02-26-2018 Council Meeting Packet

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CITY COUNCIL AGENDA ITEM 6E STAFF ORIGINATOR: Michael Grochala, Community Development Director MEETING DATE: February 26, 2018 TOPIC: i. Consider Resolution No. 18-19, Approving Escrow Deposit Agreement with Jorgenson Construction Inc. ii. Consider Resolution No. 18-20, Approving Change Order No. 3 and Final Pay Application, Fire Station No. 2. VOTE REQUIRED: 3/5 INTRODUCTION Staff is requesting council approval of an escrow deposit agreement with Jorgenson Construction Inc. along with approval of Change Order No. 3 (-13, and Final Pay Application No. 9 fort in the amount of $90,193.38 to Jorgenson Construction, Inc. for the construction of Fire Station No. 2. BACKGROUND The construction contract for the Fire Station No. 2 Project was awarded to Jorgenson Construction, Inc. on February 23, 2015 in the amount of $3,847,100. The project included site grading and surface water management facilities, construction of Fire Station No. 2, and construction of internal roads. The project was substantially completed on December 18, 2015. However, final payment was withheld pending completion of certain repair and replacement items noted in the final walk through. Additionally, several landscaping items could not be finished until the following summer. Failure of some turf establishment, along with required tree replacement, has led to additional delays in the project completion. At this time all work items have been completed with the exception of 12 trees proposed for replacement in spring of 2018. In the interest of closing the project, staff is proposing execution of a deposit agreement between the City and Jorgenson covering the replacement tree cost. Under the terms of the agreement Jorgenson Construction will provide a cash deposit in the amount of $10,500. This amount is calculated as 12 trees x $700 per tree x 125%. Jorgenson will have until June 1, 2018 to replace the trees. If the work is not completed the escrow funds will be used to reimburse all City costs, including staff time, to complete the replacement.