Adopt Resolution #25-230 Approving Construction Contingency Expense No. 10 for Improvement Project #21-09, Centralized Water Treatment Plant

Purpose:
The purpose of this case is to adopt Resolution #25-230 approving Construction Contingency Expense No. 10 for Improvement Project #21-09, Centralized Water Treatment Plant.  
 
Background:
Construction costs for the Water Treatment Plant (WTP) include a construction contingency allowance of $950,000 to pay for new items identified 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.  This construction contingency allowance is equal to approximately 3-percent of the overall construction bid price. Any unused allowance funds will be deducted from the final payment.
 
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 No.’s 1 through 9, as well as the four (4) items proposed to be adjusted during construction as part of Construction Contingency Expense No. 10. 
 
No extension of time is being requested as part of Construction Contingency Expense No. 10.  However, the contractor may decide at a later date to request an extension of time for any of the Construction Contingency Expenses.  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. 10 will serve to reduce maintenance costs and improve operating conditions within the WTP over the life of the plant.    

Alternatives:
Motion to adopt Resolution #25-230 approving Construction Contingency Expense No. 10 for Improvement Project #21-09, Centralized Water Treatment Plant.   

Costs associated with Construction Contingency Expense No. 10 total $61,773.53.  The original Construction Contingency amount was $950,000.  Approving Construction Contingency Expense No. 10 will reduce the available construction contingency amount to $341,265.59, which equals 35.9-percent of the original contingency amount.

Staff and AE2S are confident the construction of the WTP 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. 

Staff and AE2S recommend approving Construction Contingency Expense No. 10 for reasons summarized in this case and the attached letter from AE2S.   

Motion to adopt Resolution #25-230 approving Construction Contingency Expense No. 10 for Improvement Project #21-09, Centralized Water Treatment Plant.