HomeMy WebLinkAbout5D, Approve Elmer L. Andersen Memorial Connections Trail - Final Payment #8
5D
Request for Council Action
Prepared By: Terry Maurer, Public Works DirectorCouncil Meeting Date: October 29, 2012
Elmer L. Andersen Memorial Connections Trail – Final Payment #8
Budgeted Amount: Actual Amount: Funding Source:
$484,019.76 ($482,722.90 + $2,000.00) ARRA, SRTS, DNR, Ramsey
$484,722.90 County, Boston Scientific
Recommendation:
Staff recommends City Council approve final payment to American Liberty Construction for the Elmer L.
Andersen Memorial Trail Connections project of $24,136.15 plus the Settlement Agreement payment of
$2,000.00 for a total of $26,136.15.
Supporting Documents:
1. Memorandum dated October 29, 2012, from Terry Maurer, Public Works Director.
2. Final Payment #8.
3. Settlement Agreement.
lt
EN HILLS
MEMORANDUM
DATE: October 29,2012
TO: Honorable Mayor and City Councilmembers
Patrick Klaers, City Administrator \
FROM: Terry Maurer, Public Works Director ��\
SUBJECT: Elmer L. Andersen Memorial Connections Trail - Final Payment#8
Background
The City Council awarded American Liberty Construction, Inc., of Rockford, Minnesota,
the Elmer L. Andersen Memorial Connections Trail Project on February 22, 2010, for a
total contract amount of$458,800. There were four Supplemental Agreements (SA) and
one Work Order (WO) approved that affected the total contract amount. A brief
description of each of these and the total increase to the contract amount is as follows:
• Supplemental Agreement#1
This supplemental agreement added the pedestrian crosswalk beacons at County
Road E2 and these were funded by Ramsey County. The total cost of SA #1 is
$12,566.40.
• Supplemental Agreement#2
This supplemental agreement is for replacing a corrugated metal storm sewer pipe
that was found to be completely deteriorated during construction. The total cost
of SA#2 is $3,250.43.
• Supplemental Agreement#3
This supplemental agreement includes storm sewer modifications due to an
unexpected high water table as well as repair of more deteriorated pipe that was
discovered during construction. The total cost of SA#3 is $4,816.35.
• Supplemental Agreement#4
This supplemental agreement is for hydrant adjustments along County Road E2
where the grading for the trail construction impacted the height of the existing
hydrants. The total cost of SA#4 is $3,869.78.
City Council Meeting
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• Work Order#1
This work order is for the relocation of the speed sign that was not getting enough
sunlight in its original location to charge the battery by way of the solar panel.
The total cost of WO #1 is $716.80.
The total contract amount after these four supplemental agreements and one work order is
$484,019.76.
Financial Implications
Funding for this project comes from a variety of sources. There was the American
Recovery and Reinvestment Act (ARRA), Safe Routes to School (SRTS), DNR Local
Trail Connection Program (DNR), Ramsey County, and a gift from Boston Scientific.
The summary of all these sources of funds is provided in the following table:
ARRA $288,326.00
SRTS 170,474.00
DNR 24,000.00
Ramsey County 15,000.00
Boston Scientific 10,000.00
TOTAL $507,800.00
The final construction cost was $482,722.90, which is slightly less than the contract cost
of $484,019.76. The final payment due the contractor is $24,136.15. As can be seen
from this Table, there were sufficient funding sources to cover all of the construction cost
with a small amount contributing to overhead. The City's contribution to the project was
Surface Water Management and Special Revenue-Park Funds towards project overhead.
Settlement Agreement
As City staff was trying to agree on final project quantities with American Liberty
Construction they submitted a list of extras on the project totaling $13,872.36. Most of
these claims were for delays caused by the necessity to relocate small utilities. Even
though staff and Attorney Filla felt that most, if not all the extras claimed, were not valid,
the cost of legal proceedings to prove the City had no financial responsibility for these
claims would also be costly. Therefore, staff directed Attorney Filla to attempt to reach a
Settlement Agreement with the attorney representing American Liberty Construction.
Attached is the Settlement Agreement they were able to reach which calls for an
additional $2,000.00 payment to American Liberty Construction to satisfy all claims.
City Council Meeting
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Page 2 of 3
Council Action Requested
Approve final payment to American Liberty Construction for the Elmer L. Andersen
Memorial Trail Connections project of $24,136.15 plus the Settlement Agreement
payment of$2,000.00 for a total of$26,136.15.
i
City Council Meeting
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Page 3 of 3
Engineering Copy CITY OF ARDEN HILLS
❑Finance Copy CONTRACT VOUCHER
❑Contractor Copy Contract Date: February 22, 2010
Payment No. : 8
Final Payment
Elmer L. Andersen Memorial Trail Connections
S.P. 187-591-01
Minn. Proj. No. SRTS 10ES(001)
CONTRACTOR:
American Liberty Construction, Inc.
P.O. Box 547
Rockford, MN 55373
The undersigned contractor does hereby certify that he/she has performed and completed all the work
described in accordance with and pursuant to the terms of this contract, and does hereby accept the final
voucher as being correct, full and completed and does make claim for final payment on this contract in
accordance with the final voucher.
