01-0089R

RESOLUTION AMENDING THE CONSULTANT AGREEMENT WITH KRECH & OJARD, CONSULTING ENGINEERS, FOR PROVIDING CERTAIN CONSTRUCTION ENGINEERING SERVICES TO THE CITY OF DULUTH IN CONNECTION WITH THE LAKEWALK EAST PEDESTRIAN AND BIKE TRAIL EXTENSION, IN AN AMOUNT NOT TO EXCEED $12,500.

BY COUNCILOR STOVER:

        RESOLVED, that the proper city officers are hereby authorized to execute an amendment to city Contract Number 18513, dated July 22, 1999, with Krech & Ojard, consulting engineers, for the sum of $12,500, payable from Capital Fund 450, in the form substantially as set forth in the agreement on file in the office of the city clerk as Public Document No. _______________, for the provision of certain construction engineering services to the city of Duluth in connection with the Lakewalk East pedestrian and bike trail extension.


STATEMENT OF PURPOSE:  In 1999, the city contracted with the firm of Krech & Ojard, consulting engineers, to provide construction engineering services for the Lakewalk East pedestrian and bike trail extension project. During the provision of these services, Krech & Ojard discovered errors in the construction plans and designs which had been prepared by Architectural Resources, Inc., and/or its subcontractors pursuant to a contract with the city. As a result of these errors, additional services were provided by Krech & Ojard which caused an overrun in the original contract amount for a total cost of $19,750. The city attorney's office entered into settlement discussion with Architectural Resources, Inc., regarding the errors which resulted in cost overruns and have negotiated a settlement with Architectural Resources, Inc., and its subcontractors in the amount of $12,500. Krech and Ojard have agreed to accept these funds as full payment of the cost overruns. The approval of the settlement of claims is presented by separate resolution. This amendment of the contract with Krech & Ojard is necessary because the cost of the contract has exceeded the original contract amount by such an amount that further council approval is required.