Agenda - Council - 02/26/2013 - Laserfiche WebLink

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CC Regular Session 4. 12. Meeting Date: 02/26/2013 Submitted For: Patrick Brama By: Patrick Brama, Administrative Services Information Title: Adopt Resolution 13-02-040; for the partial payment to Sauter & Sons INC for the Nordvick Property demolition and site clean up; and review change order number one (1). Background: The City of Ramsey is in the process of improving the existing Highway 10/Armstrong Boulevard intersection to a highway overpass/interchange. Part of this process required the City to purchase privately owned land to dedicate for future right of way (ROW). The Ramsey EDA became involved in this process when they assisted the purchase of a property located at 8020 147th Ave NW ("Subject Property"). A small portion of the Subject Property will be dedicated for future ROW. The larger remaining portion was intended to be used for economic development purposes. The Subject Property contained two commercial buildings; along with various other site improvements. In order to prepare the site for future development, the EDA contracted with Sauter & Son's for the demolition of buildings and site clean up of the Subject Property; for a price of $23,500 per the attached contract. Recently, Staff received a request for a change order to the original contract price. Purpose of Case: consider the attached resolution for the partial payment of the original contract; and review change order one (1) for the removal of an underground oil -water separator tank, $2,400. History of Case: this case was reviewed, discussed and approved by the EDA on February 14, 2013. The City Council is involved with the decision as the funding source is the EDA fund. The EDA fund is not part of the EDA's annually approved budget. Observations: Attached to this case is: 1. Invoice for work outlined in original contract: $23, 500 2. Invoice for change order number one (1), oil -water separator tank: $2,400 3. Project Pay Estimate Summary Sheet: $25,900 total project cost 4. Resolution # 13-02-040 Approving Partial Payment to Suater & Son's for Nordvick Property Demolition ($23, 350) Partial Payment of Original Contract At this point, Staff has determined all work as spelled out in the original contract has been completed EXCEPT establishing turf on the Subject Property. Therefore, Staff recommends withholding 10% of the original project cost (invoice/payment due) as an escrow to ensure the referenced work is completed ($2,350). Change Order Number One (1) Said $2,400 change order is for the removal and disposal of an underground oil -water separator tank (including remaining oil) located on the Subject Property. This work was unforseen and was not included in the RFP (Request for Proposal) for this project. Staff did conduct a site visit and review property files regarding the Subject Property before the development of a RFP. However, Staff was unable to find any information, or physical evidence, of the oil -water separator tank located on the Subject Property as it was buried underground. Therefore, it was not included in the RFP.