Adopt Resolution #22-087 Approving Change Order #1 for Improvement Project #22-05, Riverdale Drive Trunk Utility Improvements, Llama Street to Bowers Drive

Purpose
The purpose of this case is to adopt Resolution #22-087 approving Change Order #1 for Improvement Project #22-05, Riverdale Drive Trunk Utility Improvements, Llama Street to Bowers Drive.
 
Background:
The extension of Riverdale Drive between Llama Street and Bowers Drive is needed to support development in the area. In March of 2022, Capstone Homes began construction on the first phase of Riverstone South, a residential development (244-units at full build out) east of Bowers Drive and south of U.S. Highway 10/169.  Commercial development is also proposed on the land between U.S. Highway 10/169 and the proposed extension of Riverdale Drive. The developers will pay trunk utility fees as they develop to replenish the trunk utility funds used to pay for the trunk sanitary sewer and watermain improvements.
 
Improvement Project #22-05 proposes to construct the trunk sanitary sewer and watermain improvements along the proposed extension of Riverdale Drive NW between Llama Street NW and Bowers Drive, along with required storm sewer improvements. The trunk utility improvements are proposed to be constructed ahead of the street improvements project (Improvement Project #20-05) to better facilitate the proposed construction schedule for Riverstone South since the trunk utility plans did not need to follow the same plan review process at the Minnesota Department of Transportation (MnDOT) as the street improvement plans.  This allowed the utility improvements to be bid and constructed months earlier, minimizing the construction schedule for Improvement Project #20-05.
 
Prior to publishing advertisements for bids for Improvement Project #22-05, construction was anticipated to take two months, including the lift station within the Riverstone South plat. However, as Staff discussed with Council on March 22nd when the contract for construction was awarded to Douglas-Kerr Underground, construction was anticipated to take considerably longer due to limited availability of some construction materials, most notably ductile iron pipe (DIP) watermain. At that time, DIP was taking up to 20 weeks to be delivered to project sites so Staff was anticipating a project completion date near the end of August assuming a start date around May 1^st.
 
Since March 22^nd, contractors such as Douglas-Kerr Underground received letters from DIP suppliers stating that delivery of DIP to projects will take 26 weeks or more now due to the global supply chain disruptions and the conflict between Russia and Ukraine.  Attached are copies of these letters. This would result in a construction completion date in late September or early October. Since Improvement Project #20-05 cannot start until Improvement Project #22-05 is generally complete, this could result in cold weather paving or delaying paving operations until 2023.
 
Bolton and Menk, the City’s design engineer, worked with Douglas Kerr Underground and MnDOT to prepare the attached Change Order #1 that, upon Council approval, will authorize Douglas Kerr Underground to install plastic C900 watermain in lieu of DIP for all 8-inch and 12-inch trunk watermain on this project.
 
City Staff approves of Change Order #1 as plastic trunk watermain has been constructed recently in several locations across the City, including under Variolite Street when it was reconstructed. Staff still prefers to use DIP, especially in residential developments where service taps are added for each unit, but plastic watermain has been in use now for over 20 years in Minnesota and is proving to be as reliable as DIP.
 
Staff will continue to work with our contractor and Capstone Homes to properly coordinate the trunk utility improvements work with the developer’s private utilities work. 

Public notifications were not required in advance of this case.   

Adopt Resolution #22-087 approving Change Order #1 for Improvement Project #22-05, Riverdale Drive Trunk Utility Improvements, Llama Street to Bowers Drive. 
 

Approving Change Order #1 will reduce construction costs for this project by $41,952.50 as noted in the attached change order.
 
Project costs related to sanitary sewer, water and stormwater improvements will be paid through the respective enterprise funds. 

Staff recommends adopting Resolution #22-087 to avoid project delays to help ensure that water and sewer are available when the first homes in Riverstone South are completed and are ready to be occupied, which is anticipated to occur by late September or early October.  

Adopt Resolution #22-087 approving Change Order #1 for Improvement Project #22-05, Riverdale Drive Trunk Utility Improvements, Llama Street to Bowers Drive.