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HomeMy WebLinkAboutA033 - Resolution accepting the North River Valley Well Field and Pipeline Project as completed by Keller Excavating, Inc., of Boone, IAITEM #:36 DATE:10-13-26 DEPT:W&PC SUBJECT:NORTH RIVER VALLEY WELL FIELD AND PIPELINE PROJECT FINAL COMPLETION COUNCIL ACTION FORM BACKGROUND: On April 11, 2023, Council awarded a contract to Keller Excavating, Inc. in the amount of $10,200,955.80 for construction of a new well field to provide additional source water for the Ames Water Treatment Plant. During the course of the contract, seven change orders were approved for a net reduction in the final contract amount of $198,166.89, bringing the final contract amount to $10,002,788.91. All work on the project is now complete and is ready to be accepted by the City. The final project budget is as follows. Funding Sources Project Expenses Drinking Water State Revolving Loan $ 12,161,000 Test Drilling $ 124,005 Engineering, Admin, Legal 725,272 Land 111,038 Construction Original Contract 10,200,956 Change Order #1 30,125 Change Order #2 228,565 Change Order #3 (17,305) Change Order #4 47,336 Change Order #5 5,636 Change Order #6 12,829 Change Order #7 (505,353) Geotechnical Services 14,839 Programming Services 36,225 Archaeological Services Contract 1 Original Contract 22,773 Contract 1 Change Order 1 35,240 Contract 2 134,924 Project Totals $ 12,161,000 $ 11,207,105 Unspent Contingency $ 953,895 1 The engineering consultant previously certified that the project achieved Substantial Completion on May 22, 2026. Final completion was subsequently certified on September 23, 2026. An Engineer's Notice of Acceptability of Work is attached along with the contractor's final pay application documenting the final contract total. The final contract amount is $10,002,788.91. The project was financed using a Drinking Water State Revolving Fund (SRF) loan. Because the SRF is a reimbursement program, only expenses that were actually incurred will be a part of the final loan amount. The unspent contingency amount shown above will not be drawn against the loan and thus will not need to be reimbursed. The Iowa Department of Natural Resources has also granted the City loan forgiveness in the amount of $922,166 under its "Drinking Water SRF Bipartisan Infrastructure Law PFAS/Emerging Contaminants" grant funding. Once the loan is finalized, the principal on the loan will be reduced by that amount and the repayment schedule will be re- amortized. Council will need to take action at a later date to amend the loan agreement to incorporate the loan forgiveness. ALTERNATIVES: 1. Accept as complete the North River Valley Well Field and Pipeline Project by Keller Excavating in a final contract amount of $10,002,788.91 and authorize the release of retainage in accordance with the contract. 2. Do not accept the project as complete at this time, and give direction to staff on actions needed prior to Council accepting the project. CITY MANAGER'S RECOMMENDED ACTION: The two new wells constructed by the North River Valley Well Field and Pipeline Project have been in service since early 2026 and perform as intended. All remaining punch list items have been complete, and the engineer has provided a Notice of Acceptability of W o rk. Therefore, it is the recommendation of the City Manager that the City Council adopt Alternative 1 as described above. ATTACHMENT(S): NRV Pay App 18- Final - HDR Recommended.pdf NOTICE OF ACCEPTABILITY OF WORK.pdf 2 From 1. 2. 3. 4. 5. a.X b.X c. 6. 7. 8. 9. Contractor's Application for Payment Application No.:18-Final City of Ames, IA Keller Excavating HDR Engineering North River Valley Well Field and Pipeline Owner's Project No.: Engineer's Project No.: Contractor's Project No.: Application Period: Contract: Owner: Contractor: Engineer: Project: N/A By: Title: Date: By: Title: 10,002,788.91$ Date: Signature:9/22/2026Date: Keller Excavating Contractor's Certification Balance to finish, including retainage (Line 3 - Line 4) Approved by Owner The undersigned Contractor certifies, to the best of its knowledge, the following: (1) All previous progress payments received from Owner on account of Work done under the Contract have been applied on account to discharge Contractor's legitimate obligations incurred in connection with the Work covered by prior Applications for Payment; (2) Title to all Work, materials and equipment incorporated in