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Home My WebLink About 6E Honeywell Close Out Report Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: JANUARY 9, 2017 AGENDA #: 6E PREPARED BY: JAKE THEISEN, MAINTENANCE SUPERINTENDENT PRESENTED BY: KATY GEHLER AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING FULL AND FINAL PAYMENT TO HONEYWELL INC. FOR THE GUARANTEED ENERGY SAVINGS PROJECT(GESP) (FAC-2012-001) DISCUSSION: Introduction The purpose of this item is to authorize full and final payment for the Guaranteed Energy Savings Project. History Honeywell Inc. completed the Guaranteed Energy Savings Project (FAC- 2012-001) in accordance with the construction contract awarded by the Council on December 10, 2012. All work is complete including punchlist items and Staff is recommending acceptance of the improvements and release of the retainage. Project acceptance will initiate the 10 year term of the guarantee (Article 2.01 Performance Guarantee) and the 2 year warranty (Article 8.01 Warranties) period for the improvements. Current Circumstances The final payment amount is $260,470.90. With this payment, the final contract amount paid to Honeywell will be $2,604,709.00, $63,215 less than the awarded contract amount. The council is also asked to approve a change order to adjust the contract to the final amount of $2,604,709. Conclusion Honeywell delivered the project within the project specifications and budget and has addressed all outstanding work items. It is appropriate to provide full and final payment at this time. ISSUES: Retainage is being released with this final payment in accordance with the Contract. This payment in addition to the previous payments represents 100% of the current total contract amount of $2,604,709. FINANCIAL IMPACT: Contract payments are made from an escrow account held by US Bank and booked to the Facilities Fund (account coding of 440-41960.00- 55520.00). The remaining funds held in escrow of $63,215 will be applied to the next Fund 562 GESP lease/debt payment as defined in the Escrow Agreement. 2 ALTERNATIVES: 1. Approve a resolution as part of the consent agenda to authorize full and final payment to Honeywell Inc. for the Guaranteed Energy Savings Project. (FAC-2012-001) 2. Remove this item from the consent agenda for additional discussion. RECOMMENDED MOTION: Motion and second to approve alternative #1. 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 17-___ A RESOLUTION AUTHORIZING FULL AND FINAL PAYMENT TO HONEYWELL FOR THE GUARANTEED ENERGY SAVINGS PROJECT (FAC-2012-001) Motion By: Second By: WHEREAS, Honeywell Inc, was awarded a contract in the amount of $2,677,924.00 for the Energy Savings Project; and WHEREAS, Honeywell Inc, has in all respects completed the contract work of the Energy Savings Project in an amount totaling $2,604,709.00; and WHEREAS, The Public Works Director and Maintenance Superintendent 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. The contract is decreased in the amount of $63,215. 3. The full and final payment is hereby authorized to be made to Honeywell, Inc. in the amount of $260,470.90 for a total contract amount of $2,604,709.00 for the Energy Savings Project. 4. Funding for the final payment shall come from an escrow held by US Bank and booked to the Facilities Fund (accounting code of 440-41960.00-55520.00). 5. The remaining funds held in escrow of $63,215 will be applied to the next Fund 562 GESP lease/debt payment as defined in the Escrow Agreement. Passed and adopted by the Prior Lake City Council this 9th day of January, 2017 VOTE Briggs McGuire Thompson Braid Burkart Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Frank Boyles, City Manager CHANGE ORDER Project: City of Prior Lake Change Order Number: 001 Energy Performance Contract Date: December 7, 2016 Agreement Date: December 8, 2014 To Customer: City of Prior Lake The Parties hereby agree to modify the above-referenced Agreement (the “Agreement”) as set forth below. Except as modified herein, all other terms and conditions of the Agreement will remain unchanged and in full force and effect. The Agreement is changed as follows: _______________________________________________ The original Contract Sum was............................................. $ 2,667,924.00 Net change by previously authorized Change Orders........... $ 0.00 The Contract Sum prior to this Change Order was................ $ 2,667,924.00 The Contract Sum will be decreased by this Change Order in the amount of: $ (63,215.00) The new Contract Sum including this Change Order will be. $ 2,604,709.00 The Contract Time will be increased by................................ (0 ) calendar days The Total Energy Guarantee will not be changed. Honeywell Building Solutions City of Prior Lake 1985 Douglas Drive North 4646 Dakota St SE Golden Valley, MN 55442 Prior Lake, MN 55372 By: By: Date: Date: _____ ENERGY SERVICES GROUP, LLC INVOICE- REIVSED BILLING DATE 1/3/2017 PLEASE REMIT PAYMENT TO: ACCOUNT NUMBER 966223 INVOICE NUMBER K6211LC010317 BANK NAME: BANK OF AMERICA AMOUNT DUE 260,470.90 BANK LOCATION: CHICAGO, IL ACCOUNT NAME:HONEYWELL BUILDING SOLUTIONS INVOICE TO:ACCOUNT NUMBER: 3752005240 ACH NUMBER: 111000012 CITY OF PRIOR LAKE WIRE NUMBER: 026009593 4646 DAKOTA STREET SE PRIOR LAKE, MN 55372 OR HONEYWELL INTERNATIONAL INC BUILDING SOLUTIONS 12490 COLLECTIONS CENTER DRIVE CHICAGO IL 60693 DETACH HERE - RETURN TOP PORTION WITH YOUR PAYMENT - RETAIN THIS COPY FOR YOUR RECORDS BILLING DATE 1/3/2017 ACCOUNT NUMBER 966223 ENERGY SERVICES GROUP, LLC TERMS INVOICE NUMBER K6211LC010317 NET 30 AMOUNT DUE 260,470.90 INVOICE P.O. NUMBER PER CONTRACT PROJECT INVOICE DESCRIPTION AMOUNT 8742091 K6211LC010317 USB-006695 INVOICE FOR RETAINAGE NOT PREVIOUSLY BILLED CURRENT BILLING 260,470.90 PROJECT LOCATION: CITY OF PRIOR LAKE PRIOR LAKE, MN 55372 DIRECT INQUIRIES AND CORRESPONDENCE TO: Jo Rodriguez (866) 592-6973 jo.rodriguez@honeywell.com PAY THIS AMOUNT IN US DOLLARS 260,470.90 FEDERAL ID #: 22-2640650 DUNS #: 13-969-1877 PAGE 1 OF 1