Title
143rd Street and LaGrange Road Intersection Improvements - Contaminated Soil - Change Order
History
At the May Committee and Board meetings, an item was prepared, presented and approved which allocated $350,000 for the added costs associated with the discovery, excavation, transport and disposal of contaminated soils found as a part of the watermain relocation project at 143rd Street and LaGrange Road. This amount also included costs associated with the special Viton gaskets and seals required by the Environmental Protection Agency for all pipe joints within areas of known soil contamination.
At the time this Change Order was presented for approval, the contractor (Brothers Asphalt Paving, Inc.) was in negotiations with the landfill operator (Republic Industries) regarding Brothers Asphalt’s ability to be named as the contaminated “soils generator.” The “soils generator” designation is a federally mandated requirement wherein the named generator assumes a certain amount of liability and risk in perpetuity for the material deposited in the landfill should an environmental incident occur that requires remedy. As discussions on this matter progressed, it became clear that Brothers Asphalt would not be able to be named as the “soils generator.” During the discussions, the Village's legal counsel advised that the Village of Orland Park should not consider being named as the “soils generator” due to the associated risk.
Further, during the time that discussions were occurring between Brothers Asphalt and the landfill, staff and our consultants were investigating alternate soils disposal options including on-site thermal remediation, alternate disposal sites and other independent contractors having expertise and capability in the disposal of contaminated soils.
Ultimately, following a series of meetings with Brothers Asphalt, Village management and legal counsel, a decision was reached that removed the need for Brothers Asphalt to manage and dispose of the contaminated soils associated with this project. During and throughout the discussions with Brothers Asphalt, Counsel was in discussion with Shell Oil Company seeking a commitment to take ownership and responsibility for the disposal of contaminated soils associated with their former sites (LaGrange Road at 144th Place and Orland Video - NW corner of 143rd and LaGrange). Those discussions were successful allowing the estimated quantity of contaminated soils that is the responsibility of the Village to be reduced by approximately one-third.
Therefore, in light of the foregoing, staff is recommending and requesting two actions regarding the management and disposal of contaminated soils that are the responsibility of the Village related to the 143rd Street and LaGrange Road Watermain Relocation Project. First, a request that the value of the previously approved Change Order issued to Brothers Asphalt Paving, Inc. be reduced by $149,463 to a not-to-exceed amount of $200,537 and that a contract with RAMSCO, Inc. in an amount not to exceed $119,902.32 be approved to secure, load, manifest, transport and dispose of those contaminated soils that are resultant from the watermain relocation project at 143rd Street and LaGrange Road for which the Village bears responsibility.
Environmental Engineering Oversight will continue to be provided by V3 Companies as previously requested and approved.
Therefore, it is staff’s recommendation that a deductive Change Order with Brothers Asphalt be authorized in the amount of $149,463 resulting in not-to-exceed value in the amount of $200,537 to fund the added costs associated with the special Viton gaskets required for all pipe and fitting joints in areas of known soils contamination and for additional time required to manage and install materials in areas of known contaminated soils.
It is further staff’s recommendation that a contract be awarded to RAMSCO, Inc. to test, load, manifest, transport and dispose of contaminated soils for which the Village bears responsibility that have been excavated and stockpiled by Brothers Asphalt Paving, Inc. that have been found as a part of the watermain relocation project at 143rd Street and LaGrange Road in an amount not to exceed $119,902.32.
With the authorization of this Change Order, the value of the contract with Brothers Asphalt will decrease from $1,552,739 to $1,403,276.
The Village continues to seek full reimbursement for the contaminated soils identified herein as “Village Responsibility” from every current or former operator or landowner that may be contributory to the discovered contamination.
On July 6, 2010 at 6 PM, this item went to the Public Works and Engineering Committee for review prior to being sent at 7 PM to the Board of Trustees for approval.
Financial Impact
The Fiscal Year 2010 Water & Sewer Fund budget included $1,233,482 for the 143rd Street and LaGrange Road Watermain Replacement project. The current Brother’s contract is being reduced below the previously approved value and the additional cost associated with the RAMSCO, Inc. contract will keep the total costs associated with this scope of work below the approved value, therefore, no budget adjustment is required.
Recommended Action/Motion
I move to approve authorizing the Village Manager to execute a deductive Change Order to a contract with Brothers Asphalt Paving, Inc. for the 143rd Street and LaGrange Road Watermain Relocation Project in the amount of $149,463, thereby decreasing the total contact value to $1,403,276;
And
Approve authorizing the Village Manager to execute a contract with RAMSCO, Inc. to test, load, manifest, transport and dispose of contaminated soils associated with the 143rd Street and LaGrange Road Watermain Relocation Project for which the Village bears responsibility in an amount not to exceed $120,152.32 which specifically requires that RAMSCO, Inc. be named as the “soils generator”.