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1c. Approve Contract Amendment No. 2 for Downtown Redevelopment Phase I Project 1 , hl I ,•,, CITY OF _____ , ,• •._,,k • CHANHASSEN 1 \ , , . ,r :. 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 ''''7--,, (612) 937-1900 tivan y Jr IMEMORANDUM f? off_.; .4'v-,✓ ----- TO: Don Ashworth, City Manager j9/ 9 - 1 I FROM: Gary Warren , City Engineer IDATE: March 8 , 1989 °�"`7 -_ - ___--17- SUBJ: Approve Contract Amendment No. 2 for the Downtown Redevelopment Project - Phase I IProject No. 86-11A-4 I Phase I of the Downtown Redevelopment project is anticipated to be completed this fall . In order to keep the Council abreast of the financial status of this project and in order to tidy up the I numerous loose ends which are typical for a project of this magnitude and complexity, we have prepared Contract Amendment No. 2 for this project. I As with Contract Amendment No. 1 , I found our consultant' s records and documentation impeccable in detail . They have spent numerous hours in negotiations with our general contractor , I Shafer Contracting, and subcontractors to arrive at equitable , final pay quantities for the project. the construction contract is a unit price contract, therefore payment is based on the actual quantity of materials that have been constructed . As you I are aware, last summer we spent a considerable amount of time to evaluate the overall financial position of the project. This resulted in the sale of additional taxable increment bonds to II fund the project in light of the awards that had been made for land acquisition, i .e. Burdick. This also established our pro- jections for the project construction costs which were used in I preparation of the project assessment roll . Our present calcula- tions, which factor into the current contract amendment request, reflect that we are within $15 , 000 (lower) of our previous pro- ject construction cost estimate used for preparation of the Iassessment roll . The attached memorandum from BRW summarizes in detail the I Amendment No. 2 request. As there are a few unresolved issues to be negotiated and as noted , the project will be completed this fall , we have attempted to present a revised construction I contrast ceiling ( $2 , 996 ,048 . 67 ) such that no further amendments will be necessary. In all likelihood we would anticipate closing out the construction contract under this amount. I I h Don Ashworth , March 8 , 1989 Page 2 We are currently in the process of compiling Partial Pay Request No. 13 for this project which has not been able to be processed until this contract amendment has been approved by the Council. It is therefore recommended that the attached Contract Amendment No. 2 be approved for Project No. 86-11A and that a revised esti- mated construction cost be established at $2 , 996 , 043 . 67 . Attachments 1 . Letter from Gary Ehret dated March 9 , 1989 . 2 . Contract Amendment No. 2 . cc: Gary Ehret, BRW 1 1 I I . . . PLANNING TRANSPORTATION ENGINEERING URBAN DESIGN LJ BRW INC THRESHER SQUARE 700 THIRD STREET SOUTH MINNEAPOLIS.MINNESOTA 55415 PHONE 612 370-0700 FAX 612`370.1378 March 9, 1989 Mr. Gary Warren, PE CITY OF VIANHASSEN ' City Engineer City of Chanhassen 690 Coulter Drive Chanhassen, Minnesota 55317 P�IAi? 0 9 189 RE: Downtown Redevelopment Project CP 86-11A ENGINEERING DEPT Contract Amendment Two (2) Dear Mr. Warren: Substantial completion of the Downtown Redevelopment Project (CP 86-11A) Phase I occurred last fall . Partial Payment #12, dated 10/18/88 in the amount of $172,959.60 for work completed through 9/30/88 was approved by the City Council ' 11/14/88 and payment to the contractor was made shortly thereafter. Partial Payment #12 brought the work completed to-date amount up to $2,724,386.51. The current contract amount is $2,725,772.96. Since November of 1988, no additional payments for contract work have been made to Shafer Contracting. ' Since approval and payment of Partial Payment #12, representatives of Shafer Contracting and BRW, Inc. have been meeting frequently in an attempt to recon- cile all quantity differences on the project. As you are aware, this project is a unit price contract per bid item. We have been reviewing every bid item (current total of 269) and bid quantity with Shafer to finalize the "as-built" ' quantity of every project item. The complexity of this project has made this task extremely difficult. We have had well over a half dozen meetings with Shafer