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HomeMy WebLinkAbout9E - Parking Restrictions on Duluth Ave STAFF AGENDA REPORT DATE: AGENDA #: PREPARED BY: APRIL 20, 1998 9F GREG ILKKA, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER CONSIDER APPROVAL OF: 1) CHANGE ORDER NO. 3 TO THE CONTRACT FOR NORTHWOOD ROAD; AND 2) RESOLUTION 98-XX AUTHORIZING FINAL PAYMENT TO VALLEY PAVING, INC. FOR CONSTRUCTION OF NORTHWOOD ROAD, CITY PROJECT 94-02. AGENDA ITEM: DISCUSSION: H/STORY In 1996, the City entered into a contract with Valley Paving, Inc., to reconstruct Northwood Road. As of the fall of 1997 all work under the contract has been completed in accordance with the contract. In December of 1997, the Project Engineer with Howard R. Green Company (formerly MSA Consulting) prepared the Final Pay Estimate and forwarded it to the Contractor for signature. The Contractor signed the Estimate, but qualified his signature and included a letter of explanation, a copy of which is attached. The Contractor is now claiming there is an outstanding issue of Extra Work that he. insists be compensated. The issue involves the spreading of topsoil on the boulevards and yards of the project. The problem stems from the contract which required the Contractor to salvage the existing topsoil. Meaning he was to remove it, stockpile it, and when the grade was ready, spread it in preparation for seed or sod. The problem arose in July of 1996 when the Contractor was spreading the salvaged topsoil and the residents along the project raised concerns about the quality of the material being spread. They expected "blackdirt" and not the salvaged topsoil, which was of considerably less quality. It was arranged that the City would deliver the "blackdirt" and the Contractor would spread it. It is not clear whether or not the Acting City Engineer knew the Contractor 162uu.ta~~ Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER expected to get paid for this work. The Contractor claims the "agreement" was he would get paid for the equipment time at an hourly rate and not charge overhead and profit for this work. The City's inspector on the project was not aware of any "agreement". According to the City's Purchasing Policy, the issue should have been brought back to the City Council for consideration. Unfortunately, this "agreement" was not formalized by a change order. As outlined in the Contractor's letter, he is claiming $8,059.00 worth of equipment time to spread this material. CURRENT CIRCUMSTANCES Staff has attempted to negotiate this issue with the Contractor but he refuses to move off of his $8,059.00 figure. The Contractor has requested a partial payment of the moneys he is due while this issue is resolved. Staff would prefer to resolve the issue unilaterally and Final the contract. The Contractor can then make whatever claims he desires. It is staffs opinion that because the contract required the Contractor to salvage the topsoil, the cost to spread the topsoil once should have been in his bid and therefore would be covered under the contract regardless if it was salvaged topsoil or City supplied "blackdirt". Therefore, Extra Work would only have been performed if the Contractor had already begun spreading the salvaged topsoil and had to return to these areas to spread the "blackdirt". The question is: Did we require him to do the work twice? To determine this, staff reviewed the documentation the Contractor supplied to justify his case and the City Inspector's Daily Reports. Based upon this review, it is staffs opinion that the Contractor spent about 2-3 days worth of equipment time spreading topsoil before the City supplied the first loads of "blackdirt". From the documentation a pretty good case could be made that he did incur Extra Work for this time period. This equipment time amounts to approximately $2,597 based on the information supplied by the Contractor. ISSUES Did the Acting City Engineer have the authority to make any "agreements" regarding this issue? Under City policy, no. Clearly the issue should have gone to the Council for VPFINAL.DOC ( " FISCAL IMPACT: ALTERNATIVES: VPFINAL.DOC consideration if it was clear to him that the Contractor expected compensation for the equipment time. From the Contractor's perspective, he has a right to believe that the City representatives he is dealing with, in the absence of any indications to the contrary, have some authority to make decisions or obligate the City. The Contractor should not be penalized for the failure of a City Employee to follow-up with the City Council. CONCLUSION Based on current staff's review of the documentation, it would be our recommendation to approve compensation for Extra Work for spreading "blackdirt" in the amount of $2,597, Final the contract, and make the Contractor file a claim for anything additional he desires. Including approved changes to date, the total contract for Northwood Road stands at $882,191.80. The Final Contract amount is currently at $840,834.19. If Change Order No. 3 is approved the Final Contract amount would