HomeMy WebLinkAbout[05a] WWTF Resolution of SupportCITY OF ST.,1U.UPH
Council Agenda Item
MEETING DATE: January 7, 2010
AGENDA ITEM: Engineer Reports — WWTF Resolution of Support
SUBMITTED BY: Engineering/Public Works /Administration
BOARD /COMMISSION /COMMITTEE RECOMMENDATION: The SCAWAC (St Cloud Area
Wastewater Advisory Committee) has been instrumental in the development of the Sewer Use
Agreement and Sewer Expansion project. The role of SCAWAC is technical and advisory in nature —
when they reviewed the information from St. Cloud relative to the treatment plant project's pro's and
con's (financing, permitting, sequence of construction, contract provisions, project award
considerations, etc.) . Therefore, the SCAWAC is recommending the Cities adopt the resolution
supporting the awarding of the bid to Knutson.
PREVIOUS COUNCIL ACTION: The City Council has previously approved a resolution authorizing the
bid letting for the project and the final sewer use agreement.
BACKGROUND INFORMATION: At the December 22 Intergovernmental Meeting the City of St. Cloud
staff provided a presentation on the status of the bids for the WWTP and illustrated the reasons to
move forward. The area Cities are pursuing a tax exemption for the facility which, if approved, could
save an additional $1.6 million. Sales tax exemptions have been approved for prior public projects and
the area representatives have agreed to carry this forward. The area Cities are also applying for
additional funding and low interest financing to help reduce costs.
As of this date, the Cities of Sartell and Sauk Rapids have approved moving forward with the project and
awarding the project to the low bidder. The City of St. Cloud had indicated that if the project does not
move forward at this time, the area cities will likely incur costs for necessary short-term rehabilitation
and - and repair costs at the facility. They have particular concerns about the poor condition of the
clarifiers and some of the other equipment. Even if the repairs are made at this time, we will still have to
pay for the total project involving plant expansion when it is completed; therefore, we could potentially
be paying more for a phased project for rehabilitation and then expansion.
As was pointed out at the meeting, the advantages of moving forward with the project at this time are
the following:
I. Competitive bid, below the estimate
2. Low interest rates
3. Available funding through the PFA
While this may not be the ideal time for the improvement there are a significant number of positives
about moving forward and it is inevitable. Based on the current fund balance in the SAC fund, without
any growth the City would have the Engineer's CIP and St. Cloud costs covered through 2012 into 2013.
We would continue to monitor the rates to work towards funding.
BUDGET /FISCAL IMPACT:
ATTACHMENTS: Resolution 2010 -001
REQUESTED COUNCIL ACTION: The Council must determine to either move forward or notify St. Cloud
that the City of St. Joseph does not wish to move forward.
Resolution 2010 -00
RESOLUTION OF SUPPORT FOR AWARDING THE BID FOR THE
ST. CLOUD WASTEWATER TREATMENT FACILITY REHABILITATION, UPGRADE AND
EXPANSION PROJECT
WHEREAS, the goal of the St. Cloud Area Wastewater Advisory Commission
(SCAWAC) is to promote the continued equitable and efficient distribution of wastewater
conveyance and treatment facility costs and services; and
WHEREAS, a Cooperative Design and Construction Agreement for the Wastewater
Treatment Facility Rehabilitation, Upgrade and Expansion Project (the Project) was developed
cooperatively and adopted by the Cities of St. Cloud, Sartell, Sauk Rapids, St. Joseph, St.
Augusta and Waite Park; and
WHEREAS, said Agreement set forth the responsibilities of the parties with respect to
implementation of the Project including cost allocations for each city;
WHEREAS, said Agreement includes a construction cost estimate of $48,000,000 for
the Project; and
WHEREAS, in accordance with said Agreement the City of St. Cloud did duly advertise,
and received bids on October 22, 2009; and
WHEREAS, the lowest responsible bid in the amount of $39,038,000 was submitted by
Knutson Construction Services of Minneapolis, Minnesota; and
WHEREAS, based on the low bid, the total construction cost of the Project, including
engineering, material testing and contingency is now estimated at $43,559,900; and
WHEREAS, it is the recommendation of the St. Cloud Area Wastewater Advisory
Commission to support awarding the bid to Knutson Construction Services in the amount of
$39,038,000; and
WHEREAS, the City of St. Cloud, the project engineer and the contractor will continue to
investigate ways to reduce the overall project cost while not impacting the goals of the Project
and the useful life of the Wastewater Treatment Facility; and
WHEREAS, the aforesaid Agreement stipulates that: "The parties shall be asked to
demonstrate concurrence with the decision to award the contract through adoption of
appropriate Resolutions of Support by their respective City Councils. The parties shall not
unreasonably withhold such approval."
NOW THEREFORE BE IT RESOLVED, by the Council of the City St. Joseph, to support
awarding of the bid for construction services for the St. Cloud Wastewater Treatment Facility
Rehabilitation, Upgrade and Expansion Project to Knutson Construction Services, in the amount
of $39,038,000.
Adopted this day of _,2010
Alan Rassier, Mayor
ATTEST
Judy Weyrens, Administrator