4E, Paving Project at 1315 Red Fox Road

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The PMP contactor, through its insurer, has agreed to defend and indemnify the City from the property owner's sanitary sewer leak damage claims. Final resolution regarding the sanitary sewer claim is still ongoing between the property owners, the League of Minnesota Cities, and the PMP contactor. The parties are currently working to resolve the issue through mediation. The paving issue has been separated from the sewer issue, so that the paving of the driveway can move forward. The City's paving of the driveway is subject to the property owner being responsible for the ongoing maintenance of the driveway. A settlement and release agreement, which calls for the driveway to be paved as per the original 2005 PMP project and the property owner to be responsible for ongoing maintenance of the driveway, has been prepared by an attorney from the League. Commencement of the paving will not occur until the settlement and release agreement is signed by the property owner. Financial Implications Staff asked three local contractors to provide quotes to complete the final grading work and to pave the area. The quotes are summarized in the table below. Contractor Grading Cost Paving Cost TOTAL COST Frattalone Companies, Inc./ Tower Asphalt Inc. $1,950.00 $6,500.00 $8,450.00 T. A. Schifsky & Sons, Inc. $2,650.00 $6,700.55 $95350.55 Bituminous Roadways, Inc. $2J30.00 $900.00 $11,130.00 While this is currently an unbudgeted project it is recommended that the funding source be from the PIR Capital Fund. Recommendation It is recommended that this project be awarded to Frattalone Companies, Inc. / Tower Asphalt Inc. as they have provided the lowest quote to complete the work. Council Action Requested Motion to complete the paving project at 1315 Red Fox Road, and to authorize staff to sign an agreement with Frattalone Companies Inc. / Tower Asphalt Inc. to complete the work.