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RESOLUTION AUTHORIZING AMENDMENT NO. 1 TO AGREEMENT L31043 WITH LHB, INC. FOR ADDITIONAL PROFESSIONAL DESIGN AND CONSTRUCTION SERVICES FOR THE DULUTH LAKEWALK PROJECT, INCREASING THE CONTRACT AMOUNT BY $239,634.00 FOR A NEW TOTAL AMOUNT OF $1,358,783.00.
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CITY PROPOSAL:
RESOLVED, that the proper city officials are hereby authorized to execute Amendment No. 1 to Agreement L31043 with LHB, Inc. for additional professional design and construction services for the Duluth Lakewalk Project as identified in the attached Exhibit A, for an increase of $239,634.00 and a new total contract amount of $1,358,783.00, payable from fund 450-030-5535-CP450-20BOND-LKWALK (capital improvements, finance, non-capital improvements; capital projects - other fund contributions, city & state bonds 2020, Lakewalk shoreline hazard mitigation).
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes Amendment No. 1 to Agreement L31043 with LHB, Inc. for additional professional design and construction services for the Duluth Lakewalk Project. The amendment increases the contract amount by $239,634.00 for a new total contract amount of $1,358,783.00 and extends the contract completion date to August 2028.
During design development, additional services became necessary due to project schedule extensions, increased coordination requirements with project partners and regulatory agencies, and additional design needs identified as the project advanced toward construction. Additional project management and coordination efforts were required due to schedule changes, coordination with MnDOT’s London Road project, and relocation of the North Shore Scenic Railroad trail crossing and signal system.
The amendment also increases bidding assistance and construction administration services due to changes in the project construction schedule. The original construction duration was estimated at 16 weeks; the current construction schedule is anticipated to extend approximately 26 weeks and continue into the 2027 construction season, with the warranty period extending through June 2028.
This agreement for design and construction services will be paid for with $5.5 million of tourism-tax-funded City bonding dedicated in 2020 to pay for the City’s portion of the cost to resiliently reconstruct destroyed, damaged, and vulnerable coastal infrastructure along Brighton Beach, the Lakewalk, Canal Park, the Waterfront Plaza, and the DECC/Aquarium seawall.
The ensuing $10.3 million Lakewalk reconstruction project will be funded by an $8.2 million federal grant and a $2.1 million state grant. Remaining City funds put aside for the project may be drawn upon to help cover any cost overages that may materialize.