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Home My WebLink About2003-12-02; Municipal Water District; 561; Construction of Recycled Water Transmission Main4B# 561 JITG. 12/02/03 IEPT. ENG RECOMMENDED ACTION: TITLE: ACCEPTING BIDS AND AWARDING A CONTRACT FOR THE CONSTRUCTION OF THE ALGA ROAD, POINSETTIA LANE, AND MELROSE DRIVE RECYCLED WATER TRANSMISSION MAIN FOR THE ENCINA BASIN WATER RECLAMATION PROGRAM, AND APPROPRIATING FUNDS CITY MGR. %- PHASE II PROJECT, PROJECT NO. 3887-B, Adopt Resolution No. 1197 accepting bids and awarding a contract for the construction of the Alga Road, Poinsettia Lane, and Melrose Drive Recycled Water Transmission Main, for the Encina Basin Water Reclamation Program, Phase II Project, Project No. 3887-8, and appropriating funds. 9. ARB, Inc. 10. Vadnais Corporation 11. Don Kelly Construction 12. 4-Point Pipeline 13. CA Southwest Construction ITEM EXPLANATION: Lake Forest, CA $3,596,218 San Diego, CA $3,779,783 Sahuarita, AZ $3,871,675 El Cajon, CA $3,935,255 San Diego, CA $4,411,600 The Alga Road, Poinsettia Lane, and Melrose Drive Recycled Water Transmission Mains, Project No. 3887-8, construction contract is part of the Encina Basin Water Reclamation Program, Phase II Project (Phase 11). The pipelines will enable the recycled water processed at the Carlsbad Water Recycling Facility (CWRF), which is currently under construction, and the existing Meadowlark Reclamation Facility, to reach the District’s Phase II recycled water customers. Included in this construction contract are two separate pipelines. One pipeline will be installed from Rancho Santa Fe Road to El Camino Real within Melrose Drive and Poinsettia Lane and consists of approximately 9,200 feet of 30-inch diameter transmission main. The second separate transmission pipeline will be constructed within Alga Road from El Camino Real east to Alicante Road and consist of approximately 3,200 feet of pipeline ranging in size from 8-inches to 12-inches in diameter. On August 19, 2003, the Board of Directors approved the plans and specifications for the Alga Road, Poinsettia Lane, and Melrose Drive Recycled Water Transmission Main, Project No. 3887-8, and directed the Secretary to advertise for construction bids. On October 14, 2003, the following thirteen (1 3) sealed bids were received: The Engineer’s Estimate for construction of Project No. 3887-8 was $3,575,000. Erreca’s, Inc., submitted the lowest bid in the amount of $2,870,648. The documents submitted by Erreca’s, Inc., for the project have been reviewed and analyzed by the engineering staff and found to be in order. The Engineering staff, therefore, recommends the award of Project No. 3887-8 construction contract to Erreca’s, Inc. 561 Page 2 of Agenda Bill No. I Construction Cost (Erreca's, Inc.) ENVIRONMENTAL REVIEW: 2,870,648 The pipeline project 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. TheCarlsbad City Council approved the MND on January 25, 2000 under Case No. EIA 99-09, Resolution No. 2000-37. 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. Construction Contingency (5%) Inspection, Testing, and Construction ManaQement (5%) FISCAL IMPACT: 143,500 143.500 The estimated cost of the subject pipeline project is summarized in Table 1 below: 3887A 38878 I I Design $420,000 1 Reach 2 Ave. Encinas 424,000 Alga, Poinsettia, Melrose 3.578.000 3887D I Cannon/College 557,000 Table 2 summarizes the total project cost of all the pipeline contracts comprising the Encina Basin Water Reclamation Program, Phase II Pipeline Project 3887. All costs in Table 2 are estimates. The costs shown in bold are already awarded for construction. 3887E 3887F Poinsettia Lane Reach C 600,000 Aviara Park 0 3887G I Rancho Santa Fe Road, Phase I I 38876 I Industrial Parks I 5.625.000 I 126,000 3887G 3887H Rancho Santa Fe Road, Phase II El Camino Real. Cassia to PAR 869,000 1.81 1 .OOO Page 3 of Agenda Bill No. 561 This project is part of the overall Encina Basin Water Reclamation Program, Phase II Project. Previous appropriations for this overall project total $38.2 million. The project is being funded from a Bureau of Reclamation Grant, a State Water Resources Control Board Grant and low-interest loan, and an EPA Grant. Council previously approved advances in the amount of $14.5 million from the Water Replacement Fund to provide cash up front for the project. This advance is expected to be repaid once the loan and grant funds are received. Additional appropriations are being requested with this agenda bill and for another agenda bill before the Council on this date, both for Recycled Water Phase 2 projects. The combined additional appropriations equal $2,755,900. Funding will be provided by increasing the State Water Resource Control Board Loan by this amount. Since this is a significant increase in the total project cost, staff updated the revenue and expense projections (cash flows) to determine the impact this increase would have on the future operations of the program. In addition to this $2,755,900 increase, the anticipated federal grant funding was reduced by approximately $4 million due the uncertainty of funding beyond the current fiscal year. Therefore, the additional loan amount could be as high as $7 million. On February 12, 2002, Council was provided information about the projected revenues and expenses for the Recycled Water Program. At that time it was estimated that an annual operating deficit of approximately $800,000 was likely once the project was complete. With the additional costs and changes in anticipated funding, the deficit is now expected to be about $1 million per year, thus requiring additional funding from potable water revenues and/or an increase in the water rate. This deficit could be reduced if additional federal grant money is obtained, or if final project costs are lower than what is being appropriated. EXHIBITS: 1. Location Map. 2. Resolution No. accepting bids and awarding a contract for the construction of the Alga Road, Poinsettia Lane, and Melrose Drive Recycled Water Transmission Main, for the Encina Basin Water Reclamation Program, Phase II Project, Project No. 3887-8, and appropriating funds. 1197 DEPARTMENT CONTACT: David Ahles, (760) 602-2748, da hleaci. carlsbad. ca. us 3 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 1197 RESOLUTION NO. A RESOLUTION OF THE BOARD OF DIRECTORS OF CARLSBAD MUNICIPAL WATER DISTRICT (CMWD) ACCEPTING BIDS AND AWARDING A CONTRACT FOR THE CONSTRUCTION OFTHE ALGA ROAD, POINSElTIA LANE, AND MELROSE DRIVE RECYCLED WATER TRANSMISSION MAIN, FOR THE ENCINA BASIN WATER RECLAMATION PROGRAM, PHASE II PROJECT, PROJECT NO. 3887-8, AND APPROPRIATING FUNDS. WHEREAS, on August 19, 2003, the Board of Directors of the Carlsbad Municipal Water 3istrict approved plans and specifications for construction of the Alga Road, Poinsettia Lane, and Melrose Drive Recycled Water Transmission Main, Project No. 3887-8; and WHEREAS, thirteen (13) sealed bids were received on October 14, 2003 at 4:OO p.m. for :he project; and WHEREAS, the lowest responsive, responsible bid for the project was submitted by Zrreca's, Inc., in the amount of $2,870,648; and WHEREAS, the Board of Directors of the Carlsbad Municipal Water District has jetermined it necessary, desirable, and in the public interest to construct the Alga Road, 'oinsettia Lane, and Melrose Drive Recycled Water Transmission Main, for the Encina Basin Nater Reclamation Program, Phase II Project, Project No. 3887-8; and WHEREAS, a Mitigated Negative Declaration has been adopted by the City of Carlsbad 3ity Council by Resolution 2000-37, dated January 25, 2000, as required by the California Environmental Quality Act; and WHEREAS, funding in the amount of $1 7,661,000 was appropriated for various pipeline irojects including the Alga Road, Poinsettia Lane, and Melrose Drive Lanes; and WHEREAS, the estimated cost to date for the various pipelines is $1 9,810,000. NOW THEREFORE, BE IT RESOLVED by the Board of Directors of the Carlsbad lllunicipal Water District of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. I! /I 1 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 \. 2. That the low bid submitted by Erreca’s, Inc., in the amount of $2,870,648 is hereby accepted and the President of the Board of Directors is hereby authorized to execute a contract 3n behalf of the CMWD for the construction of Project No. 3887-B. 3. That the Executive Manager is hereby authorized to approve construction change xders up to $143,500 for Project No. 3887-B. 4. That the award of this contract is contingent upon Erreca’s, Inc., executing the .equired contract and submitting the required bonds and insurance policies, as described in the :ontract, within twenty (20) days of adoption of this resolution with the understanding that :he Executive Manager may grant reasonable extensions of time. 5. That the Finance Director is authorized to appropriate an additional $2,149,000 from the Recycled Water Fund for the various pipeline projects. PASSED, APPROVED AND ADOPTED at a special meeting of the Carlsbad Municipal , 2003 by the following vote, to wit: Water District held on the 2nd day of December AYES: Board Members Lewis, Finnila, Kulchin, Hall and Packard NOES: None ATTEST /,- I Page 2 of 2 of Resolution No. 1197 (CMWD) (SEAL) LOCATION MAP Nor rd SCALE PROPOSED PACIFIC OCEAN PROJECT NAME PROJECT EXHIBIT 7 ALGA ROAD, POINSETTIA LANE, AND MELROSE DRIVE RECYCLED WATER TRANSMISSION MAIN FOR THE ENCINA BASIN WATER RECLAIMATION PROGRAM, PHASE II PROJECT NUMBER 38878 HN BY: SCOTT EVANS, CARLSBAD ENGINEERING DEPT. 7/22/03 C: \CAPITAl\AHlES\3@87BDW