TO:
Honorable Mayor Powell and Members of the City Council
THROUGH:
David N. Carmany, City Manager
FROM:
Jim Arndt, Public Works Director
Steve Finton, City Engineer
Gilbert Gamboa, Senior Civil Engineer
SUBJECT: Title
Plans and Specifications for the 2011-2012 Water Main Rehabilitation Project, Phase 2 (Area 7 - south Sand Section, including 6th Street, 7th Street, Morningside Drive and Highland Avenue), Authorization to Solicit Construction Bids and Additional Appropriation of $550,000
APPROVE
Body
____________________________________________________________________
RECOMMENDATION:
Staff recommends that City Council pass a motion to:
1. Approve the plans and specifications for the 2011-2012 Water Main Replacement Project, Phase 2 (Area 7 south Sand Section) and authorize the City Manager to solicit construction bids: and,
2. Appropriation additional Water Enterprise Funds in the amount of $550,000 to complete the project.
FISCAL IMPLICATIONS:
Water Enterprise Funds have been appropriated by City Council through the Fiscal Year 2010-2011 and 2011-2012 Capital Improvement Plans. The Fiscal Year 2011-2012 Water Main Replacement Project (Phase 1 and 2) was pursued under two separate design and management phases; therefore, the two projects have been presented in a combined format in the tables found on Attachment 1. Table 1 indicates project appropriations and Table 2 shows estimated and/or actual project costs; and, the anticipated balance after completion. An additional appropriation of Water Enterprise Funds in the amount of $550,000 is required at this time to complete Phase 2. There is currently a sufficient balance of unobligated Water Enterprise Funds available to fund the recommended appropriation. A fiscal summary is provided below:
Total Current Appropriations: $2,200,000
Recommended Additional Appropriation: $550,000
Total Appropriations with Recommended Appropriation: $2,750,000
Phase 1 Cost: $1,569,774
Phase 2 Estimated Cost: $1,159,894
Total Estimated Cost: $2,729,668
Estimated Balance Upon Completion: $20,332
BACKGROUND:
The City is conducting a water and sewer infrastructure reinvestment program. As with the city’s operating budget, the demand for capital projects usually far exceeds a government’s capacity to finance them, making it necessary to ration funding to those projects with the highest priority. The City completed a Water and Wastewater Master Plan effort in concert with the implementation and adoption of a revised utility rate structure. The Master Plan provides the justification for the spending request; it is typically very difficult to obtain funding for maintenance and repair. Projects to repair or replace water and sewer mains were included in the five year Capital Improvement Plan (CIP) previously adopted by City Council.
Fiscal Year 2011-2012 Water Main Replacement Project
The 2011-2012 Water Main Replacement Projects (Phase 1 and 2) include the replacement of a total of 11,600 linear feet of undersized and/or deteriorated mainline pipe, and consists of mainline replacements at a total of eleven project street locations in the City’s Sand Section as shown on Attachments 2 and 3, respectively. New water mains, valves and fire hydrants will be designed and constructed, and residential water service lines reconnected to the new main. The new water mains will be relocated from the encroachment areas to the walkstreet areas and the existing mains abandoned in place. Private improvements in the encroachment areas will be restored in kind and the drive or walkstreets will be reconstructed in affected areas.
Phase 1 Design and Construction Contracts
The design of Phase 1 was awarded to Willdan Engineering, Inc. on February 15, 2011, in the amount of $83,360. On December 6, 2011, City Council approved the plans and specifications for Phase 1 and authorized the City Manager to solicit construction bids. Bids received included a base bid and three additive alternate bid items. A construction contract for Phase 1 improvements was awarded on February 21, 2012, to John T. Malloy, Inc. and a separate contract was also awarded to Willdan Engineering, Inc. for inspection services in the amount of $63,600. Bid prices received were favorable and at the time the budget was perceived to be sufficient to add all three alternate project street locations to the recommended contract. Also added to the Phase 1 contract award, were fire hydrant and service improvements to the Joslyn and Manhattan Heights Community Centers outside of the original budget scope. On June 19, 2012, City Council approved Amendment No. 1 in the amount of $60,000 to the agreement with Willdan Engineering, Inc. for additional inspection services due to the underestimation of original contract working days, slow progress by the contractor, design deficiencies and unforeseen conditions leading to change orders. Phase 1 construction began in March 2012 and is now in the final stages of completion.
Phase 2 Design and Construction Contracts
In planning the design arrangements for the water main projects, it was determined that breaking the 2011-2012 Water Main Replacement Project into two (2) phases would facilitate design and construction coordination of a single co-located water and sewer replacement project street. On November 3, 2010, City Council awarded a professional services agreement to Advanced Applied Engineering, Inc. (AAE, Inc.) to provide engineering design services for three sewer main projects. On April 5, 2011, City Council approved Amendment No. 2 to an existing agreement with AAE, Inc. to complete construction drawings for the Phase 2 water main replacement at 7th Street in an effort to coordinate with a sewer main replacement at 7th Street designed by AAE, Inc. On May 16, 2011, AAE, Inc. completed company reorganization and continued to provide professional services (dba) as Infrastructure Engineers. The total amount awarded to AAE, Inc. for the sewer and water work combined was $147,630.
DISCUSSION:
The Fiscal Year 2010-2011 and 2011-2012 CIP include funding to design water main replacements for both Phase 1 and 2; and complete construction of Phase 1 improvements; however, insufficient funds are available for Phase 2 construction. An additional appropriation of $550,000.00 is required and recommended by staff at this time. Phase 2 water main replacements include improvements to four street locations in the southern Sand Section including 6th Street, 7th Street, Highland Ave and Morningside Drive as shown in Table 3 on Attachment 1. A majority of the Phase 2 work takes place in narrow concrete, walkstreet locations where extensive pavement restoration efforts are required. The 7th Street location is a pedestrian walkstreet receiving both sewer and water mainline upgrades between Crest and Valley Drives. Due to the extensive trench construction for both sewer and water upgrades, the 7th Street walkstreet will be reconstructed the entire 15-foot width. The plans and specifications for the 2011-2012 Sewer Main Rehabilitation Project, Phase 2 are now significantly complete. If approved by City Council, staff would proceed to finalize the bid package and advertise the project for construction bids. Bids for Phase 2 would be opened in October 2012 and construction would begin in January 2013.
Additional Appropriation
During the scoping of this project, bid prices in the industry were extremely competitive and budget estimates were based average per lineal foot costs from bid data at that time. The current engineer’s estimate for Phase 2 includes estimates from recent bids for similar work. Phase 2 includes a larger quantity of work on walk streets which involve higher-cost trench restoration efforts due to walls, landscaping and specialty pavement surfaces affected by the construction. Additionally, bid prices have begun to escalate with inflation. It is estimated that project costs will exceed current appropriations in the amount of approximately $550,000.
Staff recommends proceeding with an additional appropriation to perform the entire scope of the project at this time. Benefits of doing so include potentially lower contract unit prices due to the larger economy of scale and the operational benefits of replacing the full quantity of old and deteriorated water mains at this time.
There is currently a sufficient balance of unobligated Water Enterprise Funds available to fund the recommended appropriation.
Plans and Specifications
Plans and specifications for the 2011-2012 Water Main Replacement Project, Phase 2
are available for review in the City Clerk’s Office at City Hall.
Attachments:
1. Tables 1 and 2 and 3- Fiscal Implications and Project Extents
2. Map of FY 2011-2012 Water Main Replacement Project - Phase 1
3. Map of FY 2011-2012 Water Main Replacement Project - Phase 2