be $843,431.19 which is $38,760.61 less than the total approved contract amount. To provide the Council the option of approving or disapproving Change Order NO.3 two resolutions have been prepared for consideration. Resolution 98-XX(A) approves Change Order NO.3 and final payment on the contract in the amount of $62,012.45 for a Final Contract amount of $843,431.19. Resolution 98-XX(B) does not provide for approval of Change Order No.3, it approves final payment on the contract in the amount of $59,415.45 for a Final Contract amount of $840,834.19. There are four alternatives for the City Council to consider: 1. Approve Change Order NO.3 to the Contract to Construct Northwood Road and Approve Resolution 98-XX(A) Authorizing Final Payment to Valley Paving, Inc. 2. Deny Change Order NO.3 to the Contract to Construct Northwood Road and Approve Resolution 98-XX(B) Authorizing Final Payment to Valley Paving, Inc. RECOMMENDED MOTION: REVIEWED BY: VPFlNAL.DOC 3. Deny this item for a specific reason and provide staff with direction. 4. Table this item until some date in the future. A motion and second to Approve Change Order No.3 to the Contract to Construct Northwood Road and Approve Resolution 98-XX( Authorizing Final Payment to Valley Paving,lnc ru RESOLUTION 97 -XX(A) RESOLUTION AUTHORIZING FINAL PAYMENT TO VALLEY PAVING, INC. FOR CONSTRUCTION OF NORTHWOOD ROAD, CITY PROJECT 94-02. MOTION BY: SECOND BY: WHEREAS, Valley Paving, Inc. of Shakopee, Minnesota was awarded the contract for construction of Northwood Road, City Project 94-02, and WHEREAS, Valley Paving, Inc. has in all respects completed the contract for construction of Northwood Road, and WHEREAS, In consideration of Extra Work for spreading topsoil performed by the Contractor the City Council has approved Change Order No. 3 to the contract for construction of Northwood Road in the amount of $2,597, and WHEREAS, Change Order NO.3 was not included in the Final Pay Estimate that was signed and agreed to by the Contractor, and WHEREAS, It is the City Council's intention that Change Order No. 3 be full and complete compensation for the Contractor's claim of Extra Work for spreading topsoil, and WHEREAS, The City Engineer and Consulting Engineer recommend acceptance of the project and Final Payment of the contract. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA, Final payment is hereby authorized to be made to Valley Paving, Inc. in the amount of $62,012.45 for a final contract amount of $843,431.19 for the contract to construct Northwood Road, City Project 94-02. Passed and adopted this 20th day of April, 1998. YES NO Mader Kedrowski Petersen Schenck Wuellner Mader Kedrowski Petersen Schenck Wuellner {Seal} Frank Boyles City Manager City of Prior Lake VPFINAL.DOC RESOLUTION 97 -XX(B) RESOLUTION AUTHORIZING FINAL PAYMENT TO VALLEY PAVING, INC. FOR CONSTRUCTION OF NORTHWOOD ROAD, CITY PROJECT 94-02. MOTION BY: SECOND BY: WHEREAS, Valley Paving, Inc. of Shakopee, Minnesota was awarded the contract for construction of Northwood Road, City Project 94-02, and WHEREAS, Valley Paving, Inc. has in all respects completed the contract for construction of Northwood Road, and WHEREAS, The City Engineer and Consulting Engineer recommend acceptance of the project and Final Payment of the contract. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA, Final payment is hereby authorized to be made to Valley Paving, Inc. in the amount of $59,415.45 for a final contract amount of $840,834.19 for the contract to construct Northwood Road, City Project 94-02. Passed and adopted this 20th day of April, 1998. YES NO Mader Kedrowski Petersen Schenck Wuellner Mader Kedrowski Petersen Schenck Wuellner {Seal} Frank Boyles City Manager City of Prior Lake VPFINAL.DOC CHANGE ORDER CITY OF PRIOR LAKE 16200 EAGLE CREEK AVENUE SE PRIOR LAKE, MN 55372 CHANGE ORDER NO.3. TO: Valley Paving, Inc 8800 13th Avenue East Shakopee, MN 55379 DATE: April 20, 1998 FOR: Project No. 94-02 Northwood Road OWNER: City of Prior Lake You are hereby directed to make the following change to your contract dated ~ The change and' the work affected thereby is subject to all contract stipulations and covenants. This Change Order will increase the contract sum by: Two-Thousand-Five-Hundred-Ninetv- Seven and No/100 Dollars ($2.597.00) Add the following to the contract: Item 1. Descrintion Equipment Rental - Spreading Topsoil I. Unit L.S. Ouantitv I Unit Price I $2,597.00 Amount $2,597.00 $2,597.00 Total Additions I Amount of Original Contract $ ~80.525.38 Previous Approved Changes $ 1.666.42 Change Order No.3 $ 2.597.00 Revised Contract Amount $ 884.788.80 Contract time is not affected by this change. Approved as to Form: CITY ATTORNEY G:\PROJECTS\1994\02NWOOD\COJ.DOC CHANGE ORDER NO.3 TO: Valley Paving, Inc 8800 13th Avenue East Shakopee, MN 55379 DATE: April 20, 1998 FOR: Project No. 94-02 Northwood Road OWNER: City of Prior Lake APPROVALS: Approved: City of Prior Lake Owner Approved: Vallev Pavim!. Inc. By By Mayor Date Date By Title City Manager Date G:\PROJECTS\1994\02NWOODlCOJ.DOC ..,..