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Home My WebLink About2010-10-06 PACKET 04.G.REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA MEETING ITEM # DATE 10/6/2010 PREPARED BY Administration Ryan Schroeder ORIGINATING DEPARTMENT DEPARTMENT HEAD COUNCIL ACTION REQUEST Consider authorizing the Mayor and City Administrator to enter into a contract for value engineering services with EDS Builders. STAFF RECOMMENDATION Authorize the Mayor and City Administrator to enter into the contract. SUPPORTING DOCUMENTS ® MEMO /LETTER: Memo from Ryan Schroeder. ❑ RESOLUTION: ❑ ORDINANCE: ❑ ENGINEERING RECOMMENDATION: ❑ LEGAL RECOMMENDATION: ® OTHER: Contract. ADMINISTRATORS COMMENTS 9J� rc� Citv Administra or Date COUNCIL ACTION TAKEN: APPROVED ❑ DENIED ❑ OTHER DocumenQ On August 11, 2010 the City Council authorized a contract with Wold Architects and Engineers for architectural services for the Public Safety / City Hall construction project. At that time we noted intent to contract with outside IT consulting and a Construction Management firm for additional professional services. In both cases it is not anticipated that there would be any design or construction services received from either firm. The intent, instead, is to provide for "value engineering" of the concept and schematic drawings and later the bid package drawings as a "double check" on the work conducted by the architects and engineers. We have set aside $40,000 within the budget numbers for the combination of these two service contracts. The entire professional services budget is at $1,026,450. This number is expected to cover architectural, engineering, value engineering, environmental reviews and permits. Enclosed is a proposed contract with EDS Builders, Inc., of Lakeland Minnesota. It is a time and materials contract not to exceed $24,000. Work under the contract would be directed by the City. Hence, upon the City determination that design review is necessary the City will determine to what extent that review is necessary. It is anticipated that during the schematic design phase of the project time expenditure would be in the neighborhood of 10% of the hourly contract maximum. EDS comes highly recommended by cities which of contracted for their services. Council Action: By motion authorize the Mayor and City Administrator to enter a contract for value engineering services with EDS Builders PUBLIC SAFETY BUILDING VALUE ENGINEERING AGREEMENT THIS AGREEMENT is made and entered into this ZL�day of vp, {- 2010, by and between the City of Cottage Grove, a Minnesota municipal corporate (`City ") and EDS Builders, Inc., a Minnesota corporation (`EDS "). RECITALS A. The City has retained an architect to prepare schematic designs and construction plans and specifications for a new City Public Safety Building (`Project "). B. EDS has the experience and expertise to review schematic designs and construction plans and specifications that will be necessary to construct the Project building and to provide value engineering to the design process. C. The City deems it appropriate to engage EDS to provide value engineering on the Project in accordance with the terms set forth below. AGREEMENT NOW THEREFORE, for valuable consideration, the receipt and sufficiency of which the parties acknowledge, the parties agree as follows: The Recitals are made part of this Agreement. 2. EDS shall provide services for the Project consisting of EDS review of schematic design drawings and documents, design development drawings and documents, construction drawings and documents for value engineering purposes, and written proposal to the City of alternatives to the reviewed drawings and documents, including price or cost differentials between the reviewed documents and EDS proposals (`Services "). The Services shall be carried out during the pre - construction phase of the Project and shall be rendered on a timely basis. 3. The scope of work under this Agreement shall be limited to the Services and not include management duties of any kind for the Project, unless expressly authorized by the City in wilting in advance of such services. 4. The City shall compensate EDS for the Services on a time and materials basis, not to exceed Twenty Four Thousand ($24,000) Dollars. EDS shall perform the Services at a rate of $90 per hour for the lead engineer and $50 per hour for assistant services, not to exceed $24,000. The services set forth under this Agreement shall terminate at the time the value engineering services are completed. The City retains the right to notify EDS of a date certain by which time all Services must be completed, to extend the duration of this Agreement or increase the scope of services. Any such extension of time or increase in scope of services shall be negotiated and agreed to in writing by EDS and the City prior to the performance of such services. 373791v1 IMS 01155 -1 5. The City shall have the right to cancel this Agreement and terminate the Services of EDS for convenience upon seven (7) days written notice to EDS. Upon receipt of such notice, EDS shall submit to the City the total of its hours worked through the date of the notice and the City shall compensate EDS for its work based on reasonable invoices and expenses submitted prior to the time of notice of termination. 6. The City shall have the right to terminate EDS for cause upon seven (7) days written notice. For cause shall include any material failure of EDS to timely and satisfactorily carry out the Services. In the event of a termination for cause, the parties agree to promptly retain a mutually - acceptable mediator if they are unable to resolve the appropriate compensation for Services rendered to the date of termination. The parties retain all rights in law or in equity if they are unable to resolve by mediation any dispute arising out of this Agreement. 7. All expenses reasonable and necessary in the timely performance of EDS's duties under this Agreement will be billed to the City and paid at cost. EDS may charge no more than five (5) cents per copy for standard 8 %z" by I1" copies. EDS shall notify the City for pre - approval of anticipated expenses not ordinarily incurred in the course of the duties described in the Agreement, including but not limited to, use of special equipment, travel, overnight accommodations or meals. No EDS travel within the Twin Cities' metropolitan area shall be reimbursed as an expense. 8. The City shall pay EDS on invoices received in accordance with the Minnesota Municipal Prompt Payment Act. 9. EDS agrees that in the performance of its duties under the Agreement, EDS shall work through the City Administrator as the City's primary representative and shall also work with the City's architect and engineer, Wold Architects and Engineers, a Minnesota corporation ( "Wold "). Services do not include and EDS is not to provide, any direction, control or supervision of a) Weld or engineering professionals that may be retained by Wold or the City, or b) the contractor(s) or its subcontractors constructing the Project. 13. EDS shall indemnify, defend and hold the City harmless from any and all actions arising out of EDS's negligence or alleged negligence in the performance of the duties set forth in this Agreement. Upon receipt of any third party claim against the City due to EDS's alleged negligence, the City shall timely tender the defense to EDS which shall defend the City to the fullest extent permitted by law and shall be responsible for all attorneys' fees and costs of the action. If EDS declines to defend the City, EDS shall be responsible for City's reasonable costs and attorneys' fees incurred in defense of EDS actions that are adjudged to be negligent and shall allocate such fees and costs proportionally. EDS's liability to the City shall not exceed the claim limits of EDS's general liability policy, or other applicable policy, which EDS agrees to keep in force during the claims period. 17. EDS shall provide to the City evidence of insurance, and coverage limits, as follows and shall list the City as an additional insured on EDS's general liability insurance policy: 373791vl JMS CT15a1 2 Workers' comp; General liability; Umbrella liability; Automobile liability; �rr�ers- and- 6tirissiens- liabi�it3y - EDS shall maintain such coverages as necessary during the claims period and shall provide City with a thirty -day (30) written notice prior to any cancellation of insurance during the claims period. 18. This Agreement is subject to all applicable laws and ordinances and shall be governed by Minnesota law. EDS BUILDERS, INC. CITY OF COTTAGE GROVE B B � 3i Its President Its Mayor CITY OF COTTAGE GROVE Ryan Schroeder Its City Administrator 3737410 J M S C 'P155 -1 3