#08 - 2023 Trail Improvements Final Pay Request

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STAFF REPORT DATE: January 16, 2024 CONSENT AGENDA ITEM: Accept Improvements, Approve Compensating Change Order No. 3, and Approve Pay Request No. 5 (Final) for the 2023 Trail Improvements SUBMITTED BY: Mike Rusenovich, Project Engineer REVIEWED BY: Clark Schroeder, Interim City Administrator Marty Powers, Public Works Director Jack Griffin, City Engineer Chad Isakson, Assistant City Engineer ISSUE BEFORE COUNCIL: Should the City Council accept the improvements, approve Compensating Change Order No. 3, and approve Pay Request No. 5 (Final) for the 2023 Trail Improvements? BACKGROUND: OMG Midwest Inc., DBA Minnesota Paving & Materials was awarded a construction contract on June 6, 2023 for the 2023 Trail Improvements. The contractor has completed the work in accordance with the contract, plans, and specifications, including all punch list items. PROPOSAL DETAILS/ANALYSIS: A compensating change order has been prepared and executed to adjust the final contract amount by $23,050.63 based on the actual quantities installed for the Project. In addition, the contractor has submitted Pay Request No. 5 (Final) in the amount of $39,245.07. The Project Engineer has reviewed these requests and is recommending approval of the compensating change order, final pay estimate and the acceptance of the improvements. A Certificate of Completion has been prepared indicating that all work is completed, including all punch list items, and is recommending the acceptance of the improvements and release of final retainage. Project acceptance will initiate the one-year warranty period, which will begin on January 16, 2024 and will expire on January 16, 2025. FISCAL IMPACT: Final payment is being recommended within the authorized scope and approved change orders for the project. The final construction contract amount came in at $582,535.70 vs. the original construction contract amount of $549,359.21. Project costs came in higher than estimated due to three main factors, including additional tree removal requirements as directed by the city, additional subgrade corrections due to unsuitable soil materials, and added construction materials to address revised trail alignments in the field. In the Spring of 2024, it is anticipated that the city will incur additional costs to address private sprinkler system repairs over several properties. RECOMMENDATION: Staff is recommending that the City Council, as part of the Consent Agenda, accept the improvements, approve Compensating Change Order No. 3 and approve Pay Request No. 5 (Final) for the 2023 Trail Improvements. If removed from the consent agenda, the recommended motion for the action is as follows: