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HomeMy WebLinkAbout2018-05-22; City Council; ; Appropriation of additional funds in the amount of $567,000 for the Foxes Landing Lift Station Replacement and increasing the construction contingency for the project byCA Review --- (i S~~ffR~port Meeting Date: To: From: Staff Contact: Subject: May 22, 2018 Mayor and City Council Kevin Crawford, City Manager Scott Fisher, Municipal Projects Manager Scott.fisher@carlsbadca.gov or 760-602-4763 Appropriation of additional funds in the amount of $567,000 for the Foxes Landing Lift Station Replacement and increasing the construction contingency for the project by $526,000. Recommended Action Adopt a Resolution authorizing the appropriation of additional funds in the amount of $567,000 for the Foxes Landing Lift Station Replacement, Project No. 5526 (Project) and increasing the construction contingency for the Project by $526,000. Executive Summary This action authorizes additional funding to be appropriated to the Project construction budget for the accumulation of expected actual costs for groundwater mitigation required for installation of the new facility. City Council authorization is required to appropriate additional funds to a Capital Improvement Program project budget and to increase the construction contingency which includes authorizing the city manager or designee to approve construction change orders up to the designated construction contingency. Discussion On Aug. 23, 2016, City Council adopted Resolution No. 2016-173 and awarded a contract to NEWEST Construction Co., Inc. for the construction of the Project located on the north shore of Agua Hedonia Lagoon. Construction of the upgraded facility includes the installation of subsurface concrete structures, pipelines and wastewater conveyance appurtenances. Construction of the Project requires the installation of a temporary groundwater dewatering system and a groundwater discharge permit to facilitate the construction of the subsurface structures. Measurement and payment for the dewatering effort described in the contract documents includes: performance of subsurface investigations, exploratory borings, laboratory testing, installation of piezometers, groundwater volume and flow rate analysis and water quality testing required to develop a dewatering plan, mobilization/demobilization, well installation, and development, settlement analysis, monthly operational costs and water quality sampling to comply with Encinas Wastewater Authority groundwater discharge permit requirements. The construction contract for the Project included a stipulated allowance bid item in the amount of $100,000 dollars to perform all work associated with the design, installation and May 22, 2018 Item #6 Page 1 of 6 operation of the dewatering system. This stipulated amount is insufficient to cover the full scope of work required. Construction of this Project commenced on Dec. 5, 2016 with an original completion date of Nov. 18, 2017. During the acquisition of the discharge permit, groundwater sampling identified unacceptable high levels of total dissolved solids (TDS). The high levels of TDS caused a delay in the procurement of the permit which resulted in Project delays and additional consultant and staff time. On Nov. 9, 2017, a Council Memorandum was distributed explaining the anticipated impact to the schedule. Fiscal Analysis The estimated additional amount of $526,000 is required to increase the construction contract contingency amount, and $85,000 is the estimated amount required for additional construction management and inspection. Adding these additional amounts to the Project budget brings the total estimated Project costs to $4,907,000. To date $4,340,000 has been previously appropriated to the Project budget, therefore, an additional appropriation of $567,000 is being requested from the Sewer Replacement Fund to complete the construction phase of the Project. FOXES LANDING LIFT STATION REPLACEMENT, CIP NO. 5526 Design and Environmental (Completed) $465,580 Construction Contract (In Progress) $2,870,800 Construction Contingency $430,620 Construction Management, Inspection & Material Testing (In Progress) $529,000 Total Additional Construction Costs (Estimated) $526,000 Total Additional Administrative Costs (Estimated) $85,000 TOTAL ESTIMATED PROJECT COSTS $4,907,000 TOTAL CURRENT APPROPRIATION -SEWER REPLACEMENT FUND $4,340,000 REMAINING BALANCE ($567,000) ADDITIONAL APPROPRIATION NEEDED -SEWER REPLACEMENT FUND $567,000 Next Steps Staff will process and execute a contract change order to increase the stipulated allowance of Bid Item No. 14 of the Contractor's Bid Proposal, and extend the contract completion date through Fall 2018. Measurement and payment of Bid Item No. 14 will proceed in accordance with the contract general provisions. Environmental Evaluation (CEQA) The Project is exempt from the California Environmental Quality Act (CEQA) per State CEQA Guidelines Section 15302(c) -concerning replacement or reconstruction of existing facilities involving negligible or no expansion of use. A Notice of Exemption was filed in the Office of the San Diego County Clerk on Sept. 1, 2015. May 22, 2018 Item #6 Page 2 of 6 Public Notification This item was noticed in accordance with the Ralph M. Brown Act and was available for public viewing and review at least 72 hours prior to the scheduled meeting date. Exhibits 1. City Council Resolution. 2. Location Map. May 22, 2018 Item #6 Page 3 of 6 RESOLUTION NO. 2018-077 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING THE APPROPRIATION OF ADDITIONAL FUNDS IN THE AMOUNT OF $567,000 FOR THE FOXES LANDING LIFT STATION REPLACEMENT, PROJECT NO. 5526 AND INCREASING THE CONSTRUCTION CONTINGENCY FOR THE PROJECT BY $526,000. Exhibit I WHEREAS, the City Council of the City of Carlsbad, California adopted Resolution No. 2016-173 and awarded a contract to NEWEST Construction Co., Inc. for the construction of the Foxes Landing Lift Station Replacement Project located on the north shore of Agua Hedonia Lagoon on Aug. 23, 2016; and WHEREAS, the construction contract includes a stipulated allowance bid item in the amount of $100,000 dollars which is insufficient to perform all work associated with groundwater management of the site; and WHEREAS, additional contract time and compensation to the contractor is required to complete the full and actual scope of work; and WHEREAS, measurement and payment for the additional scope of work is based on accumulation of costs which are anticipated to exceed the original construction contingency amount approved by City Council; and WHEREAS, staff requests that the construction contingency amount be increased by $526,000 to cover the additional costs; and WHEREAS, staff anticipates an additional $85,000 is needed for additional construction management and inspection services. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That the administrative services director is authorized and directed to appropriate funds from the Sewer Replacement Fund No. 515 in the amount of $567,000, for the construction of the Foxes Landing Lift Station, Project No. 5526. 3. That the construction contingency is increased by $526,000, from $430,620 to $956,620, and the city manager or designee is hereby authorized to approve construction change orders up to $956,620. May 22, 2018 Item #6 Page 4 of 6 Exhibit 1 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 22nd day of May, 2018, by the following vote, to wit: AYES: M. Hall, K. Blackburn, M. Schumacher, C. Schumacher, M. Packard. NOES: ABSENT: None. None. (SEAL) May 22, 2018 Item #6 Page 5 of 6 PROJECT SITE PACIFIC OCEAN . .. \ \ 'i \\ .. AGUA HEDIONDA LAGOON '· '·�., ........... ........ ®. \ .......... "" ................... •, ... �-. ·,••·········•.....•.. Foxes Landing -�ift'····· LOCATION MAP Station Replacement, ________________________________________ :NO�T�m�s:�:L[:.._ ____ _:P�ro�j:e�c�t:N�o�.�5=5�2�6�. _____J Exhibit 2May 22, 2018 Item #6 Page 6 of 6