HomeMy WebLinkAbout5E - Village Lake Drive Maintenance Center
17073 Adelmann Street S.E.
Prior Lake, Minnesota 55372
CITY COUNCIL AGENDA REPORT
DATE:
AGENDA #:
PREPARED BY:
AGENDA ITEM:
May 16, 2005
5E
Bud Osmundson, Director of Public Works
CONSIDER APPROVAL OF A RESOLUTION APPROVING CHANGE ORDER NO. 3 AND
AUTHORIZING FULL AND FINAL PAYMENT TO S.M. HENTGES & SONS, INC. FOR
THE VILLAGE LAKE DRIVE STREET AND UTILITY IMPROVEMENTS, PHASES 1 & 2,
CITY PROJECT No's. 01-01 and 02-06
DISCUSSION:
HISTORY
On February 17, 2004 the City Council awarded a contract to S.M. Hentges & Sons, Inc. for
the Village Lake Drive (formerly the Ring Road) Phases 1 & 2 Street and Utility
Improvements Project, City Project No's. 01-01 and 02-06. Phase 1 is the segment of
Village Lake Ddve from Toronto to just west of Duluth Avenue. Phase 2 is the segment of
Village Lake Drive from TH 13 to Duluth (formerly 170th St.) and included the CH 23
improvements up to and including the new signal light on TH 13. Phase 2 also included the
improvements to Five Hawks north of TH 13 including the overlay to Priorwood Street.
Phases 1 & 2 were combined into one bid package and contract.
The original contract amount was $2,948,534.02. Two Change orders in the amount of
$29,575.97 were approved for a total contract amount of $2,978,109.99. Change Order No.
3 is included with this final payment request in the amount of $60,600.28. Due to quantity
over-runs, the final contract amount is $3,490,363.56 or 18% over the original amount. 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 covered under the project
warranty.
ISSUES
The full and final payment is significantly more than the original contract amount. The
majority of the difference is due to an over run in removal and replacement of unsuitable
construction soils and replacement with granular materials. This included the correction of
the building pad under the former Thrift Store site. The soils correction and replacement
were all verified by surveying and/or receipt of truck tickets. Below is a summary of each
change order and the explanations for them:
· Change Order No. 1 included the debris removal under the new road on the Thrift
Store site. The debris included old buildings (including asbestos), cars, and street
materials that required sorting prior to delivery to numerous landfill sites which was
very expensive.
· Change Order No. 2 included trench excavation for private utility crossings of the
roadway that was unknown to all parties prior to opening up the roadways, and
unforeseen issue.
· Change Order No. 3 consists of a number of unrelated items including'
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Phone 952.440.9675 / Fax 952.440.9678
FISCAL IMPACT:
ALTERNATIVES:
RECOMMENDED
MOTION:
REVIEWED BY:
1. The clearing and grubbing for the creation of additional pond area in the regional
pond which benefits the area and Prior Lake by holding back more water than
originally calculated.
2. The 3" rock was required to stabilize the poor soils to allow us to construct the
former 170th Street and Tower Streets, after additional removal of unsuitable soils
had taken place and prior to the installation of granular borrow.
3. The tile drainage system was necessary to be installed and/or reinstalled along
Duluth to intercept underground springs and to stabilize the soils for utility and
street installation.
Overall the additions were necessary to construct the roadway and to allow the contractor to
continue the construction without delay which would have added to the City costs. In
addition, buildable lots were created on city owned properties with the soils corrections.
CONCLUSION
It is staff's recommendation to approve the final payment as requested.
The final payment amount of $241,315.89 brings the revised contract amount to
$3,490,363.56 which is $541,829.54 over the original awarded contract amount. This
equates to 18% of the original contract cost. Funding for this amount is available in the
Construction Fund. $34,000 of the cost overruns is attributable to Scott County for work
within the CH 23 roadway. Municipal State Aid funds will cover the remaining overrun
construction costs.
There are three alternatives for the City Council to consider:
1. Approve a Resolution approving Change Order No. 3 and authorizing full and final payment
to S.M. Hentges and Sons, Inc. for the Village Lake Drive Street and Utility Project.
2. Deny this item for a specific reason and provide staff with direction.
3. Table this item until some date in the future.
~e No. 1.
Frank Boy~~ly I~nager
U:\Osmundson~Street System~23 & Five Hawks~.genda Items~S, genda final payment.doc
Maintenance Center
17073 Adelmann Street S.E.
Prior Lake, Minnesota 55372
RESOLUTION 05-XX
RESOLUTION APPROVING CHANGE ORDER NO. 3 AND AUTHORIZING FULL AND FINAL
PAYMENT TO S.M. HENTGES & SONS, INC. FOR THE VILLAGE LAKE DRIVE STREET AND UTILITY
IMPROVEMENTS, PHASES 1 & 2, CITY PROJECT NO.'S 01-01 AND 02-06
MOTION BY:
SECOND BY:
WHEREAS, S.M. Hentges & Sons, Inc. of Jordan, Minnesota was awarded the contract for the
Village Lake Drive Street and Utility Improvements, Phases 1 & 2, City Project No.'s 01-
01 and 02-06 in the amount of $2,948,534.02, and
WHEREAS, The contract amount was increased by $29,575.97 for Change Order No. 1 and
No. 2, and
WHEREAS, The contract amount is proposed to be increased by $60,600.28 for Change Order
No. 3 consisting of additional clearing, flotation silt curtain system, additional 3" rock
support, and drain tiling system, and
WHEREAS, As a result of quantity over-runs mainly for muck removal, unsuitable soils
removal, granular soil replacement, and temporary signage, the contract amount was
increased by $451,653.29 to a total of $3,490,363.56, and
WHEREAS, S.M. Hentges & Sons, Inc. has in all respects completed the contract for the
referenced Project, and
WHEREAS, The Public Works Director recommends acceptance of the project and Final
Payment of the contract.
NOW THEREFORE,
MINNESOTA,
BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
1. The recitals set forth above are incorporated herein.
2. Change Order No. 3 in the amount $60,600.28 is hereby approved.
3. Full and final payment is hereby authorized to be made to S.M. Hentges and Sons,
Inc. in the amount of $241,315.89 for the total contract amount of $3,490,363.56 for the
Village Lake Drive Street and Utility Improvements, Phases 1 & 2, City Project No.'s 01-
01 and 02-06.
www.citvofpriorl,ake.com
....................... ~ ....................... ~ -- _ ~ · ~
Phone 952.440.9675 / F~ 952.440.9678
Passed and adopted this 16th day of May, 2005.
YES NO
Haugen Haugen
Fleming Fleming
LeMair LeMair
Petersen Petersen
Zeiska Zeiska
Frank Boyles, City Manager
U:\Osmundson~Street System~23 & Five Hawks~genda Items~genda final payment.doc