attempting to reconcile quantity differences. ' At this point in time, we have reached final quantity agreement with Shafer Contracting on about 260 of the 269 contract items. In addition, we have been negotiating with Shafer and their seven subcontractors to reach agreement on any ' additional work which may have occurred which is not currently defined by a contract unit price. We have not reached final agreement on all additional work items, whether they are contract adds or contract deducts, but we have reached agreement as to the value of some of these items. The value of work which is completed to-date based upon the final "agreed upon" contract quantities, and the "agreed upon" extra work is substantial . Payment has not been made to the contractor since last November, because the current contract amount has not been revised to reflect work added to the project which has increased the contract value. We are, therefore, submitting this report and ' the attached contract amendment to increase the current contract amount so that Partial Payment #13 can be made to Shafer Contracting for work completed to- date. AN AFFILIATE OF THE BENNETT RINGROSE.WOLSFELD.JARVIS.GARDNER,INC GROUP DAVID J BENNETT DONALD W RINGROSE RICHARD P WOLSFELD PETER E JARVIS LAWRENCE J GARDNER THOMAS F CARROLL CRAIG AMUNDSEN DONALD E HUNT MARK G SWENSON JOHN B McNAMARA RICHARD D PILGRIM DALE N BECKMANN DENNIS J SUTLIFF JEFFREY L BENSON RALPH C BLUM DAVID L GRAHAM MINNEAPOLIS DENVER PHOENIX TUCSON ST PETERSBURG II Mr. Gary Warren March 9, 1989 Page 2 Please note that this is still considered only a partial payment. We are still ' negotiating with Shafer Contracting on the remaining contract items, and with the subcontractors on any remaining additional items of work. It is also impor- tant to note that some portions of the work have not been accepted as yet, and the one year warranty period has not expired. We continue to retain a $100,000 bond on Shafer Contracting as well as reduced payment for certain contract items. We anticipate that this contract will not be finalled until the fall of 1989 after the warranty period expires, and any remaining punch list or warranty work has been completed. CURRENT CONTRACT STATUS - .. Contract Amendment Number Two (2) includes a summary of work which has been completed by the contractor for which we do not have bid unit prices. It also includes revised contract quantities for bid items which have been significantly increased or decreased from the original contract quantities. As the project proceeded through construction over the last two years, signifi- ' cant progress occurred and changes were made in redeveloping the surrounding properties. Some of these changes had an impact on the Downtown project which resulted in added items of work. We also spent a significant amount of time, energy, and in some cases money, in attempting to meet the needs and/or concerns of the downtown businesses. Additional changes occurred as the result of speci- fic requests by City staff or the HRA. Fortunately, Shafer Contracting has been cooperative and has agreed to incor- porate the changes where possible, into the existing contract unit bid prices. Therefore, the City is receiving the benefit of competitive bid pricing received in June of 1987, for work completed in 1988. Where unit bid prices are not applicable, we have negotiated unit pricing based upon common construction prac- tice and comperative items of work for similar projects. ' ' We are, therefore, recommending approval of Contract Amendment Number Two (2) to Shafer Contracting' s contract as submitted. The appropriate support material and documentation for each item is available for your review. However, our contract files are significant and it is impractical to supply you with all of the support documentation in this submittal . A summary of the contract upon approval of Contract Amendment Two (2) is as follows: Original Contract Amount - $2,434,571.30 ' Contract Amendment One (1) - $ 291,201.66 Contract Amendment Two (2) - $ 270,275.71 Revised Contract Amount $2,996,048.67 ■ II ' Mr. Gary Warren March 9, 1989 Page 3 1 Contract Amendment Two (2) reflects contract quantity changes which are the result of modifications or additions to the original scope of work which have been previously approved by the City Council , HRA or City Staff. It also inclu- des miscellaneous items of work which had to be done to meet Mn/DOT approval or ' were the result of the type of project this is, i .e. a redevelopment project. Some of the original contract quantities as estimated by BRW were also found to be in error (most of them too low) either as a result of inaccurate as-built data, incorrect quantity takeoffs, or incorrect tabulations. Therefore, several ' of the bid item quantities have overrun the contract quantity because the origi- nal quantity was in error. A summary of the significant changes which occurred is as follows: II 0 . 