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Home My WebLink About5I -Accept Water Treatment Facility from Rice Lake Construction MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: ISSUES: DECEMBER 21, 2009 51 STEVE ALBRECHT, DIRECTOR OF PUBLIC WORKS CONSIDER APPROVAL OF A RESOLUTION ACCEPTING THE WATER TREATMENT FACILITY FROM RICE LAKE CONSTRUCTION AND APPROV- ING THE FINAL PROJECT BUDGET Introduction The purpose of this agenda is for the City Council to accept the Water Treatment Facility (WTF) from Rice Lake Contracting and approve the final project budget. Historv On August 6, 2007, the City Council awarded a contract for construction of the WTF to Rice Lake Construction. As part of that approval an overall project budget was also approved. The City began operations of the WTF in March 2009. Current Circumstances The WTF has been complete and operational for about nine months. No further project expenditures are required and it is appropriate for the City Council to ac- cept the WTF from Rice Lake Construction and to approve the final project budget. Only minor punch list items remain and all expenditures have been completed. The punch list items will be completed prior to release of the final project retain- age. The facility is currently within the warranty period which will be in effect until March of 2011. The total project budget of $14,147,864.85 included the approved de- sign/construction budget, Met Council/City Permits, approved testing change or- der and cost of relocating the emergency siren. The total final project cost is $14,145,759.34 or $2,105.51 under budget. The attached financing summary shows all of the final cost totals. Conclusion The project has been completed and the facility has been operational for nine months and therefore it is appropriate for the City Council to accept the project from Rice Lake Construction. Additionally in order to ensure transparency and clarity for auditing purposes it is appropriate for the City Council to approve the final project budget and resolution amounts. The facility has been operating as planned and is complete. In order for the City to release the escrow funds (retainage) which guarantees completion of the pro- ject the City Council must accept the project. All project expenditures have been completed and therefore at this time it is also appropriate for the City Cquncil .to review and approve the final project budget. www.C1tyofpnorlake.com ,I?honei95Z"il.47.,9800 / Fax 952.447.4245 FINANCIAL IMPACT: This provides documentation of cost approval to meet the City's Auditing and Purchase Policy guidelines. Staff has completed a detailed final cost budget for this project. The project budget including approved resolutions and additions for the building permit and emergency siren relocation is $14,147,864.85. The final project costs associated with the project are as follows: Item Approved Expenditure $12,746,500.00 736,560.00 44,669.50 100,000.00 208,000.00 96,993.58 98,621.63 7,585.79.00 2,432.00 106,502.35 $14,147,864.85 Actual Expenditure $12,813,826.00 743,060.53 38,811.07 100,000.00 157,918.34 112,922.72 68,980.00 1,306.33 I 2,432.00 I 106,502.35 $14,145,759.34 WTF Construction (Rice Lk) Engineering Testing City Administration Bonding Costs City Building Costs (Landscaping) City Building Costs (Equip/FFE) City Construction Budget Unaliocated Emergency Siren Relocation Met Council SAC/Building Permit Total The City Council should be aware that the following specific changes occurred: a) The final contract price with Rice Lake Construction is $67,326 over the orig- inal contract price. This is an overrun of 0.5% due to required enhancements to the fire sprinkling system as part of final of the occupancy permit, the addi- tion of two valves at existing well houses and additional grading required to facilitate drainage to the new pond located in Cardinal Ridge Park as part of the Brooksville Hills project. b) $5,858 of work originally scheduled to be completed by Braun Intertec under the testing contract was completed by Bolton & Menk under the engineering contract. c) Additionallandscaping/screening in the amount of $15,929.14 was added to address concerns by neighbors related to sight lines, lighting and noise. The approved funding under building equipment was reduced to cover this addi- tional expense. d) The Unallocated Construction Budget is funding originally identified but not required due to actual costs. The project is complete and no additional funding is required. ALTERNATIVES: 1. Approve a resolution accepting the WTF from Rice Lake Construction and adopting the final project budget. 2. Table this agenda item for a specific reason. 