City Council Meeting Date: August 21, 2018
To: Mayor and City Council
City Administrator
From: Sean Simonson, Engineering Manager
David E. Bennett, P.E. Public Works Director/City Engineer
Subject:
TITLE
Consider Approval of Additional Professional Services with Short Elliot Hendrickson Inc. (S.E.H.) for Division Street and Seventh Street Reconstruction, Washington Street Mill and Overlay, and Various Parking Lot Rehabilitations Project and Spring Creek Road.
BODY
Action Requested:
The Northfield City Council Considers a Motion to amend the compensation amount with S.E.H for the additional services on the Division Street Project (2018STRT A37) and Spring Creek Road Project (2018STRT A38) from $366,892 to $778,501.
Summary Report:
At the August 22, 2017 Council Meeting, City Council approved a contract with S.E.H for design and construction services related to the above stated projects. In order to facilitate the timeline of the projects, the City’s proposal for requesting professional services were retained with the understanding that the City was working through the engagement and Complete Street Conceptual Design with Toole Design Group for Division and Seventh Street.
Therefore, at the time of entering into the contract for Division and Washington Street, the full scope of the Complete Streets features such as parking bumpouts, valley gutters, and raised intersections were not identified. These items, along with a variance process for State-Aid, increased the costs related to the design and construction. The original proposal had Division Street and Washington Street costs at $172,405. The request for the additional services is for an additional $194,600 for a total professional services cost of $367,005. This cost is more reflective of what is typically seen for professional service costs. This is roughly 10% of the construction cost for these services, project professional services typically range between 10 and 20%.
For the Spring Creek Road Project, the original contact amount for professional services was $194,485 during the original design process prior to rescoping for the rural section. Primary cost increases related to design services were due to the retaining walls that were going to be along the west side of the roadway. Due to project construction cost coming in to high, the proposed services cost has increased by $217,009 for a total professional service cost of $411,494.
In summary, combined increases and adjustments to the contract are $411,609. Staff is recommending that Council approve this request. Staff believes the increases in professional service costs are justified and is covered in the project budget.
Alternative Options:
Staff believes these are valid costs incurred by the consultant and should be approved.
Financial Impacts:
The City has a combined $932,160 for overhead costs related to professional services for these projects. At the $778,501 cost for services, this will leave $153,659 available for other overhead costs incurred. In addition, a 10% project contingency is included for the projects at a total of $531,181. With only one change order for Division Street and Seventh Street at $68,854 a project contingency amount of $462,327 exists.
Staff believes adequate project funding remains for the projects.
Tentative Timelines: