City considering contract change to avoid disrupting downtown business

During their June 20 meeting, City Commissioners will consider a $16,094 change order for the first phase of the Central Avenue/3rd Street drainage improvements project.

In November 2022, commissioners approved a contract to Ed Boland Construction for $1,483,052.

City staff invited Meadow Gold representatives to the pre-construction meeting in December 2022 when construction sequencing, traffic control and construction methods were discussed.

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During the meeting, Tony Denio of Meadow Gold indicated to staff that the proposed construction plan would cause costly disruptions in their operations.

City staff has been working with Meadow Gold and the contractor for a solution and will present two options to commissioner during their June 20 meeting.

Denio told staff during the pre-construction meeting, that the entrance to the trunk tanker bay is a critical access point for their facility and that many trucks access the facility by 3rd Avenue South and have to back into the bay for deliveries.

The current proposed standard construction methods would restrict Meadow Gold’s operations to receiving and washing only one truck at a time, setting back daily operations by four to five hours, according to the staff report.

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The proposed method would require employee overtime, renting specialized equipment and altered operating permits during the construction period, according to city staff.

The facility’s cleaning and sanitation operations would be impact, potentially causing the loss of hundreds of gallons of milk daily and affect the milk’s quality, according to the staff report.

Daily delays would also affect the trucking company’s scheduled pickup times from producers, also disrupting milking scheduled for producers, and potentially leading to the dumping of raw milk, costing producers thousands, according to the staff report.

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The planned construction would also cause Meadow Gold to set up milk receiving outside their facility, requiring the company to rent special safety equipment and other special quality measures under federal guidelines, as well adjustments to the company’s spill prevention containment control plan and stormwater pollution prevention program during construction.

The first option staff will present includes jacking and boring the storm drain under the approach to the receiving bay as an alternate construction method.

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The scope of work change for the first option includes excavation of boring pits; jack and boring 24-inch steel encasement pipe; corrosion protection; inspecting and cleaning the casing pipe; furnishing and placing storm pipe; furnishing and installing casing spacers, and end seals; and all other work necessary for completion of the item.

The construction would take place during regular work hours and allow Meadow Gold to continue receiving the raw product through their regular daily operations.

The contractor’s proposed additional cost for this work is $16,094.

The second option is to install the storm drain under the approach to the receiving bay after hours, involving nighttime construction, according to the staff report.

The second option would include the use of generators and lighting sufficient to safely conduct construction activities at night; steel plating placed across the open trench during daily work hours so that Meadow Gold could continue to receive the raw product through their regular process; and variances to local ordinances and extra safety precautions.

The contractor’s proposed additional cost for the second option is $24,467.

Both options are acceptable, but staff is recommending the first option as the “most efficient and cost effective alternative,” according to staff.

Staff is recommending using Storm Sewer Enterprise Funds for the change order.

During discussions Denio told city staff that open trench construction would cost Meadow Gold a minimum of $4,600 per day in additional expenses.

In the three to four days it would take to complete the construction across the access to the tanker receiving bay, the minimum cost would be $13,800 to $18,400, according to staff.

The proposed contract change will increase the total cost by $16,094, bringing the contract total from $1,483,052 to $1,499,146, according to staff.