00-0713R

RESOLUTION REQUESTING A VARIANCE FROM THE MINNESOTA DEPARTMENT OF TRANSPORTATION FROM MINNESOTA RULES 8820.1500 SUBPART 6 WITH RESPECT TO THE AERIAL LIFT BRIDGE RENOVATION PROJECT.

BY COUNCILOR STOVER:

WHEREAS, it is deemed necessary for the public conveyance and safety that the Aerial Lift Bridge over the Duluth Ship Canal be renovated; and

WHEREAS, the renovation of the Aerial Lift Bridge is a very unique, complex, and difficult project that had to be performed under strict time deadlines because of effect of the bridge on the maritime shipping industry and ingress and egress to Duluth's Park Point residents; and

WHEREAS, unforeseen complications and difficulties incurred during the project necessitated Hardesty and Hanover, the project engineering consultants, to provide unanticipated services in the areas of material and fabrication inspections and reviews, additional shop drawing approvals, construction engineering assistance to the contractor, materials research, project coordination and survey data review; and

WHEREAS, Minnesota Rules Section 8820.1500 subpart 6 provides that project development and construction engineering costs must be limited to 25 percent of the eligible construction costs to qualify for Municipal State Aid reimbursement; and

WHEREAS, because of the difficulties, time deadlines, and unforeseen complications on the Aerial Lift Bridge renovation project, the total engineering costs of the project will exceed 25 percent of the project's eligible construction costs and necessitated $150,000 being added to the compensation in Hardesty and Hanover's engineering services contract, with their total compensation exceeding 25 percent of the contract eligible construction costs by approximately $86,000;

NOW, THEREFORE, BE IT RESOLVED, that the city of Duluth requests that the commissioner of transportation grant a variance from the provisions of Minnesota Rules Section 8820.1500 subpart 6 to allow eligible engineering costs of over 25 percent of the eligible construction costs on the aerial lift bridge renovation project in Duluth.


STATEMENT OF PURPOSE:  This resolution requests a variance from Minnesota State Aid payment rules (8820.1500 subpart 6) that limits reimbursable engineering costs to 25 percent of the construction costs. The time deadlines, complexity, and unanticipated problems encountered in the aerial lift bridge renovation project necessitated additional engineering work that was not anticipated. If the requested variance is granted, all of the extra engineering costs would be eligible for municipal state aid reimbursement.