Loading...
HomeMy WebLinkAbout06-11-50 • RESOLUTION NO. 06-11-50 CITY OF OAK PARK HEIGHTS WASHINGTON COUNTY, MINNESOTA A RESOLUTION DECLARING DEFAULT UNDER THE TERMS OF THE CONTRACT BETWEEN THE CITY OF OAK PARK HEIGHTS AND DNR CONSTRUCTION SERVICES, INC. AFFECTING PROJECT NO. 06-104, AUTUMN HILLS PARK SHELTER WHEREAS, the City of Oak Park Heights entered into a contract for the construction of a park shelter in the Autumn Hills Park with DNR Construction Services, Inc., 3171 Spruce Street, Little Canada, Minnesota 55117, on or about July 27 2006; and WHEREAS, the terms of the contract were to provide for the construction of the City's park facility and structure within the City's Autumn Hills Park, with a substantial completion date • provided for within the contract of October 15, 2006; and WHEREAS, the contract was duly executed by the Contractor, DNR Construction Services, Inc. without request for changes or modifications to establish substantial construction dates; and WHEREAS, the final contract executed between the City and DNR Construction on July 27 2006 did explicitly include a substantial completion date of October 15 2006, and; WHEREAS, the City required DNR Construction to follow the normal building permitting process to submit such plans and permit application for review and was submitted to the City on July 24, 2006, via facsimile, with the City then notifying DNR Construction that such permits were ready for issuance at their convenience on August 3 2006 and allowed DNR Construction access to the site, and; WHEREAS, DNR Construction finally sought such permits on August 15 2006, the City then formally issued such permits, and; WHEREAS, DNR Construction then did not actively engage the construction site until late August with footings not being poured until after September 7th, 2006, and foundation walls not ready for inspections until September 28 2006, and; WHEREAS, DNR Construction requested revised timelines to the City on September 18th, 2006 indicating substantial completion dates of November 2006 and which were found to be unacceptable by the City, and; WHEREAS, the DNR Construction unilaterally decided to remove their staff from the Project until such time as an arrangement was reached on the WIRSBO issue causing additional Project delay; instead DNR construction was required to have kept workers on site and concurrently work to resolve the matter in good -faith which did not occur, and; WHEREAS, following the WIRSBO issue, the City's correspondence of October 16 tH , 2006 requiring "prompt and aggressive pursuit of the Project" has been disregarded, and; WHEREAS, DNR Construction has provided correspondence, dated Nov 9th to the City now requesting a further extended timeline of Jan 2007 for substantial completion including a potential claim for the prospective requirement of additional fees to be paid by the City due to winter construction, and; WHEREAS, DNR Construction at the initial staging and documentation of the Project did not affirmatively indicate to the City that the October 15 deadline was implausible, and; WHEREAS, DNR Construction has consistently failed to provide adequate staffing to the Project to the extent that as of November 28 2006, three and one -half months after building permit issuance, the Project has yet to have its masonry completed and trusses to be raised, and; WHEREAS, DNR Construction Services, Inc. has not timely performed its construction • services on the site in the following respects: a. The park shelter facility was not substantially completed as of October 15, 2006 and as of November 28, 2006 is still not substantially completed, with only masonry work brought to a stage where it is nearing some degree of completion. b. DNR Construction Services, Inc. has not timely nor diligently performed its contractual services as provided for under the contract relative to this project having understaffed the project and allowed many business days to go by without anyone being on the site; and C. DNR Construction Services, Inc. is not capable of completing the project in a timely manner, cannot commit to or secure a reasonable completion date, has been uncooperative and unresponsive to the City personnel attempting to follow up with them WHEREAS, the reasonable substantial completion of a project of this nature within the industry should be no more than 95 days and DNR Construction Services, Inc. is nowhere near being substantially complete on this project. NOW, THEREFORE, BE IT RESOLVED, by the City Council for the City of • Oak Park Heights as follows: 2 1. That the City of Oak Park Heights declares that DNR Construction Services, Inc., 3171 Spruce Street, Little Canada, Minnesota 55117 be and is hereby is declared to be in default of its contract and obligations to the City of Oak Park Heights as specified in Project No. 06- 104, Autumn Hills Park Shelter. 2. That the City Administrator and the City's architect, Architectural Network, 12445 — 55 Street, Suite A, Lake Elmo, Minnesota 55042, are hereby directed to take all necessary measures under the terms of the existing contract to implement a default and, if necessary, terminate the services of DNR Construction Services, Inc. relative to this project. 3. That all payment and performance bonds provided by DNR Construction Services, Inc. shall be held pending further order of the City Council. Passed by the City Council for the City of Oak Park Heights this 28 day of November, 2006. _ ATTES Eric Jo on City A inistrator 3