HomeMy WebLinkAboutResolution 9862RESOLUTION 9862
CITY OF MOUNDS VIEW
COUNTY OF RAMSEY
STATE OF MINNESOTA
APPROVING A SETTLEMENT AGREEMENT TO RESOLVE LITIGATION RELATING
TO THE 2019 WATER TREATMENT PLANT REHABILITATION PROJECT.
RESCINDING RESOLUTION 9747 AND REJECTING THE BIDS FOR THE
REPAIRS AT WATER TREATMENT PLANT #2 RECEIVED DECEMBER 19, 2023
WHEREAS, the City Council approved Resolution 9201 on December 9, 2019
authorizing the Water Treatment Plant Rehabilitation Project (City Project No. 2016-006);
and
WHEREAS, Staff along with the Advance Engineering Services (AE2S), City
Engineer for the project, had been attempting to work with the general contractor to
remedy and correct the problems on how the plant is operating; the contractor has
disputed any fault and the matter went into litigation, in Ramsey County District Court;
and
WHEREAS, the City has been in litigation over the past year and a half and
recently participated in mediation. A tentative settlement has been reached between by
the City and the General Contractor; and
WHEREAS, additional work is required to ensure that the treatment plant functions
as designed and with the goal to have the plant operational by peak - water demand
season for 2024; and
WHEREAS, the City Council previously approved Resolution 9747, on April 23,
2023, Approving Change Order #17 for Additional Work at Water Treatment Plant #2; and
WHEREAS, MBI notified the City that the repair cost increased due to a sub-
contractor price increase. This price increase raised the cost of the repair work to the
Public bidding requirements; and
WHEREAS, the City Attorney Recommended that these repairs be placed out for
bidding following the public bid process, and
WHEREAS, Advance Engineering Services put together plans and specifications
for the needed repairs for Public bidding. A bid opening was held December 19, 2023 at
2:OOpm with two bids being received, results of the bid opening as follows:
Municipal Builders Inc $442,000.00
Minnesota Mechanical Solutions $451,000.00
WHEREAS, Advance Engineering Services (AE2S) has submitted a cost proposal
for inspections and oversite of the repairs at WTP#2 at a cost of $40,278.00; and
Resolution 9862 Continued
WHEREAS, Staff recommends the City Council approve the attached Resolution
accepting the terms of the settlement agreement authorizing the general contractor to
perform the repairs to Water Treatment Plant #2 and to resolve the pending litigation
relating to the 2019 Water Treatment Rehabilitation Project; and
WHEREAS, Staff also recommends the Council rescind resolution 9747,
Approving Change Order #17, for Additional Work at Water Treatment Plant #2; and
inspections and oversite of the repairs.
WHEREAS, Staff further recommends the City Council Reject the bids received
December 19, 2024 for the Repairs at Water Treatment Plant #2.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Mounds
View, Ramsey County, Minnesota as follows:
Accepts the terms of the settlement agreement with the General Contractor,
whereby (a) the contractor has agreed to perform necessary repairs to Water
Treatment Plant #2; and (b) the parties will fully resolve all claims in the litigation
arising from the City's 2019 Water Treatment Rehabilitation Project, currently
pending in Ramsey County District Court.
2. The City Council rescinds resolution 9747, Approving Change Order #17, for
Additional Work at Water Treatment Plant #2.
3. The City Council Rejects the bids received December 19, 2024 for the Repairs at
Water Treatment Plant #2.
4. The Mayor and City Administrator, Staff and consultants are hereby authorized and
directed to take any and all additional steps and actions necessary or convenient in
order to accomplish the intent of this Resolution, including finalizing the settlement
agreement confirming in writing the terms of the mediated settlement as approved by
the Council.
Adopted this 8th day of January, 2024
Lindstrom, Mayor
ATTEST:%G
Nyle ikm d, City Administrator
(,Seal)