Grand Rvr Ctr Bd Pk 3 Retainage
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MEMOR-ANDUM
February 27, 2004
TO:
The Honorable Mayor and City Council Members
FROM:
Michael C. Van Milligen, City Manager
SUBJECT: Grand River Center - Bid Package #3 Retainage Reduction
J.P. Cullen & Sons, the general contractor for Bid Package #3, has requested a
reduction in the retainage for the Grand River Center. The Iowa Code generally
requires that a city retain 5% of the contract value for 30 days after the project has been
accepted by the City Council. This requirement allows the City to address any claims
against the project out of the retainage without using another funding source. Iowa
Code Section 573.15A allows a city to reduce the retainage when a project is at least
95% complete. The project is at least 98.8% complete. The additional retainage will
not be distributed to the contractor until 30 days after the City Council approves this
request to allow potential claimants to file claims for labor or materials. If no claims are
filed in the thirty-day period, the additional retainage will be distributed. If claims are
filed, the City will continue to hold an amount equal to twice the amount of the claims
and distribute the balance of the retainage. Corporation Counsel Barry Lindahl advises
that Iowa Code Section 573.15A allows this reduction in retainage. The City will still
retain 1.2% of the contract until the City Council, at a later date, accepts the project.
Building Services Manager Rich Russell recommends City Council approval to reduce
the retainagefor the Grand River Center.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
f)n) J 0 II 4.".
W'-4JLY U CL-r\ . ~
Michael C. Van Milligen (J4)
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Rich Russell, Building Services Manager
"
CITY OF DUBUQUE, IOWA
MEMORANDUM.
February 20, 2004
TO: Michael Van Milligen, City Manager
FROM: Rich Russell, Building Services Manager ~
RE: Grand River Center-Bid Package #3 Retainage Reduction
INTRODUCTION: This memo requests that the retainage for this portion of the Grand
River Center project be reduced and that additional retainage be distributed to J.P.
Cullen & Sons.
DISCUSSION: J. P. Cullen & Sons, the general contractor for Bid Package #3, has
requested a reduction in the retainage with the submittal of Pay Requests #14 and #17.
The Iowa Code generally requires that a city retain 5% of the contract value for 30 days
after the project has been accepted by the City Council. This requirement allows the City
to address any claims against the project out of the retainage without using another
funding source. Iowa Code Section 573.15A (a copy is attached for your information.)
allows a city to reduce the retainage when a project is at least 95% complete. This
project is at least 98.8% complete. The additional retainage will not be distributed to the
contractor until 30 days after the City Council approves this request to allow potential
claimants to file claims for labor or materials. If no claims are filed in the thirty-day
period, the additional retainage will be distributed. If claims are filed, the City will
continue to hold an amount equal to twice the amount of the claims and distribute the
balance of the retainage.
Pay Request #14 reduces the effective retainage from 5% to 2.5% of the total value of
the contract. Pay Request #17 reduces the retainage to 1.2% of the total contract value
in order to more accurately reflect the value of the work remaining to be done plus 5%.
See the table below for more information:
Pay Request Retainage ($) Retainage New Retainage Payment
# (%) (%) Requested ($)
14 1,171,401.54 5 2.5 578,630.84
17 602,181.33 2.5 1.2 312,977.16
Remainina 289,204.17 1.2
Total 891,608.00
Gary Busse of HOK has reviewed these requests and feels that the retainage remaining
is adequate to cover the value of the work to be done plus 5%. Corporation Counsel
Barry Lindahl advises that Iowa Code Section 573.15A allows this reduction in retainage.
RECOMMENDATION: I recommend that the City Council approve these requests for
payment and adopt the resolution reducing the retainage. (The resolution is attached.)
cc:
Barry Lindahl, Corporation Counsel
Dawn Lang, Budget Director
[C31, 35, § 10312-d1; C39, § 10312.1; C46, 50, 54, 58, 62, 66, 71, 73, 75,77,
79,81,§573.15]
573.15A Early release of retained funds.
Notwithstanding section 573.14, a public corporation may release retained funds
upon completion of ninety-five" percent of the contract in accordance with the
following: .
1. Any person, firm, or corporation who has, under contract with the principal
contractor or with subcontractors, performed labor, or furnished materials,
service, or transportation, in the construction of the public improvement, may file
with the public corporation an itemized, sworn, written statement of the claim for
the labor, or materials, service, or transportation. The claim shall be filed with the
public corporation either before the expiration of the thirty days after completion
of ninety-five percent of the contract or at any time after the thirty-day period if
the public corporation has not paid the full contract price and no action is pending
to adjudicate rights in and to the unpaid portion of the contract price.
2. The fund, as provided in section 573.13, shall be retained by the public
corporation for a period of thirty days after ninety-five percent of the contract has
been completed. If at the end of the thirty-day period, a claim has been filed, in
accordance with this section, the public corporation shall continue to retain from
the unpaid funds, a sum equal to double the total amount of all claims on file.
The remaining balance of the unpaid fund, or if there are no claims on file, the
entire unpaid fund, may be released and paid to the contractor.
3. The public corporation, the principal contractor, or any claimant for labor or
materials, service, or transportation, who has filed a claim or the surety on any
bond given for performance of the contract, at any time after the expiration of
thirty days, and not later than sixty days after the completion of ninety-five
percent of the contract, may bring an action in equity in the county where the
public improvement is located to determine rights to moneys contained in the
fund or to enforce liability on the bond. The action shall be brought in
accordance with sections 573.16 through 573.18, with the completion of ninety-
five percent of the contract taking the place of the date of final acceptance.
4. A public corporation that releases funds at the completion of ninety-five
percent of the contract, in accordance with this section, shall not be required to
retain additional funds.
~
.
.~ ., -:,J.R Cullen &50n5, Inc.
General Contractor Since 1892
. P.O. Box 1957 Janesville, Wisconsin 53547-1957 608-754-6601
City of Dubuque, Iowa
To:
Dubuque, Iowa
nvoice No.
031064
project:
Mississippi Education Center JPC 4772
Pay Request #
14
Work Completed
Retention Reduction
Total Amount Due
(578,630.64)
578.630.64
THANK YOU.
WE APPRECIATE YOUR BUSINESS!!!
Date
Invoice
10/31/03
,
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PLICATION AND CERTIFICATE FOR PAYMENT
OWNER:
City of Dubuque, Iowa
Project: Mississippi Education Center JPC 4772
Invoice # 031064
Application No.:
Application Date:
Dubuque, Iowa
)M: J.P. CULLEN & SONS, INC.
P.O. Box 1957
JanesvllJe, WI 53547
~TRACTOR'S APPLICATION FOR PAYMENT
Via (Architect):
~NGE ORDER SUMMARY
"ge Orders approved ill Additions Deductions
'ious. months by Owner
Total 567,352.00
roved This Month
lber Date Approved
Totals - -
-
_hange By Change Orders
567,352.00
Period:
HOK Sport Inc.d/b/a HOK Venue,
Architect's Project #
Contract Date:
14
10131103
10/31/03
23,143,476.00
567,352.00
23,710.828.00
23,428,030.83
592,770.70
592,770.70
22,835,280.13
22,256,62!L29
578,630.84
875,567.87 .
mdersigned Contractor certifies Ihat to Ihe
of the ContracloJ's knowtedge. information
>eUef the WOlk covered by this Application
'ayment has been completed in accordance with
ontract Documents,lhat aU amounts have been
,y Ihe Contractor for WOlk for YA1ich previous
icates for Payment were issued and payments
n herein is nOWdur
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1. Ortginal contract sum
2. Net change by change orders
3. Contract sum to date (Une 1+/-2)
4. Total completed & stored to date
5. Retainage:
A. 2.5% of Completed WOlk
(Column D+E on Conl Pg.) 5% thereafter.
B. % of Stored Material
(Column F on Conl Pg.)
Totat Retainage (Une SA + 5B) or
Total ill Column 1 of COIll Pg.
6. Totat earned less retainage
(Line 4 less Line 5 total)
7. Less Previous Certificates for Paymenl
(Line 6 from prtor Certificate)
8. Current Payment Due
9. Balance to finish, plus Retainage
(line 3 less Line 6)
State of:
Wisconsill
County of:
Rock
Subscribed and sworn to before me Ihis
day of tJ '() V
s-
Nota~ P~ t
My commission expires:
18-Mar-Q7
DATE
" f rro"?
/
lTEGrS CERTIFICATE FOR PAYMENT
ordance with Ihe Contract Documents, based on on-site
'ations and Ihe data comprising the above application,
::hitect certifies to Ihe Owner that to Ihe best of Ihe
,crs knowledge, information and belief Ihe WorK is in
lance wIlli Ihe Contract Documents, and the Contractor is
j to payment of the AMOUNT CERTIFIED.
ARCHITECT:
BY:
,2003.
~
.
Dice No.
J.R Cullen & Sons, Inc.
General Contractor Since 1892
P.O. Box 1957 Janesville, Wisconsin 53547-1957 608-754-6601
City of Dubuque, Iowa
To:
Dubuque, Iowa
040111
Project:
Mississippi Education Center JPC 4772
Pay Request #
17
Work Completed
Retention Reduction
Total Amount Due
THANK YOU.
WE APPRECIATE YOUR BUSINESS!!!
