Laserfiche WebLink
4alit., /d <br />MENO TO: MAYOR AND CITY COUNCIL <br />FROM: CLERK-ADMINISTRATO <br />DATE: MAY 2, 1989 <br />SUBJECT: MOUNDS VIEW BUSINESS PARK CONSTRUCTION MANAGEMENT <br />EXPENSES <br />As you may recall, the City entered into an agreement with <br />Everest Construction Company for the provision of construc- <br />tion manager services during the development of the Mounds <br />View Business Park. This agreement provided that the City <br />would reimburse Everest Development for certain out-of- <br />pocket expenses and also pay up to 4% of construction costs <br />not to exceed $72,000. <br />Over the last several months I have been dealing with repre- <br />sentatives of Everest Development regarding a request for <br />payment of out-of-pocket expenses and basic services. <br />Essentially, the discussions revolved around the documenta- <br />tion needed to substantiate their out-of-pocket expenses as <br />well as agreeing on acceptable out-of-pocket expenses as <br />defined by the agreement. At a meeting on February 26, 1989 <br />Bill Franke cf Everest. Development and I reached an <br />agreement on the expenses that are acceptable as well as the <br />construction cost figures to be used for the 4% basic <br />services fee.. Essentially, Mr. Franke and I agreed that the <br />4% fee would be based upon actual expenses paid for by the <br />City of Mounds View rather than contractual expenses since <br />some of the contracts have not been completed at this time. <br />Also, Mr. Franke agreed to the elmination of $10,289 in out- <br />of-pocket expenses that were clearly related to the develop- <br />ment of the Privately owned buildings on the project and the <br />plotting of the project rather than the public improvement <br />portion of the project. As a result, the fees due and <br />payable Everest Development based upon these agreements and <br />the contract are as follows: <br />Public Improvement Contracts: <br />Houle Construction <br />Signalization <br />Site Lighting <br />Everest Construction <br />Com;:any Out -Of Pocket <br />Expenses <br />Subtotal <br />813,883 (as of 12/31/88) <br />33,924 (as of 11/88) <br />56,305 (as of 09/88) <br />208,000 <br />$1,112,112 <br />x 4% Construction Management Fee <br />Total Due and Payable to Everest <br />Construction Company <br />$ 44,484.00 <br />$252,484.00 <br />