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4a. Howard Green Contract L(Ov - Howard R. Green Company CONSULTING ENGINEERS MSli -"---~~-- rO\\llmGElGI\ll1S Formerly MSA Consulting Engineers August 5, 1998 File: 801380j-0071 Mr. Todd Hoffman Park and Recreation Director City of Chanhassen 690 City Center Drive Chanhassen, MN 55317 RE: CONSTRUCTION SERVICES 1998 TRAIL PROJECT - CHANHASSEN, MN Dear Mr. Hoffman: This correspondence shall provide additional information from our meeting with you on August 4th, 1998 regarding the status of the construction services budgets for the 1998 Chanhassen Trail Project. As indicated in the attached letter dated July 31, 1998, it appears that the allocated budget of $30,100 will not be adequate to complete the trail project if construction inspection on the trail project is continued at the current level of having a full time inspector available on the project. PROJECT SCHEDULE AND ORIGINAL BUDGET The project schedule to date is a" follows: Notice of Award Notice to Proceed - Highway 7 Notice to Proceed - Lake Riley Notice to Proceed Connection Trail May 14, 1998 May 18, 1998 May 29.1998 July, 24, 1998 20 Day Contract Period 30 Day Contract Period 20 Day Contract Period As the above information indicates, the trail is generally proceeding on schedule. The total contract period for the three segments awarded to date is 70 days. As of today, there have been 80 calendar days since the award of the first segment, of which 13 were rain days and 2 were holidays. Taking into account days the contractor did not work, 65 calendar days of the contract period of 70 days have been used for these first three segments. Before the rain on August 2-3, the Contractor was on schedule to pave connection trail by August 6th. A delay occurred during the construction of the Pioneer Trail/Great Plains Boulevard segment, while the Highway 7 trail was generally on schedule and the Connection trail was ahead of schedule until the rain. O:\PROJ\801380j\380-0506.aug.doc 1326 Energy Park Drive' 51. Paul, MN 55108 . 612/644-4389 fax 612/644-9446 toll free 888/368-4389 Mr. Todd Hoffman August 5, 1998 Page 2 Our original budget accounted for full time inspection based on a 7 -hour workday (7 hour day and Y. hour start-up and shutdown) with a total completion period of 110 calendar days. This can be summarized as follows: 110 calendar days working 5 days per week = 80 working days 80 working days X 7 hours per day Mileage and Expenses $28,000 $ 2.100 = $30,100 Total Inspection Budget During design of the project, the completion period was changed from 110 days to 150 days for the final specifications. Under the easement and right-of-way constraints and special construction methods necessary, a contractor could not finish the project as specified with the original completion period without significant cost increases to the City of Chanhassen. As the letter dated July 31, 1998 indicates, through the end of June the total amount of inspection budget used was $17,243.60. Based on continuing inspection at the current level of service, we estimate the total inspection cost would be $63,900, $33,800 above the original contract amount. This is entirely due to the fact that Midwest Asphalt has elected to work 12 hour days, 5 days a week, and that Mr. Paul Kauppi, our inspector, has been closely involved in many of the easement negotiation meetings with the City Attorney. The easement work is nearly complete, so this is no longer a concern. However, Midwest Asphalt has not given us any indication that the typical workday will be less than 12 hours for the duration of the project. FUTURE INSPECTION AND PROPOSED BUDGET As you so directed at our meeting with you on August 4, 1998, we will be minimizing future inspection to the greatest extent possible for the remainder of the project. However, there are circumstances beyond our control, such as the weather and the Contractor's schedule, which will dictate how much inspection is required for the duration of the project. At this time, we ask for your direction regarding future expenditures of funds for inspection services. If the current budget must be met, we estimate that Mr. Paul Kauppi may only be available 5 hours per week for the remainder of the project. The ramifications of this are that we will not be able to meet with residents and property owners with questions, and most importantly the contractor will be working without supervision. Howard R, Green Company O:\PROJ\801380j\380-0506.aug.doc CONSULTING ENGINEERS Mr. Todd Hoffman August 5, 1998 Page 3 Sincerely, As our attached contract with the City of Chanhassen indicates, we originally proposed inspection fees based on an hourly agreement, not hourly not to exceed. We want to avoid a situation in which Mr. Hoffman cannot direct us to continue to inspect critical aspects of the project because of budget constraints. We hope the above information helps the City of Chanhassen decide upon a course of action on this important issue. If you have any questions, we are available to discuss this issue at any time. Howard R. Green Company ;\) CSML VVvyy;- '_________ ,1 David E. Nyberg, P.E. Project Manager DENlst cc: Mr. Paul Kauppi, Howard R. Green Company Howard R, Green Company O:\PROJ\801380j\380-0506.aug.doc CONSULTING ENGINEERS 1 ..------...-.----- -. . .. .. - OC'" .) Q '']<)7 1 " .J ,_"';. . HOWARD R. GREEN COMPANY PURCHASE ORDER ~ .. _Þ_o._.__ THIS AGREEMENT, made this 20th day of October, 1997 by and between, the CITY OF CHANHASSEN (herafter "CLIENT", and HOWARD R. GREEN COMPANY (hereafter "HRG"), for professional services conceming the 1998 Bike Trail Improvements Project. HRG Project Number 801380P The CLIENT agrees to employ HRG to perform the fOllowing services: . Preliminary Surveying: As required to complete plans and specifications. The preliminary survey will encompass areas that are not sufficiently covered with aerial topography sufficient to develop a plan and profile for bike trail construction. Areas with sufficient aerial topography coverage will not be surveyed in an effort to reduce costs on behalf of the CLIENT. · Project Design: Design will include the preparation of plans and specifications for the construction of six segments of bike trail. Plans will be prepared in stages to allow at least two reviews by the public prior to final approval of the plans by the City of Chanhassen. . · Property Acquisition: HRG will prepare easement descriptions and exhibits on the City's behalf for property required to complete the project. This shall include both pennanent and temporary easements as required for the project construction. · Project Management: HRG will assist in the coordination of pUblic information meetings to facilitate the project design. It is anticipated that these meetings will be held in November of 1997 and January of 1998. Additional project management responsibilities will include coordination of the surveying, inspection, construction staking, wetland delineation, permitting, and bidding. . Construction Staking: HRG will provide construction staking as required on the project. Staking will be completed on an as needed basis in areas where construction from the plans is not feasible as determined by the Engineer. Staking will include the establishment of line and grade in such areas. . Project Inspection: HRG will provide a project inspector to the City of Chanhassen for the coordination of field activities during construction. The inspector will be available to address contractor inquiries, City staff inquiries, and public concerns related to the project. In consideration for these services, the CLIENT AGREES to pay HRG on the following basis: (Indicate Payment Method) [ J Lump sum in the amount of . [ ] Per current Rate Schedule with an estimated fee not'to exceed . . Other as stated here: . Per current Rate Schedule for the design phase with an estimated fee not to exceed $78,600. . Per current Rate Schedule on an hourly basis for the property acquisition portion, and for the construction staking and inspection phases, with an estimated fee of $51,100. The Schedule of Fees and Conditions of HOWARD R. GREEN COMPANY (attached hereto) are incorporated into this AGREEMENT and made a part of it. By: Its: . CITY OF CHANHA~ a. &h¿- 7Î1~ HOWARD R. GREEN COMPANY ~ f,uA¡ By: Its: ,.."'.~...... ..