Marengo pays contractor for idle hours

MARENGO — Eric Gould of Veenstra & Kimm Engineering recommended Nov. 13 that the City of Marengo pay a change order for nearly $20,000 after construction on East May Street was delayed by the Department of Natural Resources.

During the May Street improvement project, Dave Schmitt Construction had to stop work when it found an underground fuel tank near the intersection of May Street and Court Avenue while excavating for the storm sewer Aug. 1.

Alliant Energy’s fiber conduit was protruding through the abandoned fuel tank, according to a letter from Gould.

The Iowa DNR made the city stop all work until testing could be done and cleanup completed, the letter said.

IDNR environmental specialist Lisa Niedermayer advised the city to halt work on the project and provided the city with a list of ground water professionals who could help navigate the state’s requirements for removing and documenting the tank.

Schmitt submitted two proposals to the city. The company could stay on site and charge the city for downtime for the pumps, workers and equipment or Schmitt could leave until the issue was resolved.

The city decided to keep the contractor on site rather than sending him away to another job.

After three days, the DNR said the contractor was free to work in another area of the project.

The city hired Eco Source to perform soil tests, review the conditions, direct tank removal and submit the required report to IDNR. The cost of Eco Source’s work was $3,800

Schmitt was idle for 3 1/2 days. The contractor asked for $18,730, $2,281 per day for the pumps and $3,070 per day for the workers and equipment and for hauling contaminated dirt off site per Eco Source at a cost of $2,000/LS for $1,807.

The total project cost increase is $20,537.

Councilman Travis Schlabach voted no Nov. 13 to paying the extra $20,000. He said $2,200 a day for an electric sump pump is too much, as is $3,000 a day for three guys.

Gould said Schmitt had five employees on site.

“I just think it’s too high. It just seems extreme to me,” said Schlabach. “It’s $2,200 a day.”

“This was the best option of the three,” said Gould. “That’s what they said the cost was.”

Gould said $20,000 is reasonable.

“If we don’t pay and they don’t like it, they can sue us,” City Attorney Gage Kensler said.

“Bring me a reasonable cost,” Schlabach said.

“Who’s to say what’s reasonable,” Marengo City Administrator Karla Marck asked Schlabach.

“I don’t really feel like getting sued,” said Councilman John Hinshaw.

“It wasn’t the contractor saying stop the project,” said Kenseler. “It was DNR.” Good luck getting money out of them, he said.

Council members Hinshaw, Bill Kreis and Jennifer Olson voted to approve the change order. Councilwoman Karen Wayson-Kisling was absent.

According to Gould, the total cost of disposing of the UST regulated tank was $24,337. James Gastineau suppled the city with UST Closure Claim form Aug. 7 that the city can use to apply for funding of up to $15,000 to help with the cost of the tank.

The council approved a change order for $5,556 for additional labor, material and equipment to repair the sewer in the alley near Court Avenue.

The council agreed to pay Dave Schmitt Construction $212,920 for work completed from Aug. 29 through Oct. 4. V & K issued a certificate of completion on the project. The final amount of the contract is $522,965, well over the budgeted $485,000.

Schlabach again voted no.

Phase 2 of the May Street project consists of cementing May Street, said Gould. V & K has already completed preliminary engineering, he said.

V & K has to get permits and then it can bid the project, Gould said. The city will also need to buy wetland credits.

Marck said the city should receive its grant funds for the project in December or January.