5.6 ERMUSR 08-09-2022______________________________________________________________________________
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UTILITIES COMMISSION MEETING
TO:
ERMU Commission
FROM:
Theresa Slominski – General Manager
MEETING DATE:
August 9, 2022
AGENDA ITEM NUMBER:
5.6
SUBJECT:
County Road 13 Reconstruction Project Update
ACTION REQUESTED:
Authorize payment amount to Sherburne County of $198,431.56 for water main pipe relocation
and insulating work for the CSAH 13 project.
BACKGROUND:
At the November 9, 2021, commission meeting the Commission approved an “amount not to
exceed $261,882” for work that needed to be done to lower and insulate water main pipes that
weren’t identified early in the CSAH 13 project (the November 9, 2021, memo is attached for
reference). We have provided some updates since that meeting that the work was completed,
and that we were having discussions on the final costs for ERMU to pay for the project. We
have not come to an agreement and would like Commission authorization a different payment
maximum amount.
DISCUSSION:
The County provided a change order of $212,985.56 for insulating and lowering our water main
to complete the CSAH 13 project. Included in the change order are costs for street salvaging
and replacement that we believe we should not have to pay for. We have had multiple
discussions on arriving at a more reasonable amount, considering amounts included in the
original quotes, amounts that should be excluded due to work not having to be done, some
prior negotiations of sharing certain costs, estimations versus actuals, etc. We were not able to
come to an agreement. The County has taken the position that since the commission approved
an amount of $261,882, we should not take exception to the lower cost amount of
$212,985.56.
ERMU believes that we should be responsible for the costs of our water main and have no
objection to paying for those true costs. However, we have specifically identified 181 feet
where road work was re-done because the proper lowering and insulating of water main was
not done before the road was placed over the top of it (after specific discussion regarding these
proper depths in weekly progress meetings which was documented in 9/29/2021 meeting
minutes). We have stated we will not pay for that re-work. We have identified these 181 feet as
157 feet of lowered water main and 24 feet of insulated water main, and the associated linear
foot (lf) costs for that work total $14,554.00. The street repair for 157 feet of lowering was
done at $82.00/lf and the 24 feet of insulating was done at $70.00/lf for a total of $14,554.00.
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We have subtracted $14,556.00 from the $212,985.56 change order amount for a total of
$198,431.56 we are willing to pay. (A recent email chain, and the weekly progress meeting
minutes from 9/29/2021 are attached).
It should be noted there are other change orders related to CSAH 13 with no dispute, and it is
only this change order of $212,985.56 that is in dispute. Staff is recommending to the
Commission to authorize an amount of $198,431.56 for water main pipe relocation and
insulating work for the CSAH 13 project.
FINANCIAL IMPACT:
The revised amount to the change order of $198,431.56.
ATTACHMENTS:
● November 9, 2021, Commission Memo
● CSAH 13 email discussion
● CSAH 13 Weekly Meeting Minutes 09292021
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