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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 w_ PAULARINO AV Proposed PlpellnofSewer — == Connection h = BAKER ST t+ i i 03� A4LfLARINO CHANNEL (FQ3J a r.....aanan aauaa;naa.�eia lAi� A` 6 40 • •�i'n as *� 5P'Ot' ,ate ��q' CAL' 0 •�5 a soo t,aoa � / t i F i l Feel °o / ARLINGTON DRY �� f JOHYV tWAYNE cONravct uB arRroRr �.\ �):.7i 4'➢!] jai s'.p� ti - Q •�'� PROPOSED Legend �'� DIVERSION Q / Proposed Diversion Pipeline \ STRUCTUREv��a'1�t�P/ now Existingsewerline /• P��O�'°� �2 '� ..,Ran MCD Crainage Facilities f •` ��\.✓ — — City Boundaries Location Map 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