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HomeMy WebLinkAbout~Master - Refund Pertaining to South Duff Signal Project to E-M Hunziker LLC RESOLUTION NO. 18-632 RESOLUTION APPROVING REFUND PERTAINING TO SOUTH DUFF SIGNAL PROJECT TO E-M HUNZIKER,LLC, FOR THE CITY OF AMES WHEREAS,the City of Ames partnered with Walmart Real Estate Business Trust and E-M Hunziker,LLC,for the design,construction,and construction administration for a median and traffic signal on South Duff Avenue, generally between Squaw Creek Bridge and South 5`' Street; and, WHEREAS, the roadway is also US Highway 69, and the Iowa DOT awarded the City $850,000 in grants to help facilitate construction; and, WHEREAS, the former City Attorney worked with Walmart's attorney to draft the project Design Agreement and the project construction and construction Administration Agreement; and, WHEREAS, the intent of these Agreements was to equally share the Iowa DOT grants and to equally share in the remaining local match; and, WHEREAS,an equal funding share was anticipated from the City,Walmart,and Hunziker, and to fund construction and construction administration, Walmart and Hunziker each placed $186,667 in escrow; and, WHEREAS, the City agreed if the Developers' costs exceeded $129,176, additional documentation and approval would be needed; and, WHEREAS, during construction, several cost-saving measures were identified, which required a good deal of staff time for engineering these field changes, and redesign in the field resulted in a net savings of$81,556 to the project; and, WHEREAS, City Council accepted the completed project on June 26, 2018, with final expenses and corresponding revenues/cost,the actual cost to each partner was$86,792 less than the original estimates; and, WHEREAS, Hunziker has requested that $17,003 be returned because the construction administration expenses increased from the estimated$30,000 to $81,010; and, WHEREAS,the basis for Hunziker's request is that when drafting the Agreement,the former City Attorney included"a construction management fee of$30,000"rather than noting this was the estimated amount; and, WHEREAS,the Agreement was drafted without noting that they construction administration amount of$30,000 was an estimate, and the City Attorney has now advised that the requested $17,003 should be remitted to Hunzkier. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that the requested refund amount is hereby approved in the amount of$17,003 to E-M Hunziker, LLC, for the South Duff Signal Project. ADOPTED THIS 27'h day of November, 2018. Diane R. Voss, City Clerk John . Haila, Mayor Introduced by: Gartin Seconded by: Betcher Voting aye: Beatty-Hansen, Betcher, Corrieri, Gartin, Martin,Nelson Voting nay: None Absent: None Resolution declared adopted and signed by the Mayor this 27'' day of November, 2018.