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22-04 Resolution RECORD OF RESOLUTIONS g~~!l_ ,~_~,~~I_ Blan_~_~n,~" F()~_~~~,~~~4~ Resolution No. Passed .20 - AUTHORIZING THE CITY MANAGER TO ENTER INTO A COST SHARING AGREEMENT WITH THE CITY OF COLUMBUS FOR CHANGE ORDERS ISSUED IN THE CONSTRUCTION OF THE WEST BRANCH OF THE UPPER SCIOTO WEST INTERCEPTOR SEWER. WHEREAS, the City of Dublin ("Dubl in") and the City of Columbus ("Columbus") entered into several agreements regarding the construction of the Upper Scioto West Interceptor Sewer ("USWI S"); and WHEREAS, Change Orders 10, 11 and 12 were issued with regard to Part 3 of the USWIS (also known as the West Branch of the Sewer); and WHEREAS, Columbus has proposed a cost sharing plan for these change orders; and WHEREAS, the proposal is a fair and reasonable compromise for sharing the change orders costs, NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Dublin, Ohio, 7 of the elected members concurring that: Section 1, The City Manager is authorized to negotiate and execute the attached agreement for the sharing of costs of Change Orders 10, 11 and 12 related to the construction of Part 3 of the USWIS; Section 2, This Resolution shall take effect and be in force from and after the earliest date provided by law, Passed this:3 r k day of ~ ,2004, ~ ATTEST: ~r2~ Clerk of Council I hereby certify that copies of this Ordinance/Resolution were posted in the City of Dublin in accordance with Section 731.25 of the Ohio Revised Code. City Manager 5200 Emerald Parkway · Dublin, OH 43017 Phone: 614-410-4400 · Fax: 614-410-4490 Memo CITY OF DUBLIN To: Members of Dublin City Council From: Jane S. Brautigam, City ManagU~5 .~ Date: April 27, 2004 Initiated By: Marsha I. Grigsby, Deputy City Manager/Director of Finance ":,,~ Re: Resolution No. 22-04, Authorizing the City Manager to Execute a Cost Sharing Agreement with the City of Columbus Relating to the Upper Scioto West Branch Interceptor (USWBI) SUMMARY: As City Council is aware, staff has been working with the City of Columbus with regard to a cost sharing plan for three (3) change orders that were processed during the construction of the USWBI. The change orders were primarily for delay changes that we incurred as a result of Columbus' delay in finishing its part of the USWBI. The delay in Columbus' construction of the sewer was due to unanticipated soil conditions, which caused numerous problems with the tunneling activities. An agreement has been reached that will result in Columbus paying one-half of the portions of the change orders that were a result of the delay in Columbus' construction completion, Representatives from Columbus have stated that they believe the contracts that have been executed between Columbus and Dublin related to this project would support them denying any liability on their part for the delay changes, In recognition of Dublin's historical role as a good partner and the desire to finalize this longstanding project, Columbus has agreed to pay one-half of the delay charges. Columbus and Dublin will evenly split the costs of change orders IO and II and Columbus will pay the landscaping costs included in change order 11. As a result, Dublin's Ohio Water Development Authority loan will be reduced by $642,389. This loan reduction will also result in additional savings of $306,844 in interest costs over the remaining 14 years of our loan. Columbus has recently passed legislation authorizing the execution of the cost sharing agreement. A copy of the Upper Scioto West Interceptor Sewer Change Order Agreement and Mutual Release of Claims document is attached. RECOMMENDA TION: Staff is recommending that Resolution No. 22-04 be adopted at the May 3 City Council meeting. T:\2004\034-RES-22-04 MEMO,doc UPPER SCIOTO WEST INTERCEPTOR SEWER CHANGE ORDER AGREEMENT AND MUTUAL RELEASE OF CLAIMS This Agreement, made and entered into this _ day of , 2004, by and between the City of Columbus, Ohio ("Columbus") and the City of Dublin, Ohio ("Dublin"), for the division of costs related to Change Orders 10, 11 and 12 issued in conjunction with the construction of Part 3 of the Upper Scioto West Interceptor Sewer ("USWIS"), WHEREAS, in 1993, Columbus and Dublin entered into a Sewer Service Agreement that set forth the responsibilities of Columbus and Dublin with regard to sewer construction, including that portion of the sewer known as Part 3 of the USWIS (the West Branch of the sewer); and WHEREAS, this Agreement limits Columbus' contribution on the construction of the West Branch to $3 million; and WHEREAS, the Agreement further provides that if Columbus is unable to complete its portion of the sewer on the construction schedule set forth in Section 3 of the Agreement, then the parties agree to