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HomeMy WebLinkAbout10-24-16 CC Mtg - C11. MDT Payment Agreement for S. 19th Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Craig Woolard, Public Works Director SUBJECT: MDT Payment for Mill and Overlay Costs on S. 19th Ave. MEETING DATE: October 24, 2016 AGENDA ITEM TYPE: Consent Agenda RECOMMENDATION: Approve payment of $17,201.20 to the Montana Department of Transportation (MDT) for additional costs incurred during the S. 19th Ave. mill and overlay project. BACKGROUND: MDT’s South 19th Ave project (UPN 8033000) included mill and overlay pavement rehabilitation from Kagy Boulevard to Stucky Road. MDT’s contract specified that the extent of the mill and overlay in this section would be restricted to the travel lanes, leaving the shoulder pavement in place. As a separate, independent project, S. 19th Ave. was being widened at Graf Street as part of the project related improvements for the Yellowstone Center (a.k.a., Yellowstone Theological Institute) designed and managed by Madison Engineering. Completion of MDT’s mill and overlay project, as contracted, would have left an approximately 1,400 ft. strip of aged shoulder pavement, approximately 18 in. wide, in place between the new turn lanes constructed for the Yellowstone Center and the MDT mill and overlay project. MDT stated that they could not modify their contract to complete the mill and overlay project to remove the shoulder strip and they would not be responsible for any costs incurred outside the scope of their project. My opinion was that failure to remove the strip of aged shoulder pavement would result in a long term maintenance issue and compromised the performance of S. 19th Ave. On August 16th, just before milling work was scheduled to be completed on the MDT project, I directed MDT to have their contractor complete, at the City’s expense, the mill and overlay project to remove the shoulder strip so that the roadway, including the Yellowstone Center improvements, could be repaved, chip sealed and striped as one continuous unit. It was my opinion at the time that this was the best option for completing the project and maximizing the longevity of the improvements to S. 19th Ave. The attached payment agreement and cost summary detail the project scope and requested payment. Costs include direct costs for materials and labor associated with milling, paving, sealing and striping the roadway as well as traffic control and MDT indirect costs. 137 UNRESOLVED ISSUES: None ALTERNATIVES: As suggested by the City Commission. FISCAL EFFECTS: Staff recommends payment out of the Street Maintenance Fund. Attachments: Draft Letter re: Payment Agreement Additional Work 138 Page 1 of 2 September 13, 2016 Craig Woolard, P.E. City of Bozeman - Director of Public Works P.O. Box 1230 Bozeman, MT 59715 Subject: Payment Agreement for Additional Costs to MDT Project South 19th Ave-Kagy to Stucky, UPN 8033000, Due to Widening of South 19th Avenue Associated with the Yellowstone Theological Institute Project Mr. Woolard, Upon receipt and return of this signed document, the Montana Department of Transportation (MDT) agrees to include additional milling, paving, seal/cover, pavement marking, and associated additional traffic control work into MDT’s existing project South 19th – Kagy to Stucky, UPN 8033000, to address the widening on South 19th Avenue associated with the Yellowstone Theological Institute development. The work added to MDT’s project will result in additional project costs, which the City of Bozeman has previously verbally agreed to pay to MDT. The information below describes the responsibilities associated with this agreement. Responsibilities: 1. The Yellowstone Theological Institute will widen South 19th Avenue at the intersection with Graf Street to mitigate traffic impacts to the transportation system. The pavement widening (but not the seal and cover) has already been completed by YTI’s contractor. 2. MDT’s South 19th Ave – Kagy to Stucky (UPN 8033000) project is underway presently. MDT’s project limits include the South 19th / Graf intersection. MDT will add chip seal, cover, paving (for the shoulder area between the MDT project and the completed YTI widening) and pavement marking for the additional roadway width constructed by the Yellowstone Theological Institute into the scope of the MDT project. 3. To cover the cost of the additional work for MDT’s change in project scope and materials, the City of Bozeman shall provide MDT payment. An initial invoice will be sent to the City upon a signed agreement based on the estimated costs prepared (see attached). The estimated amount is $17,201.20 plus IDC. This is a cost estimate and a 139 Page 2 of 2 final invoice will be sent that is based on actual costs upon the completion of MDT’s project. It is understood and agreed between the parties that: Section 17-1-106. MCA requires any state agency, including MDT that receives non-general funds to identify and recover its indirect costs. These costs are in addition to direct project costs. MDT’s indirect cost rate is determined annually as a percentage of the project’s direct costs to cover the projects share of MDT’s indirect costs as defined by 2 CFR Part 200, Appendix VII. MDT’s current indirect cost rate is 10.97% for fiscal year 2017 (July 1, 2016 to June 30, 2017). For this project, MDT billings to the City will include a charge for the indirect costs at the current fiscal year indirect cost rate, which amount will be applied toward the total project contribution of the City. If this project extends across more than one fiscal year, more than one annual rate will be involved, as the rates may change during the life of the project. Signature: Date: Printed Name: Title: If you have any questions in regards to MDT’s project or this agreement letter, please contact me at (406) 494-9625. Sincerely, Jeff Ebert, Butte District Administrator Montana Department of Transportation Copies: Jim Skinner, MDT Policy, Program and Performance Analysis Bureau Chief Kim Doherty, MDT Accounting Systems Operations Section File 140 LINE ITEM 9031 0030 0060 0040 0080 TOTAL DOLLAR AMOUNT FOR ADDITIONAL WORK: The Cover Type 2 area includes the 925 square yards of additional to match the new asphalt and the area that Madsion Engineering provided. QUANTITY 925 ITEM DESCRIPTION PROP LINE NO.ITEM CODE UNIT TYPE UNIT PRICE COLD MILLING 9031 411010000 SQUARE YARD $1.43 TOTAL DOLLAR South 19th Additional Work $1,322.75 $7,540.00 COVER-TYPE 2 0160 409000020 SQUARE YARD $0.50 6050 COMMERCIAL MIX-PG 70-28 0130 401020021 TON $58.00 130 $3,025.00 EMULSIFIED ASPHALT CRS-2P 0140 402020368 TON $385.00 12 $4,620.00 $693.45 $17,201.20 TRAFFIC CONTROL 0400 618030005 UNIT $0.67 1035 141