Title
RESOLUTION APPROVING DEDA RESOLUTION 26D-12 AUTHORIZING CHANGE ORDER TO DEDA CONSTRUCTION CONTRACT NO. 24 860 043 WITH CARLETON COMPANIES, INC. FOR DEMOLITION OF THE SHOPPER’S RAMP FOR A NEW TOTAL NOT TO EXCEED $3,045,430.84 AND AUTHORIZING TRANSFER OF AN AMOUNT UP TO $400,000 TO DEDA FOR DEMOLITION COSTS.
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CITY PROPOSAL:
RESOLVED, that pursuant to Resolution 25-0248R, the city council hereby approves Resolution 26D-12 of the Duluth Economic Development Authority (“DEDA”) authorizing a change order increasing the total amount of DEDA Contract No. 24 860 043 with Carleton Companies, Inc. for demolition of the Shopper’s Ramp, located at 18 N 2nd Avenue West, for a new total not to exceed $3,045,430.84, payable from Fund 860 (not to exceed $1,445,430.84) and Fund 865 (not to exceed $1,600,000).
FURTHER RESOLVED, that the proper city officials are authorized to transfer an amount up to $400,000 to DEDA, payable from Fund 255, for the demolition of the Shopper’s Ramp.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution is to obtain the city council’s approval of DEDA Resolution No. 26D-12 and authorize a change to the existing construction contract with Carleton Companies, Inc. for the demolition of the Shopper’s Ramp. This resolution also authorizes the City to transfer an amount of up to $400,000 to DEDA to pay a portion of the increased costs of this change order. Per DEDA Resolution 24D-30, upon acquiring the Shopper’s Ramp, DEDA committed to promptly demolishing the property at 18 N 2nd Avenue W, while also ensuring the shoring and stabilization of the adjacent property at 128 W 1st Street. The first change order was for Phase 2 of the project which focused on the shoring, stabilization, and reconstruction of the eastern wall of the New Garrick Building (128 W 1st St). During demolition, the contractor identified contaminated urban fill within the project area that must be properly removed and replaced in accordance with state regulatory requirements. This change order covers the additional excavation, disposal, and backfilling work necessary to address the urban fill and allow the project to proceed in compliance with environmental and structural standards.
The Purchasing Agent issued an invitation to bid for the project on November 22, 2024 and received the four responses below. Carleton Companies, Inc. was the lowest responsible and responsive bid.
Contractor Bid
Carleton Companies Inc. $967,000.00
Rachel Contracting, LLC $978,789.00
Alliance Steel Construction, Inc. $1,789,000.00
Veit & Company, Inc. $1,176,940.00