HomeMy WebLinkAbout5J Final Payment to Shaw Lundquist Associates for Construction of Police Station and City Hall\3 I10 VIV, l
4646 Dakota Street SE
Prior Take_ MN 55372
CITY COUNCIL AGENDA REPORT
MEETING DATE: JUNE 20, 2011
AGENDA #: 51
PREPARED BY: JERILYN ERICKSON, FINANCE DIRECTOR
PRESENTED BY: JERILYN ERICKSON, FINANCE DIRECTOR
AGENDA ITEM: CONSIDER APPROVAL OF FINAL CONTRACT PAYMENT TO SHAW -
LUNDQUIST ASSOCIATES INC FOR CONSTRUCTION OF THE POLICE STA-
TION AND CITY HALL
DISCUSSION: Introduction
The purpose of this agenda item is to approve the final contract payment to Shaw -
Lundquist Associates for the City Hall & Police Station project.
History
The original contract was awarded to Shaw - Lundquist Associates Inc on Septem-
ber 19, 2005 in the amount of $10,579,700 plus $578,100 for alternates for con-
struction of the Police Station and City Hall facilities. Total original contract was
$11,157,800.
Change orders to the Shaw - Lundquist contract were approved as follows:
Change Order
Amount
Date Approved
#1
$125,000.00
12/19/2005
#2
34, 088.00
04/03/2006
#3
12, 582.00
06/26/2006
#4
23,055.00
09/05/2006
#5
61, 671.00
12/04/2006
#6
37, 997.00
11/05/2007
#7
21,641.00
05/05/2008
Total
$247,858.00
Generator Credit received in 2008 — ($6,500.00)
Amended Contract Amount = $11,399,158.00
Payments in the amount of $11,358,158.00 have been approved by the City
Council. The remaining balance on the contract is $41,000.00. This includes all
retainage held by the City.
Current Circumstances
Over the past two years, City Staff have worked with Shaw - Lundquist and Wold
Engineering to rectify problems with the City Hall chiller and air infiltration at City
Hall and the Police Station.
Following the repair of a leak in the City Hall chiller, glycol was added to the sys-
tem at a cost of $8,859.00. This cost was paid by the City but will be deducted
from the remaining retainage for Shaw - Lundquist.
The City hired Encompass to conduct a forensic investigation on the air infiltration
problems through the windows to come up with a solution as well as determine
who was responsible for the problem. The original bid for these services was
$9,465.00. Shaw - Lundquist and Wold Engineering agreed that whoever was de-
termined to be at fault (installation vs. design) would be responsible for the En-
compass bill. The results showed that the air infiltration was due to substandard
installation; therefore, Shaw - Lundquist is responsible for this bill. An additional
meeting was requested by Shaw - Lundquist to address the recommended solu-
tions. City Staff agreed to split the cost of this meeting ($1,114.48) with Shaw -
Lundquist. A total of $10,022.24 will be deducted from the remaining retainage for
Shaw - Lundquist.
The remaining retainage will be adjusted as follows:
Retains a balance
$ 41,000.00
Less: Glycol
$ 8,859.00
Less: Encompass services
$ 9,465.00
Less: 50% of additional meeting with
Encompass
($ 557.24)
Adjusted Retains a Balance
$ 22,118.76
Conclusion
A summary of activity for the Police Station and City Hall project is as follows:
Revenues:
Bond Proceeds
$ 10,000,000
Transfer from General Fund
3,283,639
Transfer from Utility Fund
250,000
Property Taxes — Debt
237,807
Transfer from Water Quality Fund
57,000
Miscellaneous Revenues
39,021
Interest Earnings*
598,728
Total Revenues Available
$ 14,466,195
Expenditures:
Project expenses paid $ 14,092,288
Debt Payment 255,774
Project expenses to be paid 22,119
Total Expenditures $ 14,370,181
Projected Savings $ 96,014
*Interest earnings are reflected through May, 2011.
Staff anticipates that there will be a savings of $96,014.00 from the Police Station
and City Hall project after all expenditures have been paid.
ISSUES: Aside from the chiller and air infiltration issues (which have been resolved) this
project has proceeded as planned.
The City and its citizens have a durable, dependable and aesthetically - pleasing
buildings to provide public safety and general services from for decades to come.
FINANCIAL The original contract amount with Shaw - Lundquist was $ 11,399,158.00 including
IMPACT: seven change orders and a generator credit. After subtracting the additional costs
for addressing the chiller and air infiltration issues, the remaining balance due (in-
cluding retainage) on this contract is $22,118.76.
ALTERNATIVES: 1. Approve final payment.
2. Take no action and provide staff with direction.
RECOMMENDED Alternative #1.
MOTION: