City Council Meeting Date: February 16, 2021
To: Mayor and City Council
City Administrator
From: Justin Wagner, Utilities Manager
David Bennett, P.E., Public Works Director/City Engineer
Title
Consider Resolution to Accept Public Improvements and Authorizing Final Payment for the Biosolids Replacement Project.
Body
Action Requested:
The Northfield City Council considers approving the attached Resolution Accepting the Public Improvements and Approving the Final Payment for Project WSTR2018-J16 - Biosolids Replacement Project.
Summary Report:
The City Council is asked to approve the public improvements for the WSTR2018-J16 - Biosolids Replacement Project. Additionally, the City Council is asked to approve the final payment in the amount of $147,504.00. The construction contract was awarded to Shank Constructors Inc. of Brooklyn Park, MN at the February 19, 2019 City Council meeting in the amount of $2,168,400.00.
The final project cost after change orders was $2,303,400.00. This project has been reviewed by the Public Works staff and is recommended for acceptance. The Certificate of Final Acceptance (Attachment 2) and the Final Pay Request (Attachment 3) are included along with the resolution (Attachment 1).
On May 29, 2018, the City’s biosolids processing equipment suffered a complete loss due to fire. After the loss, to accelerate repairs the City Declared an Emergency. The Emergency Declaration allowed the new process equipment to be procured, temporary equipment to be rented and other miscellaneous projects related to the fire to be completed. The entire project, from the fire to project completion, cost $7,409,361.84, which includes temporary equipment, sludge hauling, sludge treatment and demolition of the existing equipment.
The City is insured through the League of Minnesota Cities Insurance Trust (LMCIT). As part of the project, the City procured a different operating process, which will require less operator runs time and increased energy efficiency had additional costs. The current insurance claim is still under review, however, to date; the City has been approved $5,207,102.69 from LMCIT.
In 2016, the City of Northfield had a Wastewater Treatment Plant Facility Study completed. As part of the Facility Study, the biosolids processing equipment was reviewed and identified as needing to be replaced. In 2016, the cost identified for the biosolids equipment, roof, sludge storage tank modifications and HVAC units, that were upgraded as part of the project, were $3,900,000.00. With the cost that was reimbursed through LMCIT, the City paid $2,200,000.00 for upgrading the equipment. The total project cost savings, for the City, was $1,700,000.00.
Alternative Options:
This project is complete and the final acceptance and payment are needed to close out the contract.
Financial Impacts:
The project was funded through the Wastewater Enterprise Fund. The current payment is for $147,504.00.
Tentative Timelines:
Upon approval by the City Council, the final payment will be processed and sent to the contractor.