3. Deny this agenda item for a specific reason and provide staff with direction. RECOMMENDED Alternative No. 1 ;::11 I Fffink,BOrl ' RESOLUTION 09-xxx A RESOLUTION ACCEPTING THE WATER TREATMENT FACILITY FROM RICE LAKE CONSTRUCTION AND APPROVING THE FINAL PROJECT BUDGET Motion By: Second By: WHEREAS, Construction of the Water Treatment Facility (WTF) was completed in March of 2009; and WHEREAS, The City has been operating and maintaining the WTF for nine months and staff recommends the City Council accept the facility from Rice Lake Construction; and WHEREAS, All expenditures associated with the WTF have been made; and WHEREAS, The approved project budget was $14,147,864.85 and the final project cost was $14,145,759.34 or $2,105.51 under budget; and WHEREAS, The following resolutions were approved (excludes permit and emergency siren relocation fees) as part of the project budget with the following actual expenditures: Resolution No. 06-142 Design/Engineeringllnsp. 06-197 Testing/Insp. 06-205 Design Modifications 07-145 City Project Administration 07 -145 Construction 07-145 Bonding Costs 07-145 Unallocated City Costs 08-017 Testing 08-121 Landscaping 08-133 Equipment/Furnishings 09-072 Landscaping Total ; and Approved Cost $686,560.00 $22,239.00 $50,000.00 $100,000.00 $12,746,500.00 $208,000.00 $7,585.79 $22,430.50 $41,344.69 $98,621.63 $55,648.89 Actual Cost $693,060.53 $22,239.00 $50,000.00 $100,000.00 $12,813,826.00 $157,918.34 $1,306.33 $16,572.07 $41,377.53 $68,980.00 $71,545.19 Variation +$6,500.53 I $0 I $0 I $0 I +$67,326.00 I -$50,081.66 I -$6,279.46 I -$5,858.43 I +$32.84 I -$29,641.63 I +$15,896.30 I -$2,105.51 I WHEREAS, The authorized expenditures for the above listed resolutions are amended to reflect actual final costs for the project. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. City Staff is authorized to release the escrow (retainage) guarantee to Rice Lake Construction upon completion of the punch list. 3. The official start-up date for purposes of the project warranty is recognized as March 1, 2009. 4. The WTF is accepted by the City of Prior Lake. www.cityofpriorlake.com R'lr""n,.ill?nnQ Agpnrla R..n.QLI,,11? ?1...!l.ml.\tlf ...",,<::1 P rl",. Phone 952.447.9800 / Fax 952.447.4245 PASSED AND ADOPTED THIS 21st DAY OF DECEMBER 2009. I Haugen I Erickson I Hedberg I LeMair I Millar YES Haugen Erickson Hedberg LeMair Millar Frank Boyles, City Manager R:\Council\2009 Agenda Reports\12 21 09\wtf reso SLP.doc NO City Council Approved Design & Construction Budget Met CounciVCity Bldg Permit Fees Testing Service Change Order Emergency Siren Relocation Total Project Budget Final Project Cost Detailed Resolution Expenditure Approval to Date WTF Construction Cost Engineering Testing Admin (City of Prior Lake) Bonding Costs City BUilding Costs (Landscaping) City Building Costs (EquipfFum) City Costs (Relocate Emerg. SirenIMisc) City Construction Budget Unanocated Met CounciVCity SAC & WAC Fees Total "Reflects additional anticipated work and all co's Approved CIty Building Costs to Date Phase 1 Landscaping SCADA, Computers, FFE.Lighting Phase 2 Landscaping Total City Approved Work . WTF Financing - Final Project Summary FINAL PROJECT ACCOUNT EXPENDITURES 12-11-09 BUDGET $14.016.500.00 Res 07-145 $106,502.35 Building Permit $22,430.50 Res 08-017 ~2.432.0Q No Res CM Approval $14,147,864.85 $14,145,759.34 Acct 505 Total Project Expenses Excluding Sales Tax Reb. $12,746,500.00 Res 07-145 $736,560.00 Res 08-142,08-205 $44,669.50 Res 08-197,08-017 $100.000.00 Res 07-145 $208,000.00 Res 07-145 $96,993.58 Res 08-121,09-072 $98,621.63 Res 08-133 $2,432.00 No Res/CM Approval $7.585.79 Res 07-145 $106.502.35 Building Permit $14,147,864.85 $41,345 08-121 $98,622 08-133 $55.649 09-072 $195,615 S:\Water_Supply\WTF Proj 107-122\20lJ9.12-06 Financing Sumnuuy -FINAL Expended Total $12,813.826.00 $143,060.53 $38,811.07 $100.000.00 $157,918.34 $112,922.72 $68,980.00 $2,432.00 $1,306.33 $106.502.35 $14,145,759.34 $41,377.53 $68,980.00 $71.545.19 $181,902.72 Balance -$67,326.00 -$6,500.53 $5,858.43 $0.00 $50,081.66 -$15,929.14 $29,641.63 $0.00 56.279.46 $0.00 $2,105.51 ($32.84) $29,641.63 ($15.896.30\ $13,712 Remaining Work $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0 Budgeted Funding Allocation Water Storage Fund Trunk Reserve Fund Water Revenue Bonds CO Water Storage Fund Total FUNDING $2,108,934 Res 07-145 & Bldg Permit $2.316.500 Res 07-145 $9.700.000 Res 07-145 Jt22431 Res 08-017 $14,147,865 Projected Final Funding Allocation Water Storage Fund' $3,322,259 Trunk Reserve Fund- $2,323,500 Water Revenue Bonds $8.500.000 Total $14,145,759 "Includes Investment Earnings, Building Permll Fees and Rebates ~lnc1udes $8k transfer on 514109 to Water Storage Fund Rebates Received to Date Xcel Plan Review Rebate Sales Tax 1/1/08 Sales Tax 7/1/08 Sales Tax 12/31/08 Sales Tax 10/20/09 Total to Date Investment Earnings to Date $22,146.00 (8114108) $25.868.88 552.403.12 $19,106.50 $53.975.99 $173,600.49 $774,731