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HomeMy WebLinkAbout2008 03-10 EDAP EDA MEETING City of Brooklyn Center March 10, 2008 AGENDA 1. Call to Order —The EDA requests that attendees turn off cell phones and pagers during the meeting. A copy of the full City Council packet, including EDA (Economic Development Authority), is available to the public. The packet ring binder is located at the front of the Council Chambers by the Secretary. 2. Roll Call 3. Approval of Agenda and Consent Agenda —The following items are considered to be routine by the Economic Development Authority (EDA) and will be enacted by one motion. There will be no separate discussion of these items unless a Commissioner so requests, in which event the item will be removed from the consent agenda and considered at the end of Commission Consideration Items. a. Approval of Minutes L February 25, 2008 Regular Session 4. Commission Consideration Items a. Resolution Opting Not to Waive Limited Tort Liability for 2008 -Requested Commission Action: Motion to adopt resolution. b. Resolution Approving Change Order No. 1, Accepting Work Performed and Authorizing Final Payment, Improvement Project No. 2007 -15, TIF District 3 Regional Storm Water Treatment Improvements -Requested Council Action: Motion to adopt resolution. 5. Adjournment i FI►A Ngeft da -item No. 3a MINUTES OF THE PROCEEDINGS OF THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA REGULAR SESSION FEBRUARY 25, 2008 CITY HALL COUNCIL CHAMBERS 1. CALL TO ORDER The Brooklyn Center Economic Development Authority (EDA) met in Regular Session called to order by President Tim Willson at 8:18 p.m. 2. ROLL CALL President Tim Willson and Commissioners Kay Lasman, Mary O'Connor, Dan Ryan, and Mark Yelich. Also present were Executive Director /City Manager Curt Boganey, Engineering Technician IV Bruce Johnson, Community Development Director Gary Eitel, Planning and Zoning Specialist Ron Warren, City Attorney Charlie LeFevere, and Carol Hamer, TimeSaver Secretarial, Inc. 3. APPROVAL OF AGENDA AND CONSENT AGENDA Commissioner Lasman moved and Commissioner Ryan seconded approval of the Agenda and Consent Agenda, and the following item was approved: 3a. APPROVAL OF MINUTES 1. January 14, 2008 Regular Session Motion passed unanimously. 4. COMMISSION CONSIDERATION ITEMS 4a. RESOLUTION NO. 2008 -02 AUTHORIZING EXECUTION OF A DEVELOPMENT AGREEMENT AND REAL ESTATE OPTION AGREEMENT (NORTHERN 8+ ACRES OF THE I -694 HWY 100 REDEVELOPMENT SITE) Mr. Boganey introduced the item, discussed the history, and stated the purpose of the proposed resolution. He provided an overview of the Option and Development Agreement with U.S. General Services Administration (GSA). It was noted that environmental issues related to a fuel tank leak on the property are not expected to significantly alter the timeframe associated with the redevelopment Mr. Forrest Hudson, representing GSA, addressed the EDA and answered questions of the Commissioners. 02/25/08 -1- DRAFT There was discussion of the following issues in relation to the development agreement and real estate option agreement: Perimeter security fence planned on the site EDA economic participation in the project Redevelopment efforts in the City Value of the site Anticipated tax capacity with the proposed project Possible effects of the project in moving up the decertification date of the tax increment financing district Commissioner Lasman moved and Commissioner Ryan seconded adoption of EDA RESOLUTION NO. 2008 -02 Authorizing Execution of a Development Agreement and Real Estate Option agreement (Northern 8+ acres of the I -694 Hwy 100 Redevelopment Site). Commissioner Yelich stated although this is an intriguing project and is in line with the direction outlined by the City Council, he will be voting against the resolution due to the business subsidy going to the federal government. Commissioners O'Connor and Yelich voted against the same. Motion passed. President Willson stated this project is an excellent first step in spurring redevelopment in the City. He welcomed the GSA and FBI to the City of Brooklyn Center. 5. ADJOURNMENT Commissioner Lasman moved and Commissioner Ryan seconded adjournment of the Economic Development Authority meeting at 8:52 p.m. Motion passed unanimously. 