1. "Straightened" Market Boulevard - Market Boulevard in front of City Hall was changed to it' s current alignment. Approximate added cost = $12,500.00. ' 2. City Hall Parking Lot Expansions - The two easterl arkin lots at Y P 9 City Hall were partially reconstructed and expanded to increase the parking space at City Hall . Approximate added cost = $20,000.00. 3.. Dinner Theatre Parking Lot - The dinner theatre parking lot was ' reconstructed beyond the original contract limits because of the final grades. Approximate added cost = $12,500.00. 4. Post Office Parking Lot - With the straightened Market Boulevard an ' opportunity to reconstruct and expand the post office parking lot existed. This work was a part of the land acquisition negotiations with the post office. Approximate added cost = $9,000.00. 5. Added Streetlighting - With the straightening of Market Boulevard, the expansion of the City Hall parking lots, and the expansion of the post ' office lot, additional streetlighting for safety was added. Streetlighting of Bowling Alley Road was also added. Approximate added cost = $35,000.00. 6. Added Sidewalk - Sidewalk was added in the downtown area to better facilitate pedestrian movements. Approximate added cost = $10,000.00. ' 7. Retaining Wall - Additional retaining wall was added to the project to allow for better grade transitions. The downtown contractor also constructed the retaining wall behind the retail center assurring a ' common look with the rest of the downtown. Approximate added cost = $18,500.00. 8. Sewer Repairs - Several sewer and/or water main repairs were made by Shafer Contracting to sewer or water mains which were not a part of their contract. Approximate added cost = $5,000.00. (Costs should be paid from the City of Chanhassen Sewer and Water Funds.) I . II Mr. Gary Warren March 9, 1989 Page 4 These represent some of the changes which w e re m ade w hi ch in cre ased the value o f the current contract resulting in the necessity for Contract Amendment Two (2). ESTIMATED PROJECT COST VS. ASSESSED AMOUNT As you are aware, this project was assessed to the benefitting properties in the fall of 1988. This was necessary to satisfy the conditions established for the bonding program. In order to proceed with assessment of the project, we had to estimate the final project costs (Phase I only) . In the June/July time period we went through the project documentation to complete an estimate of the final costs. At this point we can compare our current estimate of the final construction • costs against those estimated in June/July of 1988 for preparation of the assessment role. A comparison at this time indicates that our projected final costs are approximately $15,000.00 below the estimated costs used to establish the assessment role in the fall of 1988. We are submitting, as an attachment, for your review, Contract Amendment Two (2) details which illustrate the revised items of work. If I can be of assistance, please do not hesitate to contact me. Sincerely, B R , I N . a • A. fret, PE Project anager GAE/sk Attachment I I ■ IC . . . II CITY OF CHANHASSEN � a I CONTRACT AMENDMENT Lf 'I LpSS fcarci�i! Ri , ill `lr1p r I�!!�(.(,' I MAP, 0 9 9 9 Project: Downtown Redevelopment Project �1 A Imp. Project No. : 86-11A li Contract Amendment: Two (2) ENGINEERING DEPT. Date: March 13, 1989 Contractor: Shafer Contracting Company, Inc. II Description of Contract Changes: I The following contract amendment items represent items of work not defined by a contract unit bid price. IIQ Bid Schedule (A) - General Work Unit 1 Item No. Item Unit Quantity Price Extension 48 Remove Snow Fence LF 400 $ 0.50 $ 200.00 49 Misc. Force Account Work LS 1 $8,627.50 $ 8,627.50 ISubtotal $ 8,827.50 IBid Schedule (B) - Roadway/Parking Lot Unit IItem No. Item Unit Quantity Price Extension 27 Sawcutting Bit. Pavement LF 340 $ 2.75 $ 935.00 28 Calcium Chloride (Liquid) GAL 4,633 1.15 5,327.95 29 4" Concrete Strips SF 257 4.00 1,028.00 30 Concrete Islard Noses EA 17 300.00 5,100.00 31 4" Concrete