Adopt Resolution #24-160 Approving Construction Contingency Expense No. 6 for Improvement Project #21-09, Centralized Water Treatment Plant

Purpose:
The purpose of this case is to adopt Resolution #24-160 approving Construction Contingency Expense No. 6 for Improvement Project #21-09, Centralized Water Treatment Plant.    
 
Background:
The Water Treatment Plant (WTP) project includes a construction contingency cost of $950,000 intended to pay for new items during construction that were not contemplated during the design process or for items that the owner, engineer, or contractor(s) propose ro rev ise during construction. 
 
The attached letter from Resident Project Representative Ryan Hanson with Advanced Engineering and Environmental Services, Inc. (AE2S), the City’s contracted project engineer, identifies items proposed to be adjusted during construction to date, including as part of Construction Contingency Expense No. 6.  The letter identifies all adjustments and all spent and remaining construction contingency funds.
 
No extension of time is being requested as part of Construction Contingency Expense No. 6.  However, the contractor may decide at a later date to request an extension of time depending on the availability of required materials related to Construction Contingency Expense No. 6.  If a time extension request is made, it will be presented at a later date in the form of a formal Change Order request.  

Notifications are not required for this case.   

Observations:
Modifications proposed as part of Construction Contingency Expense No. 6 will improve the maintenance, operations and safety of the Water Treatment Plant, and removes unnecessary construction costs.  
 
Attached is a Project Budget Status letter from Aaron Vollmer with AE2S that was reviewed by the Public Works Committee on May 21, 2024.  The letter summarizes the Construction Contingency Expenses that had been processed to date (CCE’s #1 through #5) and provides context on what the City of Ramsey can expect to spend from these funds during the remainder of the project based on similar previous projects designed and managed by AE2S.  In summary, AE2S feels the project is progressing well and is not likely to require additional funding to cover change orders beyond what is already reserved in the construction contingency allowance. 
 
Alternatives:
Motion to adopt Resolution #24-160 approving Construction Contingency Expense No. 6 for Improvement Project #21-09, Centralized Water Treatment Plant.   

Costs associated with Construction Contingency Expense No. 6 total $17,125.02.

The original Construction Contingency amount was $950,000.  Approving Construction Contingency Expense No. 6 will reduce the available construction contingency amount to $480,293.75.    


 

Staff and AE2S recommend approving Alternative #1 for reasons summarized in the attached letter.  

Motion to adopt Resolution #24-160 approving Construction Contingency Expense No. 6 for Improvement Project #21-09, Centralized Water Treatment Plant.