HomeMy WebLinkAbout2015-11-17; Municipal Water District; 822; Approval of Guaranteed Maximum Price from CDM Constructors, Inc. and Appropriation of Funds for the Carlsbad Water Recycling Facility Phase III ExpansionCRWF Phase Ill Expansion
November 17, 2015
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Production Capacity:
During design development, CDM offered a value added option for CMWD consideration that would
provide an additional 0.38 mgd of treatment capacity above the 3.0 mgd contract requirement, without
the need to add a fourth skid of membrane filters. This additional production will be achieved by adding
more filaments to the membrane canister design and slightly increasing the size of ancillary equipment as
bid, but does not require an increase in the size of the three membrane skids. Staff considers this to be an
attractive option since it will help offset the loss in production that is occurring to the existing membrane
filters as they degrade with age, which are now almost ten years old. Since the existing membranes use an
older technology, these older membranes will likely be phased out in the future rather than replaced . The
GMP provided by CDM to the District for approval is $8,016,105, which is an increase of $723,037 above
the construction bid amount, but includes the 0.38 mgd value added offering and four other design
improvements that were agreed upon by the District during design development. Staff has reviewed the
detailed cost proposal prepared by CDM and recommends that the Board accept the GMP. At the time of
bid, the engineer's estimate for the Design-Build Contract was $8,244,000.
FISCAL IMPACT:
The expansion of the CWRF is part of the Recycled Water Phase Ill project and is included under CIP
Project No. 5209. As shown in Table 1, the current project appropriation is $9,840,000. Funding for the
project is based on a financing program containing a combination of the District's Water Replacement
Fund (i.e. local fundsL a portion ofthe $4.0 million State Proposition 84 Round 3 Grant, and a portion of
the $29.5 million low interest loan from the State Revolving Fund. The Recycled Water Fund is housing
the grant and low interest loan portion of the Recycled Water Phase Ill financing program.
TABLE 1-PROJECT COST ESTIMATE
Recycled Water Phase Ill CRWF Plant Expansion, Project No. 5209 ESTIMATED COSTS
Design-Build Assistance to the District (CH2M Hill) $569A22
Budget for Construction Phase Support $900,000
Other Expenditures to Date (Project Mgmt., CEQA, and Permitting) $84,902
Design-Build Contract GMP (CDM Constructors) $8,016,105
Construction Contingency $600,000
Staff Administration and Contingency Budget $190,971
TOTAL ESTIMATED PROJECT COSTS (CRWF Plant Expansion) $10,3~1,400
Current Appropriation-Phase Ill CRWF Plant Expansion, Project No. 5209 $9,840,000
ADDITIONAL APPROPRIATION REQUIRED ,, ·' ~ .. $521,400
As shown in the table above, an additional appropriation is necessary in the amount of $521AOO. The
District will use local funds to provide the additional appropriation, which will come from the Water
Replacement Fund. Sufficient funds are currently available in the Water Replacement Fund for the
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CRWF Phase Ill Expansion
November 17, 2015
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additional appropriation. Staff is pursuing additional grant funding from State Proposition 1. Grant
funding received as part of the overall Recycled Water Phase Ill financing program may be used to offset
the local funds.
ENVIRONMENTAL IMPACT:
The expansion of the CWRF is part of the Phase Ill Recycled Water Project. An environmental impact
assessment was conducted for the Phase Ill Recycled Water Project Feasibility Study, and a Mitigated
Negative Declaration and Mitigation Monitoring and Reporting Program was approved by the Board
through Resolution No. 1455, on Nov. 27, 2012.
PUBLIC NOTIFICATION:
None required.
EXHIBITS:
1. Resolution No. 1537 approving the guaranteed maximum price from CDM Constructors,
Inc. and appropriating additional funds for the Carlsbad Water Recycling Facility Phase Ill Expansion,
Project No. 5209
2. Location Map
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WHEREAS, under the Operating Agreement with the City of Carlsbad, Carlsbad Municipal
Water District adopted the city's purchasing rules; and
WHEREAS, subsection 3.28.040(C)(5) of the Carlsbad Municipal Code authorizes the
Executive Director to approve change orders in the amount equal to the contingency set at the
time of project award.
NOW, THEREFORE, BE IT RESOLVED by the Carlsbad Municipal Water District Board of
Directors of the City of Carlsbad, California, as follows:
1. That the above recitations are true and correct and incorporated herein.
2. That the Guaranteed Maximum Price (GMP) submitted by COM Constructors, Inc.
is hereby accepted.
3. That the GMP increases the original contract amount by $723,037, is accepted and
14 the Executive Director is hereby authorized to approve a construction change order for this
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amount.
4. That the Executive Director is hereby authorized to approve additional change
orders up to $600,000 over the GMP.
5. That the Administrative Services Director is hereby authorized to appropriate an
additional $521,400, in total, to Project No. 5209 from the Water Replacement Fund and
Recycled Water Fund in a ratio compliant with the terms of the financing programs' various
matching requirements.
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