City Council Meeting Date: October 6, 2020
To: Mayor and City Council
City Administrator
From: Sean Simonson, Engineering Manager
Dave Bennett, Public Works Director/City Engineer
Title
Consider Resolution Accepting Public Improvements and Approving Final Payment for the 2018 Spring Creek Road Reconstruction Project (STRT2018-A38).
Body
Action Requested:
The Northfield City Council approves the attached Resolution - 2018 Spring Creek Road Reconstruction Project, Accepting Public Improvements and Approving Final Payment for the Project.
Summary Report:
The City Council is being asked to accept the public improvements for the 2018 Spring Creek Road Reconstruction Project STRT2018-A38, and approve final payment to BCM Construction Inc. for $34,897.03 (Attachment 2). The contract was awarded to BCM Construction Inc. at the November 20, 2018 City Council Meeting in the amount of $1,121,139.39. There were no change orders throughout the construction project; therefore, no additional contract changes were necessary. There were some quantity overruns, which is common for a project of this size, that brought the final contract amount to $1,130,237.95.
Alternative Options:
This project is completed and the final acceptance and payment is required to close out the construction contract.
Financial Impacts:
The final construction costs for the project were $1,130,237.95. The tables below detail the final project costs and final project funding.
State-Aid
The City currently has 5 active MSA projects underway since 2018, staff will be closing 3 of them in 2020 (Spring Creek Road, Division and Seventh, Spring Creek Bridge) and 2 (2019 Reclamation and TH 246 and Jefferson Pkwy) will carry over to close in 2021.
The State of Minnesota municipal state aid (MSA) account is running low and has changed from a code green status to red status, where the state isn’t accepting any advance requests. Northfield submitted three projects for advance requests and the City has received about 2/3 of the money from the state. To close this project, staff has submitted the final state aid payment reimbursement, the payment is pending in the amount of $83,206.64. Staff is recommending to include a budget amendment transfer from the Capital Reserve Fund for this amount to occur at the end of 2020 if necessary and the funds don’t come in from State-Aid. The state has preliminarily indicated that they may release the remaining advance request by the end of the year or in early 2021. If that is the case then we will have the necessary state-aid fund to close out these projects.
Additionally, there was $11, 211.38 in 1% for the Public Arts Policy for this project that will be transferred to the Arts and Culture Fund as shown in the table below.
Tentative Timelines:
Upon acceptance by the City Council, the final payment will be processed and sent to the Contractor. At that point, the two-year maintenance bond will begin if warranty work is required.