(312,977.16)
312,977.16
Date
Invoice
1/27/04
ION AND CERTIFICATE FOR PAYMENT
R:
City 01 Dubuque, Iowa
Project: Mississippi Education Center JPC 4772
Involce# 040111
Application No.:
Application Date:
17
1/27/04
Dubuque, Iowa
10M: J.P. CULLEN & SONS, INC.
P.O. Box 1957
Janesville, WI 53547
)NTRACTOR'S APPLICATION FOR PAYMENT
Via (Architect):
IANGE ORDER SUMMARY
,ange Orders approved in Additions Deductions
!Vlous months by Owner
Total 726,443.00
roved This Month
mber Dale Aoproved
Totals -
t Change By Change Orders
726,443.00
,undersigned Contractor certifies that to the
¡t 01 Ihe Conlrectots knowledge, inlonnation
j belie/the Work covered by this Appiication
. Payment has been completed in accordance with
Contract Documents, that all amounts have been
d by the Contractor lor Work lor which previous
rtificates lor Payment were issued and payments
IWTI herein is now due.
Period:
1/31/04
HOK Sport Inc.d/b/a HOK Venue.
Archilecrs Project #
Contract Date:
1. Original contract sum
2. Net change by change orders
3. Contract sum to date (line 1 +/-2)
4. Total completed & stored to date
5. Retainage:
A. 2.5% 01 Compleled Work
(Column D+E on ConL Pg.) 5% thereafter.
B. % 01 Stored Matarial
(Column F on Cont. Pg.)
Total Retainage (Line SA + 5B) or
Total in Column 1 01 ConL Pg.
6. Total eamed less retainage
(Line 4 less Line 5 total)
7. Less Previous Certificates for Payment
(Line 6 lrom prior Certificate)
8. Current Payment Due
9. Balance to finish, plus Retainage
Oine 3 less Line 6)
23.143,476.00
726,443.00
23.869.919.00
23,820,090.83
289,204.17
289,204.17
23,530.886.66
23,217,909.50
312,977.16
339,032.34
Slate 01 :
Wisconsin
County ot
Rock
Subscribed and sworn to belore me this 5
Notary Public: ~£
dayol J~
.2004.
My commission expires:
18-Mar-07
'NTRACT\è np.CU~OQ.' C. C ','
: J-.- c.Jnll-
{
~Iò~
DATE
CHITECT'S CERTIFICATE FOR PAYMENT
Iccordance with the Contract Documents. based on on-slie
,ervations and the data comprising the above application,
Architecl certifies to the Owner that to the best 01 the
hited's knowledge, infonnallon and beliel the Work is in
ordance with the Contract Documents. and the Contractor is
Itled 10 payment 01 the AMOUNT CERTIFIED.
ARCHITECT:
AMOUNT CERTIFIEO:
BY:
This Certificate Is not negoti ble. The AMOUNT CERTIFIED is
payable only to the Contractor named herein. Issuance, payment
and acceptance 01 payment are wilhoul prejudice to any rights 01
the Owner or Contractor under this Contract.
RESOLUTION NO. 91-04
AUTHORIZING THE RELEASE OF RETAINED FUNDS TO J.P. CULLEN & SONS,
INC. FOR THE CONSTRUCTION OF THE GRAND RIVER CENTER
Whereas, the City of Dubuque (City) entered into a contract with J.P. Cullen
& Sons, Inc. (Cullen) for the construction of the Grand River Center in the City of
Dubuque, Iowa; and
Whereas, Cullen has completed 98.8% of the contract for the construction
of the Grand River Center; and
Whereas, City is holding $1,171,401.54 retainage for the project as required
by Iowa Code Chapter 573; and
Whereas, Iowa Code Chapter 573 allows for the early release of retained
funds according the procedure set forth in Iowa Code §573.15A; and
Whereas, the City Council has determined that it is appropriate to release
additional retained funds to Cullen as provided in Iowa Code §573.15A.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. The City Council of the City of Dubuque, Iowa hereby
acknowledge$that 98,8% of the contract for the construction of the Grand River
Center by J.P. Cullen & Sons, Inc. has been completed.
Section 2. The City shall continue to retain $1,171,401.54 retainage now
being t eld for a period of 30 days from the date of this Resolution. Ifat the end of
the 30-day period, a claim has been filed, in accordance with Iowa Code §573.15A
for labor, materials, service or transportation, the City shall continue to retain
from the unpaid funds, a sum equal to double the amount of all claims on file. If
there are no claims on file at the end of the 30-day period, $891,608.00 of the
retainage shall be released and paid to Cullen. The remainder of the retainage
shall be held until 30 days after final acceptance of the project by the City
Council, in accordance with Iowa Code Chapter 573.
Passed, approved and adopted this 1st day of March, 2004.
Terrance M. Duggan, Mayor
Attest:
Jeanne F. Schneider, CIty Clerk