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Accepting the Roosevelt Street Water Tower Contract B Project Copyrig hted November 16, 2020 City of Dubuque Consent Items # 13. City Council Meeting ITEM TITLE: Accepting the Roosevelt Street Water Tower Contract B Project SUM MARY: City Manager recommending acceptance of the construction contract for the Roosevelt Street Water Tower Contract B Eagle Point Plant& Water Distribution I mprovements Project, as completed by Portzen Construction, I nc. RESOLUTION Accepting the Roosevelt Street Water Tower Contract B Eagle Point Water Plant and Water Distribution I mprovements and authorizing final payments to the contractor SUGGESTED Suggested Disposition: Receive and File;Adopt Resolution(s) DISPOSITION: ATTACHMENTS: Description Type Roosevelt Street Water Tower-MVM Memo City Manager Memo Roosevelt St.Water Tower Cont.B Proj Accep. & Rel of Staff Memo Retainage Roosevelt St. Water Twr Resolution Resolutions Dubuque THE CITY OF � ui-Aseria cih DuB E , . � . , � II � Maste iece on tj2e Mississi i zoo�•zoiz•zois YP pp zoi�*zoi9 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Roosevelt Street Water Tower Contract B Eagle Point Water Plant & Water Distribution Improvements Project Acceptance and Release of Retainage DATE: November 8, 2020 Water Department Manager Denise Blakeley Ihrig is recommending acceptance of the construction contract for the Roosevelt Street Water Tower Contract B Eagle Point Plant & Water Distribution Improvements Project, as completed by Portzen Construction, Inc., in the final contract amount of $1,058,389.67, which is 7.27% over the bid amount. This is mainly due to an increase in material prices. There is $26,892.33 remaining in the project contingency. It is further recommended that the City Council authorize the final payments including retainage, minus $6,000 for Contract B in the amount of$117,253.00 to Portzen Construction. There will be a final payment of $6,000 following successful start-up of the pressure reducing control valves, which cannot be verified or set until the Roosevelt Street Water Tower is on-line. I concur with the recommendation and respectfully request Mayor and City Council approval. � Mic ael C. Van Milligen MCVM:jh Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Denise Blakeley Ihrig, Water Department Manager Dubuque THE CITY OF � All•pa�erka Cfa DU� E ; , �� N � MaSte iece oa2 the Mississi z aoo�.zoiz.zai3 YP pp zai�*zai� TO: Michael C. Van Milligen, City Manager FROM: Denise Blakeley Ihrig, Water Department Manager DATE: 5 November 2020 RE: Roosevelt Street Water Tower Contract B Eagle Point Water Plant & Water Distribution Improvements Project Acceptance and Release of Retainage INTRODUCTION The enclosed resolution provides for the acceptance of the construction contract, final payment adjusted for Change Order No. 4, and release of retainage, with the exception of $6,000 withheld for final start-ups, for the Roosevelt Street Water Tower Contract B Eagle Point Plant & Water Distribution Improvements. BACKGROUND In June 2018, with support from the City Manager and Council, the City's consulting engineer, IIW, P.C. of Dubuque, lowa, completed planning and design of the Roosevelt Street Water Tower Project, which included a 1.25-million-gallon elevated water storage tower, pressure reducing stations, water main improvements, and water treatment plant pump improvements. The Roosevelt Street Water Tower project is the result of extensive analysis to determine the best solution to increase operating pressures in one of the City's nine pressure zones, Pressure Zone 2. Several studies identified the need for increased pressures in the area as the existing elevated water tower located in Eagle Point Park was determined to be limiting the available water pressure in the zone. Most notably the pressure at the highest point along Roosevelt Street, which has been recorded in the range of 20 and 25psi. This is problematic when looking to achieve typical recommended system pressures of 60 to 80 psi with a minimum working pressure of 35psi to serve current, new, and future developments. In April 2019, the City of Dubuque awarded two contracts to complete the work, Contract A which included the construction of the Roosevelt Street 1.25 MG Elevated Water Tower to McDermott International (dba CB&I) in the amount of$2,928,600; and Contract B, the Eagle Point Water Plant and Water Distribution Improvements to Portzen Construction of Dubuque, lowa in the amount of$986,620. DISCUSSION On November 5, 2020, the City received communication from its project design engineer, IIW, P.C. recommending approval and acceptance of Contract B, Eagle Point Water Plant & Water Distribution Improvements, and requested approval of final payment including retainage. IIW, P.C. documents early retainage release was requested by the contractor, as is permissible under lowa Code. There is one exception to the full release of retainage, which is associated with the final start- up of the control valves in the pressure reducing stations. This final step is beyond the control of the contractor as pressure reducing valves cannot be verified or set