01-08-2024 CC (2) - Laserfiche WebLink

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