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Home My WebLink About05(B) - Resolution Authorizing a Change Order and Final Payment for the Lords Lift Station Rehabilitation (2025-07) Report ITEM: 5B CITY COUNCIL AGENDA REPORT MEETING DATE: February 10, 2026 PREPARED BY: Christine Watson, Public Works Supervisor – Administration Phil Ryan, Public Works Supervisor – Utilities PRESENTED BY: Nick Monserud, Public Works Director/City Engineer AGENDA ITEM: Resolution Authorizing a Change Order and Final Payment for the Lords Lift Station Rehabilitation (2025-07) RECOMMENDED ACTION: Adopt a resolution authorizing a change order and final payment for the Lords lift station rehabilitation (2025-07). BACKGROUND: On April 22, 2025 the City Council awarded a contract in the amount of $244,401 to Krueger Excavating, Inc. for the Lords lift station rehabilitation. All work has now been completed in accordance with the contract. The project required a change order in the amount of $117,675 to address the following additions to the scope of the project: • A new transformer and concrete pad to upgrade the power supply from 240V to 480V (three phase). This is consistent with what is at other lift stations throughout the city. This added $27,830 to the project. • During construction, it was noted that the pump bases were worn and chipped and needed replacement. This added $10,194 to the project. • During the design phase of the project, as-built drawings incorrectly showed the force main to be in the green space of the residence at 4285 Lords St NE, but after initial excavation it was found that the force main was actually located under the driveway. The replacement of this sewer force main resulted in needing to replace the homeowner’s concrete driveway as well. Relocating the force main and replacing the driveway added $79,651 to the project. The final payment amount is $139,395.05, which includes the $117,675 change order. With this payment, the total amount paid to Krueger Excavating, Inc. is $362,076. The contractor delivered a quality project and has addressed all outstanding work items. WSB LLC, the city’s engineering consultant on this project, has provided the attached letter recommending approval of the change order and final pay voucher. FINANCIAL IMPACT: The Sewer Utility Fund included $709,000 for lift station rehabilitation in 2025. The total project cost for equipment, installation, SCADA integration, and all engineering and consultant services is $478,846 which is 32.6% above the estimated total project cost of $361,171 due to the change City of Prior Lake | 4646 Dakota Street SE | Prior Lake MN 55372 Item 5B Page | 2 order additions noted above. The remainder of the budgeted $709,000 will be used on the 150th Street lift station rehabilitation, which is nearing completion as well. ALTERNATIVES: 1. Motion and second as part of the consent agenda to adopt a resolution authorizing a change order and final payment for the Lords lift station rehabilitation (2025-07). 2. Motion and second to remove this item from the consent agenda for further discussion. ATTACHMENTS: 1. Resolution 2. Change Order 3. Recommendation Letter and Pay App 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 26- A RESOLUTION AUTHORIZING A CHANGE ORDER AND FINAL PAYMENT FOR THE LORDS LIFT STATION REHABILITATION (2025-07) Motion By: Second By: WHEREAS, on April 22, 2025 the City Council adopted Resolution 25-054 which authorized the city to award a construction contract to Krueger Excavating, Inc. for the Lords lift station rehabilitation; and WHEREAS, the contract outlined the improvements Krueger Excavating, Inc. was responsible for installing; and WHEREAS, the scope of the project changed after construction began, adding $117,675 to the contract through a change order for the following work:  A new transformer and concrete pad to upgrade the power supply from 240 delta to 480 three phase. This is consistent with what is at other lift stations throughout the city. This added $27,830 to the project.  During construction, it was noted that the pump bases were worn and chipped and needed replacement. This added $10,194 to the project.  