Total of Contract $484,019.76
% of Contract Complete 99.7%
Value of Work Completed $482,722.90
0% Retainage $0.00
Previous Payments $458,586.75
Payment Due This Voucher $24,136.15
DATE:
Mayor
DATE:
City Administrator
DATE:4t/ 1-Z_
Co .ractor's Representative
Funding
227-48208-45900 $ 24,136.15 Special Revenue- Park Fund
Total $ 24,136.15
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Kelly & Lemmons, P.A.
A T T O R N E Y S A T L A W
•Jerome P. Filla
iftlla @kellyandlemmons.com
September 5, 2012
Brad Hendrikson, Esq.
Attorney Of Counsel
Donohue McKenney Ltd.
7900 International Drive, Suite 200
Bloomington, MN 55425
VIA E-MAIL
RE: Construction Agreement
City of Arden Hills
American Liberty Construction,Inc.
Mr. Hendrikson:
Enclosed herewith, please find a proposed Settlement Agreement regarding the above-referenced
matter.
Please review the Agreement and contact me with any questions or comments.
Very truly yours,
KELLY& LEMMONS, P.A.
Jer 9111a
JPFlsmk
Enclosure
7300 HUDSON BOULEVARD NORTH,SUITE 200 • SAINT PAUL,MINNESOTA 55128
TELEPHONE 651-224-3781 . FACSIMILE 651-223-8019
w ww.kellyan dle mmonsxom
SETTLEMENT AGREEMENT
CITY OF ARDEN HILLS
AMERICAN LIBERTY CONSTRUCTION, INC.
I. Parties. This Agreement is entered into by and between the City of Arden Hills, a
Minnesota statutory city ("City") and American Liberty Construction, Inc., a Minnesota
corporation("Contractor").
2. Recitals.
a. The City and the Contractor are parties to that certain Construction Agreement
dated February 22, 2011.
b. Contractor has submitted a claim ("Exhibit A") in the amount of$I3,872.36 for
costs incurred due to construction delays.
C. The City disputes that it is responsible for the payment of construction delay
costs.
d. This Settlement Agreement is entered into in order to resolve a disputed claim and
in order to avoid costly litigation.
3. Terms of Agreement. Upon receipt of a copy of this Settlement Agreement executed by
the Contractor, the City shall to pay Contractor the sum of$2,400.00 in satisfaction of all claims
asserted herein.
4. Acknowledgement. The parties acknowledge that, in addition to the payment of the
disputed claim, the final payment due on the Contract between the parties is in the amount of
$24,136.15.
CITY OF ARDEN HILLS, a Minnesota
statutory city
By:
Its:
STATE OF MINNESOTA )
) ss.
COUNTY OF )
This instrument was acknowledged before me this day of September, 2012, by
, the , of the City of Arden Hills, a Minnesota statutory
city, on behalf of the City.
Notary Public
AMERICAN LIBERTY CONSTRUCTION, a
Minneso corpora on
By:
Its:
STATE OF MINNESOTA )
) ss.
COUNTY OF Mjb1fij— )
This instrument was acknowledged before me this Z94 day of September, 2012, by
-%TALU:5 t,l the PRn1Dt: 'r of American Liberty Corporation, a Minnesota
corporation on behalf of the company.
aLAUREL& REECE
pubtiO.Niinna Notary Public
ebn Ex�er Jen H1,2015
AMERICAN
CON STRUCTI. ON
March 16,2011
Kristine Giga PE-Civil Engineer
City of Arden Hills
1245 West Hwy 96
Arden Hills,MN 55112
Re: Elmer L.Andersen Memorial Trail Connections Contract#: SP 187-591-01
Change Order Proposal No. Six
The trail construction along County Road 8-2 included the relocation of power poles,telephone equipment and
cable TV cables by the utility companies that owned the equipment. This was to be done as shown bn the
construction plans"By Others°. Delays in the relocation of those ufilitie$.resulted in extensions of the contract
completion date by change-order with the City of Arden Hills, The cost of those delays is shown below,as on
site supervison experienced by American Liberty Construction and as lost productivity by the earthwork
subcontractor when equipment was on site and unusable,and working around the utilities until they could be
moved.
General Contractor Forces:
Time Extension Days @ $ 325 /Day $ -
01310(g) Project Manager Hours c@ $ - 1Hour $ -
01310(g) Supervision 120 hours @$55.03/hour $ 6,603.60
$ -
Subtotal $ 6,603.60
Overhead 10% $ 660.36
Subtotal $ 7,263,96
Subcontractor Forces:
02300(s) Twin Pines 5arthw rks-Lost productivity $ 5,100.00
Subtotal $ 12,363.96
Profit 100Ir $ 1,236.40
Subtotal $ 13,600'36
Bond I Insurance 2.00% $ 272.01
TOTAL AMOUNT THIS CHANGE ORDER $ 13,872.36
The acceptance of this Change Order will add days to the substantial completion and
final completion dates at a rate of $ - /day. Proposal subject to change if not accepted within
10 days. This proposal Is valid for 30 days, Please call with questions or comments.
Accepted For: City of Arden Hills
Very truly yours,
American Liberty Construction, Inc.
Howard Jacobson -Project Manager Date:
EXHIBIT
P.D. 8o1 547, 5990 Maio SIMI, Rockford, MW 55373 phone 183.477-SS66 and fai 11341116
D