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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' ww~ Lcit~fD-fiorlal~e. corn 1 l:\f')~rnl,nfl~nn\~treet ~y~.~,~i\~.3~ ~ Five ~rl~lwk~l\A~t~afla ltern~\A~end~ fin~r.n~?nent.dnc. 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