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Water & Resource Recovery Center Upgrade Project_Acceptance Copyrighted March 6, 2017 City of Dubuque Consent Items # 12. ITEM TITLE: Water& Resource Recovery Center Upgrade Project Acceptance SUMMARY: City Manager recommending acceptance of the construction contract for the Water& Resource Recovery Center Upgrade Project, as completed by Miron Construction Co., Inc. RESOLUTION Accepting the Water and Resource Recovery Center Upgrade Project and authorizing the payment of the contract amount to the contractor SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt Resolution(s) ATTACHMENTS: Description Type Acceptance of Water& Resource Reco\ery Center City Manager Memo Upgrade Project-MVM Memo Staff Memo Staff Memo Acceptance Resolution Resolutions Engineer's Certificate of Completion Supporting Documentation THE CM OF Dubuque AAA-A m c DUB E 11 1r Masterpiece on the Mississippi -2012I rP PP �oo� .zo13 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Acceptance of the Water & Resource Recovery Center Upgrade Project DATE: March 1, 2017 City Engineer Gus Psihoyos is recommending acceptance of the construction contract for the Water & Resource Recovery Center Upgrade Project, as completed by Miron Construction Co., Inc., in the final contract amount of$54,942,567, which is an 8.78% increase over the original contract amount of $50,507,328. The increased cost of the contract is due to many factors resulting from the scale and complexity of the overall project. The need for changes in the work at the plant resulted from modifications to the electrical and mechanical systems so the interface between new and existing components could be made fully functional, structural and piping system modifications were needed to handle unforeseen or hidden conditions that were not exposed until after the construction work had started, and environmental remediation work resulting from free mercury being discovered at the bottom of the abandoned trickling filters and clean-up of the old diesel underground fuel storage tanks that had leaked. I concur with the recommendation and respectfully request Mayor and City Council approval. 64.14�1 Mic ael C. Van Milligen MCVM:jh Attachment cc: Crenna Brumwell, City Attorney Cindy Steinhauser, Assistant City Manager Teri Goodmann, Assistant City Manager Gus Psihoyos, City Engineer THE CITY OF Dubuque �,.A„ � DUB E Masterpiece on the Mississippi 2007.2012.2013 TO: Michael C. Van Milligen, City Manager FROM: Gus Psihoyos, City Engineer SUBJECT: Acceptance of the Water & Resource Recovery Center Upgrade Project DATE: February 27, 2017 INTRODUCTION The enclosed resolution provides for the acceptance of the construction contract for the Water& Resource Recovery Center Upgrade Project. BACKGROUND In 2007, the future direction of the City's wastewater treatment plant was established as a high priority by the City Council. A process of facility planning was approved for a new and upgraded plant and Strand Associates of Madison, WI was contracted to proceed with planning the new facility. In October 2008 Strand Associates and IN Engineers were selected by the City council to proceed with the final design of the Water & Resource Recovery Center (W&RRC). In June 2010, the City Council approved the award of the construction contract for the WRRC Upgrade Project to Miron Construction, Co. Inc. of Cedar Rapids, Iowa. DISCUSSION Anaerobic digestion was the choice for biosolids management in place of incineration for this upgrade project. The anaerobic digestion process was selected because it would have lower energy costs which results in greater rate stability and less vulnerability to increasing costs of energy. This process also produces a lower carbon footprint which lessens Dubuque's impact on the global climate. The anaerobic digestion process will be in operation for forty years or more. The second key part of the project was the repurposing of existing tank facilities for sewer flow equalization arriving at the plant. In the past high influent flows during heavy rain events have been the primary contributing factor in effluent discharge limit violations that occurred at the treatment plant. Utilizing existing structures to help deal with excess sewer flow caused by heavy rain events greatly reduces the risk for violations of the City of Dubuque's treatment discharge permit. A third component of the project was the use of ultraviolet light rather than hazardous chlorine gas for plant effluent disinfection prior to discharging flows to the Mississippi River. In addition to these major components all aspects