HomeMy WebLinkAbout10B - Wells No. 8 & 9
16200 Eagle Creek Avenue S.E.
Prior Lake, MN 55372-1714
CITY COUNCIL AGENDA REPORT
MEETING DATE:
AGENDA #:
PREPARED BY:
SEPTEMBER 5, 2006
10B
STEVE ALBRECHT, DIRECTOR OF PUBLIC WORKS
AGENDA ITEM:
CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING STAFF TO
TERMINATE THE CONSTRUCTION CONTRACT FOR WELL NO.8 AND 9
AND ADVERTISE FOR BIDS TO COMPLETE WELL NO.9
DISCUSSION:
Introduction
The purpose of this agenda item is to authorize staff to terminate the
construction contract for Wells NO.8 and 9 and to advertise for bids to
complete Well NO.9.
Historv
On September 6, 2005 the City approved a Contract with Keys Well Drilling for
construction of Wells No. 8 and 9. The completion date for the project was
March 15, 2006. Neither well was completed by that date due to drilling
issues. Well No. 8 was completed in June of 2006 and is ready to be utilized
for water production. Well No.9 was approximately 75% complete in June.
As drilling continued in June the well began to experience cave in issues at a
depth of 350+ feet. As of Friday August 25th the driller notified the City he
would be unable to complete the well as proposed. A change order in the
amount of $41,500.00 was also submitted to the City. This change order was
submitted by Keys to provide the City with a cost to continue to drilling.
Current Circumstances
Keys is unable to complete Well No. 9 as stipulated by the contract. Because
of the cave-in issues currently occurring the well can not be completed with the
drilling equipment on-site. A rotary drill rig is needed to complete the well.
The equipment used by Keys is a cable-tool. This is essentially like using a
hammer and chisel for drilling. This method is slow but effective in most .
cases. It appears that the sandstone in the Jordan Aquifer in this location is
too friable for this brute-force method. For that reason an alternative method
that is less disruptive such as the rotary drill is needed. This method is
essentially like using a large drill and is much less disruptive to the formation
and therefore minimizes cave-ins. Additionally this method utilizes water to
pressurize the formation and support it during drilling. Keys does not own or
have the ability to acquire the needed equipment to complete Well NO.9.
Based on contract performance and recent correspondence City staff does not
believe that Keys can complete this project because 1) Keys has indicated he
is unable to complete the project 2) Keys does not have the equipment
necessary to complete the project.
City staff is recommending denial of Change Order No. 1 and termination of
the project contract. Under the Contract the City has the right to terminate the
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Phone 952.447.4230 / Fax 952.447.4245
contract and carry out the work. The Contractor is liable for any costs
exceeding the remaining contract amount. City staff proposes to advertise for
completion of the well as detailed above.
FINANCIAL
IMPACT:
The City still has $173,000.00 remaining on the Well NO.8 and 9 contract for
this project. In addition to that amount the City has a performance bond from
Keys for this project. It is the City's intent to utilize the balance of the contract
and performance bond to pay for completion of Well No. 9 in accordance with
the contract.
The need for these wells is a result of new development and therefore funding
is 100% development derived.
ALTERNATIVES:
1. Approve a resolution denying Change Order No. 1 and terminating the
City's Contract with Keys Well Drilling Co. for the Wells No. 8 and 9
contract effective September 15, 2006 and authorize advertisement for
bids for completion of Well NO.9 in accordance with the project
contract.
2. Deny this agenda item for a specific reason and provide staff with
direction.
3. Table this item to a certain date in the future.
RECOMMENDED
MOTION:
Staff recommends alternative number 1.
R\Agenda
9 Contr3ct a;~endGLdoc
16200 Eagle Creek Avenue S.E.
Prior Lake, MN 55372-1714
RESOLUTION 06-xx
Motion By:
Second By:
WHEREAS, The City entered into a Contract with Keys Well Drilling Company on September 6,
2005; and
WHEREAS, On August 25, 2006 Keys Well Drilling Company indicated in writing that they are
unable to complete the well as stipulated in the Contract; and
WHEREAS, Keys Well Drilling Company does not have the equipment necessary to complete Well
No.9 in accordance with the Contract; and
WHEREAS, Under Section 17 of the City's Contract the City may terminate the Contract if the
contractor is unable to complete the project within seven (7) days notice of this intent to
terminate the Contract; and
WHEREAS, The City has notified the Contractor in writing of the intent to terminate the Contract on
September 15, 2006; and
WHEREAS, Under Section 14 of the Contract the City has the right to carry out the work to
complete the project in accordance with the Contract at the contractors expense; and
WHEREAS, The City shall not make any additional payments to Keys Well Drilling Company until
Well No. 9 is complete.
WHEREAS, The City denies Change Order NO.1 as it is not required upon termination of the
Contract.
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 contract with Keys Well Drilling Company for the completion of Wells NO.8 and 9 is hereby
terminated.
3. Staff is authorized to advertise for bids for the required work to complete Well No. 9 in accordance
with the Contract.
PASSED AND ADOPTED THIS 5TH DAY OF SEPTEMBER, 2006.
YES
NO
Hau~en
Dornbush
Erickson
LeMair
Millar
Haugen
Dornbush
Erickson
LeMair
Millar
Frank Boyles, City Manager
ie1MMW~priorlake.com
Phone 952.447.4230 / Fax 952.447.4245
Keys Well Drilling Company
Change Order
Water Producers Since 1890
BILL TO:
Name
Company Name
Street Address
City, ST ZIP Code
Phone
DATE: August 15,2006
Change Order # 100
413 Lexington Parkway North
St Paul, MN 551044696
Phone (651) 646-7871 Fax (651) 641-0216
Job location
Prior Lake # 9
Job Number
Contract #
2005109
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Install pea rock during grouting
Estimated - 50
CY
150.00
We hereby request to make the change (s) specified below:
Change in conditions
Increased cost to remove caving sandstone formation to install and
complete 12" finished cased
Estimated - 200
HR
170.00
WE AGREE hereby to make the change(s) specified above ~
Previous Contract Amount $
AUTHORIDED SIGNATURE (CONTRACTOR)
TOTAL
ACCEPTED - The above prices and specifications of
this Change Order are satisfactory and are hereby accepted
All work to be performed under same terms and conditions
as specified in original contract unless otherwise stipulated.
Ollte of acceptance
Sl~nllture
uwner