HomeMy WebLinkAbout07.H.1
City Council Action Request
7.H.
Meeting Date 1/17/2024
Department Public Works
Agenda Category Action Item
Title Summer's Landing 5th Addition-Change Order # 1 & Final Payment
Staff Recommendation Approve Change Order #1 and adopt resolution 2024-011
approving the final payment of $93,367.59 for the Summers
Landing 5th Addition project.
Budget Implication The final payment amount, with Change Order #1, will be $93,367.59. $10,170.00 will be paid by
the water utility fund, and $83,197.59 is paid by assessments.
Attachments 1. 1_Summers Landing 5th Change Order #1 & Final Payment_Memo_2024-1-10
2. 2_Summers Landing 5th Final Payment Resolution 2024-1-17
3. 3_Pay Application #4 - FINAL - 010824
4. 4_#499 - Change Order #1 - 010824
To:Honorable Mayor and City Council
Jennifer Levitt, P.E., City Administrator
From:Ryan Burfeind, Public Works Director
Date:January 10, 2024
Re:Summers Landing 5th – Change Order #1 & Final Payment
Background
The Summers Landing 5th Addition contains 79 single family lots that are located in the
northwest and southwest corners of the Summers Landing Development. This was the final
phase of the development by Summergate, with homes constructed by Lennar. Similar to
earlier phases of the project, streets and utilities were constructed under the MN Statute 429
process, where the City completes the work through a publicly bid project and is paid back
through assessments. All punch list work has been completed for this development project and
it is ready for final payment.
Discussion
During the construction process, there was an issue with the water main in the southwest corner
of the development, where the contractor could not get the newly installed pipe to pass the
required pressure testing. This section of pipe was connected to the City water system at an
existing City owned valve. This led to extensive investigation work requiring the water main to
be re-excavated, and fittings checked for leaks. While the contractor did identify and repair
defects in the newly installed water main, the pressure test was still failing. Further investigation
resulted in additional corrective work, and prior to re-testing, the pipe was isolated from the
existing city valve as well. At this point, the water main pressure test passed. The total cost of
investigation, corrective, and re-testing work was $40,680.
Given the potential for the City valve to have been leaking, the contractor submitted a formal
request for the City to cover a portion of the corrective costs. Staff completed an extensive
review of this situation, including field notes from both the City inspector and contractor foreman.
Through negotiations with the contractor, staff are recommending that the City pay for 25% of
the costs, or $10,170. This is because, based on the sequence of events, the City valve cannot
be ruled out as part of the issue causing the failed pressure tests. Also, investigative work to
rule out the valve will likely exceed this amount. This requires a change order to be issued in
this amount, which will be covered by the water utility fund.
The final payment amount, with Change Order #1, will be $93,367.59. $10,170 will be paid by
the water utility fund, and $83,197.59 is paid by assessments.
Recommendation
It is recommended that the City Council approve Change Order #1 and adopt resolution 2024-
11 approving the final payment of $93,367.59 for the Summers Landing 5th Addition project.
CITY OF COTTAGE GROVE, MINNESOTA
CITY COUNCIL
RESOLUTION 2024-011
RESOLUTION APPROVING THE FINAL PAYMENT IN THE
AMOUNT OF $93,367.59 TO RL LARSON EXCAVATING INC.,
FOR THE
SUMMERS LANDING 5TH ADDITION PROJECT
WHEREAS, the City Engineer has certified that the work has been satisfactorily
completed; and
WHEREAS, the awarded total contract amount was $1,378,324.37.
WHEREAS, one Change Order was issued raising the total contract amount to
$1,388,494.37. The final construction cost was $1,385,476.51, which is $3,017.86 lower
than the revised contract amount; and
WHEREAS, the project has been satisfactorily completed in accordance with the
contract plans and specifications.
NOW THEREFORE BE IT RESOLVED, by the City Council of the City of Cottage
Grove, County of Washington, State of Minnesota, that $93,367.59 is paid to RL Larson
Excavating, for the final payment for the Summers Landing 5th Addition project.
Passed this 17th day of January 2024.
Myron Bailey, Mayor
Attest:
Tamara Anderson, City Clerk