01-22-2024 CC (2) - Laserfiche WebLink

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Mounds View City Council January 8, 2024 Regular Meeting Page 7 2 MOTION/SECOND: Meehlhause/Gunn. To Reconvene the City Council meeting from a Closed 3 Session meeting at 7:21 p.m. 5 Ayes — 4 Nays — 0 Motion carried. 6 7 E. Resolution 9862, Water Treatment Plant II. 9 Public Works/Parks and Recreation Director Peterson requested the Council adopt a Resolution 10 approving a tentative settlement agreement for the litigation for the work completed on Water 11 Treatment Plant II. He explained this Resolution would rescind Resolution 9747 and rejecting the 12 bids for the repairs on Water Treatment Plant II received December 19, 2023. He reviewed the 13 project timeline for the work that was completed on the water treatment plant and discussed how 14 staff worked with the contractor to remedy and correct problems with the plant. He noted the 15 contractor has disputed any fault and the matter is in litigation currently pending in Ramsey County 16 District Court. He reported additional work is required to ensure the treatment plant functions as 17 designed with the goal to have the plant operational by peak water demand season for 2024. He 18 noted the City has been in litigation for the past year and a half and recently participated in 19 mediation. He stated a tentative settlement has been reached with the general contractor whereby 20 the contractor agreed to perform the necessary repairs. It was noted the Council evaluated the 21 settlement terms in a closed session held on January 8, 2024. He reported the Council previously 22 approved Resolution 9747 on April 23, 2023 approving Changer Order 17 for additional work at 23 Water Treatment Plant II. These repairs were to be completed by MBI. MBI informed the City the 24 repair costs would be increased due to a subcontractor price increase. 25 26 Public Works/Parks and Recreation Director Peterson explained the City Attorney recommended 27 these repairs be placed out for public bidding. The City Council approved the bid process for the 28 needed repairs in 2023 and Advanced Engineers put together the necessary plans and 29 specifications. A bid opening was held on December 19, 2023. The City received two bids for the 30 necessary repairs. The bids came from MBI for $442,000 and from Minnesota Mechanical 31 Solutions for $451,000. Staff is recommending the Council approve the attached Resolution 32 accepting the settlement agreement with the general contractor as outlined in the closed meeting 33 from January 8, 2024, authorizing the general contractor to perform the necessary repairs to Water 34 Treatment Plant II and to resolve the litigation on the 2019 water treatment rehabilitation project. 35 Staff also recommends the Council rescind Resolution 9747 approving change order No. 17 for 36 the additional work at Water Treatment Plant II and recommends the City Council reject the bids 37 the City received on December 19, 2023 for the repair of Water Treatment Plant II. 38 39 Mayor Lindstrom asked what the importance was of having Water Treatment Plant II back online. 40 Public Works/Parks and Recreation Director Peterson explained this would help the City in 41 meeting the high water demands during the summer. He stated over the past two summers the City 42 has not been able to reach critical water demands, while also providing the City with redundancy 43 within the water system. 44 45 City Administrator Zikmund commented this item was not in the public packet because it was not 46 a public document until the Council got done with the closed session meeting.