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CC Regular Session <br />Meeting Date: <br />07/22/2025 <br />Primary Strategic Plan Initiative: Address infrastructure needs. <br />7. 1. <br />Title: <br />Adopt Resolution #25-128 Approving Change Order No. 3 for Improvement Project #21-09, Centralized Water <br />Treatment Plant <br />Purpose/Background: <br />Purpose: <br />The purpose of this case is to adopt Resolution #25-128 approving Change Order No. for Improvement Project <br />#21-09, Centralized Water Treatment Plant . <br />Background: <br />Advanced Engineering and Environmental Services, Inc. (AE2S) was hired by the City of Ramsey to design and <br />prepare final plans and specifications for the Water Treatment Plant (WTP). AE2S was also hired by the city to <br />provide construction services during construction. <br />Magney Construction, Inc. (Magney) was awarded the construction contract for construction of the WTP. <br />When the project was bid, bid alternate #1 was added in response to comments received from contractor's during <br />the pre -bid meeting that the project schedule was very tight and that adding several months to the project schedule <br />may help reduce bid prices since contractors tend to increase their bid prices if they have concerns that liquidated <br />damages may be assessed if completion deadlines are not met. Magney therefore submitted a bid deduction for <br />bid alternate #1 in the amount of -$50,000 based on a 28-month construction schedule versus a 24-month <br />schedule per the base bid. When the city awarded the contract for construction, only the base bid was awarded <br />meaning Magney had 24-months to complete the project. <br />During construction, the city approved 2 Change Orders and 2 Engineering Amendments as follows. <br />• Change Order #1 — Increased project costs $794,153.71 to apply prevailing wages so awarded grant funds <br />could be used. <br />• Change Order #2 — Extended completion dates by 88 days due to delays in obtaining DOLI and building <br />permits. No cost increase was associated with this CO. <br />• Engineering Amendment #1 — Increased construction services fees $225,100 due to construction schedule <br />extension. <br />• Engineering Amendment #2 — Increased construction services fees $2,683.15 due to building permit <br />requirement for as -built survey. Also included $14,640.69 for engineering services due to plan revisions <br />needed to address new DOLI code and city site plan review process. <br />Magney Construction, Inc. has submitted a request for Change Order #3. Through Change Order #3, Magney is <br />requesting a time extension of 79 calendar days to the Substantial Completion date, and 64 calendar days to the <br />Final Completion date. If approved, this would result in a total project time extension of 167 calendar days to the <br />Substantial Completion date, and 152 calendar days to the Final Completion date from the original construction <br />schedule. Magney is requesting this time extension based on their assessment of the current project schedule and <br />discussions with their subcontracting partners regarding the time that will be needed to complete the project in full <br />accordance with the approved plans and specifications. <br />Attached is a copy of Change Order #3, along with a cover letter from AE2S detailing the time extension <br />requested by Magney Construction. <br />