of the existing plant were impacted by either having major structural, electrical or mechanical systems repaired and/or replaced. Sustainability elements were also included in many aspects of the design, most prominently in the pursuit of energy star rating for the Administration Building, W&RRC processes and in the landscape design. The landscape design includes the use of rain gardens for stormwater management and low mow/native prairie grasses. The Water & Resource Recovery Center Upgrade project was completed by Miron Construction, Co., Inc. of in the final contract amount of $54,942,567, which is an 8.78% increase over the original contract amount of$50,507,328. The increased cost of the contract is due to many factors resulting from the scale and complexity of the overall project. There were 226 individual work change directives that resulted in the net change order increase. Forty-three of the work change directives were deductive directives that resulted in savings to the overall cost of the project. The vast majority of the individual work change directives ranged in cost from $2,000-$30,000. The need for changes in work at the plant resulted from modifications to the electrical and mechanical systems so the interface between new and existing components could be made fully functional, structural and piping system modifications were needed to handle unforeseen or hidden conditions that were not exposed until after the construction work had started, and environmental remediation work resulting from free mercury being discovered at the bottom of the abandoned trickling filters and clean-up of the old diesel underground fuel storage tanks that had leaked. The W&RRC was substantially completed and placed into full service on October 18, 2013. Is was not until October 7, 2016 that the final retainage payment was made after all items on the project's punchlist had been addressed and the remaining points of contention between Miron and the City had been resolved. RECOMMENDATION I recommend that the City Council accept the improvements and establish the final contract amount of the Water& Resource Recovery Center Upgrade project. BUDGET IMPACT The project cost summary for the W&RRC Upgrade Project is as follows: Award Final Construction Contract $50,507,328.00 $54,942,567.00 Contingency $4,982,154.00 0.00 Total Project Cost $55,489,482.00 $ 54,942,567.00 The project funding summary is as follows: CIP No. Fund Description Fund Amount 7101837 Water Resource Recovery Plant Renovation $ 54,942,567.00 Total Project Funding $ 54,942,567.00 2 ACTION TO BE TAKEN The City Council is requested to adopt the attached resolutions accepting the improvements, and establishing the final contract amount of$54,942,567.00. Prepared by: Steve Sampson Brown cc: Jenny Larson, Budget Director William O'Brien, WRRC Manager Jean Nachtman, Finance Director Steve Sampson Brown, Project Manager 3 RESOLUTION NO. 82-17 ACCEPTING THE WATER AND RESOURCE RECOVERY CENTER UPGRADE PROJECT AND AUTHORIZING THE PAYMENT OF THE CONTRACT AMOUNT TO THE CONTRACTOR Whereas, the Public Improvement Contract for the Water and Resource Recovery Center Upgrade Project (the Project) has been completed and the City Engineer has examined the work and filed a certificate stating that the Project has been completed according to the terms of the Public Improvement Contract and that the City Engineer recommends that the Project be accepted; and NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. The recommendation of the City Engineer is approved and the Project is hereby accepted. Section 2. The Finance Director is hereby directed to pay to the Contractor from the Water Resource Recovery Plant Renovation fund for the contract amount of $54,942,567.00 Tess any retained percentage provided for therein as provided in Iowa Code chapter 573, and to pay such retainage only in accordance with the provisions of Iowa Code chapter 573. Attest: Passed, approved and adopted this 6th day of March, 2017. Kevin S. Firnstahl, CMC, City Clerk Lp oy D. Buol, Mayor CITY ENGINEER'S CERTIFICATE OF FINAL COMPLETION OF THE WATER AND RESOURCE RECOVERY CENTER UPGRADE PROJECT �I The undersigned City Engineer of the City of Dubuque, Iowa, hereby certifies that he has inspected the Water and Resource Recovery Center Upgrade Project, that the Project has been performed in compliance with the terms of the Public Improvement Contract, and that the otal cost of the completed work is $54,942,567.00. Dated this day of &&' 2017. N Gus Psihoyos, City Engineer Filed in the office of the City Clerk on thday of , 2017. eme h Kevin S. Firnsta I, CMC, City Clerk a u