CR 2000-189 Draw Request No. 10-Westbrooke Patio Homes
. ~ CITY OF
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November 15, 2000 "'OPKINS Council Report 2000-189
. DRAW REQUEST NO. 10 - WESTBROOKE PATIO HOMES
Proposed Action
Staff recommends adoption of the following motion: Move to approve draw reQuest No. 10 -
Westbrooke Patio Homes.
Overview
In 1999 the City of Hopkins approved the creation of a housing improvement area for
Westbrooke Patio Homes for the purpose of financing a variety of improvements. The majority
of the work has been completed, however, there are outstanding issues with two of the
contractors which will not be corrected until next spring.
Under the terms of the development agreement the City can retained five percent of the
contracted amount until completion of all work. However, a five percent retainage would not
allow sufficient funds to pay the balance of the contracts for the work which has been
completed. Since the contractors who are complete could file liens against the properties the
association has requested funds to pay them in full.
The estimated cost to cure the deficiencies of the remaining contractors has been
conservatively estimated at $107,128. The City will have a retainage of $115,350 plus interest
. after the requested draw.
Primarv Issues to Consider
Legally the association must pay the contractors who have completed the work. If the City
does not approve of the draw request, the association would be required to use reserve funds
dedicated to future improvements or obtain a short-term private loan.
Because there will be sufficient funds remaining to correct any deficiencies, staff is
recommending approval of the draw request. The City Attorney and project manager have
reviewed the request and support staffs recommendation.
Supportina Information
. Financial Impact: $90,519 Budgeted: Yes Source: HIA NO.2 project fund
Related Documents (CIP, ERP, etc.):
Notes:
WESTBROOKE
. PATIO HOMES ASSOCIATION
1317 Wagon Wheel Rd. (612) 936-9692
Hopkins, MN 55343 Fax: (612) 936-0254
November 15, 2000
Ms. Kersten Elverum
City of Hopkins
1010 S. First Street
Hopkins, MN 55343
Re: Tenth Draw on Bond Financing
Dear Kersten:
With reference to the Development Agreement between the City of Hopkins and Westbrooke Patio
Homes Association, Inc. dated April 20, 1999 we are submitting our tenth draw request for the
release offunds.
. In accordance with Section 3.3, item (b) of the Agreement:
1. Enclosed is an updated SWorn Construction Cost Statement prepared by Mr. Thomas
Brown of Miller Dunwiddie, Project Manager, and attested to by Mr. Brown and myself.
2. Enclosed is an updated total Project Cost Statement, dated November 14, 2000, which has
been prepared by me and attested to by Ms Heather Walker the President of the
Association and myself.
There have been no anticipated changes in the total of this document as of today.
In accordance with Section 3.3 of the Agreement:
1. I werewith certify:
a. None of the items in this tenth draw request has formed the basis for any
payment heretofore made from the Project Fund.
b. All the items included in this tenth draw request are necessary in connection
with the Phase II Housing Improvements.
c. After funds have been paid out in accordance with this tenth draw request, sufficient
moneys will remain on deposit in the Project Fund, between the contingency and the
retainer, to provide for payment in full of all remaining costs estimated to be incurred in
. order to complete the Phase 11 Housing Improvements.
2. No event of default has occurred.
A COMMUNITY OF 328 PATIO HOMES
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. Letter to Kersten Elverum Page 2
November 15, 2000
3. Enclosed is a copy of a letter from Mr. Thomas Brown dated November 14, 2000 stating
that there are sufficient funds in the construction budget to complete the project based on
the progress to date. There are sufficIent funds in tile budget for any changes to date.
4. The disbursement requirements set forth in Section 3.4 of the Agreement have been
satisfied.
5. The City has requested additionar information regarding contractors' payments. This
information was submitted to the City on November 8,2000 in the form of a letter written by
Mr. Thomas S-rown of Milter Dunwiddie, Inc. This correspondence stated the current status
of each contractor, noting any deferred items, and the cost to correct the deferred items.
6. No license or permit necessary for the construction of the Phase II Housing Improvements
has been revoked or had its issuance challenged.
In accordance with Section 3.4 ofthis Agreement
1. Enclosed is the Disbursement Direction required by the Agreement. Please note this
month's Disbursement Direction requests the City of Hopkins to reduce the total minimum
retainer of the project.
. 2. Executed lien waivers from draw nine have been previously submitted to the City. The lien
wavers were from Peterson Stucco, Drywall & Plastering Inc. and F. M. Frattalone
Excavation & Grading, Inc
3. Enclosed are the invoices and other documentation for draw ten payment request.
The lien waivers will be signed upon payments to the contractors and will be forwarded to
the City.
4. Enclosed are copies of Change Orders (P4) for Peterson Stucco; Change Orders (FS & F6)
for Frattalone Excavating; Change Orders (SS & S6) for Sunram Construction.
5. Enclosed are copies of pending Change Orders consisting of (A4 & A5) for Albrecht
Construction; (P3 & P5) for Peterson Stucco; (M3) for MN State Curb & Gutter; (F7)
Frattalone Excavating; (S-1) Bituminous Roadways; and (87) for Sunram Construction.
The Board of Directors has approved these Change Orders. Westbrooke Patio Homes is
awaiting the originals to be submitted for signature.
Copies of the executed Change Orders will be submitted to the City at the time Westbrooke
Patio Homes AssocIation, Inc. has signed them.
.
. Letter to Kersten Elverum Page 3
November 15, 2000
Please let me know if you have any questions or if there is any additional information that you need
in order to process this tenth draw request. Thank you.
Sincerely,
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Patricia A. Butler, General Manager
Westbrooke Patio Homes Association, Inc.
Enclosure
Cc. Board of Directors
.
.
WESTBROOKE
. PATIO HOMES ASSOCIATION
1317 Wagon Wheel Rd. (612) 936-9692
Hopkins, MN 55343 Fax: (612) 936-0254
November 14, 2000
To: City of Hopkins
1010 First Street South
Hopkins, MN 55343
DISBURSEMENT DIRECTION
The undersigned Authorized Representative of Westbrooke Patio Homes Association, Inc. a
Minnesota nonprofit corporation (the "Association"), hereby authorizes and requests you to amend the
Development Agreement between the City of Hopkins, Minnesota and the Association, dated April 20,
1999 (the "Agreement") to release funds in excess of the minimum required retainer and to approve the
following disbursements. There will be sufficient funds in the retainer plus the contingency to cover
any work yet to be completed.
the fonowing amounts to the rolTowing persons and for the following proper Housing Improvements
cost and purpose:
Payee Purpose Amount
MN State Curb & Gutter Division, AVR, Inc. Curbing and other concrete work $16,836.67
. Peterson Stucco, Drywall & Plastering, Inc. Stucco Application $51,598.79
F. M. Frattalone Excavation & Grading, Inc. Tear-up, Excavating, & Grading of Roads $15,229.88
Bituminous Roadways, Inc. Laying of Bituminous Surfaces $ 6,853.80
all as defined and provided in said Agreement.
The undersigned further certifies that (I) none of the items for which payment is proposed to be made
has formed the basis for any payment heretofore made from the Project Fund, and (ii) each item for which the
payment is proposed to be made is or was necessary in connection with the Phase II Housing Improvement,
and (iii) the amount of funds to remain on deposit in the Project Fund following this disbursement is currently
estimated to be sufficient to pay all future costs of Phase II Housing Improvements with the concept that the
City of Hopkins approves the requested amendment to the Development Agreement between the City of
Hopkins, Minnesota and the Association, dated April 20, 1999 (the "Agreement")
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Patricia Butler, General Manager Heather Walker, President
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Date / Date
.
A COMMUNITY OF 328 PATIO HOMES
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October 31, 2000
Westbrooke Patio Homes
1999 Exterior Rehabilitation
Invoice I Payment Review Form
1. MN State Curb & Gutter Final Payment
Current Payment Due $] 6,836.67
.
C~,1~ ide!, ''f4i,>
Charles Liddy
Vice President
MiIIer-Dunwiddie Associates, Inc.
. W:\1998 Files\9818A\E - ArchileCl Const\E3\103100-payapp-MSC&G-approval-frrn.doc
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November 14,2000
Westbrooke Patio Homes
1999 Exterior Rehabilitation
Invoice / Payment Review Form
1. Peterson Stucco Final Payment
Current Payment Due $51,598.79
.
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arles Liddy
Vice President
Miller-Dunwiddie Associates, Inc.
. W:\1998 Files\9818A\E - Architect Const\E3\111400-payapp-stucco-approval-fnn.ctoc
.
October 31,2000
Westbrooke Patio Homes
1999 Exterior Rehabilitation
Invoice I Payment Review Form
1. Frattalone Final Payment
Current Payment Due $15,229.88
.
Q/1g/ l~ LJ~ 0-Hs
Charles Liddy
Vice President
MilIer-Dunwiddie Associates, Inc.
. W:\ 1998 Files\9818A\E - Architect Const\E3\ 1031 OO-payapp-frattalone-approval-frm.doc
.
November 14, 2000
Westbrooke Patio Homes
1999 Exterior Rehabilitation
Invoice I Payment Review Form
l. Bituminous Roadways Semi-Final Payment
Current Payment Due $6,853.80
.
cC&&: L)~ -1+3-
Vice President
Miller-Ounwiddie Associates, Inc.
. W;\1998 Filcs\9818A\E. Architect Const\E3\111400.payapp.BitRoadways.approval.fnn,doc
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123 North Third St., Suite 104 tel:612.337.0000
Minneapolis, MN 55401.1657 fax:612.337.0031
8 November 2000
Ms. Kirsten E]verum
City of Hopkins
] 01 0 First Street South
Hopkins, Minnesota 55343
RE: Westbrooke Patio Homes - MD9818A
Pay Application Update
Dear Ms. E]verum:
Please find the following summary of the Westbrooke Patio Homes Project and the estimate for work not
completed and recommended retain age to be withheld for this work.
I. Albrecht Construction
. Original contract included the installation of all vinyl siding, fences and guardrails. In addition, they have
completed additional work related to repairs at the furnace enclosures and other miscellaneous work at
Westbrooke. Contract changes included Change Orders No. Al through A4 (ADD $29,033.24) and
direct payment change order AS (DEDUCT $2,088.36). Albrecht Construction's current contract
amount is 5922,020.88
Remaining work items or issues that affect payment:
I. Fencing work correction has to be approved and completed. This work is identified to be 1/3 of the
potential 625 fence posts (206 total) @ $60.00 per post. The total to be withheld is $12,360.00 x 1.5
= $18,540.00.
2. MDA, Westbrooke and City of Hopkins punchlist has been completed and returned to MDA and to
Westbrooke Patio Homes. Additional items remain to be completed and therefore we should assume
that none of the punchlist has been completed. This work is valued at 160 hours @ $60.00/hr =
$9,600.00 and material costs should be accommodated for $] ,500.00. The total value is assumed to
be $9,600.00 + $1,500.00 = $] 1,] 00.00 x 1.5 = $] 6,650.00.
3. The electrical inspector has cited Albrecht's subcontractor for the work completed at the garage
lights. This work is not complete. The remaining work is valued at 71 units @ $8,875.00 x 1.5 =
$13,313.00.
4. A substantial completion date of January 4, 2000 has been established for the demolition and siding
work. The punchlist work completed to date will have its own substantial completion date of October
17, 2000, when the last punchlist was returned. The fencing will not be substantially completed until
the correction for the problem at the posts is completed.
.
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Ms. Kirsten Elverum November 8,2000
Westbrooke Patio Homes, MD9818A Pa!!e 2
. II. Peterson Stucco
Original contract included the stuccoing of all buildings and garages where indicated, as well as, caulking
of all required joints. Albrecht was required to prepare buildings and garages for stucco operations.
Contract changes included (1) the elimination of stucco behind the fumaces (DEDUCT $38,704.00), (2)
changing of the trim color around the windows and doors and misc. caulking (ADD $6,842.00), (3)
additional caulking at fumace enclosures (ADD $2,460.00), (4) deduct for damage to key locks
(DEDUCT $864.00), and (5) direct payment change order (DEDUCT $3,699.11). Peterson Stucco's
current contract amount is $1,182,339.89
Remaining work items or issues that affect payment:
1. MDA, Westbrooke and City of Hopkins punchlist has been completed and retumed to MDA and
Westbrooke Patio Homes. Additional items remain to be completed and therefore we should assume
that none of the punchlist has been completed. This punchlist has not been verified by MDA or
Westbrooke and an amount should be withheld for items that need correction. An amount of
$4,000.00 is identified as the value of incomplete work. There are believed to be only minor items
remallllllg.
2. A substantial completion date of January 4,2000 has been established for the stuccowork.
III. MN State Curb & Gutter
Original contract included the installation of all curbs and gutters, sidewalks, and drainage in sidewalks as
shown in the drawings. In addition, surveying was required for the establishment of the curb elevations.
Contract changes included (1) deleting the surveying from their contract and adding it to Frattalones
(DEDUCT 6,032.00), (2) deleting misc. sidewalks/curbing from project, adding new postal pads, adding
. an additional 6" apron. replacing the steps at the pool, and demolition of existing postal pads
(ADD$7,424.52) and (3) add for some additional concrete walks (ADD $900.00). MN State Curb &
Gutter's current contract amount is $143,124.52.
Remaining work items or issues:
I. MN State Curb & Gutter has been out to seal the locations of the curbing where cracking has
occurred. They have agreed to come back next spring to address any additional cracks. Also, a
portion of the curbing needs to be replaced where considerable cracking has occurred near 1135
South Landmark Trail. MSC&G has been very responsive and they have indicated that they will
correct deficiencies identified.
2. December I, 1999 has been the date established for substantial completion.
IV. Frattalone Excavating
Original contract included all site work for the new bituminous and curb & gutter, grading as necessary to
provide proper drainage from the site. Contract changes included (] ) the stann modifications at
Trailwood South and the addition of surveying and layout to Frattalone's contract (ADD $61,500), (2)
misc. soil corrections (ADD $9,262.00), (3) misc. soil corrections (ADD $4,566.00), (4) misc. bollard
removal and concrete removal (ADD $912.00), (5) cleanup backcharge for Sunram (ADD $450.00), (6)
Minnesota Pollution Control Agency (MPCA) work and additional surveying (ADD $4,442.00) and (7)
direct payment change order (DEDUCT $3,255.] 7). Frattalone's current contract amount is
$374,545.83
Remaining work items or issues:
. 1. December], ] 999 has been the date established for substantial completion of the roadways.
2. No hold back of funds is required for this contractor as all items have been addressed to date.
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Ms. Kirsten Elverum November 8.2000
Westbrooke Patio Homes, MD981 8A Page 3
. V. Bituminous Roadways
Original contract included all bituminous required for the project utilizing two (2) 1-112" lifts to be
installed at two different times during the project. Contract changes included (1) additional bituminous
modifications (ADD $828.00), (2) deduct for bituminous curbing work (DEDUCT $2,575.00), and (3)
deduct for portion of valve repair (DEDUCT $1,500.00). Bituminous Roadway's current contract
amount is $178,963.00.
Remaining work items or issues:
l. December 1, 1999 has been the date established for substantial completion of the roadways.
2. An amount of$5,500.00 is recommended to be retained to insure the owner that all bituminous slopes
away from the garages, ponding areas are addressed, and for some additional bituminous required
near Building #2. The value of $2,500.00 is arrived at by the amount of an estimate received from a
different asphalt company to complete work not completed by Bituminous Roadways this year. This
same amount would be required next year if additional work were required.
3. An amount of $ 1,875.00 is recommended to be retained to address areas where bituminous has
splattered onto stucco at base of approximately 25 garage locations. This will be correct by painting
the locations where this has occurred to match the acrylic stucco finish.
VI. Sun ram Construction
Original contract included the installation of all new retaining walls, removal of existing retaining walls
where indicated and the installation of the new bollards at the garages. Contract changes included (1) the
water line modifications required at the pool (ADD $5,054.69), (2) install additional retaining wall behind
. unit #30 and eliminate smaller wall not needed (ADD $6,600.00), (3) add and delete retaining walls per
Proposal Request #1 (ADD $11,544.00), (4) add additional retaining walls per Proposal Request No.3
(ADD $8,730.00), (5) add for draintile behind unit #30 and deduct for cleanup by Frattalone (ADD
$3,371.40), (6) deduct two retaining walls not required (DEDUCT $6,848.00) and (7) direct payment
items, survey & damage (DEDUCT $2080.00). Sunram's current contract amount is $137,372.09.
Remaining work items or issues:
l. A substantial completion date has been established as December 1, 1999 for all retaining walls
excluding the two-tiered walls at the pool. The two-tiered pool retaining walls are 1,750 square feet
of wall and should be valued at $15.00 to $18.00 per square foot to replace. The value of the work to
replace the two-tiered wall is estimated to be $31,500.00 x 1.5"" $47,250.00.
2. City inspection has not been completed.
3. Warranty and closeout information for balance of project has not been received.
VII. Swanson & Y oungdale
S&Y have expended $2,483.00. There are no remaining painting items left in Phase I\.
VIII. Lawnranger/Groundbreak
The Lawn RangerlGroundbreak has expended $43,423.50 of the $50,000 budgeted for this item. The
balance remains.
.
