 |
AGENDA RECOMMENDATION |
6.H.
City Council Regular Meeting
- Meeting Date:
- 11/10/2025
Agenda Item:
Resolution approving an amendment to the Black and Veatch contract for 2026 services for the Water Resource and Recovery Project.
Recommendation/Action(s):
Adoption of the attached resolution.
Summary:
On January 13, 2025, the City Council approved Amendment No. 1 to the contract between the City and Black & Veatch to provide construction services for the City's Disinfection and Digester (D&D) project at the Mankato Water Resource and Recovery Facility (WRRF). This amendment provided for services through December 2025. At that time, it was anticipated that annual amendments would be considered by the City Council to cover services for subsequent years as outlined below:
It is recommended the City Council approve Amendment No. 2 to the contract as proposed and authorize the City Manager to sign the amendment on behalf of the City. This amendment, with a cost of $1,782,000, will increase the total contract amount to $4,107,000 and cover services through December 2026. It is anticipated that a 3rd amendment, in the amount of $382,250 (for a total of $4,489,250), will be brought to the City Council for consideration in the fall of 2026 to cover the remaining services needed to complete the project by mid 2027.
The WRRF D&D project has a total project cost of just under $94M. Construction began in the summer of 2024 and will be completed mid-2027. Initial project costs are proposed to be financed with a loan from the Public Facilities Authority (PFA) which is to be repaid with a combination of State/Federal grants (approximately 50%) and local utility funds (approximately 50%).
| Item | Cost | Duration (months) |
Comments |
| Year 1 Construction Services (through Dec 2025) | $2,325,000 | 17 | Amendment No. 1 — Approved 1/13/25 |
| Year 2 Construction Services (through Dec 2026) | $1,782,000 | 12 | Amendment No. 2 - Council Consideration on 11/10/25 |
| Year 3 Construction Services (through mid-2027) | $382,250 | 4 | Amendment No. 3 - Future City Council consideration — Fall 2026 |
| TOTAL | $4,489,250 | 33 |
It is recommended the City Council approve Amendment No. 2 to the contract as proposed and authorize the City Manager to sign the amendment on behalf of the City. This amendment, with a cost of $1,782,000, will increase the total contract amount to $4,107,000 and cover services through December 2026. It is anticipated that a 3rd amendment, in the amount of $382,250 (for a total of $4,489,250), will be brought to the City Council for consideration in the fall of 2026 to cover the remaining services needed to complete the project by mid 2027.
The WRRF D&D project has a total project cost of just under $94M. Construction began in the summer of 2024 and will be completed mid-2027. Initial project costs are proposed to be financed with a loan from the Public Facilities Authority (PFA) which is to be repaid with a combination of State/Federal grants (approximately 50%) and local utility funds (approximately 50%).