7.2.
| CC Regular Session |
| Meeting Date: | 07/22/2025 |
| Primary Strategic Plan Initiative: | {ud_pd4} |
Title:
Adopt Resolution #25-175 Approving Engineering Amendment No. 3 for Improvement Project #21-09, Centralized Water Treatment Plant
Purpose/Background:
Purpose:
The purpose of this case is to adopt Resolution #25-175 approving Engineering Amendment No. 3 for Improvement Project #21-09, Centralized Water Treatment Plant.
Background:
Advanced Engineering and Environmental Services, Inc. (AE2S) was hired by the City of Ramsey to design and prepare final plans and specifications for the Water Treatment Plant (WTP). AE2S was also hired by the city to provide construction services during construction.
Magney Construction, Inc. (Magney) was awarded the construction contract for construction of the WTP.
When the project was bid, bid alternate #1 was added in response to comments received from contractor’s during the pre-bid meeting that the project schedule was very tight and that adding several months to the project schedule may help reduce bid prices since contractors tend to increase their bid prices if they have concerns that liquidated damages may be assessed if completion deadlines are not met. Magney therefore submitted a bid deduction for bid alternate #1 in the amount of -$50,000 based on a 28-month construction schedule versus a 24-month schedule per the base bid. When the city awarded the contract for construction, only the base bid was awarded meaning Magney had 24-months to complete the project.
During construction, the city approved 2 Change Orders and 2 Engineering Amendments as follows.
Per the previous case, Magney Construction, Inc. submitted a request for Change Order #3. If this change order was approved, additional time will be required of AE2S’ Resident Project Representative (RPR), the project engineer, and various other AE2S staff acting on behalf of the city throughout final completion.
Engineering Amendment #3 as originally presented to the City Council requested additional funding in an amount not to exceed $184,300. This was based on a fixed time extension of 79 calendar days to the Substantial Completion date, and 64 calendar days to the Final Completion date per Change Order #3.
AE2S has since submitted a modified Engineering Amendment #3 that would spend down the remaining $55,000 left in their budget first, then the city would be billed their 2025 hourly rates for all staff time spent working on the project until the contractor completes construction. The hours AE2S staff would spend working on the would need to be agreed upon by city staff on a regular basis through the end of construction.
Copies of both engineering amendments are attached to the case.
The purpose of this case is to adopt Resolution #25-175 approving Engineering Amendment No. 3 for Improvement Project #21-09, Centralized Water Treatment Plant.
Background:
Advanced Engineering and Environmental Services, Inc. (AE2S) was hired by the City of Ramsey to design and prepare final plans and specifications for the Water Treatment Plant (WTP). AE2S was also hired by the city to provide construction services during construction.
Magney Construction, Inc. (Magney) was awarded the construction contract for construction of the WTP.
When the project was bid, bid alternate #1 was added in response to comments received from contractor’s during the pre-bid meeting that the project schedule was very tight and that adding several months to the project schedule may help reduce bid prices since contractors tend to increase their bid prices if they have concerns that liquidated damages may be assessed if completion deadlines are not met. Magney therefore submitted a bid deduction for bid alternate #1 in the amount of -$50,000 based on a 28-month construction schedule versus a 24-month schedule per the base bid. When the city awarded the contract for construction, only the base bid was awarded meaning Magney had 24-months to complete the project.
During construction, the city approved 2 Change Orders and 2 Engineering Amendments as follows.
- Change Order #1 – Increased project costs $794,153.71 to apply prevailing wages so awarded grant funds could be used.
- Change Order #2 – Extended completion dates by 88 days due to delays in obtaining DOLI and building permits. No cost increase was associated with this CO.
- Engineering Amendment #1 – Increased construction services fees $225,100 due to construction schedule extension.
- Engineering Amendment #2 – Increased construction services fees $2,683.15 due to building permit requirement for as-built survey. Also included $14,640.69 for engineering services due to plan revisions needed to address new DOLI code and city site plan review process.
Per the previous case, Magney Construction, Inc. submitted a request for Change Order #3. If this change order was approved, additional time will be required of AE2S’ Resident Project Representative (RPR), the project engineer, and various other AE2S staff acting on behalf of the city throughout final completion.
Engineering Amendment #3 as originally presented to the City Council requested additional funding in an amount not to exceed $184,300. This was based on a fixed time extension of 79 calendar days to the Substantial Completion date, and 64 calendar days to the Final Completion date per Change Order #3.
AE2S has since submitted a modified Engineering Amendment #3 that would spend down the remaining $55,000 left in their budget first, then the city would be billed their 2025 hourly rates for all staff time spent working on the project until the contractor completes construction. The hours AE2S staff would spend working on the would need to be agreed upon by city staff on a regular basis through the end of construction.
Copies of both engineering amendments are attached to the case.
Time Frame/Observations/Alternatives:
Alternatives:
Alternative #1 – Motion to adopt Resolution #25-175 approving the original Engineering Amendment No. 3 for Improvement Project #21-09, Centralized Water Treatment Plant.
Alternative #2 – Motion to adopt Resolution #25-175 approving the modified Engineering Amendment No. 3 for Improvement Project #21-09, Centralized Water Treatment Plant.
Alternative #3 – Motion of other.
Alternative #1 – Motion to adopt Resolution #25-175 approving the original Engineering Amendment No. 3 for Improvement Project #21-09, Centralized Water Treatment Plant.
Alternative #2 – Motion to adopt Resolution #25-175 approving the modified Engineering Amendment No. 3 for Improvement Project #21-09, Centralized Water Treatment Plant.
Alternative #3 – Motion of other.
Funding Source:
The original Engineering Amendment #3 includes a request for additional funding in the not-to-exceed amount of $184,300.
The modified Engineering Amendment #3 includes a request for additional funding based on spending down the remaining project budget first then billing the city at AE2S’ 2025 hourly rates until the project is complete based on working hours agreed upon on an ongoing basis between AE2S and city staff.
If approved, Sewer and Water Funds would pay for all additional construction services provided by AE2S.
The modified Engineering Amendment #3 includes a request for additional funding based on spending down the remaining project budget first then billing the city at AE2S’ 2025 hourly rates until the project is complete based on working hours agreed upon on an ongoing basis between AE2S and city staff.
If approved, Sewer and Water Funds would pay for all additional construction services provided by AE2S.
Recommendation:
City staff recommend approving Alternative #1 or Alternative #2 if Change Order #3 was approved to ensure adequate representation will be provided on the city’s behalf through the end of construction.
Outcome/Action:
Dependent on the outcome of tonight’s work session discussions.
Attachments
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Brian Hagen | Brian Hagen | 07/17/2025 04:10 PM |
- Form Started By:
- Bruce Westby
- Started On:
- 07/16/2025 04:26 PM
- Final Approval Date:
- 07/17/2025