HomeMy WebLinkAboutR-2021-138 Resolution authorizing Change Order #7 - Claim Resolution with Halme Construction, Inc. for the Bravo Company Blvd. MSW and Wood Debris Removal project LF2529A RESOLUTION
RESOLUTION NO. R-2021-138
authorizing Change Order #7 — Claim Resolution with Halme
Construction, Inc. for the Bravo Company Blvd. MSW and Wood Debris
Removal project LF2529
WHEREAS, Halme Construction, Inc. was selected as the contractor for the Bravo
Company Blvd. Municipal Solid Waste and Wood Debris Removal project (LF2529); and
WHEREAS, Halme Construction, Inc. filed a claim against the City requesting sales tax
on items used in the contract in the amount of $117,305.66 be paid by the City; and
WHEREAS, Halme Construction, Inc. was preparing to file another claim against the
City for extra work performed due to common borrow compaction issues in the amount of
$124,576.08; and
WHEREAS, due to a dispute over some of the claims made by Halme Construction, Inc.,
the City of Yakima suggested non -binding mediation in an effort to work through and settle
Halme's claims, and Halme Construction, Inc. accepted mediation as a method to address its
claims; and
WHEREAS, during mediation, both parties agreed that the payment of $100,000 to
Halme Construction, Inc.. would forever resolve both the sales tax claim and the potential claim
for extra work due to common borrow compaction issues; and
WHEREAS, the City Council of the City of Yakima finds that it is in the best interests of
the City of Yakima and its residents to proceed with issuing Change Order #7 — Claim
Resolution to address the two claims of Halme Construction, Inc. with regards to the wood
debris removal project; now, therefore
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
The City Manager is hereby authorized to execute Change Order #7 — Claim Resolution
between the City of Yakima and Halme Construction, Inc., attached hereto and incorporated
herein by this reference, in the amount of One Hundred Thousand Dollars ($100,000) for City
Project No LF2529.
ADOPTED BY THE CITY COUNCIL this 19th day of October, 2021.
A l I EST:
Sony C
aar Tee, City Clerk
Patricia Byers, ayor
Project (Name)
(Number)
To: (Contractor)
City of Yakima
Change Order Number
Bravo Co_ Blvd, MSW & Wood Debris Removal Change Order Date 9/28/21
LF2529 Contract Number LF 2529
Contract Date 10/20/2020
Halme Construction, Inc
8727 W. Hwy 2 #100
Spokane, WA 99224
Change Order
7
You are directed to make the following changes in thlsC ontract:
This Change Order resolves the claim related to Equitable Adjustment for Sales Tax Liabilities, and the request for Equitable
Adjustment for Extra Project Work Due to Common Borrow Compaction, The City and Halme Construction entered formal
Mitigation on 9/27/21regarding the two issues. A settlement was reached providing Halme Construction a $100,000 payment
to be administered via a change order. See the CR2A attached for details regarding the settlement.
Not valid until signed by both the Approving Authority and Contractor.
Signature of the Contractor indicated agreement herewith, including any adjustment on the Contract Sum or Contract Time.
The origin& Contract Sum was
Net change by previous Change Orders
The Contract Sum prior to this Change Order $
The Contract Sum will be: ii Increased 0 Decreased 0 Unchanged by this Change Order $
'Tile New Contract Sum including this Change Order will be $
The Contract Time will be: 0 Increased 0 Decreased 0 Unchanged by zero
The New Contract Time will be NIA working days
Contra
By
Title Risk Manager
ate 10-06-21
Based on
DOT Form 570-001 EF
Revned 08/2021
Original to:
0 Contractor
Approval Recommended
Construction Supervisor
Date
13,108,132
588,989.53
13,697,121 53
100,000
13,797,121,53
working days
Approvi men.$d
Date
Approv
ity Man
By
Date ID alD „
Copies to: 0 Region 0 Construction Administrator
OSC Accounting 0 City Engineering CITY CONTRACT NO:
RLSOLUTION NO: k`
1
ITEM TITLE:
SUBMITTED BY:
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEM ENT
Item No. 4.M.
For Meeting of: October 19, 2021
Resolution accepting Change Order No. 7 to City contract 2020-
122 with Halme Construction, Inc. for Municipal Solid Waste
Project LF2529
Scott Schafer, Public Works Director
Bill Preston, City Engineer - (509) 575-6754
SUMMARY EXPLANATION:
Sales tax is typically included in the contractor bid item unit prices on construction projects.
Halme Construction, Inc did not include this with their bid price and therefore requested that the
City pay approximately $112,000 in sales tax for certain bid items identified in the plans pertaining
to the City's Municipal Solid Waste Cleanup project at the former Mill Site. The city engineer
denied their request. Halme Construction, Inc. then filed a claim against the City for the sales tax.
In addition, Halme Construction, Inc. requested that the City pay approximately $125,000 for
additional work they had to do because of compaction issues related to common borrow. The
city engineer evaluated the project documentation and denied their request. Halme Construction,
Inc. notified the City that they would be filing a claim regarding this issue as well.
The city engineer and Halme Construction, Inc. agreed to non -binding mediation in an effort to
resolve the dispute. Mediation was successful and Change Order 7 - Claim Resolution, provided
a settlement payment of $100,000 for both claims eliminating the need for arbitration.
ITEM BUDGETED: Yes
STRATEGIC PRIORITY: Economic Development
APPROVED FOR SUBMITTAL BY THE CITY MANAGER
RECOMMENDATION:
Adopt Resolution
ATTACHMENTS:
Description Upload Date Type
2
D reso 10/8/2021 Cotter Memo
D Change Order 7 10/4/2021 Backup Material
D Email from Attorneys 10/6/2021 Backup Material