8.2. SR 03-02-2015 �j
Elk = - Request for Action
River
To Item Number
Mayor and City Council 8.2
Agenda Section Meeting Date Prepared by
General Business March 2, 2015 Justin Femrite, P.E., City Engineer
Item Description Reviewed by
Wastewater Treatment Facility Improvements Tim Simon, Finance Director
Change Order Matt Stevens, Chief Operator
Reviewed by
Cal Portner, City Administrator
Action Requested
Approve, by motion, Change Order #1 for the Wastewater Treatment Facility Improvement project.
Background/Discussion
The attached change order and letter from Rice Lake Construction Group detail the request for change to
the contract completion date and price. Our project manager, Seth Peterson, and staff have negotiated
with Rice Lake Construction Group to limit the time extension and contract increase to a justified
amount. The contract time extension will not cause us to miss any timelines for compliance with our
discharge permit.
Staff supports the recommendation of our project manager to approve Option 1,which adds 138 days to
the contract time and $259,991.59 to the contract price.
Financial Impact
The approved project budget including construction, engineering, testing, utility relocations, and bond
issuance at time of bid award was $18,037,050. The change order would increase this project budget by
up to $259,991.59 or 1.4 percent. There is the potential that if no other large unforeseen conditions arise,
some of this increase will be absorbed in the contingencies already built into the contract. In 2016, near
the end of the contract,we will re-evaluate the final costs to determine the appropriate final bond sale
amount (if necessary) and adjust the final funding sources to assure that rates will accommodate the
increase.
Attachments
• Change Order #1
• Letter form Rice Lake Construction Group
p 0 W I R E a 0
NA UREJ
SECTION 00991—CHANGE ORDER
No. 1
PROJECT: WWTF Improvements
DATE OF ISSUANCE: 2/19/2015 EFFECTIVE DATE:
OWNER: City of Elk River, Minnesota
ENGINEER'S Project No.: T21.106811
CONTRACTOR: Rice Lake Const. Group ENGINEER: Bolton&Menk, Inc.
You are directed to make the following changes in the Contract Documents.
Description:
The project was bid in June 2014 and Notice to Proceed was not received until October 2014. This delay was due to the
MPCA not having the NPDES permit and EAW approved. Plan and specification approval was not granted until
October 28,2014. At that time construction could start. Shortly after construction started a black cinder material was
found in the excavation area and this material required special disposal. There were time delays due to testing of the
material and determining locations where the material could be disposed. Due to these delays the contractor is
requesting additional costs and time extension. We recommend Option 1 as outlined in Rice Lake's letter.
Reason for Change Order:
Delay in obtaining plan and specification approval,the NPDES permit and EAW from the MPCA. Also,black cinder
material was discovered in the excavation area and required special disposal.
Attachments: (List documents supporting change)
See attached letter from Rice Lake Construction Group dated Jan. 27,2015.
CHANGE IN CONTRACT PRICE: CHANGE IN CONTRACT TIMES:
Original Contract Price Original Contract Times
Substantial Completion :700 days or dates
$16.525.200.00 Ready for final payment :700 days or dates
Net changes from previous Change Orders No.-to No. I Net changes from previous Change Orders No.-to No.I
$0 0 days
Contract Price Prior to this Change Order Contract Times prior to this Change Order
Substantial Completion :O days or dates
$16.525.200.00 Ready for final payment :0 days or dates
Net Increase of this Change Order Net Increase of this Change Order
$259,991.59 138 days
Contract Price with all approved Change Orders Contract Times with all approved Change Orders
Substantial Completion :838 days or dates
$16.785.191.59 Ready for final payment :838 days or dates
RECOMMENDED: — APPROVED: ACCEPTED:
By �� V� By: By:
Engineer(Authorized Signature) Owner(Authorized Signature) Contractor(Authorized Signature)
Date: 2/19/2015 Date: Date:
EJCDC No. 191008-B(1990 Edition)
Prepared by the Engineers Joint Contract Documents Committee and endorsed by The Associated General Contractors of America.
T21.106811—Elk River,MN CHANGE ORDER
Wastewater Treatment Facility Improvements PAGE 00991-1
14r::
IUCE LAKE
CO Iu TR U C T , G DID 0 U P
January 27, 2015
Bolton & Menk, Inc.
12224 Nicollet Ave.
Burnsville, MN 55337
ATTN: Seth Peterson, PE
RE: Elk River Wastewater Treatment Facility Improvements
RLCG Project No. 1422
COP#04 — Project Delays
Seth,
Below is a summary of the delays to date for the Elk River Wastewater Treatment
Plant project to date.
Delay Start of Delay End of Delay Number of Calendar
Days Delayed
Notice to Proceed 8/3/14 10/6/14 64
MPCA Permit 10/6/14 10/28/14 22
Black Cinder Material 10/28/14 12/19/14 52
Total Days 138
Delayed
Following typical construction project timelines, Rice Lake bid this project
anticipating receiving the Notice to Proceed around 8/1/14. We would then have
been able to start the major concrete work on the Aeration Basin shortly after. Rice
Lake has been delayed a total of 138 days due to the issues with the Notice to
Proceed, MPCA Permit and the Black Cinder Material found onsite.
Rice Lake has the following options to move forward with:
1) With the construction of the Aeration Basin now into the winter months,
winter conditions costs will be a major factor for the concrete work.
However, at bid time we planned on finishing one half of the Aeration Basin
last fall, and the second half this spring. By planning on constructing the
Aeration Basin this way, we were able to minimize our winter conditions
22360 County Road 12 costs. Now that we are into the winter months, Rice Lake is requesting to
PO Box 517 be compensated for winter condition costs in the amount of$259,991.59 if
Deerwood, MN 56444
PH 218-546-5519 work on the Aeration Basin must continue this winter. We would also
FX 218-546-7016 require a time extension of 138 calendar days for the delays we have
experienced to date. Attached is a summary of the additional costs for
option 1.
2) Our other option is to wait until spring to start the work on the Aeration
Basin. However, we would then run into price escalations on concrete,
rebar material, rebar install and labor. Rice Lake would also incur additional
overhead costs from the time extension that would be required. The total
cost would be $294,760.81, and we would also require a time extension of
245 calendar days. Please note we would continue work on the Biosolids
Building No. 2 and also the RAS/WAS wet well, and would cover the winter
conditions costs on these structures. Attached is a breakout of the costs for
option 2.
Please let us know how you would like to proceed. If you have any questions, or
require additional information, do not hesitate to contact us.
Sincerely,
Rice Lake Construction Group
Matt Perpich
Project Manager
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