the bank) and the remainder of the funds (approximately $700,000) supplied by the City through an "investment" on an OPWA revenue anticipation note. Both loans would be retired from revenues generated by the "payback" requirement. It should be noted that the staff projects an estimated $185,000 will not be repaid because there is some land in that area that may never develop. The staff has requested quotes from all three local banks on a low interest loan and is in the process of reviewing those quotes. The staff has also met with the City's financial advisor (Keith McDonald) and bond counsel (Alan Brooks) to enlist their assistance in ensuring such a loan will not have an adverse impact on our already issued debt. Both have advised that the proposed concept is valid and can work as long as the bank loan does not exceed 1.5 million dollars and the successful bank recognizes the loan cannot be secured by a "first" lien. ELM CREEK INTERCEPTOR AWARD , JUNE 10, 1998 PAGE 4 , The City Council discussed this concept in a work session in May, and the staff is in the initial stages of drafting the necessary documents (Mr Brooks has volunteered to complete the draft). ' The staff (Ms Bishop & Mr Ray) is also in the first stages of negotiating the interest rate for the low interest loan component of the package. The recommendation (below) requests authorization for the staff to finalize this funding concept ; by completing loan negotiations and developing the documents for the revenue anticipation note. It should be noted that finalizing the financing package is critical because state law will not allow ' final award of the contract until funds are appropriated. RECOMIVIENDATION: The staff recommends that the Trustees award a contract for the construction of the Elm Creek Interceptor to HMG, Inc., Kansas City, KS in the amount of $1,496,469.20, contingent upon receipt of funding for the project, and further authorize the staff to develop documents and conduct negotiations for a low interest bank loan and a revenue anticipation note, provided however, such financing be presented to the Trustees for final approval prior to execution. ATTACHMENTS: 1. Location Map 2. Bid Tabulation MEMORANDUM TO: FROM: SUBJECT: HONORABLE CHAIR AND TRUSTEES OWASSO PUBLIC WORKS AUTHORITY F. ROBERT CARR, JR., P.E. PUBLIC WORKS DIRECTOR CHANGE ORDER NUMBER 3 - WASTEWATER TREATMENT PLANT CONSTRUCTION DATE: June 11, 1998 BACKGROUND: A contract for the construction of the Wastewater Treatment Plant improvements Phase I was awarded to Walters - Morgan Construction, Inc., Manhattan, KS on November 5, 1996 in the amount of $1,923,900. While performing excavation work near the location of the clarifiers, Walters- Morgan encountered rock that the contractor believes was unforeseen and warranted additional payment and time extension. As a result of this condition, a meeting was held on November 3, 1997 that included representatives of Walters - Morgan, Larry Lipe (Walters -Morgan attorney), Ron Cates (City Attorney), Bruce Bellen (HUB +Garver Project Manager for construction engineering services to the OPWA) and Robert Carr. Subsequent correspondence and telephone conversations have been held concerning the issue and the opinion of HUB +Garver is that the contractor is entitled to additional compensation and/or time, but determination of reasonable amounts of each was questioned. Additional cost of approximately $63,000 and 31 additional calendar days was proposed by the contractor. Following review of their claim by HUB +Garver, correspondence to Walters- Morgan dated March 19, 1998 proposed payment in the amount of $17,500 and an additional fourteen (14) working days for the project. On May 11, 1998, the attorney (Larry Lipe) for Walters -Morgan responded with a potential resolution listing eighteen (18) items for consideration (see attachment). A summary of the items and cost breakdown for each item was evaluated by HUB +Garver in a letter dated May 27, 1998 (see attachment). Page 2 Change Order No. 3 Wastewater Treatment Plant Construction CHANGE ORDER NO.3 PROVISIONS Following review of the items by city staff Mr. Cates submitted another proposal dated June 9, 1998 with the following items: -Project would have a substantial completion date of June 23, 1998 with