ITEM 3.8 West WWTF Digester ExpansionIV
otSTY.r
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MINNESOTA g
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT:
REQUESTOR:
MEETING DATE:
Administration
Adam Flaherty, Finance Director
April 11, 2016
PRESENTER(s):
REVIEWED BY:
ITEM #:
Consent Agenda
City Administrator Johnson
3.8
AGENDA ITEM DETAILS
RECOMMENDATION:
It is recommended by staff that the City Council approve Pay Request #1 for the West WWTF Digester
Expansion project in the amount of $60,200 to Gridor Construction, Inc.
ARE YOU SEEKING APPROVAL OF A CONTRACT?
IS A PUBLIC HEARING REQUIRED?
No
No
BAC KG RO U N D/J U ST I F I CATION:
The pay request includes work completed through March 31, 2016. The work completed for the time
period covered by the pay request is primarily for contractor mobilization, but does include some minor
site work such as: erosion control fencing, grub clearing and minor excavation.
The pay request has been reviewed by Scott Schaefer with Advanced Engineering and Environmental
Services, Inc. (AE2S). Scott has signed the Engineer's Certificate for Payment section of the pay request,
and thereby is recommending payment to the contractor.
The contractor has opted to pledge bonds in the amount of $75,000 for the duration of the project,
which will take place of the customary 5% retainage withheld by the City.
SUPPORTING DOCUMENTS: ATTACHED NONE
• Pay Request No. 1
• Signed Retainage Security Agreement
POSSIBLE MOTION
Please word motion as you would like it to appear in the minutes.
-Motion to approve Pay Request #1 for the West WWTF Digester Expansion project in the amount of
$60,200 to Gridor Construction, Inc.
RIIDGFT INFORMATION
FUNDING: BUDGETED:
Sanitary Sewer Utility Fund Yes
602-49450-530
ACTION TAKFN
❑ APPROVED AS REQUESTED ❑ DENIED o TABLED ❑ OTHER (List changes)
COMMENTS:
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March 30, 2016
Lori Johnson
City of Otsego
13400 90th St NE
Otsego, MN 55330
GRIDOR CONSTR., INC.
3990 27th STREET'SE (763) 746-9070
BUFFALO, MN 55313 (Fax) 559-3736
Improving America's Water Quality since 1970
RE: WWWTF Digester Expansion
Otsego, Minnesota
AE2S Project No. P05409-2015-001
Dear Lori Johnson:
N�`�" - �
a ^ �'tk I', ( I to
Gridor has pledged bonds in lieu of retainage to the City of Otsego for the above mentioned
project. Enclosed you will find three (3) sets of new depository instructions to our broker for the
pledging of the securities in the name of the City of Otsego. If you are in agreement, please sign all
three copies and then return two copies to our main office. We will keep one copy for our file and
send the other to Wells Fargo Advisors.
The original pledge is for $75,000.00 and will be pledged for the duration of the project. The
amount will be sufficient to cover approximately 5% of the $1,465,400 contract amount. Once
Gridor has met the contract requirements for the project we will then ask for release of the
securities. We cannot release these securities without signed written consent from the City of
Otsego. I will forward confirmation of the security placed in your account at Wells Fargo
Advisors.
I have instructed Wells Fargo Advisors to send you a copy of the Retainage Account monthly.
Thank you for your cooperation in this matter. Feel free to contact me with any concerns. My
direct dial phone number is #763-746-9077 or email me at jason@gridor.com.
Sincerely,
y
Jason Theisen
Enclosures
CC. Steve Lee, Gridor Constr., Inc.
GRIDOR CONSTR., INC.
3990 27th ST SE
BUFFALO, MN 55313
Improving America's Water Quality since 1970.
March 30, 2016
Wells Fargo Advisors, LLC.
601 Carlson Parkway, Suite 190
Minnetonka, MN 55305
RE: WWWTF Digester Expansion
Otsego, Minnesota
AE2S Project No. P05409-2015-001
763-559.3734
(Fax)559-3736
With this letter Gridor Constr., Inc. (Depository) instructs Wells Fargo Advisors, LLC. (Broker) to
maintain an account for the City of Otsego (Public Entity). Depository authorizes Broker to hold certain
securities owned by Depository in a separate account (the "Account") as an Alternative Form of
Retainage pursuant to Minn. Stat. §§ 15.71-15.73. Any securities pledged by Depository to the Account
are to secure the Public Entity as retainage for the Depository's performance of its duties related to the
WWWTF Digester Expansion ("Project"). All costs and expenses of the safekeeping and handling of the
securities hereunder shall be paid by the Depository.
All interest accrued in the securities held in the Account will be credited to the account of the
Depository. The securities pledged by Depository to be held in the Account shall be of the character
described in Minn. Stat. § 15,73, subdivision 3. Further, all securities purchased to be held in the Account
shall be in accordance with Federal and State laws and statutes. Quarterly, the Broker shall send the
Public Entity statements regarding the Account. Such securities shall not be released without prior
written consent of the Public Entity.
The Depository is authorized to make substitutions of securities with similar quality and value without
first obtaining specific authority from the Public Entity to do so. The Broker shall send to the Public
Entity receipts describing any substitution.
Upon final completion of all Project duties in accordance with the contract documents and acceptance
thereof by the Public Entity, the Public Entity agrees to release such securities as remain in the Account.
In the event of Default by the Depository in accordance with the contract documents for the Project, the
securities held in the Account and the accrued interest thereon shall be released by the Broker to the
Public Entity upon its written request and without the consent of the Depository.
PREPARED BY:
Gridor Con tr., Inc. (De ository)
Printed Name GH Theisen, President_
3 - 30 t(c,
ACCEPTED BY:
City of Otsego (Public Entity)
Printed Name Vy—
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