Title
Amending the financing and spending budgets in the Department of Public Works to cover additional costs incurred by the contractor on the Kellogg Bridges Project at Market Street and St. Peter Street.
Body
WHEREAS, the Department of Public Works awarded a contract to Kraemer North America for construction of the Kellogg Bridges at Market Street and St. Peter Street in April of 2015 as part of an approved capital project, and
WHEREAS, during construction of the bridges, many unforeseen issues and unexpected conditions were encountered that caused the need to redesign elements of the bridges and alter the construction methods used on the project, and
WHEREAS, some of the major issues uncovered during construction included: exposing undocumented tunnels; the location and structural capacity of the sandstone bluff; the remediation efforts needed to secure the bluff; the need to use specialty equipment to install foundations deeper than what were originally planned, and a project settlement reached with Ramsey County for a contract dispute for building demolition in the area adjacent to the bridges, and
WHEREAS, these construction conditions, along with several others, caused the Contractor to incur significant expenses and delays on the project, and
WHEREAS, negotiations with the Contractor, and approval from Mn/DOT, have resulted in the need to add funding to the project in order to pay the Contractor for the extra work and delays experienced on the project, and
WHEREAS, Public Works is proposing to closeout the Raymond Avenue (Ph I) Reconstruction project and the Prince Street Construction project and transfer all remaining MSA balances into the Kellogg Bridges project at Market and St. Peter, and
WHEREAS, the remaining funding for the Kellogg Bridges project will come from various contingency accounts that are detailed on the attached financial analysis, and
WHEREAS, the Mayor, pursuant to Section 10.07.1 of the Charter of the City of Saint Paul, does certify that there are available supplemental appropriations of $555,713 in the Capital Improvement Budgets, and
WHEREAS, the Mayor, pursuant to Section 10.07.4 of the Charter of the City of Saint Paul, does certify that there are available for transfer, funds of $2,653,760 in the Capital Improvement Budgets, and
WHEREAS, the Mayor, pursuant to Section 10.9 of the Charter of the City of Saint Paul, does certify that there are lapsed appropriations of $796,226 in the Capital Improvement Budgets; so
THEREFORE BE IT RESOLVED, by the Council of the City of Saint Paul, upon recommendation of the Mayor and advice of the Long Range Capital Improvement Budget Committee, that $555,713 supplemental appropriations, $2,653,760 transfer appropriations and $796,226 lapsed appropriations are available in the Capital Improvement Budgets, as heretofore adopted and amended by this Council, be hereby further amended in the Improvement Budgets in the following particulars:
Financial Analysis
See Attachment
CIB Recommendation
The St. Paul Long-Range Capital Improvement Budget Committee received this request on March 14, 2016, and recommends approval.