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Of Report Number 08-168 Agenda Section VI -4 �MReport Date June 4, 2008 the city that works for you Council Meeting Date June 10, 2008 REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: CONSIDERATION OF PARTIAL PAYMENT 3 AND CHANGE ORDER 2 FOR PROJECT 07-12, NORTHWEST QUADRANT PHASE 2 DEMOLITION, SOIL CORRECTION, AND ENVIRONMENTAL REMEDIATION IMPROVEMENTS DEPARTMENT HEAD'S APPROVAL: CITY MANAGER'S APPROVAL: No comments to supplement this report,s� Comments attached Recommendation: To approve contract Partial Payment 2 for to Belair Excavating in the amount of $454,212.04 and approve Change Order 2 in the amount of $19,050.00 to Project 07-12, Northwest Quadrant Phase 2 Demolition, Soil Correction, and Environmental Remediation Improvements. Legislative History: On September 11, 2007 Council ordered the project and awarded a construction contract to Belair Excavating on October 9, 2007. Financial Impact: Please see attached payment breakdown for details. Explanation: Project 07-12 consists of the demolition of the remaining structures, and the environmental clean-up and soil correction, on the west side of the NWQ (Midwest Asphalt site). Change Order 2 adds two items to the existing contract with Belair. The first item adds language to the contract requiring the general Contractor to make prompt payment to subcontractors as mandated in State Statute 471.425, Subd. 4a. The statute generally states "Each contract of a municipality must require the prime contractor to pay any subcontractor within ten days of the prime contractor's receipt of payment from the municipality for undisputed services provided by the subcontractor." (Please see Attachment `A' to Change Order 2 for complete language.) The second item adds a pay item to the contract for using an existing stockpile of approximately 15,000 cubic yards of granular material, located on the old Beisswenger site, suitable for use as backfill in adjacent areas where contaminated soils have been removed. Phase 11 will generally be short of good fill material as a result of the extraordinary amount of undesirable soils being removed. There is in the contract item for off site borrow material at a bid price of $7.64 per cubic yard. Belair has agreed to use the estimated 15,000 cubic yards of Phase I material stockpiled on the former Beisswenger site for a price of $1.27 per cubic yard. Change Order 2 also adds 15 working days to the contract in order to complete the extra work resulting from Change Orders 1 and 2. This extends the final project completion date from July 25, 2008, to August 15, 2008. Costs and Funding: The construction portion of this project is being funded from a combination of funding sources including a DEED grant, a Metropolitan Council grant, and TIF Bond proceeds. Grant M. Wyffels, Director of Public Attachments