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HomeMy WebLinkAboutStaff Report 3.B 05/21/2018DATE: May 21, 2018 TO: Honorable Ma r and Members of the. City Council through City Manager FROM: Dan t. J ,FAS — irector, Public Works and Utilities Dan rrera, E. — Associate Civil Engineer, Public Works and Utilities SUBJECT: Resolution Accepting Completion of the Recycled Water System Extension - Sonoma Mountain Alignment Project RECOMMENDATION It is recommended that the City Council adopt the attached Resolution Accepting Completion of the Recycled Water System Extension — Sonoma Mountain Alignment Project. BACKGROUND The City of Petaluma delivers tertiary treated recycled water produced by the Ellis Creek Water Recycling Facility (ECWRF) to urban users within the City limits to irrigate parks, open spaces, golf courses, schools, and outside the City limits to agricultural customers. The opening of the ECWRF in 2009 allowed the City to produce non -potable tertiary recycled water suitable for urban irrigation. On November 16, 2015, a Recycled Water System Update was presented to Council, which highlighted the master plan for the expansion of the City's Urban and Agricultural recycled water systems. The Urban and Agricultural Recycled Water Master Plan identified specific project alignments and phasing to expand the City's recycled water system. The Sonoma Mountain Alignment pipeline was one of two near-term pipeline projects included in the recycled water system expansion designated as Phase IA. Oakmead Business Park — Phase 1 pipeline project, completed last year, was the other project. In the fall of 2015, the City applied for Proposition 1 (Prop 1) funding from the State Water Resources Control Board. On September 14, 2015, the City Council authorized the submittal of an application for funding with the State Board (Resolution No. 2015-138 N.C.S.) addressing both the Sonoma Mountain Alignment, and the now completed Oakmead Business Park — Phase 1 recycled water line projects. The Prop 1 grant funding agreement was accepted in fall 2016, and was fully executed in April 2017. On April 17, 2017, the City Council awarded a construction contract to Terracon Constructors Inc. of Healdsburg, CA, in the amount of $1,847,936. The project was completed in February 2018. The subject project extended a 16 -inch recycled water main 8,000 feet within the urban separator from the Rooster Run Golf Course to Corona Creek Elementary School. The project included an 8 -inch recycled water main to serve Eagle Park and adjacent Landscape Assessment Districts (LADs). The project makes recycled water available for irrigation to schools, parks, and LADs, including Corona Creek Elementary School, Kenilworth Junior High School, Sonoma Mountain Elementary School, Santa Rosa Junior College, Eagle Park, and Leghorn Park. DISCUSSION The final construction contract cost is $2,046,079.28, which includes ten change orders, and the reconciliation of estimated bid quantities and final quantities measured in the field, in the amount of $198,143.28. The change orders were related to unforeseen conflicts and additional construction items requested by the Water Operations Division and are listed in detail in Attachment 1. There are no outstanding claims or issues; the contractor performed satisfactorily on the project. The majority of the change orders were directly related to utility work including: additional 8 - inch water main bid alternative work; utility conflicts; water service changes; existing water main tie-in; field valve box adjustments; and miscellaneous extra work as part of the pipeline installation. Based on the favorable prices, Operations authorized an additive bid alternative in the amount of $86,089 to extend the purple pipe to new service areas. Change Order No. 7 is unique in that the work performed by the Contractor was not part of the utility installation work. During construction of the project, City staff received complaints regarding the condition of a concrete pathway along the urban separator directly adjacent to the project. It was determined that as the project included sidewalk work, repair of the concrete pathway should be included in the project to facilitate the repair work. This extra work for change order No.7 will be funded by the Street Maintenance fund in the amount of $30,505. This change in budget will be reflected in the budget adjustment going to Council in June 2018. The grant funding agreement between the City of Petaluma and the State Water Resources Control board is to fund thirty-five percent of the construction and construction management costs for the project that are directly related to the installation and operation of the recycled water line and irrigation areas, with a not to exceed amount of $870,030. FINANCIAL IMPACTS The approved FY 17/18 CIP budget and actual expenditures for the Recycled Water System Extension — Sonoma Mountain Alignment Project (C66401415) is summarized in the following table. Project Costs Approved CIP Budget Actual Construction Contract $ 1,847,936 $ 2,046,079 Planning/Environmental $ 30,000 $ 34,606 Design $ 125,000 $ 93,318 Administration $ 6,000 $ 225 I Construction Management $ 200,000 $ 221,327 CIP Overheads $ 40,000 $ 10,421 Contract Contingency $ 450,0000 $ 0 Remaining Contingency $ 78,094 $ 0 TOTAL $ 2,777,030 $ 2,405,976 The project was funded by the Water Capital fund, the Wastewater Capital Fund, and a State Prop 1 Grant fund that applied to 35% of the Construction and Construction management costs of the project. Funding Sources Approved Budget Actual Wastewater Capital Fund $ 44,000 $ 44,000 Water Capital Fund $ 1,863,000 $ 1,536,411 State Prop 1 Grant $ 870,030 $ 795,000 Street Maintenance Fund $ 0 $ 30,565 Total $ 2,777,030 $ 2,405,976 The Prop 1 grant funding amount was for 35% of the construction and construction management costs for the project, with a maximum amount of funding in the amount of $870,030. The actual costs for the construction and construction management for the project did not meet this threshold; therefore the total amount funded by the state was less than anticipated. At project closeout, all unspent funds will be returned to the Water and Wastewater Capital fund to be used on future projects. In addition, a budget adjustment to include the addition of $30,565 from the Street Maintenance Fund will be included in the June 2018budget adjustment action recommended to the Council. Following the acceptance of the project, the City Clerk will file a Notice of Completion with the Sonoma County Recorder and the Finance Department will release the contract retention account to the contractor within 60 days. ATTACHMENTS 1. Resolution 2. Location Map 3 Attachment 1 RESOLUTION ACCEPTING COMPLETION OF THE RECYCLED WATER SYSTEM EXTENSION — SONOMA MOUNTAIN ALIGNMENT PROJECT WHEREAS, in accordance with Section 68 of Article X of the City of Petaluma Charter, Section 20162 of the California Public Contract Code and other applicable laws, the City of Petaluma solicited bids for the Recycled Water System Extension — Sonoma Mountain Alignment Project ("Project"); and WHEREAS, bids for the Project were opened on March 16, 2017 in accordance with California Public Contract Code Section 4104.5 and other applicable laws at which time the City received 7 (seven) bids; and WHEREAS, by Resolution No. 2017-056 N.C.S. adopted April 17, 2017, the City Council of the City of Petaluma found the bid of $1,847,936.00 for the Project to be the lowest responsive bid; awarded Terracon Constructors Inc. in the amount of $1,847,936.00; and authorized the City Manager to sign the Project contract on behalf of the City; and WHEREAS, the following change orders (CO) affecting the Project amount have been approved: CO No. 1: Contract Language CO No. 2: Construct portion of Bid Alt work CO No. 3: Misc. Utility Conflict costs CO No. 4: 12 -inch Tie -In Modifications CO No. 5: 2 -inch Water Service and Paving CO No. 6: Field ARV and Valve modifications CO No. 7: Sidewalk Repair CO No. 8: SRJC Service CO No. 9: Misc. Extra work and deductive costs CO No. 10: Extra Concrete and String work Reconciliation of Estimated Bid Quantities and Final Quantities Total Contract Changes: $ 0.00 $ 86,089.00 $ 38,310.93 $ 15,422.89 $ 17,525.68 $ 13,149.97 $ 30,564.35 $ 8,431.32 <$ 763.98> $ 14,593.08 <$ 25,179.96> $ 198,143.28; and WHEREAS, the final contract amount as amended, including reconciliation of final quantities, is $2,046,079.28; and 11 WHEREAS, the Project has been inspected and determined that it has been completed in substantial accordance with the contract requirements and is subject to the Contractor's continuing warranty and other obligations pursuant to the contract; and WHEREAS, the Project has been placed into beneficial use on behalf of the City. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Petaluma as follows: 1. The contract entitled Recycled Water Main Extension — Sonoma Mountain Alignment Project, City Project Number C66401415 with a final contract amount of $2,046,079.28, is accepted as complete subject to the Contractor's continuing warranty and other obligations pursuant to the contract. 2. City Clerk is hereby authorized and directed to file a Notice of Completion concerning the Project with the Sonoma County Clerk's Office within ten (10) days of the date of this Resolution. 3. Staff is hereby authorized and directed to release all undisputed retention not subject to pending change orders within sixty (60) days of the date of this Resolution and in accordance with the terms of the Project contract, the Petaluma City Charter, California Public Contract Code Section 7107 and applicable law. 4. Staff is directed to submit a budget adjustment of $30,565 in funding from the Street Maintenance Fund for costs incurred that are related to sidewalk repair as part of the year-end budget adjustments scheduled for June. 5 Attachment 2 RECYCLED WATER SYSTEM EXTENSION SONOMA MOUNTAIN ALIGNMMENT PROJECT NO. C66401415 LOCATION MAP \ \ PROJ CT S TErz _r 01 0 / BOG � ~l; I /' � �/ g� _.� ._._._-• Date : April 17, 2017 N jo, City of Petaluma W ; — PROJECT SITE Public Works and Utilities S Department'