Adams Co Terminate Tricon General
D~~%duE
~<k~
MEMORANDUM
December 13, 2006
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Contract Termination - Tricon General Construction, Inc.
National Mississippi River Museum and Aquarium Expansion Project
Former Adams Company Building Re-Roof and Structural Repairs
City Engineer Gus Psihoyos recommends City Council approval of the Termination
Agreement for the Construction Contract Between the City of Dubuque, Iowa and Tricon
General Construction for the National Mississippi River Museum and Aquarium
Expansion Project - former Adams Company Building Re-Roof and Structural Repairs
and authorize the City to compensate Tricon for all related expenses incurred in the
amount of $90,583, for which the City will be fully reimbursed by the Dubuque County
Historical Society. The City will then attempt to remarket these materials to recover
some funds for the Dubuque County Historical Society.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
(21l~!l </)1.IY;/L__
Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Gus Psihoyos, City Engineer
)
i5~~~E
~<k~
MEMORANDUM
December 13,2006
TO:
FROM:
Michael C. Van Milligen, City Manager
Gus Psihoyos, City Engineer U
SUBJECT:
Contract Termination - Tricon General Construction, Inc.
National Mississippi River Museum and Aquarium Expansion Project
Former Adams Company Building Re-Roof and Structural Repairs
INTRODUCTION
The enclosed agreement authorizes the termination of the construction contract for the
National Mississippi River Museum and Aquarium Expansion Project - Former Adams
Company Building Re-Roof and Structural Repairs.
BACKGROUND
On August 7, 2006 the City Council awarded the construction contract to Tricon General
Construction, Inc. of Dubuque, Iowa in the amount of $411,220.00 which included
Alternate # 2 and Alternate #4. Work on the project began shortly thereafter and to date,
Tricon has invested $90,583 of time and materials on this project.
On September 28, 2006 the Dubuque County Historical Society (DCHS) and the
Diamond Jo Casino announced expansion plans for a joint project between the two
groups. The expansion plans do not include the utilization of the former Adams
Company property.
On November 6, 2006 the City Council considered and approved a request from the
DCHS for the termination of their lease of the former Adams Company property. The
following provisions are part of the termination agreement:
a. DCHS acknowledges that City entered into a contract for the benefit of DCHS
with Tricon Construction in the amount of $411,220.00 for the repair of the roof
to the Adams Co. Building. If City determines in its sole discretion that it is
necessary to terminate the contract and City incurs any costs or penalties to the
contractor because of the termination of the contract, DCHS shall reimburse
City for all such costs or penalties within fourteen (14) days of a receipt from
City for such costs and penalties. As of October 13, 2006, the costs incurred by
City, which DCHS acknowledges and agrees to reimburse City in the event City
terminates the contract, are $90,583.00, as shown by Exhibit A attached
hereto.
b. DCHS acknowledges that City applied for and was awarded a grant from EDA
in the amount of $297,000 for the repair of the roof to the Adams Co. Building.
DCHS agrees to cooperate with City to assure that City receives the grant. In
the event that City does not terminate the contract for the repair of the roof but
does not receive the EDA grant because of DCHS's termination of the Lease
Agreement, DCHS agrees to pay City the total cost of the repair of the roof but
not to exceed the amount of the EDA grant of $297,000 within fourteen (14)
days of notice from City that City will not receive the grant.
c. Notwithstanding the foregoing, DCHS shall have no liability to City if either the
termination of the contract as described in Par. (a) or the loss of the EDA grant
as described in Par. (b) is caused solely by delay attributable to asbestos
abatement in the Adams Co. Building.
d. If DCHS pays to City any amount under Par. (a) or (b), City shall reimburse
DCHS to the extent City is also paid such amount by a subsequent developer
of the Adams Co. Building.
DISCUSSION
Following the announced expansion plans for the DCHS and the Diamond Jo Casino,
the City contacted Tricon and directed them to stop work on the project, effective
immediately. City staff has had several subsequent meetings with Tricon to discuss the
terms and conditions for an early termination of their contract. Tricon has agreed to
terminate the contract with the provision that the City compensate Tricon for all related
expenses incurred. To date, Tricon has invested $90,583 of time and materials on this
project.
