3.2. SR 03-19-2007
City of Elk River
REQUEST FOR COUNCIL ACTION
Agenda Section Meeting Date
Consent March 19, 2007
Item Description
Pay Estimates
Item Number
3.2.
Prepared by
Tim Simon, Finance Director
Reviewed by
Introduction
Below is a final pay estimate submitted for approval.
by the city engineer.
The pay estimate has been reviewed and approved
DISCUSSION
The contractor for the 2005 Street Improvement Project was Universal Enterprises. During 2006,
Universal Enterprises ceased business operations. The bonding company for Universal Enterprises hired
Hardives, Inc. to complete the work on the City project.
The project had an overrun of approximately 2.5% mainly related to field changes to the underground
utilities on the project.
Financial Impact
Project
2005 Strect Improvemcnt Proj.
2005 Street Improvement Proj.
Pay Est.
No.
F
F
Contractor
Hardrives, Inc.
CNA Surety
Amount
$ 115,298.06
32,622.33
Attachments
. Memo from City Engineer to CNA surety describing finalizing of the project
. Response from CNA surety
Action Requested
The City Council is asked to approve the pay estimate and change order as stated above.
Council Action
Motion by_
Second by _
Vote
Follow Up
c: \Documents and Settings \jnullcr\Local Settings \ Temporary Internet Files\ OLK3E\Pay Esbmatoo0319 .doc
February 26, 2007
File: 226-050C
Mr. Douglas Mraz
Surety Claims Counsel
CNA Surety
Surety Claims - 41 ~ Floor
333 So. Wabash Avenue
Chicago, IL 60604
Bond No.
Claim No.
Obligee:
Principal:
Project
Surety:
929365060
9A713054
City of Elk River
Universal Enterprises of Mid-MN, Inc.
2005 Street Improvements Project
Western Surety Company
Via electronic mail
Dear Mr. Mraz:
We have worked with Mr. Don Hall from Hardrives, Inc. in completing the City of Elk
River's 2005 Street Improvement Project. Attached to this letter is an invoice from
Hardrives, Inc. outlining the unit construction items they placed to complete this project.
We have worked with them in preparing this invoice and agree with all of the units
completed shown in the first column. They have broken up their price into three columns:
1. Amount Due from the Owner
2. Amount Due from CNA
3. Open Items
As we work through the finaIing of this project, we would propose the following:
A. The last pay estimate the City of Elk River made to Universal Enterprises was in
January 2006. It was Pay Estimate No.8. The retainage the City is holding from
that pay estimate is $42,138.08.
B. There are three items that were completed prior to Partial Pay Estimate No.8,
but did not get fully paid on Partial Pay Estimate No.8. They include the
following:
Schedule 3 ,Street Item 32
Schedule 3, Street Item 35
Extra work for Northdale
Common excavation
Sub$'ade preparation
Adiust hydrants
TOTAL
4,300 c.Y. @ $5/C.Y. - $21,500
30 Rd Sta (IV, $62/Rd Sta - $1,860
$855
$24,215
Therefore, the City still has a total due for work performed on this projecrwhen
Universal had the contract of ($42,138.08, plus $24,215.00) $66,353.08.
C. Hardrives, Inc. Invoice
(1.) The amount due from owner shown as $73,782.05 is new work performed.
This column indicates the pay per item based on the Universal Enterprises
contract amount. Therefore, the City is in agreement that they should pay
$73,782.05 for this work.
(2.) Amount due from CNA of $29,130.75 is due to increased unit cost from the
Universal Enterprises' contract amount for Hardrives to complete the work.
The City will pay this amount out of the retainage previously discussed of
Universal Enterprises.
(3.) The open items of $12,385.26 are a combination of items that should be paid
from retainage and new work. The items we believe should be paid from
retainage are Item No. 28 - Adjust gate valves for $1,350, Item No. 31, Adjust
drainage structure for $1,900, and Item No. 71- In place density and air voids
for $1,350. These all represent original bid items from the Universal
Enterprises contract which Hardrives has asked for increased money per unit
to complete. The total of these three items is $4,600. Therefore, the new work
total of this column is ($12,385.26 minus $4,600.00) $7,785.26.
(4.) The City proposes to make a full payment to Hardrives, Inc. in the amount of
$115,298.06. This would be paid as a combination of new work and from the
Universal Enterprises retainage. The breakdown of these two payment items
described above is summarized as follows:
New work - $73,782.05 from amount due from owner column of Hardrives
invoice, and $7,785.26 of the amount due under Open Items from the
Hardrives invoice, for a total of $81,567.31. To be paid from retainage,
$29,130.75 from the amount due from CNA column of the Hardrives
invoice, and $4,600, which is a portion of the Open Items amount due
from the Hardrives invoice for a total of $33,730.75.
The City would then release to CNA the amount of $32,622.33. This is the
total amount that the City is holding from Universal Enterprises' retainage
plus work completed but not paid under Universal Enterprises' contract of
C:\Documents and Settings\tm.aurer\Desktop\02 26 07 lrr Mrnz CNA.doc
.
$66,353.08 minus the amount of retainage used to pay Hardrives, Inc. of
$33,730.75.
Please review this infonnation and let me know if you concur with this analysis of the final
payments. Once we receive concurrence from CNA Surety, I will proceed to put the item
on our City Council agenda and have the checks issued to Hardrives, Inc. and CNA Surety.
If you have any questions regarding this analysis or need any additional infonnation, please
contact me at 763/635-1051 or email attmaurerlqlci.elk-riveJ:.mn.us.
Sincerely,
~~
Terry J. Maurer, PE
City Engineer
C\Documents and Settings\tmaurer\Desktop \0226 07 ltt Mraz CNA.doc
Page 1 of1
Maurer, Terry
From: Mraz, Douglas [Douglas.Mraz@cnasurety.com]
Sent: Monday, February 26,20073:19 PM
To: Maurer, Terry
Subject: RE: City of Elk River-2005 Street Improvement
This is ok with us. Please make our check payable to Western Surety Company and send to my attention.
From: Maurer, Terry [mailto:TMaurer@cLelk-river.mn.us]
Sent: Monday, February 26, 2007 3: 12 PM
To: Mraz, Douglas
Subject: City of Elk River--200S Street Improvement
Please contact me with your thoughts after you have had a chance to review.
2/27/2007
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