 |
AGENDA RECOMMENDATION |
5.A.
City Council Regular Meeting
- Meeting Date:
- 02/23/2026
Agenda Item:
Report on project and Change Orders for Capital Improvement Project 32261; Water Resource and Recovery Facility (WRRF) Digester and Disinfection Improvements.
Recommendation/Action(s):
Motion approving Change Order Nos. 14-29 for CIP 32261
Summary:
A construction contract for this project was awarded to Rice Lake Construction Group on May 13, 2024. Work began shortly thereafter and is currently anticipated to be completed by mid-2027. Project status was last shared with the City Council on November 10, 2025, after which the Council approved Change Orders 1 – 13. As of the beginning of January 31, 2026, approximately 49% of the construction contract has been completed ($40,932,534 of $83,722,600).
As of January 31st, 29 change orders have been approved for a net total of $480,056. This equates to 0.57% of the original contract amount. The Mankato City Code allows the City Manager to approve change orders up to 5% of the original contract amount ($4,186,130) with a condition that such change orders be reported to the City Council. A tabulation of the 29 approved change orders is attached.
The total project cost, including construction, contingencies and engineering, is just under $94 million. Initial project costs are proposed to be financed with a loan from the Public Facilities Authority (PFA) which will be repaid with a combination of State/Federal grants (approx. 50%) and local utility funds (approx. 50%). As can be seen in the attached graph, the project is within budget.
As of January 31st, 29 change orders have been approved for a net total of $480,056. This equates to 0.57% of the original contract amount. The Mankato City Code allows the City Manager to approve change orders up to 5% of the original contract amount ($4,186,130) with a condition that such change orders be reported to the City Council. A tabulation of the 29 approved change orders is attached.
The total project cost, including construction, contingencies and engineering, is just under $94 million. Initial project costs are proposed to be financed with a loan from the Public Facilities Authority (PFA) which will be repaid with a combination of State/Federal grants (approx. 50%) and local utility funds (approx. 50%). As can be seen in the attached graph, the project is within budget.