Public Services

City of Oconomowoc Public Services Committee Aldermen: Kowieski, Chairman / Ellis, Secy / Mulder Tuesday, February 21, 2023 - 7:15 PM City Hall - Conference Room 3 174 E. Wisconsin Ave. Oconomowoc, WI 53066 (or immediately following Finance Committee) Notice: If a person with a disability requires that the meeting be accessible or that materials at the meeting be in accessible format, call the City Clerk at least 48 hours prior to the meeting to request adequate accommodations. Tel: (262) 569-2186. 1. Call to order and confirmation of appropriate meeting notification 2. Committee Business a. Consider/recommend Resolution 23-R3102 Approving 2022 Street Construction Contract Overages 3. Adjourn ________________________________ Diane Coenen, City Clerk City of Oconomowoc Notice is hereby given that a majority of the Common Council will be present at the above scheduled meeting to gather information about a subject over which they have decision-making responsibility. This constitutes a meeting of the Common Council pursuant to State ex rel. Badke v. Greendale Village Board, 173Wis. 2d 553, 494 N.W. 2d 408 (1993) and must be noticed as such, although the Common Council will not take any formal action at this meeting. 1  MEMORANDUM PUBLIC WORKS Date: February 21, 2023 To: Mayor, Common Council and City Administrator From: Jason Herzog, Director of Public Works Re: 2022 Street Construction exceeding 10% contingency RELATES TO THE STRATEGIC PLAN Strategic Goal II Improve and Maintain Our Infrastructure/Facilities; B Maintain our Existing Infrastructure BACKGROUND On April 5, 2022 the Common Council approved the construction contract with Wolf Paving for reconstructing the intersection of Silver Lake St & Summit Ave, repaving Hidden Ridge subdivision, Harvard St, and miscellaneous sanitary sewer improvements. There were major water and sanitary improvements necessary to complete before each of the pavements could be finished and a full signal replacement at the Silver Lake & Summit Ave intersection. The utility sub-contractor, and many other contractors, dealt with supply issues getting utility parts, but ultimately completed the work as proposed. ADDITIONAL ANALYSIS The completion of the construction resulted in a variety of unforeseen conditions increasing the scope of work and costs. Listed below are a few of the issues that were encountered. All of the street projects include estimated quantities of subsurface work that are based on past projects of similar conditions. This year, each of the project locations resulted in higher-than-average subbase work. Major stabilization to the subbase in the Hidden Ridge Subdivision was necessary. Harvard St was proposed to only have minimal work completed outside of the pavement replacement scope. Due to the severe condition of the curb, driveways and pavement base the street rehab required it to be fully dug out and replaced. Additional storm water work on High St was necessary to fix drainage issues that were identified outside of the project scope. Additional utility work was added throughout the project found during field inspections. 1 2 FINANCIAL IMPACT The contract was awarded for $2,737,244.92 with a 10% approved contingency totaling an amount of $3,010,969.41. The final construction cost $3,230,000.00. The increased cost allocations are all within the 2022 budget amounts ORIGINAL ALLOWABLE (10% ) OVER THE 10% BUDGET BUDGET FINAL DIFF STREETS $ 1,462,731.26 $ 1,609,004.39 $ 1,750,000.00 $ (140,995.61) WWU $ 618,865.31 $ 680,751.84 $ 680,000.00 WAT $ 655,648.35 $ 721,213.19 $ 800,000.00 $ (78,786.81) $ 2,737,244.92 $ 3,010,969.41 $ 3,230,000.00 $ (219,782.42) Funds required from each account exceeding the allowable approved contingency are shown below. Streets 408.505.5300.820 422501.03 $140,995.61 Wastewater 601.573.7000.820.122002 Still within contingency Water 602.573.7000.820.222009 $78,786.81 All these extra funds suggested to cover the overage cost difference are within the amounts budgeted in 2022. We are within the budget amount but exceed the approved construction cost. RECOMMENDATION Motion to recommend to the Common Council to approve the allowable funding to $3,230,000.00 to fund the construction cost overages. SUGGESTED MOTION Suggested Common Council Motion: Motion to adopt Resolution 23-R3102. V:\City Projects\Streets\2022 Streets\Construction Payments and Change Orders\Change Orders\Background Memo for 2022 Street Construction exceeding 10% contingency.docx 2 3  RESOLUTION NO. 23-R3102 RESOLUTION APPROVING 2022 STREET CONSTRUCTION CONTRACT OVERAGES WHEREAS, the City of Oconomowoc 2022 budget provides for street and utility improvements to public infrastructure: and WHEREAS, Wolf Paving was the construction contractor; and WHEREAS, Final Construction costs exceed the approved contingency for contracted work; and WHEREAS, Department of Public Works staff and the Public Services Committee recommend that the overages be included to the construction contract with approved respected budget. NOW THEREFORE, BE IT HEREBY RESOLVED that $219,782.42 be added to the 2022 Street Construction Contract with Wolf Paving is hereby accepted for total amount of $3,230,000.00. BE IT FURTHER RESOLVED that these additional funds be transferred into these accounts: Streets 408.505.5300.820 422501.03 $140,995.61 Water 602.573.7000.820.222009 $ 78,786.81 DATED: ____________________ CITY OF OCONOMOWOC By: ______________________________ Robert P. Magnus, Mayor ATTEST: ___________________________ Diane Coenen, Clerk V:\City Projects\Streets\2022 Streets\Construction Payments and Change Orders\Change Orders\Resolution 23-R3102.docx 4