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0266
<br />REGULAR MEETING JULY 28, 2003
<br />indicating this new final cost. Upon a motion made by Mr. Gilot, seconded by Mr. Inks and carried,
<br />the Final Change Order and the Project Completion Affidavit were approved subject to the filing of
<br />the appropriate three-year Maintenance Bond.
<br />APPROVE CHANGE ORDER NO. 3 (FINAL) AND PROJECT COMPLETION AFFIDAVIT -
<br />OLIVER PLOW DEMOLITION - PHASE II - BIANCHI INDUSTRIAL SERVICES, INC. -
<br />PROJECT NO. 100-092B
<br />Mr. Gilot advised that Mr. Toy Villa, Public Construction Manager has submitted Change Order No.
<br />3 (Final) on behalf of Bianchi Industrial Services, 208 Longbranch Road, Syracuse, New York,
<br />indicating that the contract amount be increased by $348,946.74 for a new contract sum including
<br />this Change Order in the amount of $2,152,650.00. Mr. Thomas Bodnar, Board Attorney, stated that
<br />the original contract was for $1,695,000.00. The instructions were to include $100,000.00 for
<br />unforseen unknown structures and environmental hazards that might be encountered during the
<br />demolition phase. A substantial amount of known material had already been located. Drawings
<br />showed the sewer and water lines that were identified and needed to be removed. Despite all the
<br />detail, the expenses of removing the additional pipes, vehicles, structures, slabs, etc., that were found
<br />exceeded the $100,000.00 allocated. Although all work was still within the scope of the original
<br />project, the costs ran up to a total of $1,152,650.00. This increased the cost of the project by exactly
<br />27%. I.C. 36-1-12-18 limits the increase to only 20%. While obviously it was expected that there
<br />would be additional items in the ground andlor pollution problems, both of which would require
<br />further work, the extent of such obstacles (and in some cases, the nature of them) was not reasonably
<br />foreseeable. For example, the diagram indicated that there would be slab at a certain location, and
<br />the history of construction methods at that time would indicate that the slab would be three (3) feet
<br />deep at the maximum. However, it turned out to be ten (10) feet deep, more than tripling its size.
<br />Still another example, was the existence of a long tunnel between a building and Chapin Street,
<br />which had not been discovered by a boring. Also, while one cistern was preliminarily located,
<br />another was found in the property during demolition. I.C. 36-1-12-18(d) also provides that
<br />circumstances not reasonably foreseeable do not increase the scope of the project. It was the opinion
<br />of the independent consultant that $100,000.00 would be sufficient to cover unknown materials and
<br />pollution. Given the extensive boring and testings that had taken place under supervision, and that
<br />a recreation of the history of the site through newspaper articles and photographs showed a location
<br />of pipes, buildings, etc. extensive enough to constitute full utilization of the land, opinion was a
<br />reasonable basis. The eventual costs of all these unknowns turned out to be 5 '/2 times the original
<br />estimate. Because some additinal underground contamination or structures might be foreseeable
<br />does not make this extensive labyrinth reasonably foreseeable. Even if one would say that tripling
<br />of the independent consultants professional ;â–ºMinion as to the amount necessary to hand the cost of
<br />unknown objects or contaminates was what was reasonably foreseeable, more that a quarter of a
<br />million dollars in excess of that amount was removed. This expense was not reasonable foreseeable
<br />and, if subtracted from the total cost, would bring it down below the 20% limit. All of the material
<br />would eventually have to be removed as part of this contract of through another. Doing it through
<br />this contract is a more economic procedure (less overhead) and one which more safely removes
<br />contaminates from the soil. Even with the substantial overage, the payment to Bianchi would be
<br />lower than the bid of the next lowest bidder. All of the overage is attributable to the removal of the
<br />structures and the contaminates. None of it was used for frills of any kind. Additionally submitted
<br />was the Project Completion Affidavit indicating this new final cost. Upon a motion made by Mr.
<br />Gilot, seconded by Mr. Inks and carried, Change Order No. 3 (Final) and the Project Completion
<br />Affidavit were approved subject to the filing of the appropriate three-year Maintenance Bond.
<br />APPROVAL OF PROPOSAL - BOUNDARY SURVEY - SAMPLE EWING DEVELOPMENT -
<br />INDIANA AUTO PARTS - WIGHTMAN PETRIE, INC.
<br />Mr. Gilot stated that the Board is in receipt of a Proposal between the City of South Bend and
<br />Wightman Petrie, Inc., 4703 Chester Drive, Elkhart, Indiana, for the above referred to project. Mr.
<br />Gilot noted that the Proposal is in the amount of $2,100.00. Therefore, upon a motion made by Mr.
<br />Inks, seconded by Mr. Littrell and carried, the Proposal was approved and executed.
<br />RATIFY CONSTRUCTION CONTRACT - WABASH STREET - SANITARY SEWER
<br />EXTENSION - YOUNGS EXCAVATING, INC. - PROJECT NO 103-047
<br />Mr. Gilot advised that in accordance with the bid awarded on July 14, 2003, to Youngs Excavating,
<br />Inc., Post Office Box 2766, South Bend, Indiana, in the amount of $68,120.25 for the above referred
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