Title
RESOLUTION AUTHORIZING PROPER CITY OFFICIALS TO ACCEPT A CONTINGENCY DONATION FROM GARY NEW DULUTH DEVELOPMENT ALLIANCE IF NECESSARY TO COMPLETE THE GARY NEW DULUTH REC. CENTER PROJECT, FOR AN AMOUNT NOT TO EXCEED $50,000.
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CITY PROPOSAL:
RESOLVED, that the proper city officials are hereby authorized to accept a contingency donation from the Gary New Duluth Development Alliance (GNDDA) as needed for the Gary New Duluth Recreation Center Project to pay any project costs over the $500,000 ½ & ½ Tax city contribution to this project up to an amount not to exceed $50,000 with funds to be deposited as follows: Tourism & Recreational Projects 452, Finance 030, Improvements Other than Buildings 5530, Gifts & Donations 4660.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes proper city officials to accept a contingency donation from the GNDDA in an amount not to exceed $50,000 for the Gary New Duluth Recreation Center Project.
This project largely provides the civil and site work infrastructure to support the installation of planned soccer fields, a parking lot and other amenities defined and approved in the Gary New Duluth mini-master plan.
The City of Duluth had committed $500,000 of ½ and ½ tax funds to support the development of the Gary New Duluth Recreation Center plan, and the GNDDA has raised $500,000 of cash and in-kind contributions to complete projects at the Center.
This contingency donation provides needed funds to complete complex civil/site work that was awarded to Veit & Company (Resolution No. 15-0593R) through a competitive City Purchasing bid process. The initial Veit bid came in at $586,000, but through a value engineering process with City Staff, GNDDA, Kraus-Anderson Construction Company (Resolution No. 15-0596R), and SAS Architects the total cost of the bid has been reduced to $455,750. This bid amount along with the total cost for construction management/administration (Kraus-Anderson and SAS) and project contingency requires a total project budget of $550,000 to complete this work. The City is contributing $500,000 to this project and GNDDA is donating up to the remaining $50,000 required to meet the project budget - which includes a 7% project contingency that may or may not be needed to complete the project.
GNDDA will hold funds in one of their accounts (as noted in donation letter attached as Exhibit A) throughout the duration of the project, and will contribute funds to the city as requested to meet project budget.
The project budget is as follows:
Kraus-Andersons construction management fee $47,000
SAS construction administration fee $2,850
Total Soft Costs $49,850
Veit Bid Total $455,750
Project Contingency $44,400
Total Project cost $550,000
Requisition No. 15-0425