until the Roosevelt Street Water Tower is on-line. Therefore, as requested by the project engineer and contractor, there will be a final payment of $6,000 made following successful start-up of the pressure reducing control valves. The contractor and engineer have also presented a final change order, Change Order No. 4, reconciling all contract line items. The change order reduces the overall contract amount and is a credit of$11,923.46. BUDGET IMPACT Contract B, Eagle Point Plant & Water Distribution Improvements, is funded through the State of lowa, Revolving Loan Fund. The following table details the approved Contract B expenses and contract adjustments: Item CIP No. Proiect Description Costs Description Construction 7401672 Contract 8: Water System Improvements $986,620.00 2019 as Awarded Change 7401672 Approved Change Order No. 1: $28,959.00 Order Increase in materials prices Change 7401672 Approved Change Order No. 2: $33,674.00 Order Increase in materials prices Change 7401672 Approved Change Order No. 3 $21,060.13 Order Piping/Flange Adapters & Quantit Increases Change 7401672 Proposed Change Order No. 4 ($11,923.46) Order Reduction in measured final quantities Adjusted Contract B $1,058,389.67 Contingency 7401672 Contingency Fund Available for Contracf 8 $98,662.00 Change 7401672 Minus Approved Change Order No. 1 ($28,959.00) Order Change 7401672 Minus Approved Change Order No. 2 ($33,674.00) Order Change 7401672 Minus Approved Change Order No. 3 ($21,060.13) Order Change 7401672 Credit Change Order No. 3 $11,923.67 Order Available Contract B Contingency $26,892.33 Funds 2 The project funding summary is as follows: CIP No. Fund Description Fundina 7401672 Contract B, Eagle Point Plant & Water Distribution $g59,000 Improvements State of lowa, Revolvin Loan Fund 7402703 Contract B, Eagle Point Plant & Water Distribution $67,000 Im rovements Water Construction Funds 7401672 Project Contingency, 10°/o of SRF and Local $102,600 Construction Funds Total Available Project Funding $1,128,600 The final project cost for construction including approved change orders is $1,058,389.67, this is 7.27% over the bid amount. The final project construction costs are however $70,210.33 or 6.63% less than the total requested budget of IDNR SRF loan plus local construction funds. RECOMMENDATION The City Council is requested to adopt the attached resolution to accept the improvements and authorize the final payments including retainage, minus $6,000, for Contract B in the amount of $117,253.00 to Portzen Construction, Inc. for the Roosevelt Street Water Tower Eagle Point Water Plant & Water Distribution Improvements. Attachments cc: Jennifer Larson, Director of Finance and Budget 3 RESOLUTION NO. 343-20 ACCEPTING THE ROOSEVELT STREET WATER TOWER CONTRACT B EAGLE POINT WATER PLANT AND WATER DISTRIBUTION IMPROVEMENTS AND AUTHORIZING FINAL PAYMENTS TO THE CONTRACTOR WHEREAS, the public improvement contract for the Roosevelt Street Water Tower Contract B Eagle Point Water Plant & Water Distribution Improvements (the Project) has been completed by the Contractor, Portzen Construction Inc. (Contractor), the Water Department Manager has examined the work and recommends that the Project be accepted; and WHEREAS, the final contract amount for Contract B is $1,058,389.67; WHEREAS, the Contractor has previously been paid on Contract B in the amount of $935,136.67, leaving a balance of $123,253.00 of which $6,000 shall be paid following successful start-up of control valves at pressure reducing stations, resulting in a payable balance of $117,253.00; WHEREAS, the City Council finds that the recommendation of the Water Department Manager should be accepted. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. The recommendation of the Water Department Manager is approved, and the Project is hereby accepted. Section 2. The Finance Director is hereby directed to pay to the Contractor the balance of the final payment and retainage for Contract B in the amount of $123,253.00, minus $6,000 payable following successful startup of control valves the amount of $117,253.00; as provided in Iowa Code chapter 573, and to pay such retainage in accordance with the provisions of Iowa Code chapter 573 or Iowa Code chapter 26.13. Passed, approved and adopted this 16t" day of November 2020. - "/' v` /&� Roy B I, Mayor Attest: Adrienne N. Breitfelder, City Clerk WATER DEPARTMENT MANAGER'S CERTIFICATE OF FINAL COMPLETION OF THE ROOSEVELT STREET WATER TOWER CONTRACT B EAGLE POINT WATER PLANT AND WATER DISTRIBUTION IMPROVEMENTS, PROJECT The undersigned Water Department Manager of the City of Dubuque, Iowa, hereby certifies that she has inspected the Roosevelt Street Water Tower Contract B Eagle Point Water Plant & Water Distribution Improvements, and that said Project has been performed in compliance with the terms of the Public Improvement Contract, and that the total cost of the completed work including all change orders and adjustments is $1,058,389.67. Dated this loth day of November, 2020. W -7 111A� Denise Blakeley Ihrig, P.E. Water Department Manager Filed in the office of the City Clerk on the a Gth day of 20. bu4,4 &I - Adrienne N. Breitfelder, City Clerk