Agenda - Council Work Session - 07/22/2025

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CC Work Session Meeting Date: 2. 1. 07/22/2025 Primary Strategic Plan Initiative: Address infrastructure needs. Information Title: Continue Discussions on Change Order #3 and Engineering Amendment #3 for Water Treatment Plant Purpose/Background: Purpose: The purpose of this case is to continue discussions on Change Order No. 3 and Engineering Amendment No. 3 for Improvement Project #21-09, Centralized Water Treatment Plant. Background: Attached to this case is a copy of the case as presented to the City Council on July 8, 2025, including all attachments, for reference. The purpose of this case is to continue discussions between staff, the City Council, Advanced Engineering and Environmental Services, Inc. (AE2S), and Magney Construction, Inc. (Magney) regarding the need for their requests as presented, as well as the potential outcomes if their requests are not approved. At the July 8th City Council meeting, Council rejected Change Order #3 and Engineering Amendment #3. Furthermore, council directed staff to discuss these requests in greater detail with AE2S and Magney and to present a case to Council at their July 22nd work session to review any amendments to the requests and/or allow AE2S and Magney to provide more detail justifying their requests for approval and respond in greater detail to Council's questions. Attached to this case are additional slides provided by AE2S following more detailed discussions with staff after the last Council meeting. Below are additional bullet points that Magney requested be shared with Council following more detailed discussions with staff and a review of AE2S's attached slides. 1. Magney believes all parties that are intimately involved with this project would deem it very successful to date. 2. Magney believes this project will be completed under the established budget. a. The Engineer's pre -bid estimate was $37 Million b. Magney's bid was $31.4 million c. Only one monetary change order was submitted, for $794k, of which the City received $3.2 million from the state. A net $2.4 million gain to the City. d. AE2S' slides reference $546 k in change orders to date. This is not accurate, as these changes/modifications are being paid via the project allowance/contingency...and have not resulted in an increased contract amount for construction. e. Approximately $700k in allowance/contingency funds are still available within the construction budget. 3. Change Order # 2, the 88-day extension due to delays at the beginning of the project beyond Magney's control, provided no benefit to Magney and had immeasurable effects on the project, which are only being realized now, towards the end of the project. 4. Regarding AE2S' slide 5: