HomeMy WebLinkAboutA001 - Council Action Form dated December 17, 2024ITEM #:7
DATE:12-17-24
DEPT:W&PC
SUBJECT:WATER POLLUTION CONTROL FACILITY NUTRIENT REDUCTION
MODIFICATIONS PHASE 1 PROJECT- CHANGE ORDER #1
COUNCIL ACTION FORM
BACKGROUND:
On August 13, 2024, Council awarded a contract to Woodruff Construction for modifications to the
Water Pollution Control Facility (WPCF). These modifications are the first of two construction phases
that will ultimately enable the facility to achieve the goals of the Iowa Nutrient Reduction Strategy.
At the time of award, it was known that there was a pricing correction needed for the Enviromix
compressed air mixing system. Woodruff had pledged prior to the award to provide the City with a
$200,000 credit. Staff had also identified some construction items that could be eliminated from the
new Administration Building to lower the total construction cost. Among other items, it included the
elimination of a fire alarm system that was no longer required by building codes due to the changes
being made (-$12,083.73), and the elimination of a shade canopy outside the employee break room (-
$32,322.29).
All three of these credits are included in the proposed Change Order #1. Also included is the cost to
reroute the power circuit to the front gate ($3,194.20), and changes to pipe supports and expansion
joints ($9,333.03). The net amount of Change Order #1 is a deduct amount of $231,878.79. The
opinion of the consulting team is that this is a fair and reasonable price.
Table 1: Change Order Summary
Change Order #1 - This Request
Credit for Enviromix, fire alarms, canopy;
reroute gate power circuit; expansion joint changes
(231,878.79)
Total Approved Change Orders (231,878.79)
Table 2 below summarizes the overall project budget.
Table 2: Total Project Funding & Expenses
Funding Expenses
Prior Years
FY 2023 1,438,643
FY 2024 1,000,473
FY 2025 Adjusted 26,610,884
FY 2026 26,240,000
FY 2027 7,250,000
Engineering 6,038,000
Construction
Original Contract 53,370,000
Change Order #1 - This Action (231,878)
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Owner Allowance (furnishings, etc.) 400,000
All Other Expenses 122,675
TOTAL 62,540,000 59,698,797
Owner's Contingency 2,841,203
The Clean Water State Revolving Fund (CWSRF) loan was approved in a not-to-exceed amount of
$65,185,000 to provide a cushion for unanticipated project changes and prevent unnecessary issuance
costs associated with increasing the not-to-exceed amount as a separate action, should it be necessary.
The remaining unencumbered SRF loan balance is $5,486,203. It should be noted that the SRF
program is a reimbursement program, meaning that the City first spends the money, then the program
reimburses for eligible expenses. This method ensures the City will only borrow for expenses the City
Council has authorized and are necessary to complete the project, thus minimizing interest expense
associated with the improvements.
ALTERNATIVES:
1. Approve Change Order #1 to the contract with Woodruff Construction for the Water Pollution
Control Facility Nutrient Reduction Modifications Phase 1 Project in the deduct amount of
$231,878.79.
2. Do not approve the change order. This would reject the contractor's offer to reduce the contract
price for the Enviromix equipment by $200,000, as well as other proposed changes to the project.
CITY MANAGER'S RECOMMENDED ACTION:
The consultant noted a price discrepancy for the Enviromix equipment package during the bid
evaluation. Prior to the contract award, Woodruff Construction had pledged to correct the discrepancy
with a $200,000 deduct credit, to be processed at the time of the first project change order. That deduct,
along with two other items that were planned for deletion from the project at the time of award (fire
alarm system in the old grit loading garage and an exterior shade canopy outside the break room) is
included in this change order. A few small additional modifications are also incorporated. The deduct
credits were anticipated, and the other items are well within the project contingency. Therefore, it is the
recommendation of the City Manager that the City Council adopt Alternative 1 as described above.
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