02/25/08 -2- DRAFT EDA Agenda Item No. 4a X City of Brooklyn Center Economic Development Authority Agenda Item Memorandum TO: Curt Boganey, Executive Director FROM: Daniel Jordet, Assistant Treasurer DATE: 29 February 2008 SUBJECT: Statutory Tort Liability Limits Recommendation: It is recommended that the attached resolution adopting the, no waiver option for statutory tort liability insurance be adopted by the EDA. Background: Each year the EDA must chose whether to waive tort liability limit protections of Minnesota Statutes 466.04 as part of the insurance policy renewal application process. M.S. 466.04 states that the maximum liability for an insured for any claim arising after 1 January 2008 but before 1 July 2009 is 400,000 with an aggregate maximum of 1,200,000 per incident. This limitation automatically rose from the 300,000/$ 1,000,000 limitation last year under legislation adopted in 2006 and will rise again after 1 July 2009 to 500,000/$ 1,500,000. Our regular liability insurance policy covers claims under the strictures of this statute. If the EDA were to waive the limits set by statute, it would be prudent to purchase additional insurance coverage to cover possible higher awards in liability claims. Premiums for such insurance would exceed 7,000 per year. Financial Impact: The 2008 budget anticipates leaving the no waiver option in place for 2008 and has anticipated insurance premiums based on that n waiver option. Waiving the statutory limits would require that at least 7,000 in additional premium costs be allocated for 2008 and in each succeeding year. LEAGUE OF MINNESOTA CITIES INSURANCE TRUST LIABILITY COVERAGE -WAIVER FORM Cities obtaining liability coverage from the League of Minnesota Cities Insurance Trust must decide whether or not to waive the statutory tort liability limits to the extent of the coverage purchased. The decision to waive or not to waive the statutory limits has the following effects: If the city does not waive the statutory tort limits, an individual claimant would be able to recover no more than $400,000.on any claim to which the statutory tort limits apply. The total which all claimants would be able to recover for a single occurrence to which the statutory tort limits apply would be limited to $1,200,000. These statutory tort limits would apply regardless of whether or not the city purchases the optional excess liability coverage. 0 If the city waives the statutory tort limits and does not purchase excess liability coverage, a single claimant could potentially recover up to $1,200,000. on a single occurrence. The total which all claimants would be able to recover for a single occurrence to which the statutory tort limits apply would also be limited to $1,200,000., regardless of the number of claimants. If the city waives the statutory tort limits and purchases excess liability coverage, a single claimant could potentially recover an amount up to the limit of the coverage purchased. The total which all claimants would be able to recover for a single occurrence to which the statutory tort limits apply would also be limited to the amount of coverage purchased, regardless of the number of claimants. Claims to which the statutory municipal tort limits do not apply are not affected by this decision. This decision must be made by the city council. Cities purchasing coverage must complete and return this form to LMCIT before the effective date of the coverage. For further information, contact LMCIT. You may also wish to discuss these issues with your city attorney. Brooklvn Center EDA and HRA accepts liability coverage limits of from the League of Minnesota Cities Insurance Trust (LMCIT). Che one: The city DOES NOT WAIVE the monetary limits on municipal tort liability established by Minnesota Statutes 466.04. The city WAIVES the monetary limits on tort liability established by Minnesota Statutes 466.04, to the extent of the limits of the liability coverage obtained from LMCIT. Date of city council meeting Signature /Date Position Return this completed form to LMCIT, 145 University Ave. W,, 5t. Paul, MN. 551032044 LMCIT (11 /00)(Rev.11 /07) Page 1 of 1 466.04, Minnesota Statute Page 1 of 1 2007 Minnesota Statutes 4 MAXIMUM LIABILITY. Wivision 1. Limits; punitive damages. (a) Liability of any municipality on any claim within the scope of sections 466.01 to 466.15 shall not exceed: (1) $300,000 when the claim is one for death by wrongful act or omission and $300,000 to any claimant in any other case, for claims arising before