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RESOLUTION APPROVING DEDA RESOLUTION 26D-21 AUTHORIZING CHANGE ORDER IN THE AMOUNT OF $175,010.72 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 $3,220,441.56
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CITY PROPOSAL:
RESOLVED, that pursuant to Resolution 25-0248R, the city council hereby approves Resolution 26D-21 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 $3,220,441.56, payable from Fund 860 (not to exceed $1,620,441.56) and Fund 865 (not to exceed $1,600,000).
Statement of Purpose
STATEMENT OF PURPOSE: The purpose of this resolution is to obtain the City Council’s approval of DEDA Resolution No. 26D-21 and authorize an additional change to the existing construction contract with Carleton Companies, Inc. for the demolition of the Shopper’s Ramp. 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 ensuring the shoring and stabilization of the adjacent property at 128 W 1st Street.
Change Order #1 addressed Phase 2 of the project, which focused on the shoring, stabilization, and reconstruction of the eastern wall of the New Garrick Building at 128 W 1st Street. During demolition, the contractor identified contaminated urban fill within the project area that required removal and replacement in accordance with applicable state requirements. Change Order #2 covered the additional excavation, disposal, and backfilling work necessary to address the contaminated material and allow the project to proceed in compliance with environmental and structural requirements.
This final change order accounts for an additional 878.18 tons of urban fill removed and replacement material brought in beyond the quantities previously anticipated. The full depth and extent of the contaminated fill could not be determined before excavation began, and the actual quantity encountered significantly exceeded the original estimate. The change order also reconciles additional construction costs associated with structural modifications, masonry work, waterproofing, excavation and material handling, and shoring requirements encountered during construction. Credits for unused allowances included in the original construction contract are incorporated into the request, resulting in a net additional cost of $175,010.72.