Sidewalk (Std) SF 23,858 2.25 53,680.50 I 32 Mountable Concrete C & G LF 56 169 10.00 5,600.00 33 D412 Concrete C & G LF 10.00 1,690.00 34 Misc. Signing Extras LS 1 5,031.61 5,031.61 IISubtotal $78,393.06 Bid Schedule (C) - Storm Sewer INone 1 II CA2-1 1 . . ' II Bid Schedule (D) - Sanitary Sewer Unit I Item No. Item Unit Quantity Price Extension 40 Adjust Frame & Ring Castings EA 4 $ 125.00 $ 500.00 II 41 Remove & Replace 6" CISP LF 20 25.00 500.00 42 Install Salvaged Casting EA 5 100.00 500.00 Subtotal $ 1,500.00 II Bid Schedule (E) - Water Main I Unit Item No. Item Unit Quantity Price Extension II 49 Remove & Reinstall Gate EA 1 $ 25.00 $ 25.00 Valve 50 Adjust Gate Valve EA 3 100.00 300.00 II 51 Adjust Curb Stop EA 1 100.00 100.00 52 Remove & Install Hydrant EA 2 750.00 1,500.00 Subtotal $ 1,925.00 I Bid Schedule (F) - Site Work Unit II Item No. Item Unit Quantity Price Extension 17 Sprinkler Conn. Relocation EA 1 $3,450.00 $ 3,450.00 I 18 F & I Limestone Pavers SF 1,071 20.00 21,420.00 19 Furnish Limestone Paver SF 80 17.86 1,428.80 II 20 Cement Finisher HR 6 28.00 168.00 21 Laborer HR 6 20.00 120.00 22 6" x 1/8" Steel Edger . LF 38 2.98 113.24 Subtotal $26,700.04 11 Bid Schedule (G) - Landscaping ' Unit Item No. Item Unit Quantity Price Extension 43 Wood Mulch & Filter Fabric SF 5,400 $ 0.72 $ 3,888.00 II 44 Yew Shrubs (4' High) EA 6 157.50 945.00 45 Norway Pine Trees EA 5 453.60 2,268.00 II 46 Blackhills Spruce EA 4 403.20 1,612.80 47 Common Labor HRS 30 21.00 630.00 48 Bobcat & Operator HRS 3 68.25 204.75 II 49 Tree Staking EA 247 7.66 <1,892.02> Subtotal $ 7,656.53 II CA2-2 II II I . . . . I The following contract amendment items represent items of work which have II contract unit bid prices, but which the original contract quantities have changed significantly. IBid Schedule (A) - General Work ADD I Unit Item No. Item Unit Quantity Price Extension II 11 Remove Concrete C & G LF 1,000 $ 1.75 $ 1,750.00 12 Remove Concrete Walk SF 3,000 0.30 900.00 13 Remove Bituminous Pavement SY 13,000 0.75 9,750.00 IISubtotal $12,400.00 Bid Schedule (B) - Roadway/Parking Lot I A . Unit Item No. Item Unit Quantity Price Extension I2 Base Course Mixture TON 1,500 $ 17.70 $26,550.00 3 Wear Course Mixture TON 2,000 21.00 42,000.00 5 Bit. Material for Tack Coat GAL 1,600 1.25 2,000.00 I 8 Concrete C & G B618 LF 1,300 5.75 7,475.00 9 Concrete C & G 6618M LF 1,100 6.75 7,425.00 13 F & I Sign Panel "Type C" SF 409 35.00 14,315.00 ISubtotal $99,765.00 IIBid Schedule (C) - Storm Sewer Unit Item No. Item Unit Quantity Price Extension I28 Construct Manholes Type II EA 3 $3,000.00 $ 9,000.00 ISubtotal $ 9,000.00 Bid Schedule (D) - Sanitary Sewer 1 Unit Item No. Item Unit Quantity Price Extension I 21 6" CISP Sewer Service LF 630 $ 13.00 $ 8,190.00 38 Reconstruct Manhole LF 22.5 200.00 4,500.00 II Subtotal $12,690.00 1 CA2-3 1 It II Bid Schedule (E) - Water Main Unit II Item No. Item Unit Quantity Price Extension 5 8" Gate Valves EA 4 $ 550.00 $ 2,200.00 I 6 10" Gate Valves EA 4 750.00 3,000.00 26 3" Rigid Insulation SF 700 3.00 2,100.00 27 1" Copper Service LF 435 10.00 4,350.00 I Subtotal $11,650.00 Bid Schedule (F) - Site Work I ADD I Unit Item No. Item Unit Quantity Price Extension 23 Timber Retaining Wall SF 250 $ 12.00 $ 3,000.00 II 24 Timber Retaining Wall Retail SF 1,062 14.73 15,643.26 25 Exposed Aggregate Walk SF 3,028 2.62 7,933.36 I Subtotal $26,576.62 DEDUCT II Unit Item No. Item Unit Quantity Price Extension I 9 Exposed Aggregate Walk SF 23,856 $ 2.75 <65,604.00> 10 Integral Colored Walk SF 1,100 4.00 < 4,400.00> II Subtotal <70,000.04> Bid Schedule (G) - Landscaping I None Bid Schedule (H) - Electrical I Unit II Item No. Item Unit Quantity Price Extension 3 Fixture A (Complete) EA 3 $1,800.00 $ 5,400.00 4 Fixture B (Complete) EA 8 3,300.00 26,400.00 I 8 3" Rigid Steel Conduit LF 1,424 8.00 11392.00 Subtotal $43,192.00 II 1 CA2-4 1 II pe . . 11 Contract Summary ' Current Contract Amount $2,725,772.96 Schedule A Additional $ 21,227.50 Schedule B Additional $178,158.06 Schedule C Additional $ 9,000.00 Schedule D Additional $ 14,190.00 Schedule E Additional $ 13,575.00 Schedule F Deduct <$ 16,723.38> Schedule G Additional $ 7,656.53 Schedule H Additional $ 43,192.00 Contract Amendment No. Two (2) Additional $ 270,275.71 Amended Contract Amount $2,996,048.67 • 1 CA2-5 1A I I APPROVALS: ISSUED BY: : W C. (17 " Iate: i 3 9 or ACCEPTED BY: Shafer Contracting, Inc. , BY: Date: �$ / . •. APPROVED BY: City of Chanhassen BY: 1Date: - - 1 1 CA2-6 ' 1