07-0645R


RESOLUTION AUTHORIZING EXECUTION OF MODIFICATION NO. 1 TO CONTRACT NO. 20378 WITH MnANG FOR RECONDITIONING OF AIRPORT ROAD, REDUCING THE AMOUNT RECEIVABLE TO $120,627.55.

BY COUNCILOR JOHNSON:

     RESOLVED, that the proper city officials are authorized to enter into Modification No. 1 to the Military Construction Cooperative Agreement which bears City Contract No. 20378, on file in the office of the city clerk as Public Document No. __________________, with the Minnesota Air National Guard for the Airport Road reconditioning project, MnANG Project No. FMKM052026 and City Project No. 0621TR, SP 118-197-001, reducing the amount of MnANG’s payments thereunder to $120,627.55.


STATEMENT OF PURPOSE:  The purpose of this resolution is to authorize a modification to the city’s original construction cooperation agreement with the Minnesota Air National Guard for the reconditioning of Airport Road between Rice Lake Road and Haines Road, reducing their participation by an amount to reflect the actual bids received for construction of the project.


The original agreement was based on the engineer’s estimate cost of the entire project, which was anticipated to cost a total of $550,000. The Guard secured authorization to participated in intersection-related improvements where the new base access road intersects Airport Road. Their share was anticipated to be about $155,000.


Since that time engineering work was completed and the project was bid out with the result that the actual cost of construction and related engineering work are expected to cost only $410,011.65. This results in a project savings of nearly $140,000, of which the Guard’s share is about $35,000. The remainder of the savings accrue to the city.


This modification is needed by the Guard to reflect their level of participation.