January 1, 2008; (2) $400,000 when the claim is one for death by wrongful act or omission and $400,000 to any claimant in any other case, for claims arising on or after January 1, 2008, and before July 1, 2009; (3) $500,000 when the claim is one for death by wrongful act or omission and $500,000 to any claimant in any other case, for claims arising on or after July 1, 2009; (4) $750,000 for any number of claims arising out of a single occurrence, for claims arising on or after January 1, 1998, and before January 1, 2000; (5) $1,000,000 for any number of claims arising out of a single occurrence, for claims arising on or after January 1, 2000, and before January 1, 2008; (6) $1,200,000 for any number of claims arising out of a single occurrence, for claims arising on or after January 1, 2008, and before July 1, 2009; (7) $1,500,000 for any number of claims arising out of a single occurrence, for claims arising on or after July 1, 2009; or (8) twice the limits provided in clauses (1) to (7) when the claim arises out of the release or threatened release of a hazardous substance, whether the claim is brought under sections 11513.01 to 115B.15 or under any other law. (b) No award for damages on any such claim shall include punitive damages. Subd. 1 a. Officers and employees. The liability of an officer or an employee of any municipality for a tort arising out of an alleged act or omission occurring in the performance of duty shall not exceed the limits set forth in subdivision 1, unless the officer or employee provides pr sional services and also is employed in the profession for compensation by a person or. other than the municipality. d. 1 b. Total claim. The total liability of the municipality on a claim against it and against its officers or employees arising out of a single occurrence shall not exceed the limits set forth in subdivision 1. Subd. 2. Inclusions. The limitation imposed by this section on individual claimants includes damages claimed for loss of services or loss of support arising out of the same tort. Subd. 3. Disposition of multiple claims. Where the amount awarded to or settled upon multiple claimants exceeds the applicable limit under subdivision 1, paragraph (a), clauses (2) to (4), any party may apply to any district court to apportion to each claimant a proper share of the total amount limited by subdivision 1. The share apportioned each claimant shall be in the proportion that the ratio of the award or settlement made to each bears to the aggregate awards and settlements for all claims arising out of the occurrence. History: 1963 c 798 s 4; 1976 c 264 s 1 -3; 1983 c 121 s 28; 1983 c 331 s 2,3; 1986 c 444; 1989 c 325 s 50; 1997 c 210 s 3,4; 2006 c 232 s 2 NOTE: The amendment to subdivision 1 by Laws 2006, chapter 232, section 2, is effective January 1, 2008. Laws 2006, chapter 232, section 2, the effective date. https:/ /www.revisor.leg.state.mn.us /statutes ?id= 466.04 2/29/2008 Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION OPTING NOT TO WAIVE LIMITED TORT LIABILITY FOR 2008 WHEREAS, the Economic Development Authority of the City of Brooklyn Center has an option to waive its protection under the tort liability limitation contained in Minnesota Statutes 466.04; and WHEREAS, the statutory tort limit for 2008 is $400,000 per individual with an aggregate of $1,200,000 per incident; and WHEREAS, the Economic Development Authority of the City of Brooklyn Center has not opted to waive its rights to limited tort liability in past years and is required to make a declaration of its intention every year. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority of the City of Brooklyn Center that the Authority does not waive the monetary limits on municipal tort liability established by Minnesota Statutes 466.04 for 2008. March 10, 2008 Date President The motion for the adoption of the foregoing resolution was duly seconded by commissioner and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. DA Agenda Item N 4b E 1 COUNCIL ITEM MEMORANDUM TO: Curt Boganey, City Manager FROM: Todd Blomstrom, Director of Public Works DATE: March 4, 2008 SUBJECT: Resolution Approving Change Order No. 1, Accepting Work Performed and Authorizing Final Payment, Improvement Project No. 2007 -15, TIF District 3 Regional Storm Water Treatment Improvements Recommendation: Public Works staff recommends that the Brooklyn Center City Council consider