During the design phase of the project, as-built drawings incorrectly showed the force main to be in the green space of the residence at 4285 Lords St NE, but after initial excavation it was found that the force main was actually located under the driveway. The replacement of this sewer force main resulted in needing to replace the homeowner’s concrete driveway as well. Relocating the force main and replacing the driveway added $79,651 to the project; and WHEREAS, these improvements and all other contract responsibilities are now complete to the satisfaction of the city; and WHEREAS, the city’s consulting engineer, WSB LLC, has reviewed the improvements and has written a recommendation letter and provided all close out documentation to support final payment in the amount of $139,395.05 for this 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. The City Council hereby accepts the improvements for the Lords lift station rehabilitation project. 3. Final payment will be made to Krueger Excavating, Inc. in the amount of $139,395.05. th Passed and adopted by the Prior Lake City Council this 10 day of February 2026. VOTE Briggs Braid Churchill Lake Hellier Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Jason Wedel, City Manager C:\\Users\\hsimon\\AppData\\Local\\Temp\\Report Attachment - 20260210 Approve CO and final payment Lords LS - RESO_675688\\Report Attachment - 20260210 Approve CO and final payment Lords LS -.docx 2 LORDS STREET LIFT STATION IMPROVEMENTS CITY OF PRIOR LAKE WSB PROJECT NO.: 027183-000 OWNER: City of Prior Lake 4646 Dakota St SE, Prior Lake, MN 55372 THE CONTRACT IS MODIFIED AS FOLLOWS UPON EXECUTION OF THIS CHANGE ORDER: CHANGE IN CONTRACT PRICE: CHANGE IN CONTRACT TIME: ORIGINAL CONTRACT PRICE: $244,401.00 ORIGINAL CONTRACT TIME: NONE PREVIOUS CHANGE ORDERS: $0.00 NET CHANGE FROM PREVIOUS CHANGE ORDERS: NONE CONTRACT PRICE PRIOR TO THIS CHANGE ORDER: $244,401.00 CONTRACT TIME PRIOR TO THIS CHANGE ORDER: NONE NET INCREASE/DECREASE OF THIS CHANGE ORDER:$117,675.00 NET INCREASE OF CHANGE ORDER: NONE CONTRACT PRICE WITH ALL APPROVED CHANGE ORDERS: $362,076.00 CONTRACT TIME WITH APPROVED CHANGE ORDERS:NONE RECOMMENDED BY: APPROVED BY: STEVE NELSON, PE, PROJECT MANAGER WSB ENGINEER APPROVED BY: PRIOR LAKE DATE PRIOR LAKE DATE Krueger Excavating 7616 180th St E, Prior Lake, MN 55372 CONTRACTOR CHANGE ORDER NO. 1 JANUARY 22, 2026 CONTRACTOR SIGNATURE Krueger Excavating ATTACHMENTS: SUMMARY OF WORK AND COSTS ASSOCIATED COR #15 - #22. IT IS UNDERSTOOD THAT THIS CHANGE ORDER INCLUDES ALL ADDITIONAL COSTS AND TIME EXTENSIONS WHICH ARE IN ANY WAY, SHAPE, OR FORM ASSOCIATED WITH THE WORK ELEMENTS DESCRIBED ABOVE. CONTRACTOR: DESCRIPTION: THIS CHANGE ORDER INCLUDES ALL ADDITIONAL WORK AND COSTS ASSOCIATED WITH THE FORCEMAIN RELOCATION, RETAINING WALL, CURB REPLACEMENTS, SEEDING AND GRADING WORK, AND REMOVAL AND REPLACEMENT OF PUMP BASES AS LAID OUT IN THE ATTACHED DOCUMENTATION WITH DEDUCTIONS FOR THE UNUSED CONSTRUCTION AND TRAFFIC CONTROL ALLOWANCE ($10,000 EACH). M:\027183-000\Admin\Construction Admin\Pay Apps Lords St LS\CORs & COs\Change Order Summary SheetCO 1 M:\027183-000\Admin\Construction Admin\Pay Apps Lords St LS\Final Pay App (Cover Letter).docx 17 8 E 9 T H S T R E E T | SU I T E 2 0 0 | SA I N T P A U L , M N | 55 1 0 1 | 65 1 . 2 8 6 . 8 4 5 0 | WS B E N G . C O M January 26, 2026 Mr. Phil Ryan Public Works Supervisor City of Prior Lake, MN 4646 Dakota St SE, Prior Lake, MN 55372 Re: Final Application for Payment No. 2 Lords Street Lift Station Rehabiliation City of Prior Lake, MN WSB Project No. 027183-000 Dear Mr. Ryan: Please find attached Final Application for Payment No. 2 from Krueger Excavating for the construction of the Lords Street Lift Station Rehabilitation. We reviewed this application and find it acceptable for payment. Therefore, we recommend making a payment of $139,395.05 to Krueger Excavating, Inc. If you are in agreement, please sign the application and process it for payment. Sincerely, WSB Steve Nelson snelson@wsbeng.com (612) 258-8152 2