Rosedale Ave reconstruction final
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MEMORANDUM
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November 21, 2006
TO:
The Honorable Mayor and City Council Members
FROM:
Michael C. Van Milligen, City Manager
SUBJECT: Rosedale Avenue Reconstruction Project
CIP 3001719: Fiscal Year 2006 Street Construction Program
The Rosedale Avenue Construction Project has been completed by Portzen
Construction, in the final contract amount of $1 ,647,605.74, which is a 12.2% increase
from the original contract in the amount of $1 ,468,984.70. The reason for this increase
in cost resulted from an overage in project quantities due to additional excavation, stone
quantity and pavement replacement needed at the Grandview Avenue intersection and
on Glen Oak Street, as well as 35 change orders, which included such items as
additional water main work, additional storm sewer work and additional retaining walls.
Because the project is fully complete and has been open to the public to use since July
2006, City Engineer Gus Psihoyos recommends City Council authorization for a partial
release of retainage from 5% of the construction cost to 1 % of the construction cost.
This would leave $16,925.19 in retained funds until the project is accepted by City
Council.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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Mictfael C. Van Milligen
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Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Gus Psihoyos, City Engineer
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MEMORANDUM
November 21,2006
TO: Michael C. Van Milligen, City Manager
FROM: Gus Psihoyos, City Engineer __90
SUBJECT: Rosedale Avenue Reconstruction Project
CIP 3001719: Fiscal Year 2006 Street Construction Program
INTRODUCTION
The purpose of this memo is to advise both the City Council and yourself of a cost
overrun on the project and to request approval for the partial release of the construction
contract final payment retainage for the Rosedale Avenue Reconstruction Project.
BACKGROUND
The Rosedale Avenue Reconstruction Project involved the complete reconstruction of
the roadway sub-base and pavement, which provided for a new 37-foot wide concrete
roadway between West Locust and North Grandview.
The project was constructed in two phases. Phase I of the project included the
complete reconstruction of all underground utilities and mainline roadway construction
from West Locust to Glen Oak. Phase II of the project included the remainder of the
underground utility work and the concrete roadway construction from the Glen Oak
intersection to North Grandview.
This project was substantially complete in July 2006. Punch list items were identified
and the contractor fully completed the project in September 2006.
DISCUSSION
The Rosedale Avenue Reconstruction Project has been completed by Portzen
Construction, Inc. of Dubuque, Iowa in the final contract amount of $1,647,605.74,
which is a 12.2% increase from the original contract in the amount of $1 ,468,984.70.
The reason for the $178,621 increase in contract cost resulted from an overage in
project quantities due to additional excavation, stone quantity and pavement
replacement needed at the Grandview Avenue intersection and on Glen Oak Street. In
addition, there were 35 change orders on the project that accounted for $62,568. These
change orders varied from the original project scope and included such items as:
additional water main work, additional storm sewer work, and additional retaining walls.
A portion of this cost overrun is offset by the substantially lower costs for construction
engineering and inspection service fees. It is anticipated that there will be $87,323.70 in
lower engineering costs.
There is currently $84,625.94 in final payment construction contract final payment
retainage funds being retained, which is 5% of the final contract amount. Portzen
Construction, Inc. is requesting a partial release of the retained funds.
Engineering staff will require additional time to process the project close-out
documentation and to establish the residential and commercial assessments for the
Rosedale Reconstruction Project. It is anticipated that the project will be presented to
the City Council for acceptance of the construction contract and approval of the final
schedule of assessments in January 2007. Due to the required 30 day waiting period
from acceptance to final release of retained funds, the final payment to the contractor
would not occur until February 2007.
ACTION REQUESTED
Because the project is fully complete and has been open to public use since July 2006, I
recommend that the City Council authorize the partial release of retainage from 5% of
the construction cost to 1% of the construction cost. This would leave $16,925.19 in
retained funds until the project is accepted by the City Council.
Prepared by Jon Dienst, PE
cc: Dawn Lang, Budget Director
Jenny Larson, Budget Director
Ken TeKippe, Finance Director
Bob Green, Water Plant Manager
Don Vogt, Public Works Director
Greg Doeden, PE