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HomeMy WebLinkAbout3G. Water Reclamation Facility Retainage Reduction041 Of, 3G. Faribault Request for Council Action TO: Mayor and City Council THROUGH: Charles S. Whiting, City Administrator FROM: Tim Murray, Director of Public Works /City Engineer MEETING DATE: March 27, 2012 SUBJECT: Approve Reduction in Escrow /Retainage Account for the Water Reclamation Facility Improvements Project Background: The improvements at the Water Reclamation Facility reached Substantial Completion in December 2011, and have now reached Final Completion in March of 2012 (with minor corrective /warranty yet being completed). Under the contract, there is retainage (escrow) that is required as security for the work. This was originally 5% of the completed work during the course of the contract, but has been reduced once the project reached substantial completion, as allowed under the contract specifications. Given the status of the work, along with an estimated amount of $40,000 - $50,000 remaining to be paid on the contract, Rice Lake Contracting's request for a further reduction in the amount of security is recommended for approval. The requested reduction in the security amount to $110,000.00 (approximately 0.5% of the total contract amount) is viewed as sufficient to cover the remaining corrective work identified on the project "punch lists." This reduction has also been reviewed and is recommended for approval by Donohue and Associates, the City's consulting engineering firm on this project. Recommendation: Approve Escrow /Retainage Account Reduction for WRF Improvements Council Action: Administrative Comments: Letter of Transmittal DATE: 3/15/12 PROJECT NO: 11460 ATTENTION: Tim Murray, City Engineer RE: WE ARE SENDING YOU: Shop Drawings Copy of letter TO: jVjR0N0HUE S S O C I A T E S www.donohue-associates.com 4500 Park Glen Road Suite 125 St Louis Park, MN 55416 Phone: 952 - 920 -1800 Fax: 952 - 920 -1803 City of Faribault Attn: Mr. Tim Murray, City Engineer /Public Works Director 1200 Belview Trail Faribault, MN 55021 F Attached (" Under separate cover via the following: Q Prints � Plans © Samples r7 Specification Change order L COPIES I DATE I NO. I DESCRIPTION 1 3/14/12 Contractor reauest for reduction of escrow THESE ARE TRANSMITTED AS CHECKED BELOW: R, For approval ❑ Approved as submitted 17 Resubmit copies for approval For your use ® Approved as noted 17 Submit copies for distribution [,7 As requested n Returned for corrections C❑ Return corrected prints n For review and comment For bids due: 177 Prints returned after loan to us REMARKS: If you approve, please email the fully executed document to me and Paul Kujak. You may retain the original in your files,. COPY TO: SIGNED( MAIN OFFICE 22360 County Road 12 PO Box 517 Deerwood, MN 56444 PH 218- 546 -5519 FX 218 - 546 -7016 WISCONSIN OFFICE 901 Industrial St PO Box 486 Hudson, WI 54016 PH 715 - 386 -8201 FX 715 - 386 -5950 RICE LAKE CONSTRUCTION GROUP March 14, 2012 Mr. Tim Murray City of Faribault 208 First Ave NW Faribault MN 55021 Mr. Ed DeLaForest Donohue & Associates 4500 Park Glen Road Stlite 125 St Louis Park MN 55416 RE: Faribault, MN WWTP Dear Messrs. Murray and DeLaForest: Rice Lake Construction Group requests a reduction in the escrow retainage account as follows: Escrow account per Pay Application No. 30 $1,122,527.29 Escrow account paid to date $ 892,660.67 Escrow release requested $ 119,867.22 Escrow account remaining $ 110,000.00 Please sign and return to me. Sincerely, RICE LAKE CONSTRUCTION GROUP Paul Kujak Project Manager ACCEPTED City of Faribault cc: File Wade Leonard Marty Mills ACCEPTED Donohue & As es Date: Date141-sll 2