 |
AGENDA RECOMMENDATION |
7.A.
City Council Regular Meeting
- Meeting Date:
- 01/13/2025
Agenda Item:
Resolution approving Amendment No. 1 to the Professional Services Agreement with Black & Veatch for the Water Resource Recovery Facility (WRRF) Digester and Disinfection improvements project.
Recommendation/Action(s):
Adoption of the attached resolution.
Summary:
The City and Black & Veatch entered into a contract for $1,005,250 on May 1, 2024, for office-based construction services to assist in the administration of the City’s Disinfection and Digester (D&D) project at the Mankato Water Resource and Recovery Facility (WRRF) during the first year of construction. The bulk of construction administrative responsibilities, including onsite project representation, were originally planned to be provided by City staff. Due to several staff departures, City staff have not had the capacity to adequately cover the project. Accordingly, the City engaged Bolton & Menk on an hourly basis to provide on-site construction services for the past several months.
The WRRF D&D project is quite a large project with a total cost of nearing $90M. Construction commenced in the summer of 2024 and will be completed in mid 2027. To protect the City’s investment in this critical piece of infrastructure, it is important that the construction be monitored closely and issues that arise be resolved quickly and in the best long-term interest of the City. The proposed amendment provides for the full construction services needed to deliver this project.
It is proposed that a new amendment be brought to the City Council annually to cover the upcoming year’s construction services – three amendments through 2027. Amendment No. 1 increases the existing contract by $1,319,750 to a total of $2,325,000 to cover construction services through 2025. A letter summarizing Amendment No. 1 and anticipated future amendments is attached.
The total costs proposed are within industry standards for such services and are within the funding anticipated for the overall project.
As part of the administrative process of securing the Public Facilities Authority (PFA) loan, staff do have the ability to amend the loan amount to increase the project contingency amount to 5% of the project costs. Thus, increasing the PFA loan by $1,674,452 with a total amended PFA amount of $45,339,296.50. It is important to note that the amended amount would still be below that of the initial proposed PFA funding amount of $47 million.
The WRRF D&D project is quite a large project with a total cost of nearing $90M. Construction commenced in the summer of 2024 and will be completed in mid 2027. To protect the City’s investment in this critical piece of infrastructure, it is important that the construction be monitored closely and issues that arise be resolved quickly and in the best long-term interest of the City. The proposed amendment provides for the full construction services needed to deliver this project.
It is proposed that a new amendment be brought to the City Council annually to cover the upcoming year’s construction services – three amendments through 2027. Amendment No. 1 increases the existing contract by $1,319,750 to a total of $2,325,000 to cover construction services through 2025. A letter summarizing Amendment No. 1 and anticipated future amendments is attached.
The total costs proposed are within industry standards for such services and are within the funding anticipated for the overall project.
As part of the administrative process of securing the Public Facilities Authority (PFA) loan, staff do have the ability to amend the loan amount to increase the project contingency amount to 5% of the project costs. Thus, increasing the PFA loan by $1,674,452 with a total amended PFA amount of $45,339,296.50. It is important to note that the amended amount would still be below that of the initial proposed PFA funding amount of $47 million.