Title
Resolution to Approve Change Order #2 ($522,010.44) to the Construction Contract with Michels Construction, Inc. (Michels) and to Appropriate Additional General Funds in the Amount of $350,000.00 for the Barton Dam Right Embankment Remediation Project (Total Contract $9,974,754.26) (8 Votes Required)
Memorandum
This memorandum and resolution requests approval of Change Order #2 ($522,010.44) to the Construction Contract with Michels Construction, Inc (Michels) and to appropriate additional General Funds in the amount of $350,000.00 for the Barton Dam Right Embankment Remediation Project (RFP 24-03). If approved, Change Order #2 would result in a total contract amount of $9,974,754.26.
The Barton Dam was originally constructed in 1913. The dam produces hydroelectric power and serves to impound Barton Pond which is the primary source of the City’s drinking water. Barton Dam is a high hazard dam regulated by the Federal Energy Regulatory Commission (FERC). Seepage has been occurring along the base of the embankment which constitutes an elevated risk for the City. The embankment has been derated as “Poor” in the National Dam Inventory. As such, the City entered into a construction contract with Michels in 2024 to repair the embankment (R-24-336).
This project consists of the construction of a stabilizing berm on the downstream slope of the right embankment to address seepage and stability concerns as well as other ancillary work. The proposed improvements are necessary to ensure operational reliability of the City’s infrastructure and satisfy FERC compliance. This project is programmed in the City’s Capital Improvements Plan (UT-WS-16-26) and received a commitment of funds in the amount of $3,706,046.00 via the American Rescue Plan Act (ARPA) at the July 1, 2024 Council Meeting, Resolution Enactment R-24-280 and the February 18, 2025 Council Meeting Enactment R-25-046.
After completing their Annual Safety Inspection in June 2025, FERC is requiring extra work at the site to address identified safety issues associated with the embankments. The extra work proposes to address potential erosion issues that could compromise the left and right embankments stability. Michels has been previously approved by FERC for embankment construction work and it is proposed that Michels include this work as part of the embankment remediation project.
Budget/Fiscal Impact: The Barton Dam Embankment Rehabilitation Project has been identified in the Capital Improvements Plan (UT-WS-16-26.) This project is funded from the approved Water Supply System Fund and General Fund Capital Budgets. The estimated total project budget is $13,855,000.00 with a funding breakdown as follows:
American Rescue Plan Act (ARPA) $3,706,046.00
County Mental Health Millage $ 549,200.00
General Fund $2,672,254.00
Water Supply Fund $6,927,500.00.
The use of General Fund balance is requested in the amount of an additional $350,000.00 to cover project overages and additional requirements by FERC. Funding for the Water Fund share of the project in the approved FY26 Capital Budget.
Michels has submitted all required Non-Discrimination, Prevailing Wage, Living Wage, and Conflict of Interest Disclosure forms and complies with the requirements of the City’s Non-Discrimination and Living Wage ordinances.
Staff
Prepared by: Glen Wiczorek, PE, Senior Utilities Engineer
Molly Maciejewski, Water Treatment Services Unit Manager
Reviewed by: Ed Ader, Financial Manager
Reviewed by: Jordan Roberts, Public Services Area Administrator
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, Pursuant to R-24-336, the City entered into a construction contract with Michels Construction Inc. (Michels) to address progressing seepage along a portion of the embankment which poses an increased risk of failure;
Whereas, FERC is requiring the remediation of the deficiencies;
Whereas, The Barton Dam Right Embankment Remediation Project will improve the stability and reliability of the dam, and includes work to meet compliance with FERC regulations;
Whereas, FERC is requiring additional work resulting from their 2025 Annual Dam Safety inspection;
Whereas, Funding is available in the approved Water Supply Fund, Major Grants Fund (ARPA), and County Mental Health Millage Fund, and partially in the General Fund Budgets;
Whereas, The remaining balance for the General Fund share is available in Fund Balance; and
Whereas, Michels has submitted all required Non-Discrimination, Prevailing Wage, Living Wage, and Conflict of Interest Disclosure forms and complies with the requirements of the City’s Non-Discrimination and Living Wage ordinances;
RESOLVED, That City Council approves Change Order #2 to the Construction Contract with Michels Construction, Inc. in the amount of $522,010.44 for the Barton Dam Right Embankment Remediation Project;
RESOLVED, That $350,000.00 be appropriated from the General Fund fund balance to the FY 2026 General Fund Water Treatment Plant expenditure budget;
RESOLVED, That $350,000.00 be appropriated to the General Capital Fund with the source of revenue being a transfer from the General Fund;
RESOLVED, That $350,000.00 be appropriated to the Water Supply System Fund with the source of revenue being a transfer from the General Capital Fund;
RESOLVED, That all amounts herein are without regard to fiscal year;
RESOLVED, That a contingency in the amount of $200,000.00 be established and that the City Administrator be authorized to approve change orders to the Construction Contract not to exceed that amount to satisfactorily complete this project;
RESOLVED, That the City makes the following declaration for the purpose of complying with the reimbursement rules of Treas. Reg. 1.150-2 pursuant to the Internal Revenue Code of 1986, as amended, that the City reasonably expects to reimburse itself for expenditures for the costs of the Barton Dam Right Embankment Remediation Project with proceeds of Bonds; and
RESOLVED, That the City Administrator be authorized to take all necessary actions to implement this resolution.