11. Resolution Authorizing Allocation of Extraordinary Costs of Construction or Site Imporvements for the Elementary School at Hwy 5 and Galpin Blvd.I MEMORANDUM
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CITY OF
II I
8AN8ASSEN
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900 • FAX (612) 937 -5739
t TO: Mayor and City Council
FROM: Don Ashworth, City Manager
' DATE: August 9, 1995
' SUBJ: Resolution Authorizing Allocation of Extraordinary Costs of
Construction or Site Improvements for the Elementary School at
Highway 5 and Galpin Boulevard
' As the council is aware, the contractor on the new elementary school /recreation
center (BorSon) has filed a claim against the school district /city. The claim
' primarily revolves around delays that were allegedly created by the school
district /city that resulted in additional costs for BorSon. In meeting with the
attorneys for both the school district and city, all parties agreed that the worst
' thing that could happen would be for the city or the school district to start
pointing fingers at each other.
' Both attorneys agree that the contract is clear that all costs associated with
constructing the facility are to be split 76 %/24 %. All parties agree that this suit
should be treated no differently than any other aspect of the construction.
' Secondarily, again, that it is imperative that both the school district and city go
into this arbitration united. Accordingly, it is recommended that the city council
approve the attached resolution as drafted by both the city's /school district's
' attorneys. If a settlement were awarded by the arbiter, both the school district
and the city believe that the cost of such would be less than the amount
' established in the contingency account. Approval is recommended.
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
RESOLUTION
Date: Resolution No.
Motion By: Seconded By:_
RESOLUTION AUTHORIZING ALLOCATION OF EXTRAORDINARY
COS'T'S OF CONSTRUCTION OR SITE IMPROVEMENTS FOR THE
ELEMENTARY SCHOOL AT HIGHWAY S AND GALPIN BOULEVARD
WHEREAS, the City of Chanhassen and Independent School District No. 112
have entered into a Joint Powers Agreement and a Development Agreement for the
joint improvement of property located oil the southeast corner of the intersection of
Highway 5 and Galpin Boulevard in the City of Chanhassen; and
WHEREAS, the Joint Powers Agreement and the Development Agreement
provide for the joint construction of an elementary school owned by the School
District and community recreational facilities owned by the City; and
WHEREAS, the agreements between the City and the School District provide
for sharing of costs associated with the site improvements and the construction of the
buildings; and
WHEREAS, the agreements do not specifically address the sharing or
allocation of additional costs that may be incurred and associated with the project that
may result from architect interpretation of the construction contract or arbitration
awards or mediation or arbitration settlements as the result of disputes; and
WHEREAS, it is in the best interest of both the City and the School District
that the agreements include provisions addressing all aspects of the joint endeavor of
the City and the School District in the subject project.
NOW, THEREFORE,, BE IT RESOLVED by the City Council of the City of
Chanhassen:
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Upon resolution or other agreement of the School Board of Independent School
District No. 112, additional costs of the joint elementary school /community
recreational facility project that relate to site improvements or construction of
the buildings and are the result of architect interpretations, arbitration awards,
mediation or arbitration settlements and other similar dispute resolutions, shall
be allocated between the parties on the same basis as the site improvements and
construction costs are allocated in the existing agreements between the parties
relating to this project.
ADOPTED this day of
Council of the City of Chanhassen.
, 1995, by the City
I ATTEST:
Don Ashworth, Clcrk /Manager
Donald J. Cluniel, Mayor
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