Title
RESOLUTION AUTHORIZING AMENDMENT #2 TO A CONTRACT WITH TKDA TO PROVIDE PROFESSIONAL ENGINEERING SERVICES FOR THE 59TH AVENUE WEST STREET AND UTILITY IMPROVEMENT PROJECT TO INCREASE THE AMOUNT BY $40,018 FOR A NEW TOTAL OF $132,085.
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CITY PROPOSAL:
RESOLVED, that the proper city officials are hereby authorized to enter into an amendment to contract no. 22637 with TKDA for the 59th Avenue West Street and Utility Improvement Project increasing the amount by $40,018 for a new total of $132,085, payable out of Sanitary Sewer Fund 530, Department/Agency 500 (Public Works & Utilities), Division 1905 (Capital), Object 5533 (Capital Improvements – Revenue), city project no. 1487.
FURTHER RESOLVED, that the authorization to enter into the TKDA contract is subject to the Duluth Economic Development Authority (“DEDA”) authorizing reimbursement by resolution of actual city costs under these contracts up to the amount of $1,170,000.
FURTHER RESOLVED, that pursuant to the requirements of Resolution 10-0229R, DEDA’s authorization by resolution to reimburse the city for the actual costs of the TKDA contract is hereby approved.
FURTHER RESOLVED, that the city hereby accepts reimbursement from DEDA for the actual costs of the TKDA contract payable into Sanitary Sewer Fund 530, Department/Agency 500 (Public Works & Utilities), Division 1900 (Public Works Director’s Office), Object 4670 (Share of Improvements), subject to DEDA authorizing reimbursement of the same by resolution.
FURTHER RESOLVED, that pursuant to the requirements of Resolution 09-0324, DEDA’s authorization to reimburse the city of the actual costs of the TKDA contract, when approved by DEDA, is hereby approved.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes an amendment to the contract with TKDA for the 59th Avenue West Street and Utility Improvement Project increasing the amount by $40,018 for a new total of $132,085. This increase is due to the identification and disposal of contaminated soils at the project site, and also to an increase in materials testing costs.
The authorization to enter into this amendment is subject to DEDA’s authorization of reimbursement of actual city costs under this contract up to the amount of $1,170,000. This is an allowable expenditure of DEDA’s TIF District 7 due to the economic development benefit that will be derived by businesses located at or near this project. Any cost overruns above $1,170,000 will be the responsibility of the city’s Water Fund 510 and DEDA funds. The resolution also obtains the city council’s approval of DEDA’s reimbursement to the city as is required pursuant to Paragraph 19 of the amended DEDA Enabling Legislation, Resolution 10-0229R.