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• • nf Report Number ��AIT Agenda Section the city that works for you Council Meeting Date REQUEST FOR COUNCIL CONSIDERATION 08-324 VI -3 December 9, 2008 ITEM DESCRIPTION: CONSIDERATION OF PARTIAL PAYMENT 2 AND CHANGE ORDER 3 FOR PROJECT 07-5, OLD MILLER DUMP CLOSURE PLAN DEPARTMENT HEAD'S APPROVAL: (.�►tiw CITY MANAGER'S APPROVAL: No comments to supplement this report P. -A Comments attached Recommendation: To approve Partial Payment 2 in the amount of $430,088.75 to Veit and Company, Inc., and Change Order 3 to Project 07-5, Old Miller Dump Closure Plan. Legislative History: On May 28, 2008, the City Council ordered this project and approved the plans and specifications, and on July 22, 2008, authorized the advertisement for bids. Bids were opened on August 28 and the Council awarded a contract to the low bidder, Veit and Company, Inc., on September 9, 2008. Financial Impact: Please see attached payment breakdown for details. Explanation: Project 07-5 consists of work associated with the dump closure of the Old Miller Dump site east of Old Highway 8 NW in the area of the Post Office. Also included is the furnishing of 50,000 cubic yards of fill material on the West Side Phase II of the Northwest Quadrant. Change Order 3 includes two revisions to the project contract. The first item eliminates the fuel escalation clause from the contract and the second item shortens the project schedule by changing the completion date from December 1, 2009, to October 1, 2009. The fuel escalation clause was originally included in the contract to allow for the adjustment of the unit price of certain bid items based on the price of fuel. Since this method of price adjustment is very unpredictable, both City staff and the Contractor have agreed to eliminate the clause. If the fuel adjustment clause is not eliminated, the Contractor is ready to "shut down" for the season as they have contracted fuel prices and stand to lose money. The Contractor is willing to complete the project by October 1, 2009, rather than December 1, 2009, if the clause is eliminated thus saving the City outside engineering costs and allowing the site to be available for development at an earlier date. There is no change in contract dollar amount as a result of Change Order 3. 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. --7 1 1 J/-, - Grant M. yffels, If. Director of Public Wtrks Attachments