HomeMy WebLinkAbout2002-05-14; Municipal Water District; 529; Carlsbad Water Recycling FacilityCARLSBAD MUNICIPAL WATER DISTRICT - AGENDA BI&-
B# 529 - TITLE: ACCEPTING BIDS AND AWARDING A
ENG EPT.
CITYATTY. fp CARLSBAD WATER RECYCLING FACILITY ITG. 5/14/02 CONTRACT FOR THE CONSTRUCTION OF THE
PROJECT NO. 3675-2
RECOMMENDED ACTION:
Adopt Resolution No. 1149 accepting bids and awarding a contract for the
construction of the Carlsbad Water Recycling Facility, Project No. 3675-2.
ITEM EXPLANATION:
On February 12, 2002, the Board of Directors approved the plans and specifications for the
Carlsbad Water Recycling Facility (CWRF), and directed the Secretary to advertise for construction
bids. On April 23, 2002, the following ten (10) sealed bids were received:
The Engineer's Estimate for construction of the Carlsbad Water Recycling Facility was
$10,000,000. The lowest responsible bidder is PK Contractors, Inc., in the amount of $8,723,859.
The documents submitted by PK Contractors, Inc., for the project have been reviewed and
analyzed by the engineering staff and found to be in order. They also received an excellent rating
from references that were contacted regarding their background. The Engineering staff, therefore,
recommends the award of the Carlsbad Water Recycling Facility construction contract to
PK Contractors, Inc.
ENVIRONMENTAL REVIEW:
The CWRF is a part of the Phase II Project, Encina Basin Water Reclamation Program (Phase 11).
A Mitigated Negative Declaration (MND) was prepared for the Phase II project. The Carlsbad
City Council approved the MND on January 25, 2000 under Case No. EIA 99-09. The Planning Commission approved Coastal Development Permit No. 99-45, and Conditional Use Permit
No. 9923 for the Carlsbad Water Recycling Facility on August 22, 2001. Finally, the United States
Department of the Interior completed their review of the Phase II project for compliance with the
National Environmental Policy Act (NEPA) and formally approved the NEPA on March 1, 2002.
I
Page 2 of Agenda Bill No. 529
FISCAL IMPACT:
The CWRF project cost breakdown is as follows:
Two items are included in the costs listed above. First, the Preliminary Design Report,
authorized in May 1999, for the CWRF and Meadowlark Water Reclamation Facility in the amount
of $277,316, was funded separately under the Water Replacement Fund. Second, costs for the land
of $1,163,910, were also funded separately by the Sewer Replacement Fund, and will be recovered
purchase agreement with the Encina Wastewater Authority, dated June 26, 2001 in the net amount
as part of a lease payback in the operating budget for the Phase II project.
Aqreements
Staff will be returning to the Board for approval of the following agreements:
Construction managementlinspection services (Butier Engineers)
Construction phase engineering services (Black & Veatch)
Construction phase concrete & soils testing and Special Inspection (San Diego Testing
Community outreach (Katz & Associates)
Engineers)
SDG&E power supply PAC BELL telephone undergrounding
Fundina Sources
The CWRF is being funded through a combination of State, Federal and local funding programs.
Following is a description of these funding programs:
Page 3 of Agenda Bill No. 529
State Fundinq - On January 23, 2002, the State Water Resources Control Board (SWRCB)
approved a $31 million low-interest loan and $5 million grant for the Phase II project. The interest
rate on the loan is set at one-half of the State’s general obligation bond rate, and is expected to be
2.5% annually. The annual loan payment will be made from revenues generated by the sales of the
recycled water to irrigation customers. The State funds may be used for the actual construction cost
based on their approved plans and specifications. State funds will also pay a pre-set amount of the
design and construction phase engineering services. State funds will not pay for right-of-way or
change orders during construction.
Federal Funding - On March 18, 2002, the Bureau of Reclamation (BUREC) approved the
financial capability documentation for the Phase II project. A cooperative agreement for a
25 percent project share grant from their Title XVI program was submitted to their Commissioner’s
office for final approval. Upon approval, the executed agreement will be submitted to the District for
our records. All project costs are eligible to receive 25 percent grant funding. This fiscal year there
is approximately $2.2 million appropriated and available for the Phase II project. Next fiscal year
Congress is currently proposing an additional $4 million in grants. The District will be requesting an
additional $4 million (approximately) for the subsequent fiscal years until the Phase II project grant
funds are received.
In addition to the BUREC grant funding, the CWRF is entitled to an additional $2.2 million in grants
from the Environmental Protection Agency (EPA). This is a 55 percent project share grant for the
grant fund is expected sometime in May 2002.
microfiltration and reverse osmosis treatment system specifically. Final approval from EPA of this
Local Fundina - Under previous resolutions, the Board appropriated $4.6 million from the Water
Capital Replacement Fund for the Phase II project. These appropriations are intended to fund
non-eligible State and Federal project share costs such as change orders, rights-of-way,
engineering, and retrofit expenses.
Additional local revenue sources for the repayment of the State loan and ongoing operations of the
CWRF project include rebates from the Metropolitan Water District (MWD) and the San Diego
County Water Authority (SDCWA). On March 25, 2000, the CMWD entered into an agreement with
the MWD to receive a $210 per acre-foot rebate that gradually reduces to $100 per acre-feet.
This will generate approximately $1 1.5 million through the year 2019 for CMWD. The CMWD
applied for a $IOO/AF rebate from the SDCWA, which is expected to be approved at the Water
Authority’s Reclamation Advisory Committee (WARAC) in May 2000. This rebate is for a period of
25 years and is expected to generate $7.0 million.
Operations - A cash flow analysis was prepared to provide an estimate of future revenues and
operating expenses for the entire recycled water program including the impacts to the “potable”
water operations. The results of the cash flow analysis show that in today’s dollars future revenues
will be sufficient to pay for the operating expenses of the CWRF and to pay back the State loan.
EXHIBITS:
1. Location Map.
2. Resolution No. 1149 accepting bids and awarding a contract for the construction of the Carlsbad Water Recycling Facility, Project No. 3675-2.
LOCATION MAP
PROJECT
SITE
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
RESOLUTION NO. 1149
A RESOLUTION OF THE BOARD OF DIRECTORS .OF CARLSBAD MUNICIPAL WATER DISTRICT (CMWD) ACCEPTING BIDS AND AWARDING A CONTRACT FOR THE CONSTRUCTION OF THE CARLSBAD WATER RECYCLING FACILITY, PROJECT NO. 3675-2.
11 WHEREAS, the Board of Directors of the Carlsbad Municipal Water District has
determined it necessary, desirable and in the public interest to construct the Carlsbad Water
Recycling Facility; and
WHEREAS, ten (IO) sealed bids were received on April 23, 2002 at 4:OO p.m. for the
project; and
WHEREAS, the lowest responsive, responsible bidder for the project was submitted by
PK Constructors, in the amount of $8,723,859; and
WHEREAS, funding in the amount of $12.5 million was appropriated from the
Water Capital Replacement Fund with the understanding that the CMWD will receive up to a
$31 million low-interest loan and $5 million grant from the State Water Resources Control Board:
a 25 percent project share grant from the Bureau of Reclamation and 55 percent project share
grant from the Environmental Protection Agency as progress payments during construction of the
Carlsbad Water Recycling Facility; therefore, there are sufficient appropriations available to
complete the construction of the Carlsbad Water Recycling Facility.
NOW THEREFORE, BE IT RESOLVED by the Board of Directors of the Carlsbad
Municipal Water District of the City of Carlsbad, California, as follows:
1. That the above recitations are true and correct.
2. That the low bid submitted by PK Contractors, Inc., in the amount of $8,723,859
is hereby accepted and the President of the Board of Directors is hereby authorized to execute a
contract on behalf of the CMWD for the construction of the Carlsbad Water Recycling Facility.
3. That the Executive Manager is hereby authorized to approve construction change
I/ orders up to $600,000.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
n
28
4. That the award of this contract is contingent upon the bidder submitting the lowest
esponsive bid, executing the required contract and submitting the required bonds and insurance
)olicies, as described in the contract, within twenty (20) days of adoption of this resolution.
-he Executive Manager may grant reasonable extensions of time.
PASSED, APPROVED AND ADOPTED at a special meeting of the Carlsbad Municipal
Vater District held on the 14th day of MAY , 2002 by the following vote, to wit:
AYES: Board Members Lewis, Kulchin, Finnila, Nygaard, Hall
NOES: None
\TEST:
.OWIbfE M. WOOD, Secretary (SEAL)
Page 2 of 2 of Resolution No. 1149 (CMWD) 6
I ,
00 0
a/
O/
3
B a
fA
w in
3 L. L I L. 0 1
ai
/