RECOMMENDATION
Based on the change of plans by the DCHS, their recognition to reimburse the City for
specified contract termination costs in the amount of $90,583, and our desire to pursue
other options for the reuse of the former Adams Company site, I recommend that the
City Council approve the proposed termination of the construction contract with Tricon
General Construction, Inc. for the National Mississippi River Museum and Aquarium
Expansion Project - Former Adams Company Building Re-Roof and Structural Repairs.
ACTION TO BE TAKEN
I recommend that the City Council approves the attached agreement which terminates
the construction contract with Tricon General Construction, Inc. for the National
Mississippi River Museum and Aquarium Expansion Project - Former Adams Company
Building Re-Roof and Structural Repairs and authorizes the City to compensate Tricon
for all related expenses incurred in the amount of $90,583 for which the City will be fully
reimbursed by the Dubuque County Historical Society.
Prepared by Robert Schiesl, Assistant City Engineer
cc: Cindy Steinhauser, Assistant City Manager
David Heiar, Economic Development Director
Jerry Enzler, Mississippi River Museum
Kevin Eipperle, Durrant
Mark Fassbinder, Durrant
Ron Richard, Tricon
TERMINATION AGREEMENT
FOR THE
CONSTRUCTION CONTRACT
BETWEEN
THE CITY OF DUBUQUE, IOWA
AND
TRICON GENERAL CONSTRUCTION, INC.
FOR THE
NATIONAL MISSISSIPPI RIVER MUSEUM AND AQUARIUM EXPANSION PROJECT
FORMER ADAMS COMPANY BUILDING RE-ROOF AND STRUCTURAL REPAIRS
WHEREAS, the City of Dubuque, Iowa (City) and Tricon General Construction,
Inc. (Tricon) entered into a Construction Contract dated the 17th day of August, 2006 for
the following project;
National Mississippi River Museum and Aquarium Expansion Project
Former Adams Company Building Re-Roof and Structural Repairs
; and
WHEREAS, City and Tricon now desire to terminate the Construction Contract.
NOW, THEREFORE, IT IS AGREED BY AND BETWEEN THE PARTIES AS
FOLLOWS:
1. The Construction Contract dated the 1 th day of August, 2006 is terminated
effective upon execution of this Termination Agreement by both parties.
2. City and Tricon hereby mutually release each other from any further
obligations and claims under the Construction Contract.
3. Tricon agrees to transfer all its right, title and interest in and to deliver all
building materials purchased by Tricon, as shown by Exhibit A attached hereto, to City
at the Adams Company Building free and clear of all liens and encumbrances.
4. City agrees to compensate Tricon for expenses incurred to date in the amount
of $90,583.00, as shown by Exhibit A attached hereto. Payment to Tricon shall be made
upon delivery of the materials as provided in Par. 3.
CITY OF DUBUQUE, IOWA
TRICON GENERAL CONSTRUCTION,
INC.
By:
By:
Roy D. Buol, Mayor
Its
Attest:
Jeanne F. Schneider, City Clerk
Attest:
Ron Richard, Secretary
www.triconca.com
Corporate Office
2245 Kerper Blvd
Suite 2
Dubuque, IA 52001
P 563.588.9516
F 563.588.9519
902 17th Ave
Monroe, WI 53566
P 608.325.4889
16776 O'Brien Rd
Minooka, IL 60447
P 815.521.9120
F 815.467.2327
TF 866.588.9516
"<~
TRICON
November 28, 2006
Robert Schiesl
Assistant City Engineer
City of Dubuque
City Hall, 50 West 13th Street
Dubuque, IA 52001
Project:
Re:
National River Museum - Adams Re-Roof
Proposal for Early Contract Closeout - City to Purchase All Materials On-Site
Giese Sheet Metal
Nail base ins.
2" ISO insulation
Fasteners
Labor (measure, equipment deliveries/pick up, unloading, reloading)
Commissioning (shop drwgs, ordering, scheduling/manpower negotiations)
Tricon
Project Management
Outfit Crane/Lift
Steel Deck
Steel Deck Unload
Bent Steel Plate Material
Sub-Total
OHP
Bond
Total
Ron Richard
Cc: Bob Schiesl
EXHI BIT A
25,990
15,570
4,390
1,980
1,500
5,250
3,013
22,014
690
4,181
84,578
4,229
1,776
$90,583