CCP 12-14-1998 - Laserfiche WebLink

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, ARDEN HILLS EDA SPECIAL MEETING - SEPTEMBER 14, 1998 2 I . Companies. Because the soil correction portion was not bid separately, there are no specific invoices from the subcontractor for the soil correction work alone. Mr. Post noted approximately 16,200 cubic yards where hauled out and in as soil correction quantities. Staff consulted with City Engineer, Greg Brown, on pricing a hypothetical 16,200 cubic yard job project as a reasonableness test. Mr. Brown indicated the removal costs in this market may average $10.00 per cubic yard ($l62,000) and the common borrow for in-fill material may average $7.50 per cubic yard ($121,000). Thus the hypothetical job pricing of $283,000 is above the reimbursement request of $250,000. Mr. Post stated staff has received and examined copies of Rehbein's outbound truck tickets for the subcontractor, Eagle Trucking Enterprises, Inc., and their own trucks and detailed employee daily time tickets from Glenn Rehbein Excavating, Inc. This documentation supports the overall subcontractor soil correction cost estimate of $243,635. The difference between the subcontractor cost of$243,635 and the $250,000 reimbursement request is equal to the overhead amount of 2.5% which appears to be a reasonable charge. Mr. Post stated he feels comfortable with the request. Mr. Post noted, in a related action prior to this meeting, the EDA was approached by Welsh Companies regarding a closing for the Phase IV building. To facilitate that closing, on September 3,1998, a check for draw #1 was cut in the amount of$82,090, which is an . approximate split ofthe soil correction costs as it pertains to this building. The documentation on hand was more than adequate to cover this disbursement. This facilitated the closing of Phase IV property to the new owner, Apache Group. Mr. Post advised that staff recommends the Arden Hills EDA authorize reimbursement for $250,000 in soil correction cost reimbursement, including $82,090 for draw #l and $167,910 for draw #2. MOTION: Commissioner Malone moved and Commissioner Keirn seconded a motion to authorize reimbursement for $250,000 in soil correction cost reimbursement, including $82,090 for draw #1 and $167,910 for draw #2. Commissioner Larson noted a curiosity about where the City stands in the negotiations with Welsh regarding the outside appearance ofthe buildings. He asked if this action gives some leverage in negotiating this issue. Mr. Ringwald stated no, the certificate of occupancy condition allows them until September 30, 1998 to finish this project. The way the development agreement is stated, this request is not related to the outside brick work. At this point they have met the objective of necessary soil correction work and it would be difficult to withhold these funds due to an issue not related to soil correction. Mr. Post indicated he had tried to make a linkage between completion of the outside brick work . and the soil correction. He stated the contractor is trying to have the brick work completed by the end of this month.