modify the $3 million limitation as appropriate; and WHEREAS, the Agreement also states that "no increase in the amount of the Columbus contribution shall be required for any delay resulting from causes beyond the control of the City of Columbus;" and WHEREAS, in 1995, Columbus and Dublin entered into the Upper Scioto West Sanitary Interceptor Sewer Construction and Maintenance Agreement; and WHEREAS, the USWIS Agreement reiterates Columbus' $3 million cap and also states the parties will negotiate the amount of Dublin's contribution to disputed change orders after the project is completed; and WHEREAS, the original construction schedule as described in the 1993 Sewer Service Agreement was not met; and WHEREAS, pursuant to the Agreement, Columbus and Dublin have negotiated the amount each will contribute to the change order costs; and WHEREAS, Columbus has offered to pay one-half of the portions of the change orders that were a result of the delay in the construction completion; NOW, THEREFORE, in consideration of the foregoing, of the mutual promises herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties mutually agree as follows: 1. Columbus and Dublin will evenly split the costs of Change Orders 10 and 12, Each Party will pay $249,097,50 for Change Order 10 and $367,976.00 for Change Order 12, as delineated in Exhibit A (Cost Sharing Proposal), :H0399228I } 2. Columbus will pay $25,315.50 for the landscaping in Change Order 11 and Dublin will pay the remaining $277,797,50, as delineated in Exhibit A. 3. FOR GOOD AND VALUABLE CONSIDERATION, the receipt and sufficiency of which is hereby acknowledged, Columbus and Dublin, from and after the date of execution of this Agreement and Release, hereby mutually release and forever discharge each other and their elected officials, officers, directors, employees, agents, affiliates, successors and assigns, from all claims, liabilities, obligations, debts, controversies, demands, damages and causes of action in law or in equity known or unknown which they may have on the date of execution hereof against one another regarding the USWIS, Part 3, Change Orders 10, 11 and 12, except for the rights and obligations created by this Agreement. 4. All notices, reports, or other documents pursuant to this Agreement shall be sent to the Parties by facsimile and regular mail at the following addresses: City of Dublin: Jane Brautigam, City Manager 5200 Emerald Parkway Dublin, Ohio 43017 Fax: (614) 410-4490 City of Columbus: Cheryl Roberto Director of Public Utilities 910 Dublin Road Columbus, Ohio 43215 Fax: (614) 645-6141 5, This Agreement contains the entire Agreement of the parties unless otherwise stated and supersedes all prior Agreements, This Agreement shall be binding upon the parties hereto and their respective heirs, legal representatives successors, and assigns, 6, If any provisions ofthis Agreement or any application thereof shall be invalid or unenforceable, the remainder of this Agreement and any other application of such provision shall not be affected, 7, No failure by either party to insist upon the strict performance by the other of any term or condition of this Agreement or to exercise any right to remedy contingent upon a breach thereof shall constitute a waiver of any such breach or of such term or condition of this Agreement and the term or condition shall continue in full force and effect with respect to any then existing or subsequent breach. 8, This Agreement shall be interpreted according to the laws of the State of Ohio, regardless of its place of execution, Any actions, suits or claims that may arise pursuant to this Agreement shall be brought in a court of competent jurisdiction in the State of Ohio : H0399228, 1 i IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly authorized representatives on the date hereinbefore indicated, THE CITY OF DUBLIN By: Date Jane Brautigam City Manager Approved as to Form: By: Stephen J, Smith, City Attorney THE CITY OF COLUMBUS By: Date Cheryl Roberto Public Utilities Director Approved as to Form: By: City Attorney {H0399228,1 } EXHIBIT A Upper Scioto West Interceptor Sewer Part 3 City of Dublin RFPs Cost Sharing Proposal Shaft 11 Shaft 12 Change Total Landscaping Landscaping Columbus' Dublin's RFP Order Amount Amount Amount Portion Portion 28 10 $498,195,00 - - $249,097,50 $249,097.50 29 11 $303,113.00 $18,317,00 $13,997,00 $25,315,50 $277,797.50 30 12 $735,952.00 - - $367,976.00 $367,976,00 Totals $642,389.00 $894,871,00 Remarks: Columbus and Dublin evenly split RFPs 28 and 30, For RFP 29, Columbus pays all of Shaft 11 Landscaping Amount and evenly splits Shaft 12 Landscaping Amount with Dublin, The remainder of RFP amount is Dublin's responsibility, RFPs Shared Portions WKG 12/9/03 Page 1 of 1