11122024 Board of Public Works Meeting

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REGULAR MEETING NOVEMBER 12, 2024 232 CHANGE ORDERS Director of Diversity and Inclusion, Cynthia Simmons, was concerned about the percentage of increase for item 8. A. Liberty Tower TIF Project - Parking Garage with RAM Construction Services of Michigan, Inc. She showed concerns for the percentage being over the standard twenty percent (20%). Attorney Schmidt responded that he was also looking into that item, but for different reasons, but he doesn’t have a legal answer yet. He noted that typically the limit is twenty percent (20%), but it can be exceeded if it’s an unforeseen change. He said that he mentioned to President Maradik before the meeting that this one has additional scrutiny on it. OPENING OF QUOTATIONS Assistant City Engineer, Leslie Biek, noted that there will be an item added to the agenda on Tuesday. It will be for a quote opening for the 2024 Electric Vehicle Supply Equipment. She noted that it was requoted after not receiving any bids at the last meeting. CHANGE ORDERS Mr. Miller asked about item 8. C.: Demolition of South Bend Medical Foundation. He noted that it says demo, but they don’t appear to be doing anything. President Maradik advised that the memo stated that they mobilized and there was no clear date on when the utility would be cut off, so they stay mobilized, waiting for the utilities to be cut off. Attorney Schmidt advised that the MRD Group is an out-of-town vendor, so it is likely that they did not demobilize, so there was almost a stand down, if you will. There was a negotiated compromise on this of splitting the fee 50/50 even though it was our failure of a utility to get out there and to do this work in a timely fashion. Director Horvath clarified that it was not entirely true clarifying that Water Utility went out there but could not get the valves shut down. Mr. Miller was concerned that they were not using any local workforce, when a local workforce could have been sent home. Attorney Schmidt added that he thought that they weren’t able to redirect their assets to another project, so they had to wait. It is a negotiated settlement to close out the job. It’s a settlement of a dispute. They raised the issue to us, they gave us the math, and said what it should have cost for the delay. The contractor was willing to accept fifty percent (50%). Mr. Miller stated that you’re saying that they compromised, but they are paying them one hundred dollars an hour. President Maradik advised that based on the memo it says fifty (50) dollars an hour. Attorney Schmidt advised that their claim was for fifty (50) dollars an hour, but we’re essentially paying twenty-five (25) dollars an hour and that was just for the hours. It did not include their losses for things like equipment rental or other costs that they had. CHANGE ORDERS Mr. Miller asked if the change order items for item 8. D.: Fire Station 8 Replacement was from the architect or from the City. Attorney Schmidt advised that this is still one that is gearing up towards closure on this project, so we're looking at it holistically to see where failures have occurred and the specifications and then sort of where to recoup some of these monies associated with these change orders. Senior Engineer Zach Hurst added that all items except for the first are called out as owner-initiated changes that would have been initiated by the Fire Chief. AWARD BIDS AND APPROVE CONTRACTS Mr. Miller asked if there was a waiver issued for item 6. A.: South Bend City Hall Renovation. Attorney Schmidt advised that there will be a waiver on this one when we make the award on Tuesday. The lowest bidder did not meet the goals and determined that they had a good faith effort into trying to achieve those goals, so through granting of the waiver it will be grounds for the Board to award.