HomeMy WebLinkAbout2023 09 11 Regular 503 - Veolia Additional Construction Related CostsREGULAR AGENDA ITEM 503
CITY COMMISSION AGENDA | SEPTEMBER 11, 2023 REGULAR MEETING
TITLE
Veolia Additional Construction Related Costs
SUMMARY
The water reclamation facilities were intended to have a refurbishment completed
within 12 to 18 months from the start of the Agreement through the WRF (Water
Reclamation Facility) Priority Repairs project. For various reasons, construction has
taken much longer and currently continues three years later. The delayed and
continuing construction activities that are beyond Veolia’s reasonable control and have
caused Veolia to incur substantial increased operational costs that Veolia is entitled to
recover under Section 10 of the Agreement. Sections 10.1.1, 10.1.2, and 10.2 of the
Agreement provide provisions to accommodate the required services to accommodate
the changed operating conditions.
The costs are related to support services for the temporary belt press obtained
through the City ITB 07-21 JN. Support services for the press were initiated in
November 2021. In addition, temporary floating aerators were added to the East WRF
unit 2 during repairs to unit 1 to provide additional air for treatment.
FISCAL YEAR 2022 (NOVEMBER, 2021 TO SEPTEMBER,2022) COSTS
Temporary Staffing $4,800/month
Semi-Truck Rental $2,461/month
Sludge Trailer Rental $3,312/month
Temporary Floating Aerators Electrical
Cost at East WRF
(October 2021 to September 2022)
$1,034.49 to $1,326.51/month
Total for 12 months plus 10% = $149,395
Fiscal year 2023 (October 1, 2022 to current) cost is $10,573/month plus 10%.
To address the financial impacts of the construction activities, the following
adjustments are proposed:
1. A one time payment for 2022 costs of $143,395 for construction related incurred
costs.
2. Construction related incurred costs of $10,573 per month plus 10% starting
October 2022 for a total cost of $10,678.73 per month. The belt press was
demobilized in August 2023. The total cost for FY23 for 11 months is
$117,466.03.
FUNDING SOURCE
266
RECOMMENDATION
Staff recommends the City Commission approve the request. The requested
Construction Period Cost of $143,395 for FY 2022 (October 1, 2021 through September
30, 2022) and $10,573/ month plus 10% for FY 2023 (October 1, 2022 through August
30, 2023), i.e. October 1, 2022 until demobilization of the belt press in August 2023 for
a total cost of $117,466.03, are authorized in paragraph 10.1.1, 10.1.2, and 10.2 of the
Agreement. The additional costs were not anticipated when the Agreement was
executed, the City has contractual control of the contractor, and construction has
extended significantly beyond the original schedule. The presented costs are beyond
the control of either the City or Veolia. Additionally, authorization for the City Manager
and City Attorney is requested to prepare and execute any and all applicable contract
documents consistent with this Agenda item.
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