Laserfiche WebLink
REQUEST FOR COUNCIL ACTION <br /> Date: 08/12/13 <br /> Item No.:7.h <br />Department Approval City Manager Approval <br />Item Description: Adopt a Resolution to Accept the Work Completed, Authorize Final <br />Payment and commence the One-Year Warranty Period on the Demolition <br />of the buildings on the PIK Terminal Co. Limited Partnership property <br />located at 2680/ 2690 Prior Avenue <br />Page 1 of 2 <br />B ACKGROUND 1 <br />On June 18, 2012, the City Council approved the Settlement agreement for the purchase of land 2 <br />from PIK Terminal Co. Limited Partnership. One of the terms of settlement included in this 3 <br />agreement was the City would undertake the demolition of the existing structures on the PIK 4 <br />parcels and PIK would be assessed all costs associated with the demolition (e.g. engineering 5 <br />reports, city staff time, building removal, etc.). The terms of the assessment would include: 6 <br />x A twelve year assessment with a two year repayment deferral with no interest accruing and a 7 <br />ten-year repayment schedule; 8 <br />x An interest rate of six percent 9 <br />x Full repayment of the assessment would be due upon sale of the PIK property. 10 <br />On January 28, 2013 the City Council awarded the PIK Terminal Demolition Project to Urban 11 <br />Companies of St. Paul, Minnesota. The contract as awarded was for $39,480.00. 12 <br />P OLICY O BJECTIVE 13 <br />City policy requires that the following items be completed to finalize a construction contract: 14 <br />x Certification from the City Engineer verifying that all of the work has been completed in 15 <br />accordance with plans and specifications. 16 <br />x A resolution by the City Council accepting the contract and beginning the one-year warranty. 17 <br />F INANCIAL I MPACTS 18 <br />The final contract amount, $39,571.00, is $91 more than the awarded amount of $39,480.00. 19 <br />The cost increase is the result of actual contract quantities being more than estimated. 20 <br />All of the costs for this project will be paid for through assessment by the property owner, PIK 21 <br />Terminal Co. Limited Partnership. 22 <br />S TAFF R ECOMMENDATION 23 <br />The work that was completed was in accordance with project plans and specifications, staff 24 <br />recommends the City Council approve a resolution accepting the work completed as M-12-21 25 <br />PIK Terminal Demolition Project and authorize final payment of $1,978.55. 26