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3.9 East-West Watermain Connection Project Pay Application #2 and Change Order #1 Request for City Council Action DEPARTMENT INFORMATION ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE: Public Works City Engineer Wagner December 11, 2023 PRESENTER(s) REVIEWED BY: ITEM #: Consent City Administrator/Finance Director Flaherty 3.9 – Pay Application for East- West Watermain Connection STRATEGIC VISION MEETS: THE CITY OF OTSEGO: Is a strong organization that is committed to leading the community through innovative communication. X Has proactively expanded infrastructure to responsibly provide core services. Is committed to delivery of quality emergency service responsive to community needs and expectations in a cost-effective manner. Is a social community with diverse housing, service options, and employment opportunities. Is a distinctive, connected community known for its beauty and natural surroundings. AGENDA ITEM DETAILS RECOMMENDATION: City Staff is recommending City Council approval of Pay Application #2 to Douglass-Kerr Underground, LLC. ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED? No No BACKGROUND/JUSTIFICATION: Pay Application #2 includes payment for mobilization, salvaging, sawing and removing pavement, aggregate base, bituminous, steel casing pipe, watermain connection, hydrant, watermain drilling, valves, iron fittings, concrete walk, and traffic control. Change Order #1 is for additional work that occurred during drilling. Large boulders had to be removed and replaced with smaller rock, vault adjustments had to be made, and additional mechanical joint adapters were needed. Payment is for replacement rock, crew and equipment labor, and mechanical joint adapters. Change Order #1 increases the contract price by $44,699.64. In accordance with Minnesota Statute, the City is withholding the maximum of 5% retainage of work completed, which amounts to $114,427.47 at this time. SUPPORTING DOCUMENTS ATTACHED: • Pay Application #2 • Change Order #1 POSSIBLE MOTION PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES: Motion to approve Pay Application #2 and Change Order #1 in the amount of $1,174,022.54 to Douglas-Kerr Underground, LLC for work completed on the East-West Watermain Connection Project, City Project No. 23-04. BUDGET INFORMATION FUNDING: BUDGETED: Fund 601 – Water Utility Yes