. - -..--
Ms. Kirsten Elverum November 8, 2000
Westbrooke Patio Homes, MD9818A Page 4
. CURRENT CONTRACTIPAYMENT STATUS AND RECOMMENDATION
1. Peterson Stucco, Drywall & Plastering, Inc.
Contract Amount $1,182,339.89
Paid To Date $1,126,737.09
Balance Due $ 55,602.80
Less Amount for Punch list Work ($ 4,000.00) *described above
Amount Due $ 51,602.80
2. Albrecht Construction Services
Contract Amount $ 922,020.88
Paid To Date $ 888,349.83
Balance Due $ 33,671.05
Less Amount for Corrective Work ($ 48. 503.00) *described above
Amount Short on Retainer ($ 14,831.95)
3. Sunram Construction, Inc.
Contract Amount $ 137,372.09
Paid To Date $ 120,983.16
Balance Due $ 16,3 88.93
Less Amount for Corrective Work ($ 47,250.00) *described above
Amount Short on Retainer ($ 30,861.07)
. 4. F.M. Frattalone Excavating and Grading, Inc.
Contract Amount $ 374,545.83
Paid To Date $ 359,315.95
Balance Due $ 15,229.88
Less Amount for Corrective Work ($ 0.00)
Amount Due $ 15,229.88
5. Minnesota State Curb & Gutter Division, A VR, Inc.
Contract Amount $ ]43,124.52
Paid To Date $ ] 26,287.85
Balance Due $ 16,836.67
Less Amount for Corrective Work ($ 0.00)
Amount Due $ 16,836.67
6. Bituminous Roadways, Inc.
Contract Amount $ 178,963.00
Paid To Date $ 164,734.20
Balance Due $ 14,228.80
Less Amount for Corrective Work ($ 7,375.00) *described above
Amount Due $ 6,853.80
.
Ms. Kirsten Elverum November 8, 2000
Westbrooke Patio Homes, MD981 8A Page 5
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. 7. Swanson & Y oungdale
Contract Amount $ 2,483.00
Paid To Date $ 2,483.00
Balance Due $ 0.00
Less Amount for Corrective Work $ 0.00
Amount Due $ 0.00
8. Lawn RangerlGroundbreak
~
Landscape Allowance $ 50,000.00
Paid To Date $ 43,423.00
Balance $ 6,577.00
Less Amount for Corrective Work $ 0.00
Amount Due $ 0.00
SUMMARY
Total Project Budget $3,037,800.00
Total Contracted Amount $2,984,272.21
Paid to Date $2,832.3 14.08
Balance Due $ 151,958.13
Pay Draw #10 Total $ 90,522.3 5
Current Amount Retained $ 61,435.78
. Contingency (Budget minus (-) Contract Amt.) $ 53,527.79
Amount Designated to Landscaping $ 6,577.00
Total Contingency $ 46,950.79
Amount Retained for Corrective Work $ 61,434.98
Amount Short for Corrective Work $ 45,693.02
Value of Correct ivel Incomplete Work $ 107,128.00
The value of the amount retained (6 1,434.98) plus the contingency ($46,950.79) slightly exceeds the value
of the amount necessary for the corrective work ($107,128.00). The corrective work is valued at 1.5 times
its actual value. Also, the value identified for the pool wall correction is overstated because the materials
will likely be reused rather than all new Keystone brought in. Westbrooke Patio Homes Association could
release Pay Draw #10 and still have funds with the amount retained and the contingency available if the
contractors failed to complete the corrective work.
Albrecht Construction has begun their corrections and has given every indication that they will resolve their
matters with Westbrooke Patio Homes. Sunram Construction has not formally responded to the
correspondence related to the pool retaining wall. MDA has spoken to Sunram Construction and they have
indicated that they intend to repair the wall but that they may challenge whether all of the lower wall is their
responsibility. We will wait for their formal response.
.
Ms. Kirsten Elverum November 8, 2000
Westbrooke Patio Homes, MD9818A Page 6
. MDA has forwarded the pay application information to Westbrooke, however, we will finalize all items
contained in this correspondence once we have received your feedback.
Please review this infonnation and call with any questions that you may have.
TIffi/thb
C: File
Doug Strandness, Dunbar-Strandness
Pal Butler, WBPH
Chuck Liddy, MDA
W:\ 1998 Fi les\98] 8A \F - Owner C onsl\F I \ I ] 0 800-city-westbrookeu pdate .Itr.doc
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