HomeMy WebLinkAbout20A - AA FOR DEWATERING OPERATIONSREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
SEPTEMBER 15, 2020
TITLE:
APPROVE AN APPROPRIATION
ADJUSTMENT TO RECOGNIZE
FEDERAL CLEAN WATER PROTECTION
ENTERPRISE FUNDS IN THE AMOUNT
OF $225,000 AND AN INCREASE IN
CONTINGENCY FUNDS FOR AN
EXISTING CONTRACT WITH LONEROCK,
INC. IN THE AMOUNT OF $500,000 TO
PERFORM ADDITIONAL DEWATERING
OPERATIONS FOR THE SANTA ANA
DELHI CHANNEL DIVERSION PROJECT,
FOR AN ESTIMATED TOTAL PROJECT
DELIVERY COST OF $6,886,775
(PROJECT 16-6467)
(NON -GENERAL FUND)
/s/ Kristine Ridge
CITY MANAGER
CLERK OF COUNCIL USE ONLY:
APPROVED
❑ As Recommended
❑ As Amended
❑ Ordinance on 1st Reading
❑ Ordinance on 2"d Reading
❑ Implementing Resolution
❑ Set Public Hearing
For
CONTINUED
TO
FILE NUMBER
RECOMMENDED ACTION
1. Approve an appropriation adjustment recognizing $225,000 in Federal Clean Water
Protection Enterprise, Prior Year Fund Balance and appropriating same into the Federal
Clean Water Protection Enterprise, Improvements Other Than Building expenditure
account.
2. Approve an increase to existing contract contingencies in the amount of $500,000 to perform
additional dewatering operations for the Santa Ana Delhi Channel Diversion Project.
DISCUSSION
On December 6, 2016, the City Council awarded a contract to Lonerock, Inc. in the amount of
$4,593,375, with a contingency of $1,024,800, for the Santa Ana -Delhi Channel Diversion Project.
The goal of the project is to improve water quality and increase regional groundwater supplies. The
City of Santa Ana is the lead agency in this multi -agency regional effort, and Santa Ana greatly
benefits from this project because it helps the City meet federal storm water program requirement
mandates by California State Water Resources Control Board. The project is located south of SR-
73 and east of SR-55 in the Newport Beach Golf Course (Exhibit 1).
During construction, it was discovered that water from the existing channel was seeping into the
diversion structure. To avoid stagnant water affecting the diversion structure, staff directed the
20A-1
Appropriation Adjustment and Addition of Contingency Funds to Lonerock Inc. Contract
September 15, 2020
Page 2
contractor to install an additional pump and monitor the well to remove the ground water until
construction of the diversion structure were to be completed. Based on time and material costs,
the request for additional services will total $500,000.
The construction contingency originally allocated for this project has been depleted due to change
orders, such as additional excavation, subgrade treatment, material import, Continuous Deflective
Separation unit modification, catch basin, trail, permits, water main, electrical conduit, and irrigation
mainline. Staff is recommending an increase in contingency (Exhibit 2), funded by the Federal
Clean Water Protection Enterprise Fund, to cover the additional services provided by Lonerock,
Inc.
ENVIRONMENTAL IMPACT
On May 3, 2016, the City Council approved a mitigated Negative Declaration (MND) in accordance
with the California Environmental Quality Act (CEQA). The proposed project would have a less
than significant impact on the environment. As planned, the Delhi project would eliminate dry
weather flows in the Santa Ana Delhi Channel to help improve water quality in downstream
receiving waters including Upper Newport Bay.
FISCAL IMPACT
The table below summarizes the original authorized construction expenditures. The requested
increase in contingencies of $500,000 will be funded by the project's available balance from prior
years of $275,000 and the requested appropriation adjustment in the amount of $225,000.
EXPENDITURE
CATEGORY
ORIGINAL
AMOUNT
ADDITIONAL
AMOUNT
NEW TOTAL
Construction Contract
$4,593,375
$0
$4,593,375
Construction Administration
$409,920
$0
$409,920
Inspection and testing
$358,680
$0
$358,680
Contingencies
1 $1,024,800
$500,000
$1,524,800
TOTAL:
1 $6,386,775
$500,000
$6,886,775
Approval of the appropriation adjustment will recognize $225,000 in the Federal Clean Water
Protection Enterprise, Prior Year Fund Balance revenue account (No. 05717002-50001) and
appropriate same into the Federal Clean Water Protection Enterprise, Improvements Other Than
Building expenditure account (No. 05717640-66220) to fully fund the requested increase in
contingencies. The funds currently budgeted in the amount of $275,000 will be carried forward
from FY 2019-20 to FY 2020-21.
20A-2
Appropriation Adjustment and Addition of Contingency Funds to Lonerock Inc. Contract
September 15, 2020
Page 3
The following table summarizes the funds budgeted and available for expenditure in Fiscal Year
2020-21.
Fiscal Year
Accounting Unit-
Fund
F
Accounting Unit, Account
Amount
Account #
Description
Description
EXISTING PROJECT BUDGET
Federal Clean
Federal Clean Water
FY 2020-21
05717640-66220
Water Protection
Protection Enterprise,
$100,000
(16-6467)
Enterprise
Improvements Other Than
Building
05717660-66220
Federal Clean
Delhi Diversion Project,
FY 2020-21
(16-6467)
Water Protection
Improvements Other Than
$175,000
Enterprise
Building
APPROPRIATION ADJUSTMENT
Federal Clean
Federal Clean Water
FY 2020-21
05717640-66220
Water Protection
Protection Enterprise,
$225,000
(16-6467)
Enterprise
Improvements Other Than
Building
Total:
$500,000
Fiscal Impact Verified By: Kathryn Downs, CPA, Executive Director— Finance and Management
Services Agency
Submitted By: Nabil Saba, P.E., Executive Director — Public Works Agency
Exhibits: 1. Location Map
2. Cost Analysis
20A-3
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EXHIBIT 1
SANTA ANA
PW1 Project No. 16-6467: Santa Ana Delhi
�i Channel Diversion
PUBLIC WORKS MERCY
20A-4
COST ANALYSIS
CONSTRUCTION OF THE PROJECT NO. 16-6467: SANTA ANA DELHI CHANNEL
DIVERSION PROJECT
Construction Contract
$
4,593,375
Contract Administration
$
409,920
Inspection and Testing
$
358,680
Contingencies
$
1,024,800
Contingencies increase (This Action)
$
500,000
TOTAL ESTIMATED CONSTRUCTION COSTS
$
6,886,775
EXHIBIT 2
20A-5