HomeMy WebLinkAbout5B Sunset Ave Final Payment - Chard Excavating 6001YRZO4646 Dakota Street SE
Prior Lake,MN 55372
CITY COUNCIL AGENDA REPORT
MEETING DATE: JULY 13, 2015
AGENDA#: 5B
PREPARED BY: SENG THONGVANH, PROJECT ENGINEER
PRESENTED BY: LARRY POPPLER, CITY ENGINEER/ INSPECTIONS DIRECTOR
AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING FULL AND FI-
NAL PAYMENT TO CHARD TILING & EXCAVATING FOR THE SUNSET AV-
ENUE IMPROVEMENT PROJECT (CITY PROJECT#TRN13-000001)
DISCUSSION: Introduction
The purpose of this item is to authorize full and final payment for the Sunset Av-
enue Improvement Project. This project included installation of storm sewer,
sanitary sewer, watermain, lift station, and reconstruction of the street.
History
On August 12, 2013 the City Council awarded a construction contract to Chard
Tiling & Excavating for the Sunset Avenue Improvement Project#TRN13-000001.
All work under the contract has been completed in accordance with the contract.
All punch list items have been completed and any additional repairs will be cov-
ered under the project warranty.
Current Circumstances
The final payment amount is $18,020.67. With this payment, the total final con-
tract amount paid to Chard Tiling will be$839,472.04. This amount is$103,933.18
less than the original contract amount of $943,405.22. The amount includes a
$39,000 deduct for compromised settlement reached with Chard Tiling for not
meeting the substantial completion date for the project. Additional savings were
realized with use of less material and minimization of construction zone impacts.
Conclusion
Although Chard Tiling did not meet the substantial completion date for the project,
they delivered a quality project, under budget, and addressed all the outstanding
work items. It is appropriate to provide full and final payment at this time.
ISSUES: The final project support costs computations have not yet been completed. How-
ever, it is estimated that there is approximately $25,000 remaining, which should
be sufficient to cover staff time for project as-built and close out.
It is typical that projects are within 5% over or under the project budget. In this
case the project came in 11% under the project budget due to field adjustments
which reduced impacts but also due to the $39,000 compromised settlement
agreement. The City Council should provide direction on whether reassessment
should be considered. If reassessment was pursued it would provide a credit to
the property taxes of those properties within the original assessment. It would
also increase the tax levy contribution on the project from the tables below, how-
ever the tax levy portion of the project budget would still be under the project
budget. Historically, the City has not reassessed on these types of projects
whether the amount charged was determined to be higher or lower than the orig-
inal computation.
In this project, due to the larger than normal difference from the original budget,
the City Council may wish to review this project for reassessment. City Staff rec-
ommends review of this project for reassessment. The approving resolution in-
cludes direction to have the Assessment Review Committee review this project
for reassessment.
FINANCIAL Funding for the final payment is available in the Construction Fund for this project.
IMPACT: The final project costs are as follows which includes above referenced remaining
project support costs:
Construction Contract $839,472.04
Engineering, Legal, Admin $285,423.17
Project Cost $1,124,895.21
The original budget for this project was $1,273,313.39.
Funding of this project is proposed on the table below:
FUND AMOUNT
Special Assessment $798,786.84
Tax Levy $205,643.37
Trunk Fund $1,962.00
Clean Water Grant $118,503.00
ALTERNATIVES: 1. Approve a resolution authorizing full and final payment to Chard Tiling & Ex-
cavating for the Sunset Avenue Improvement Project#TRN13-000001 and di-
recting the staff to arrange for Assessment Review Committee review of the
reassessment question.
2. Deny this item for a specific reason and provide Staff with direction.
3. Table this item until some date in the future.
RECOMMENDED Motion and second as part of the consent agenda to approve alternative#1.
MOTION:
2
Oi PR/04
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4646 Dakota Street SE
41. sotr. Prior Lake,MN 55372
RESOLUTION 15-xxx
A RESOLUTION AUTHORIZING FULL AND FINAL PAYMENT TO CHARD TILING & EXCAVATING
FOR THE SUNSET AVENUE IMPROVEMENT PROJECT (CITY PROJECT#TRN13.000001)
Motion By: Second By:
WHEREAS, Chard Tiling of Belle Plaine, Minnesota was awarded a contract in the amount of$943,405.22
for the Sunset Avenue Improvement Project, City Project#TRN13-000001; and
WHEREAS, Chard Tiling has in all respects completed the contract work for the Sunset Avenue Improvement
Project, and
WHEREAS, The City Engineer recommends acceptance of the project and Final Payment of the contract.
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA as follows:
1. The recitals set forth above are incorporated herein.
2. Full and final payment is hereby authorized to be made to Chard Tiling in the amount of$18,020.67 for
the total contract amount of$839,472.04 for the Sunset Avenue Improvement Project, City Project
#TRN13-000001.
3. Funding for the final payment shall come from the Construction Fund Account#501-43500.00-
55010.00-TRN 13-000001.
4. Any additional project support costs will be paid from the Construction Fund Account#501-43500.00-
55010.00-TRN 13-000001.
5. The Assessment Review Committee is hereby directed to review this project for reassessment due to
larger than normal project savings.
PASSED AND ADOPTED THIS 13th DAY OF JULY 2015.
VOTE Hedberg Keeney McGuire Morton Thompson
Aye ❑ ❑ ❑ ❑ ❑
Nay ❑ ❑ ❑ ❑ ❑
Abstain ❑ ❑ ❑ ❑ ❑
Absent ❑ ❑ 0 0 ❑
Frank Boyles, City Manager