said Work, or otherwise listed in or covered by this Application for Payment, will pass to Owner at time of payment free and clear of all liens, security interests, and encumbrances (except such as are covered by a bond acceptable to Owner indemnifying Owner against any such liens, security interest, or encumbrances); and (3) All the Work covered by this Application for Payment is in accordance with the Contract Documents and is not defective. Recommended by Engineer 6/11/2026 9/22/2026 Application Date:9/22/2026 Approved by Funding Agency N/A N/ABy: Title: Date: By: Title: Date: to Original Contract Price $ - -$ Total Work completed and materials stored to date (Sum of Column G Lump Sum Total and Column J Unit Price Total) Retainage Work Completed Stored Materials Total Retainage (Line 5.a + Line 5.b) Amount eligible to date (Line 4 - Line 5.c) Less previous payments (Line 6 from prior application) Amount due this application -$ -$ 500,139.45$ 5% 5% 9,502,649.46$ 10,200,955.80$ (198,166.89)$ 10,002,788.91$ 10,002,788.91$ Current Contract Price (Line 1 + Line 2) Contractor: -$ Net change by Change Orders General Contract EJCDC C-620 Contractor's Application for Payment (c) 2018 National Society of Professional Engineers for EJCDC. All rights reserved.3 EJCDC® C-626, Notice of Acceptability of Work. Copyright© 2018 National Society of Professional Engineers, American Council of Engineering Companies, and American Society of Civil Engineers. All rights reserved. Page 1 of 2 NOTICE OF ACCEPTABILITY OF WORK Owner: City of Ames Owner’s Project No.: W2020-0437 Engineer: HDR, Inc. Engineer’s Project No.: 10040876 Contractor: Keller Excavating, Inc. Contractor’s Project No.: Ames WPC Raw Water Project: North River Valley Wellfield & Pipeline Contract Name: Bid No. 2023-122 Notice Date: 9/23/26 Effective Date of the Construction Contract: 6/23/23 The Engineer hereby gives notice to the Owner and Contractor that Engineer recommends final payment to Contractor, and that the Work furnished and performed by Contractor under the Construction Contract is acceptable, expressly subject to the provisions of the Construction Contract’s Contract Documents (“Contract Documents”) and of the Agreement between Owner and Engineer for Professional Services (“Owner-Engineer Agreement”). The final adjusted amount of the completed contract is $10,002,788.91. This Notice of Acceptability of Work (Notice) is made expressly subject to the following terms and conditions to which all who receive and rely on said Notice agree: 1. This Notice has been prepared with the skill and care ordinarily used by members of the engineering profession practicing under similar conditions at the same time and in the same locality. 2. This Notice reflects and is an expression of the Engineer’s professional opinion. 3. This Notice has been prepared to the best of Engineer’s knowledge, information, and belief as of the Notice Date. 4. This Notice is based entirely on and expressly limited by the scope of services Engineer has been employed by Owner to perform or furnish during construction of the Project (including observation of the Contractor’s Work) under the Owner-Engineer Agreement, and applies only to facts that are within Engineer’s knowledge or could reasonably have been ascertained by Engineer as a result of carrying out the responsibilities specifically assigned to Engineer under such Owner-Engineer Agreement. 5. This Notice is not a guarantee or warranty of Contractor’s performance under the Construction Contract, an acceptance of Work that is not in accordance with the Contract Documents, including but not limited to defective Work discovered after final inspection, nor an assumption of responsibility for any failure of Contractor to furnish and perform the Work thereunder in accordance with the Contract Documents, or to otherwise comply with the Contract Documents or the terms of any special guarantees specified therein. 6. This Notice does not relieve Contractor of any surviving obligations under the Construction Contract, and is subject to Owner’s reservations of rights with respect to completion and final payment. Engineer 4 EJCDC® C-626, Notice of Acceptability of Work. Copyright© 2018 National Society of Professional Engineers, American Council of Engineering Companies, and American Society of Civil Engineers. All rights reserved. Page 2 of 2 By (signature): Name (printed): Ashley Geesman Title: Project Manager 5