final punch list on or before June 23, 1998 • Final completion date shall be August 7, 1998 • Contractor will: - complete final punch list on or before August 7, 1998 - withdraw the "rock claim" against the city - install one (1) additional 12 foot fence gate - adjust effluent manhole at the oxidation ditch - leave in -place "as -is" the 96 -inch steel culvert creek crossing - 2500 sq. yards of sod and three (3) acres of seeding - asphalt paving to control structure - provide drainage on west side of access road - install base course rock in lieu of treated subgrade for asphalt paving - complete remaining work included in the original contract • City will: - not assess liquidated damages against the Contractor unless the substantial or final completion dates are not met - not assess any engineering or inspection costs against the Contractor - release contract retainage in full no later than thirty (30) days after final completion Taking into consideration the above items, the Authority will pay an additional sum of $46,890.00. Walters- Morgan has agreed to these items (see letter dated June 10, 1998). The resultant final construction amount will be $1,953,375.86. The total represents $29,475.86 above the original contract amount. FUNDING SOURCE: The Oklahoma Water Resources Board project budget is approved in the amount of $2,900,035.70. Within the budget is $110,412.67 for contingencies. All costs associated with the Change Order above the original approved contract amount can be paid from contingencies. Page 3 Change Order No. 3 Wastewater Treatment Plant Construction RECOMMENDATION: Staff recommends the Trustees approval of changes to the contract for the Wastewater Treatment Plant Phase I Improvements with Walters -Morgan Construction Co. for purposes of implementation of the settlement as outlined in the June 9, 1998 letter by Ronald D. Cates and as accepted by correspondence by Conner & Winters dated June 10, 1998 and authorization of the Chair to execute a Change Order reflecting these items and any other documentation relating thereto. ATTACHMENTS: 1. Conner & Winters letter dated June 10, 1998 accepting changes 2. Ronald D. Cates letter dated June 9, 1998 with counter proposal 3. HUB +Garver letter dated May 27, 1998 evaluating proposal 4. Conner & Winters letter dated May 11, 1998 with proposal 5. Ronald D. Cates letter dated March 19, 1998 with proposal for $17,500 and 14 working days 6. OWRB project budget CHTES- LUNDERWOOD TC'LS.x V00 FIRST PLACE MwE3 I' EAST FIFTH STREET TLL: A. QK 41,23.4344 1913) 556 -5 711 F,-LX (915158E 8991 OKLATTOMA cm' ONE LEADERSRIP SQUARZ 1 NORTH ROBINSON, SIATE 1700 OLLAROMA CITY, OK %3193.7101 I4Q'1 dl'- ^11 PAY (1751 9185829166 CONNER &- WINTERS P . O PF :OFESS10a:�L COPPr�R;'lOn NORTHWEST .%RKANSAS LAWYERS S1TTe :oi0 1S0 iYEST CENTER S'rR,�HT 3704 FIRST FLACE TOWER FAYETTEVILLS,AR7 1500 582511 15 EAST FIFTH STREET F -AX (501) 5? ? -la2p TULSA. QUAHO'MA 74109 -4344 WASWING O N, O.C. SUITE 06 W9 iTEF'S ZiR F.C'T �� 11AFR 1 101 S iN ENTEENT14 STREET, N . W (Q 18) SW8512 WASHINUTON, 0 C. z1NI3h -47r< F, %N (9 1$) 599 -9 164 (:G:1 78)47; 1 FATS f "lVa' 153 -!7:G WRITEk'S E -MAIL .ADDRESS 111pe "&C W14 W.C6R1 June 10, 1998 VIA )FACSIMILE & MAIL Ronald D. Cates, Esq. 525 East Main Street, Suite 680 Tulsa, OK 74103 -4507 Re: Owasso WWTP Phase I Imnrove.rnen Dear Ron: Walters - Morgan Construction, Tnc. accepts the offer as set forth in your letter of June 9,1998. Please advise me when the settlement has been approved. Walters- Morgan is going forward with the items 1 -17 in anticipation of the approval by the appropriate city authority. Sincerely, CONNER & WINTERS Larry B. Lipe a L N L.BL:md ' cc: John Walters (via facsimile) P: (6 -10 -98 ).wpd RONALD D. CATES Attorney at Law Suite 630, PurkCentre 52S South Main Tulsa, Oklahoma 74103 tune 9, 1998 FAX 918-582-0166 VIAFACSiM1LE Larry B. Lipe, Esquire Conner & W utters 3700 First Place Tower 15 East 5th Street Tulsa, Oklahoma 74113 -4344 In Re- Owasso Waste Water Treatment Plant, Phase I Improvements Dear Larry: I am corresponding for purposes of confirmation of my conversation with your off regarding the above referenced matter. I have met with the City Manager, Public Works Director and the Consulting Engineer regarding the settlement of