the attached resolution approving Change Order No. 1, accepting work performed and authorizing final payment for Improvement Project No. 2007 -15, TIF District 3 Regional Storm Water Quality Treatment Improvements. Background: On August 13, 2007 the Economic Development Authority awarded a contract for Improvement Project 2007 -15 to Thomas Sons Construction Company, Inc. of Rogers, Minnesota for the construction of the storm water treatment improvements near the intersection of State Highway 252 and 66 Avenue North. Thomas Sons Construction has completed the construction work and is now requesting final payment for the project. During the course of construction, the Contractor submitted claims for extra work. A majority of the claims for extra work are associated with the discovery of underground utilities that were not clearly depicted on the project bid documents prepared by WSB Associates, the engineering consultant for the project. The engineering consulting has reviewed the claims and provided a formal recommendation to the City. The following documents related to the extra work claims are attached to this memorandum. Document 1 Letter from WSB Associates, dated January 8, 2008, itemizing the recommended payment for extra claims; Document 2 A second letter from WSB Associates, dated January 8, 2008 describing their proposed contribution towards the extra costs associated with underground utilities that were not depicted on the project bid documents; Document 3 Proposed Change Order No: 1 form. is The contractor has submitted claims for. extra work totaling $48,658.29. The engineering consultant has recommended that $42,623.89 of the extra work claims are justified and should be Improvement Project 2007 -15 Change Order No. I paid to the contractor. The attached Change Order No. I was prepared based on the engineer's recommendations and presented to the contractor for consideration. The contractor has accepted and executed the proposed change order and accepts the proposed final contract payment amount recommended by the consulting engineer. Budget Issues: The attached resolution approves Change Order No. l for the project. The original contract amount is $1,040,842.50_ The change order would increase the contact amount by $42,623.89. The project engineering consultant has offered to reimburse the City in the amount of $15,270.00 ($12,500 contract cost and $2,770 services credit) for a portion of the cost associated with the Change Order. Improvement Project 2007 -15 Change Order No. 1 WSB Associates, Inc. Infrastructure 1 Engineering 1 Planning 1 Construction 701 Xenia Avenue South Suite 300 Minneapolis, MN 55416 Janua 8 2008 Tel: 763-541-4800 Fax: 763-541-1700 Mr. Todd Blomstrom City Brooklyn of Brookl Center D OCUMENT 1 01 Shingle Creek Parkway G3 S g k rar y Brooklyn Center, MN 55430 Re: Thomas and Sons' Requests for Additional Payment TIF District 3 Regional Stormwater Treatment Project WSB Project No. 1143 -05 Dear Mr. Blomstrom: This letter addresses Thomas and Sons' requests for additional payment pertaining to the TIF District 3 Regional Stormwater Treatment Project. A summary of Thomas and Sons' requests are provided on the attached sheet. It is recommended that payment in the amount of $42,623.89 be provided to Thomas and Sons to address their requests for additional payment. This amount includes $32,750.00 that should be provided to Thomas and Sons for work associated with Request Nos. 2, 3, 5, and 6, and approximately 90% of 11 pertaining to utilities that were not indicated on bid documents. In addition payment ent of $1,250 should be p provided for silt curtain as noted in Request No. 12, and $8,623.89 should be provided for repairing a leaking sanitary sewer service and resetting footing forms that were impacted by the leak as noted under request No. 14. These requests are items that the contractor could not anticipate based on the bid documents. Therefore, it is reasonable and necessary to pay the contractor for this work. Payment should be denied for other requests based on the following: Request Nos. 1, 4, 10 and 13 Per email correspondence dated October 26, 2007, payment for Request Nos. 1, 4, and 10 has been previously denied as indicated on the attached email. Similarly, Request No. 13 is considered an incidental cost to the project, and, as stated in phone conversation with Dan Thomas on November 6 prior to work being performed, no additional payment will be made for Request No. 13. Request No. 7 Request No. 7 was nullified, with a credit under Request No. 8. Minneapolis 1 St. Cloud Equal Opportunity Employer K: iOL/ 4!