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515 Little Canada Road, Little Canada, MN 55117-1600 (651) 766-4029 / FAX: (651) 766-4048 www.ci.little-canada.mn.us MEMORANDUM Tt1>: Mayor Keis & Members of the City Council FROM: Joel Hanson, City Administrator DATE: April 3, 2015 IBE: MAYOR John Keis COUNCIL Rick Montour Michael McGraw Tom Fischer Christian Torkelson ADMINISTRATOR Joel R. Hanson Attached is a letter from Troy Corbett of James Steele Construction (JSC) requesting payment for additional reimbursable costs associated with the construction of the new Public Works building. These costs are attributable to increased time associated with the construction of the building. The request if for six weeks of Supervision (on-site superintendent), six weeks of general conditions (phone, field office, travel, etc.), and four weeks of the on-site fork lift. The total cost of this request is $23,670. There is no doubt the project took longer than planned due to the issues noted in Troy's letter. It should also be noted that the initial budget was at $2.5 million when we entered in to this contract versus the revised $3.9 amount. JSC did not adjust the reimbursable costs as they initially felt they could complete the project within the 7.5 month construction schedule. (Also attached is pertinent information from the contract document that talks about these costs.) In terms of the impact of these additional charges on the project budget, we were about $18,300 under budget based on the information the Public Works Superintendent provided a couple of meetings ago. We have also earned $13,800 of interest on the construction proceeds from the bond issue. However, we also have landscaping and fiber to install to the building although they can be financed from other sources if necessary. Staff is following up on a couple of questions regarding this bill and I will have a recommendation on the amount to be paid ready for Wednesday's meeting. 4