the remaining project issues. As a result of such meeting I have been authorized, subject to approval of the Owasso Public Works Authority, to make the following settlement offer. The Owasso Public 'Works authority would agree to the following items as outlined in your letter ofMaY 1 I. 1998, to wit. The parties would agree that the project would have a Substantial Completion Date of iune 23, 1998, and the City shall prepare a Final punchi.st of items on or before June 23, 1998, 2 The Final Completion Date shall be August 7, 1998 which will include completion of all Punchlist items by that daze, 3 The City will not incorporate those item negotiated directly with third party vendors into the Punchlist, Substantial Completion Date, or the Final Completion Date; 4 The Contractor will complete the Final Punchlist on or before August 7, 1998, 4. The Contractor will be granted force majeure time extensions as appropriate for impacted Punchlist items and rev. lining contract work, 6 The Contractor will withdraw their "Rock Ciai:- ,:7ainst the City, 7 The Contractor will install one (1) additional i L fence gate, S. The Contractor will adjust the effluent manhole at the Oxidation Ditch V -0"a-; CITY OF OWASSO 9. The Contractor will leave in place "As Is" the 96" steel culvert creek czossrng, Ip. The Contractor veil! uzstall 2500 syds of bermuda sod and tlu-ce (3) acres ofbermuda seeding, I I The Contractor will install asphalt paving for vehicle access to the Control Structure; P.03 12. The Contractor will install additional asphalt paving, regrading, drainage pipe, and soil erosion protection required to provide proper drainage on the west side of the access road, 13. The Contractor will install base course rock in lieu of lime treated subgrade far asphalt paving; 14. The Contractor will complete the remaining work included in the original contract except as modified above, 15. The City will not assess Liquidated Damages against the Contractor unless the Substantial or Final Completion Dates are not met, 16. The City will not assess any En&eering or Inspection costs against the Contractor, 17, The City will release Contract Retainage in full no later than thirty (30) days after Final Completion. The Authority, taking into consideration the above set forth items, will pay unto Walters Morgan Construction, Inc. an additional sum of S46, 890.04. Such payment would result in the actual final contract price being Si, 953, 375. 86. This amount is determined in the following mariner, to wit Amount owed including Change Order No. I and Work Directives 5 through 10 Balance of Allowance Proposed Change Order No. 2 Total Final Construction Amount $1,906,485.86 $17,414. 1 $29.475.86 $1, 953, 375, 86 CITY OF OWASSO P. 04 Due to the Authority meetijl$ schedule it is imperative that I receive verbal or written notice of your client's acceptance or rejection of this final offer by June 11, 1998 Thanking you in advance for your attention hereto, I remain. cc. Jeff Hancock cc. F. Robert Carr, P.E. CC. Rodney Ray cc. Jay Updike, P E. Sin y, Ran Cates Authority Attorney T=A, ]700 F =T ?Lk CE TOW —r IS EAST FIF AS7REPT TULS& OA 74103 -4344 i,ol8) ssr., -3:31 • FA:<f91 n)SgG -1{CKZ 0kI AU0x,\ Crry Q-a8 LF iDEMkU SQUAB e 231 Nt7ATM RO8XA0N; gjgM 1700 OKLAHOMA CITY• OK'4102.7301 (405) 272• Ph FAX (4W) .3Z -1647 CATES- ='UNDERWOOD 9185820166 ci CONNER & WINTERS A PROFF$5IOVAL CORPOR ATtu.v LA«l•ERS 1%(Ll FIRST PLAcr: Tower. ' 15 EAST Ftf7'1-t STRFEA +aZA, OKLAHOMA 74103.431.1 _ ++I WRITIM'S UMECT NLNMCR (918)580-5512 FAX (9 t8) j99.9S >e t4'xr; EiVS t- :1,41L itL�LRP$S Iliptvsk wl;tw'.�ritll I l May 11, 1998 VIA F CS1�11IiE Ronald D. Cates, Esq. 525.East Main Street, Suite 680 Tulsa; 0K 74103 -4507 Re- 01vasso V W'!'P Phase I 1 - rovements Dear Ron, P, 02 P. 02 MO4THt \'CST AXtXA, SAL St1i. E .Dr, 300 WF,ST CENTTR STRFJiY ' FAYET'I'YVILLB, AR'2701.6JA1 (561)582.5711 587.1425 WASHINGTQN.n.r. S1.R7'S 605 1102 SL E3'lMENTH STO,2 -r, ti.`N. WASY)NUTON,17.C. ,0036-1704 1=112) 787.5711 Im an effort to resolve any remaining disputes concerning this project and to avoid futLtxe issuer, Falters Morgan Construction(, Inc. offers the follo,,ving proposal as a compromise and comprehensive settlement proposal, Neither Walters Morgan noc the City would admit liability or fault in connection with the project, but rather enter into this settlement to resolve all outstanding disputes-, 2. 