5.6 ERMUSR 08-09-2022 - Laserfiche WebLink

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______________________________________________________________________________ Page 1 of 2 UTILITIES COMMISSION MEETING TO: ERMU Commission FROM: Theresa Slominski – General Manager MEETING DATE: August 9, 2022 AGENDA ITEM NUMBER: 5.6 SUBJECT: County Road 13 Reconstruction Project Update ACTION REQUESTED: Authorize payment amount to Sherburne County of $198,431.56 for water main pipe relocation and insulating work for the CSAH 13 project. BACKGROUND: At the November 9, 2021, commission meeting the Commission approved an “amount not to exceed $261,882” for work that needed to be done to lower and insulate water main pipes that weren’t identified early in the CSAH 13 project (the November 9, 2021, memo is attached for reference). We have provided some updates since that meeting that the work was completed, and that we were having discussions on the final costs for ERMU to pay for the project. We have not come to an agreement and would like Commission authorization a different payment maximum amount. DISCUSSION: The County provided a change order of $212,985.56 for insulating and lowering our water main to complete the CSAH 13 project. Included in the change order are costs for street salvaging and replacement that we believe we should not have to pay for. We have had multiple discussions on arriving at a more reasonable amount, considering amounts included in the original quotes, amounts that should be excluded due to work not having to be done, some prior negotiations of sharing certain costs, estimations versus actuals, etc. We were not able to come to an agreement. The County has taken the position that since the commission approved an amount of $261,882, we should not take exception to the lower cost amount of $212,985.56. ERMU believes that we should be responsible for the costs of our water main and have no objection to paying for those true costs. However, we have specifically identified 181 feet where road work was re-done because the proper lowering and insulating of water main was not done before the road was placed over the top of it (after specific discussion regarding these proper depths in weekly progress meetings which was documented in 9/29/2021 meeting minutes). We have stated we will not pay for that re-work. We have identified these 181 feet as 157 feet of lowered water main and 24 feet of insulated water main, and the associated linear foot (lf) costs for that work total $14,554.00. The street repair for 157 feet of lowering was done at $82.00/lf and the 24 feet of insulating was done at $70.00/lf for a total of $14,554.00. 87