- OSUldminiDocs�LTR- tblomstrom1- revised 0/0808.doc Mr. Todd Blomstrom January 8, 2008 Page 2 Request No. 9 Work associated with Request No. 9 was also included in the invoice under Request No. 11. This was confirmed by Steve Thomas Jr., of Thomas and Sons, and it was agreed that a credit of $1,446 should be applied to offset the fees associated with No. 9 since it was re- issued on No. 11. Request No. 11 $29,350 of the requested $31,947.29 should be paid for Request No. 11. The contractor claimed that the Komatsu 800 was necessary to work around existing utilities that were not shown on the bid plans. Therefore, it was agreed that the contractor would be paid for the upgraded rental price of the larger excavator for the time necessary to work around the utilities that were not indicated on the plans. In specific, the City authorized payment to the contractor for each day that the excavator would be used to construct structures A and B and new arch pipe installed near the utilities that were not located in bid plans. If you have any questions regarding this recommendation, please contact me. Sincerely, WSB Associates, Inc. Todd E. Hubmer, PE Principal/Project Manager Attachment cc: Bruce Johnson, City of Brooklyn Center Paul Hudalla, WSB Associates, Inc. ti;!143- uj,idminLDocsLLrR- thionistrom2 120307.doc i City of Brooklyn Center TIF District 3 Regional Stormwater Treatment System WSB No. 1143 -05 Thomas and Sons' Requests for Additional Payment Item Invoice Invoice Date Net Amount Description 112770 -01 9/18/20071 $1,500.00 lRemove and Replace Light Poles 22770 -02 N 9/18/20071 $1,056.00 lWork Around Existinq Utilities for Potholinq 312770 -02 1 10/11/20071 $908.00 ISupport Cables on Sheetinq (4 sections sheetinq) 412770 -03 1 9/18/20071 $2,112.00 (Remove and Replace 36" RCP and MH 512770 -03 10/11/20071 $528.00 lWork Around Existing Utilities 612770 -04 1 10/18/20071 $908.00 Work Around Existinq Utilities 712770 -05 1 10/19/20071 $1,446.00 ISetup and Tear Down Komatsu 800 812770 -05 1 10/19/20071 ($1,446.00)lSetup and Tear Down Komatsu 800 92770 -05A 1 10/15/20071 $1,446.00 )Setup and Tear Down Komatsu 800 1012770 -06 11/5/20071 $5,970.61 lRemove 18" Pipe and Construct 36" RCP, FES, CBMH 1112770-07 11/6/20071 $31,947.29 +Komatsu 800 from 9/10 to 10/11 1212770 -08 1 11/15/20071 $1,250.00 IFioatinq Silt Curtain 1312770 -09 1 11/16/20071 $1,032.39 11-andscape in Islands A WSB VA,sociates, Inc. Infrastructure 1 Engineering 1 Planning 1 Construction 701 Xenia Avenue South Suite 300 Minneapolis, MN 55416 January 8, 2008 Tel:763- 541 -4800 Fax: 763 -541 -1700 City Todd Brooklyn Ce nter DOCUMENT #2 City of Brooklyn Center 6301 Shingle Creek Parkway Brooklyn Center, MN 55430 Re: TIF District 3 Regional Stormwater Treatment System WSB Project No. 1143 -05 Dear Mr. Blomstrom: WSB &Associates, Inc. (WSB) is presenting a proposal for your consideration to resolve extra costs incurred by the City of Brooklyn Center due to utility issues on the TIF District 3 Regional Stormwater Treatment System Project. As you are aware, the locations of utilities were not clearly defined on the plans prepared for the bid package dated July 25, 2007. The bid was awarded for construction, and upon the construction locate called by the selected contractor, we were notified utilities had been marked that were not located prior to awarding the project. The following observations have factored into our proposed action to resolve this issue: 1. Some existing private utilities located within the project limits were not shown on bid plans. 2. The design of the TIF District 3 project did not conflict with the private utilities located on the site. Therefore, the design of the treatment system and specifications did not need modification to accommodate the location of private utilities. 3. If the private utility information was shown on the bid documents, it is reasonable to assume the City would have seen an increase in bid pricing to reflect the time and materials necessary to work adjacent to and around the private utilities. 4. The utility companies would not have relocated their utilities even if the issues were known ahead of time. The chosen contractor would have needed to work around the utilities and those costs would have been included in the City project costs. 5. Under typical circumstances, WSB would have recommended to the City of Brooklyn Center to rebid the project. WSB would have revised, published, advertized, and distributed bid documents to bidders at no cost to the City. However, due to the funding timetables and expiration dates for temporary easements, this was not a reasonable option to pursue. Therefore, prior to beginning construction, WSB Minneapolis 1 St. Cloud Equal Opportunity Employer K: 101143- 05UdminlDoesILTR- tblomstrom- revised- 010808.doc Mr. Todd Blomstrom January 8, 2008 Page 2 worked closely with City staff to identify the potential liabilities for the project. WSB committed to the City of Brooklyn Center to contribute to the additional costs associated with working around the utilities in lieu of incurring the costs to revise the plans, bid documents, and rebid the project. WSB Associates, Inc. has reviewed the additional payment requested by the contractor associated with the utility conflicts on the project and has recommended the City of Brooklyn Center compensate the contractor approximately $32,750 to address the private utility issues. In conformance with our commitment to the City of Brooklyn Center, WSB proposes the following to resolve the issues with the private utilities not being shown on the construction plans: 1. WSB deducted $2,770 on our November 20, 2007, invoice for services associated with staff time to resolve the conflict issues and to work with the contractor. 2. WSB proposes to contribute an additional $12,500 toward the resolution of this issue. Therefore, WSB Associates, Inc. is proposing to contribute $15,270 toward the resolution of this issue. This amount is greater than the estimated cost of $8,000 to $10,000 WSB would have incurred in revising the bid documents and conducting a new bid process for the project. Though we regret these situations arise, we feel the proposal presented to resolve this issue is fair and reasonable and represents our commitment to you. We appreciate the opportunity to work with the City of Brooklyn Center, and we hope that you find the terms outlined in this letter acceptable. If you have any questions, please feel free to call me at 763- 287 -7182. Sincerely, WSB Associates, Inc. 7 �",A• p'''er Todd E. Hubmer, PE Principal/Project Manager cc: Bret Weiss, WSB Associates, Inc. Pete Willenbring, WSB Associates, Inc. Paul Hudalla, WSB Associates, Inc. K:1 143 -05 tAdmin lDocs ILTR- rbloms from- I 20307.doc City of Brooklyn Center I I CHANGE ORDER NO. 2 Contractor: Thomas and Sons Construction January 8, 2007 Address: 13925 Northdale Boulevard P.O. Box 303 Rogers, MN 55374 -9461 Project: TIF District 3 Regional Stormwater Treatment System Improvement Project No. 2007 -15 Contract No. 2007 -G The following items were not included within the terms of Contract 2007 -G, but deemed necessary to complete the project in accordance with the intended design. As of January 8, 2007 the project is substantially complete. This change order resolves all requests for payment of extra work associated with the contract. The Contractor has no additional requests for extra work beyond those items itemized herein. The Contractor has satisfied payments to all subcontractors and material suppliers in -full and will provide lien waivers from all subcontractors and material suppliers for work associated with Contract 2007 -G. 1. EXPLORATORY EXCAVATION This item provides full compensation for all labor, materials, equipment and miscellaneous costs associated with exploratory excavation at locations of underground utilities that were not shown on the bid documents. Thomas Sons Invoice No. 2770 -02: $1,056.00 2. SUPPORT CABLES ON SHEETING This item provides full compensation for all labor, materials, equipment and miscellaneous costs associated with furnishing, installing, maintaining and removal of sheeting to provide temporary I support of underground utilities that were not shown on the bid documents. Thomas Sons Invoice No. 2770 -02: $908.00 3. WORK AROUND EXISTING UTILITIES This item provides full compensation for all labor, materials and miscellaneous costs associated with additional work around existing underground utilities that were not shown on the bid documents. Extra equipment costs are provided in Item 4 below. Thomas Sons Invoice No. 2770 -03: $528.00 Thomas Sons Invoice No. 2770 -04: $908.00 4. KOMATSU 800 EXCAVATOR This item provides full compensation for all labor, materials, equipment and miscellaneous costs associated with the upgraded rental price of a larger excavator machine to work around the underground utilities that were not shown on the bid documents. Total additional compensation for the larger excavator is ninety -one (91) percent of the amount shown on Invoice No. 2770 -07. The remaining nine (9) percent of Invoice No. 2770 -07 is denied. This item includes the proportional share of compensation for delivery, setup, tear down and removal of the equipment from the site. Thomas Sons Invoice No. 2770 -07: $29,350.00 Page 1 of 2 Change Order No.1 Contract 2007 -G December 21, 2007 5. EROSION CONTROL SILT CURTAIN This item provides full compensation for all labor, materials, equipment and miscellaneous costs to furnish, install, maintain and remove the temporary floating silt curtain within the existing storm water pond adjacent to the construction zone. Thomas Sons Invoice No. 2770 -08: $1,250.0 6. SANITARY SEWER REPAIR This item provides full compensation for all labor, materials, equipment and miscellaneous costs associated with sanitary sewer services that were encountered within the project. Total Cost: 8,623.89 7. CANCELED INVOICES The Contractor hereby cancels Invoice Nos. 2770 -01, 2770 -03 (portion dated 9/18/07), 2770 -05, 2770 -05A, 2770 -06 and 2770 -09. The Contractor no longer seeks compensation for these items. CONTRACT ADJUSTMENT Original Contract Amount 1,040,842.50 Change Order No. 1 42.623.89 Revised Contract Amount 1,083,466.39 CHANGE IN CONTRACT TIlVI E The Contract completion date is not changed due to the items noted above. Accepted: TBOMAS SONS Approved: CITY OF BROOKLYN CENTER CONSTRUCTION, INC. By,koll& -ems By: ContraEWs Authorized Re resentative City Manager Dates -47 q d Date: By: Director of Public Works Date: Page 2 of 2 Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION APPROVING CHANGE ORDER NO. 1, ACCEPTING WORK PERFORMED AND AUTHORIZING FINAL PAYMENT, IMPROVEMENT PROJECT NO. 2007 -15, TIF DISTRICT 3 REGIONAL STORM WATER QUALITY TREATMENT IMPROVEMENTS WHEREAS, pursuant to a written contract signed with the City of Brooklyn Center, Minnesota, Thomas Sons Construction Company, Inc. of Rogers, Minnesota has completed the following improvement in accordance with said contract: Improvement Project No. 2007 -15, TIF District 3 Regional Storm Water Quality Treatment Improvements; and WHEREAS, during the initial phases of construction, underground utility lines were discovered within the construction limits of Improvement Project No. 2007-15 that were not shown on the bid documents prepared by the project consultant; and WHEREAS, installation of underground piping for the project required additional labor, equipment and materials as a result of said underground utility lines; and WHEREAS, the Contractor and City have mutually agreed that $42,623.89 in extra work was necessary to complete the project based on the intended design; and WHEREAS, the engineering consultant for the project has offered to contribute $12,500 toward the cost of the extra work and $2,770 toward the cost of additional engineering services. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota that: 1. Change Order No. 1 in the amount of $42,623.89 is hereby approved. 2. Final r 'ect No. 2007 -15 TIF shall be made on Improvement o payment P P J ri Regional Storm Water Treatment Improvements taken District 3 Reg p g the contractor's receipt in full. The total estimated amount to be paid for said improvements under said contract shall be 1,083,466.39. 3. The amended project costs for Improvement Project No. 2007 -15 is provided below. The revenue for the project costs shall be derived from tax increment revenues generated by Tax Increment Financing District No. 3. RESOLUTION NO. COSTS Construction Contract $1,083,466.39 Eng, Legal, Administration 45,714.07 Land Acquisition 18,735.59 Testing and Inspection 5,773.03 Sewer Line Repair 423.38 Permits and Approvals 1.000.00 Total Est. Project Costs $1,155,112.46 March 10, 2008 Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member p g g Y and upon vote being taken thereon, the following voted in favor thereof: and the followin g g voted against the same: whereupon said resolution was declared duly passed and adopted.