3. 4- 5. .1 The parties would agree that the project would have a SuOstantial Complction Datc of June 23, 1998, and the City slta.11 prepare a Final Punchlist of >erns on or before June 23, 1998; The Final Completion ]=late shall be August 7, 1998 wh>�ch will include completion of all Punchlist items by that date; The City will not incorporate those items negotiated direct Ily tivith third party vendors into the Punchlist, Substantial Completion Date, or the Final C;oAipletion Date; i The Contractor will complete the Final Punchlist on or before ,august 7. 1998; The Contractor will be granted farce ..=Jeure time exterlsions as appropriate for impacted PlIncl list items and remaining contract wort:; The Contractor will withdraw their "Rock Claim" agains I t the City; 7. The Contractor will install one (1 ) additional 12' fence gate; I S. The Contractor will adjust the effluent manhole at the 0 i.dation Ditch 1' -Q" P L GATES= U N D E R P. 03 02 1604 �5k9�140, 7 Ronald D, Cates, Esq. May 11, 1998 Page 2c 9. The Contractor will leave in place "As Is" the 96" steel culvert creek 0 ro ng; 10. The Contractor will install 2500 syds of bennuda sod and tree (3 )) acres of bermuda seeding; 1-1 The Contractor will install asphalt paving for vehicle acc to the Control Structure: 12. The Contractor will install additional asphalt paving, regrading, drainage pipe, and soil erosion protection required: to provide proper drainage on the west side of the access road; 13. The Contractor will install base course rock in lieu of Mime treated subgradc for asphalt paving,, 14. The Contractor will complete the remaining work included in the original contract except as modified above; 15, The City will not assess Liquidated Damages against the Contractor unless the Substantial or Final Completion Dates are not met; 1.6. The City will not assess any Engineering or Inspection costs aggainst the Contractor; 17, The City AAH release Contract Retairiage- in full no latet than thirty (30) days, after Final Completion; and 19. In consideration of the above items, the City will pay the. Contractor an additional $66,000 over the Contract price. We will be happy to sit dozen with. you and discuss any of these iterns. If there are any questions about any of the technical issues involved in this settlement, representatives of the City or its engineering f=m should feel free to contact Walters Moran directly. I hope that this will allow a complete resolution and settlement of all outstanding issues between the City a:ad Walters Morgan. I look forward to hearing from you. Sincerely, CONNER & WIN I EK5 L&rry B. Lipe LBL -md PA3 719272-007%mlertcttes 5415 So, 125th East Avenue Elude 29, Tulsa, Oklahoma 70-1 A$ 918- 250-5922 FAX 918.250-e5P9 HUB +Gamer A G*rverPluaCompany May 27, 1998 To: F. Robert Carr From: Jay Updike Re: Owasso Wastewater Treatment Plant Expamian - Phase 1 UPI 'jMMM We have reviewed the attached letter of May 11, 1998 to Mr. Ronald Cates conceraing a final settlement of work on the above rdmatced project. Sit to the receipt of this letter and with the permission of Mr. Cates, offi',oe we rectived the attached letter of May 26. 1998 providing a requested cost breakdown of several of the items. A sma ma:y of the items and the amounts requested by the contractor are as follows: . h&M'&- SM= AMg= (per letter of 5/11198) 7 Additional 12' Gate 8 Raise manhole at Oxidation Ditch 9 96" Culvert 10 Sodding/,Seeding 11 Asphalt to control structure 12 Paving, grading and pipe Along access road 842.00 GW,refl Carver L IM ROek ArOansas • Diva Garver. Jackson. Mm i"jpor. UxtM 1. MiSSi=PP Ht,JB4G4tvot, 74dsat. LAe -G -er, LO,wSnik. kzfWcky. N,5rrAJb& -f, Lnd m - WTW,Garver, Pum'sw/k. Alabama. Bnantvrood, 7krhrd59Be • t-mM- yjGarver, Merko Cey $968.00 238.00 10,924.00 (1,064.00) 849.00 Mr. F. Robert Carr May 27, 1998 Mcmo - Page Two 13 Aggregate base in lieu of line stabilizadmi (2,443.00) 18 Rock excavation for clarifiers 55- 697.0(} TOTAL ADDITIONAL AMOUNT REQUESTED $66,011.00 A copy of a memo to your office providing a cunvnt project budget including all change orders and work directives awproved to date is also attached As shown the current budget includes $126,824.81 in project contingcacics. Our recommendation con each of the items is as follows: Recommended Item No. S-cw—e Amo= of Action Add 12' Gate $968.04 8 Raise manhole at Oxidation Ditch 238.00 9 96" Culvert 0.00 10 Soddtng/Sredmg 11 Asphalt to omtrol structurc 12 Paving, grading and pipe Along aoms road 13 Rock base in tiff of time stabilisation 18 Rock Claim Offer TOTAL RECOWAFFNDED OFFER TOTAL AMOUNT REQUIRED ABOVE CONTRACT PRICE cc_ Rodney Ray CC*" Ron Cates (Have oonCTvctOr rciftove) (1,064.00) 849.00 842.00 (2,443.00) 4, $41,890.00 $24,121.00 I TOTPL P.0-) RONALD D. CATES Attorney at Law Suite 680, ParkCentre 525 South Main Tulsa, Oklahoma 74103 918 - 582 -7447 March 19, 1998 Mr. Larry B. Lipe, Esq. Conner & Winters 3700 First Place Tower 15 East 5th Street Tulsa, Oklahoma 74103 -4344 FP f V11AR 2 3 5zg 93 ---- ---- -- - - -- --/ FAX 918 -582 -0166 via facsimile - 918/599 -9404 original to follow in mail In Re: Owasso Waste Water Treatment Plant Phase I Improvements - Walters Morgan Construction, Inc. Dear Mr. Lipe: In accordance with our telephone conversation of the 18th day of March, 1998, I am corresponding for purposes of confirmation of the matters discussed in such telephone conversation. As I indicated, F. Robert Carr, Jr., P.E., the Director of Public Works, Jay Updike, P.E. of HUB +Garver, Project Representative and I have now had an opportunity to review your submission dated November 18, 1997, as well as supplementary documentation consisting of an itemization of amount of additional compensation ciaimed as well as Walters Morgan Construction, Inc., bid tabulation for this project. For the sake of brevity I will outline the issues as I see them to exist. Such issues are as follows, to -wit: Whether Walters Morgan Construction, Inc., is entitled to additional compensation and /or time under paragraph seventeen (17) of the General Conditions of the Contract for extra work it performed due to encountering an unanticipated massive hard rock formation during excavation; and, If Walters Morgan Construction_, Inc., is entitled to additional compensation and /or time, how much compensation and /or additional time is reasonable. As set forth in your memorandum of November 18, 1997, although Walters Morgan Construction, Inc., acknowledges the disclaimer language set forth in the agreement, it nevertheless relies upon paragraph seventeen (17) of the General Conditions set forth in the Contract. In this respect, our investigation of this matter indicates that some unsuccessful bidders did include within their bid amounts for rock blasting while on the other hand other bidders did not include costs for rock blasting anticipating they could excavate the rock with an impactor. Based on such research, it is clear that the bidders on the project made different assumptions from the information provided to them by the Owasso Public Works Authority. Accordingly, the clarity of the disclaimer utilized in the bid solicitation and its enforceability over the general provisions of the contract set forth in paragraph seventeen (17) thereof remains an issue. Mr. Larry B. Lipe March 19, 1998 Page 2 In addition to the foregoing, assuming for the sake of argument that paragraph seventeen (17) of the General Conditions would prevail, as you are aware, Walters Morgan Construction, Inc., did not comply with the requirements set forth in 17.1 thereof regarding submission of written notice of such subsurface conditions prior to performance of the additional work. As you are aware, I am sure, the provisions of paragraph 17.'l of the General Conditions of the Contract are placed in such contract for purposes of affording the public agency the opportunity to evaluate whether or not there are latent physical conditions at the site differing materially from those indicated in the contract documents as well as afford the public agency an opportunity to analyze and ascertain any alternative design and /or construction to avoid the latent physical condition and resultant additional work so that no equitable adjustment would need be made in the contract documents relating to compensation and time. Accordingly, the failure on the part of Walters Morgan Construction, Inc., to provide the contractually required written notice has