Adopt Resolution #24-296 Approving Construction Contingency Expense No. 7 for Improvement Project #21-09, Centralized Water Treatment Plant  

Purpose:
The purpose of this case is to adopt Resolution #24-296 approving Construction Contingency Expense No. 7 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 to revise 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 those items approved under previous Construction Contingency Expense requests, as well as the items proposed to be adjusted during construction as part of Construction Contingency Expense No. 7.  The letter also identifies remaining construction contingency funds.
 
No extension of time is being requested as part of Construction Contingency Expense No. 7.  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:
The modifications proposed with Construction Contingency Expense No. 7 will provide greater flexibility for future plant expansion improvements and will reduce maintenance costs over the life of the Water Treatment Plant.    

Alternatives:
Motion to adopt Resolution #24-296 approving Construction Contingency Expense No. 7 for Improvement Project #21-09, Centralized Water Treatment Plant.   

Costs associated with Construction Contingency Expense No. 7 total $31,938.68.  A deduction of $3,144.81 for associated costs previously approved under Construction Contingency Expense No. 6 have been incorporated into this request.

The original Construction Contingency amount was $950,000.  Approving Construction Contingency Expense No. 7 will reduce the available construction contingency amount to $448,354.69.  The project engineers at AE2S continue to state that the project is progressing well and they believe the project will not require additional funding beyond what is already reserved in the construction contingency allowance.   

Staff and AE2S recommend approving Construction Contingency Expense No. 7 for reasons summarized in the attached letter.  

Motion to adopt Resolution #24-296 approving Construction Contingency Expense No. 7 for Improvement Project #21-09, Centralized Water Treatment Plant.