04/16/2014 - City Council Finance CommitteeFINANCE COMMITTEE MEETING
WEDNESDAY, APRIL 16, 2014
1:30 -2:30 P.M.
CONFERENCE ROOMS 2 A &B
AGENDA
I. AGENDA ADOPTION
II. CEDAR GROVE PARKING GARAGE CHANGE ORDER
III. OTHER BUSINESS
IV. ADJOURNMENT
s.
Agenda Information Memo
April 16, 2014 Finance Committee
II. CEDAR GROVE PARKING GARAGE CHANGE ORDER
Direction To Be Considered:
Consider the details of draft Change Order No. 5 for Contract 13 -05, Cedar Grove Parking
Garage, related to the construction impact of weather delays and the corresponding
substantial completion date and provide staff with direction on a recommendation for
Council consideration.
Facts:
➢ On July 17, 2012, the Economic Development Authority (EDA) approved a purchase
agreement with Paragon Outlets Eagan LLC for the acquisition of property in the
Cedar Grove Redevelopment District for the development of the Twin Cities at Eagan
Outlets.
➢ As part of the purchase agreement with Paragon Outlets Eagan for a portion of the
core area of the Cedar Grove Redevelopment District, the current owner, the
EDA /City of Eagan, has an obligation to provide 1114 parking stalls within a public
parking structure adjacent to the Paragon Outlets property at the time of the
opening of the outlets center. The outlets center is currently scheduled to open on
August 14, 2014.
➢ On August 20, 2013, the City Council awarded Contract 13 -05 to PCL Construction
Services, Inc., for the construction of the Cedar Grove Parking Garage. Contract 13-
05 provides for the construction of a public parking structure on the north side of
Cedar Grove Parkway adjacent to the Paragon Outlets property. The project
includes a structure that provides 1,526 parking stalls on two levels, with the
structural capacity to add a third level in the future. The contract includes a
Substantial Completion date of August 1, 2014, to accommodate the outlets center
opening schedule.
➢ The contractor, PCL Construction Services, has requested Public Works staff prepare
a change order to address additional costs regarding construction impacts related to
adverse weather conditions, primarily throughout this most recent winter. The
construction effort was also slowed due to the weather conditions, impacting the
construction schedule and anticipated completion dates.
➢ In accordance with the contract, the contractor has the right to request additional
payments or schedule modifications to address significant weather impacts. While
allowed by the contract, the determination of the actual additional costs or schedule
impacts is not clearly defined.
➢ In response to the contractor's request, Public Works staff worked with the
consulting engineer, Walker Parking, to propose resolutions to the additional cost
claims and schedule impacts.
➢ In order to address the construction schedule as promptly as possible, staff
scheduled a meeting with the contractor and consulting engineer to discuss the
initial request and suggested resolutions. Multiple follow up meetings have resulted
as a product of open and thorough discussions with the common goal of a prompt
resolution and schedule enhancement.
➢ A draft change order has been prepared by the consulting engineer, reviewed by
Administration, Community Development and Public Works staff and the City
Attorney, accepted by the contractor, and found to be in order for favorable Council
action.
➢ The proposed change order addresses:
• Impacts directly related to increased costs due to weather conditions. ADD
$240,520.00.
• Substantial Completion Date and associated Liquidated Damages. Change
Substantial Completion Date from August 1 to August 13, 2014, and reduce
liquidated damages to provide credit for completed /usable parking stalls.
• Increased construction efforts to facilitate substantial completion by the
opening of the Twin Cities at Eagan Outlets Center. ADD $236,099.00.
➢ The cost of the additional work is consistent with bid prices received for relevant bid
items on this and other projects within the city and region.
➢ The change order provides for an additional cost of $476,619.00 (2.69% of original
contract) with a 12 day change in the substantial completion date of the original
contract, as well as revised liquidated damages. The cost of the additional work
under the change order will be the responsibility of the EDA.
➢ in, order to accommodate the currently scheduled August 14, 2014, opening of the
Twin Cities at Eagan Outlets, it is necessary to proceed with a resolution to the
weather related construction schedule impacts as soon as possible.
ATTACHMENTS: (1)
Original Contract Cost Estimate and Funding Sources
1
W
(A
rf
Q.
cn
0
C
n
CD
N
3
:'
c
N
C
N
CD
N
T
W
O
D
Ln
m
W
1
0 0 C) -I 0
O
T C
-1
D;o
T O T CA
O
01
m m O O m
'O 'O N 'O
CD
N
N
3 m
O
00
O m
O
N - ' ! O
- 1 C
O O i O
'
c =
D
N
o C
.
Z O
to
Ca O 3 m
m
0 0 O. 0
CD
C
O
(D
C N
N
O N
m T
a 0
m Q m • w
o O.
m
N
fD CD
CD �' ° T
N p C
CO'1 m N
cn
N
m N
.N. 3
N 7 W
CD m m U-
CT
T
C
? O.
N
z 2 O CD
F; () N
_
m
LD.
3
N? N
m m 0=
m
O
n
O
c c m
x
o
W i
m
> > m
m
m
O. d
D
N
T
^ O
o v 0
CD
N
ON
Lo
O
o
C n V
W
n
�^�
,' o T
CD
O
O
m
n
U3 O' v C
m
N
N CL
_
3 m
W
O m
N
O
.3..
W
40
69
Im
N
N
N
�
O
A O W Cn N
DD
O
-_
O O
(T O O
(fl a
W N V N
W
O
aD N
O O O
(D
O
(D
W m Cr (b V
m N O CT A
O
O
O
O
0
CD
O A
N O
0 0 0
O O O
N
(A V O V
O
O
N
V CT
0 0 0
N
A CT O U1
O
O
N
CT O
O O O
00
m
~o X*
m
cr�0
N
7
91
0
n.
N
N
nO
au J
N
N (P N
CT
(D
J
NNJ
N
-�JNO
W
O
J
-0 W W
Oo(T
NNW
Cn-i4
W
co
��(n
N 0(D
N
W
NOW cnN
CT
ODWOW
m m
W
0 c
CT 0
Cn
CA co N -,j N)
O
W NOD W
OD
�S�.
WNO
-
mN
0
U7
W W (n co
-NO
O
TN0000000
W
V W 0cn(n
NN000
-(£
N0
(D
W (A0000
I
t
(U'ii �A ccn (Jn N
(fl W
U7 W O O
M (D (P O O
J N (fl O O
i
1Z
O
M
O
N
O
W
v
L•
Q
O
W
:V
O
CA)
0
C
0
U)
90
c
U)
0
Cn
v
k
a'
/u
U/
CD
CD
Q 0
0
((] O
-h
o' m t�
0 CQ W
Cn 5 O
m CD O
3 5' o
CD
= CD
CO (n
o0 -1.
Q
Cn
Cn
CD
M.
CD
N
N
O_
W
D