effectively precluded the Owasso Public Works Authority from exercising such contractual right and opportunity to avoid the additional costs and time as set forth in Walters Morgan Construction, Inc., claim. Notwithstanding the foregoing, for the sake of settlement purposes only, my client has analyzed the claim for additional costs associated with rock removal at the Owasso Waste Water Treatment Plant from the standpoint of if in fact Walters Morgan Construction, Inc., is entitled to additional compensation and /or time, then how much compensation and /or additional time is reasonable. In that regard, Jay Updike, P.E., with Hub +Garver has reviewed the submission of your client denoted Additional Costs Associated With Rock Removal At Owasso WWTP. In that respect, it is Mr. Updike's position that an inordinate amount of time was expended by employees of your client, after discovery of the subsurface condition. Specifically, based upon the Inspector's reports, employees of Walters Morgan Construction, Inc., attempted to mechanically excavate the rock for approximately three weeks before deciding to blast the rock. This 1 mechanical effort is included in your client's claim along with extended job site oversight for an unsuccessful effort. Accordingly, it is our position that the Owasso Public Works Authority should not be responsible for the failure to mechanically excavate the rock or the additional fob site overhead associated with these efforts. Based upon such position, Mr. Updike has calculated what we determine would be reasonable additional costs associated with rock removal at the Owasso Waste Water Treatment Plant if the Owasso Public Works Authority has any liability therefor. I have provided you a copy of such calculation with this correspondence. Finally, as I indicated in our telephone conversation, an amicable and expeditious resolution of this matter is affected by the amount of project funds remaining in light of anticipated work change directives. I have been advised as recently as the 17th day of March, 1998, that as a result of conversations between the Owasso Public Works Authority's project ' representative and representatives of your client additional work charge directives will be necessary. Mr. Larry B. Lipe March 19, 1998 Page 3 Based on the foregoing, for settlement purposes only, I am authorized to state that my client is prepared to recommend to the City Council of the City of Owasso, Oklahoma, a proposed settlement of the issues presented by the rock removal at the Owasso Waste Water Treatment Plant by payment to your client of the sum of seventeen thousand five hundred dollars ($17,500.00) as well as providing an additional fourteen (14) working days on this project. As we discussed, based upon conversations from employees of your ciient, although additional time has not been specifically requested, it is anticipated such is needed and accordingly the additional fourteen (14) days does not only have monetary value to your client but likewise increases project representative costs to my client. Therefore, in the spirit of compromise, I would hope that your client would look favorably upon this effort on the part of the Owasso Public Works Authority to amicably and expeditiously resolve this matter and bring this project to completion without any remaining contractual issues. After you have had an opportunity to review this wit o r client, please advise. Sirc r , Ronald D. Cates Attorney for the Owasso Public Works Authority RDC /nhc encl. xc: F. Robert Carr, Jr., P.E. Director of Public Works Jay Updike, P.E. HUB +Garver Project Representative 3709 - 017.111 PAGE 1 ADDITIONAL COSTS ASSOCIATED WITH ROCK REMOVAL AT OWASSO WWTP ------------------------------- Labor Mat Equip Sub. Description Quan Cost Cost Cost Cost BLASTING Dykon Subcontract 1 LS $0.00 $0.00 $0.00 $7,150.00 750 BLASTING SUPPORT 5') IAP WMCI Raw Labor 1 LS $1,960.50 $0.00 $0.00 $0.00 P,T, & 1 1 LS $0.00 $694.02 $0.00 $0.00 6�4 w Hyundai 290 Track Exc w/ bucket 27 HR $0.00 $0.00 $2,565.00 $0.00 J5 Cat 950E Loader 24 HR $0.00 $0.00 $1,560.00 $0.00 !r, W o7 Dump Trucks 6 HR $0.00 $0.00 $180.00 $0.00 ADDITIONAL HOE -RAM WORK WITH HYUNDAI 290 & RAM WMCI Raw Labor 1 LS $172it' $0.00 $0.00 $0.00 P,T, & I 1 LS $0.00 Sr455-77 $0.00 $0.00 Equipment Transportation 1088 MI $0.00 $2;Qt2 $0.00 $0.00 e, Hyundai 290 Track Exc w/ Ram 70 HR $0.00 $0.00 $5,8D0'OQ $0.00 d - EXTENDED JOBSITE OVERHEAD r %: u#DY a 30A - $0.00 $0.00 $83696& $'F8;`t94.92 $14.t05_. 0 Sr7;'t-5t}:ijfl SUBTOTAL $4i�12�8fi ad,4o3 r HOME OFFICE G&A (5.17 %) pay SUBTOTAL g c�JJ Sty' OVERHEAD & PROFIT (10.0 %) SUBTOTAL $55,2 6 94 o0t 5 Iy i3 BONDS AND INSURANCE (.87 %) $480-aq aaS 41 TOTAL 5,,es?-n J c 143 �? S ADJUSTED TO REFLECT ACTUAL COST A :7�S DTD?REFL�C;irG1N1ELOSS BASE=N;SCHEDULEAIIALYSiS�: ^ "�','~ `� rH<;;��1 �•:�,i �y "SEE,i?l7 l GHED .� _ » cti E01 -I .= ;`�t�.,t :z r.�+w�.l:�r.*,'�.�i�. .- . _ . _..... .. _.. ...._._... ... ....._� a _._. ._ .. -_ c. ... UDIxED Z01 . CL1l D: E!?. NLY�IME�` D. EP1= 1L) E1IT, ITEMSATIDADl7STFD ,ORACIUALCOSTS,;': ^�; r`� REVISED BUDGET Project Name: Owasso Public Works Authority Project Number: C- 401146 -03 ORF -2B Date: May 11, 1998 Loan Number: ORF -95 -002 S: \SHARESRF \0WASS0\0RF- 002.B1 MEMORANDUM TO: HONORABLE CHAIR AND TRUSTEES OWASSO PUBLIC WORKS AUTHORITY FROM: F. ROBERT CARR, JR., P.E. PUBLIC WORKS DIRECTOR SUBJECT: FY97 -98 SUPPLEMENTAL BUDGET - REFUSE COLLECTION DIVISION DATE: June 11, 1998 BACKGROUND: The FY97 -98 Public Works Department Refuse Collection Division budget line items for operating supplies (61- 541 - 5220), vehicle maintenance (61 -541 -5260) and landfill tipping fees (61 -541 -5391) are projected to exceed funds available for the remainder of the fiscal year. A supplemental budget appropriation will be requested in order to meet the same level of service presently provided in this division. Each of these line items are discussed below: ' Operating Supplies The current operating supplies budget (Line item 61 -541 -5220) for the Public Works Refuse Collection Division is $37,750 for FY97 -98. Included in this line item are supplies needed for I' new polycarts used in our collection system and replacement /replace materials for repair of older polycarts. Through June 3rd, expenditures for these operating supplies has been $47,661.41. t The budget was prepared last year anticipating fewer new residential and yardwaste polycarts than have been required for new services. In addition, replacements of older polycarts have been occurring in higher numbers than projected. ' Vehicle Maintenance The current vehicle maintenance budget (Line item 61- 541 -5260) is $21,200 for FY97 -98. To date, $37,278.41 has been expended. It is projected that approximately $5,000 additional will be required by the end of the fiscal year. ' The division primarily uses 1988 Lodal, 1992 Lodal and 1996 International vehicles. Each of these vehicles have required repeated repair over the fiscal year. The continuous use of the 6- and 10 -year old vehicles resulted in increased mechanical repairs over the amount anticipated during the budget preparation. REFUSE COLLECTIONS SUPPLEMENTAL BUDGET REQUEST JUNE 11, 1998 PAGE 2 Landfill Tipping Fees The current landfill tipping fees budget (Line item 61 -541 -5391) is $70,000. To date, $72,166.32 has been expended. The increased expenditures is the result of an anticipated reduction in rates that would have been, associated with a long -term disposal contract at the landfill. Due to changes in personnel at the landfill, the contract has not been executed. REQUEST: Based on the above, a supplemental appropriation is requested. A total of $25,000 is requested to meet current service levels. This budget recommendation has been reviewed by Ms Bishop, ' the City Manager and Public Works Director and all concur. It should be noted, however, that the request focuses on funding unanticipated repair of vehicles and polycarts, as well as tipping fees in excess of those anticipated. These expenses are not related to growth, thus there is not a corresponding increase in revenues for the refuse service. While it is anticipated that there will be an approximate $7000 in revenue over budget projections, the majority of the requested supplemental appropriation will, if approved, come from reserves. RECOMMENDATION: The staff recommends Trustee approval of a supplemental appropriation to the FY97 -98 OPWA Fund Public Works Department Refuse Collection Division budget in the amount of $25,000 for the purpose of funding unanticipated expenses.