HomeMy WebLinkAboutItem 07 - Authorization to advertise Laguna Lake 2021 Maintenance Dredging Project Department Name: Public Works
Cost Center: 5002
For Agenda of: April 20, 2021
Placement: Consent
Estimated Time: N/A
FROM: Matt Horn, Public Works Director
Prepared By: Richard Burde, Engineer III
SUBJECT: AUTHORIZATION TO ADVERTISE LAGUNA LAKE 2021 MAINTENANCE
DREDGING PROJECT, SPECIFICATION NO. 91392
RECOMMENDATION
1. Approve the Project Plans (Attachment A) and Special Provisions (Attachment B) for the
Laguna Lake 2021 Maintenance Dredging Project; and
2. Authorize staff to advertise for bids; and
3. Authorize the City Manager or designee to award the construction contract for the bid total if
the lowest responsible bid is within the publicly disclosed funding amount of $650,000 and
the funding amount is consistent with the adopted 2021-23 budget appropriation for this
project.
DISCUSSION
Background
The City of San Luis Obispo owns the 344 -acre Laguna Lake Natural Reserve that includes most
of Laguna Lake, portions of Prefumo Creek and its outlet into the Lake, and adjacent upland
areas. In July of 2014, Council adopted the “Laguna Lake Natural Reserve Conservation Plan”
which outlined future management and conservation goals for Laguna Lake. On January 19,
2016, Council authorized MNS Engineers to produce construction documents for dredging of the
Lake. The design of this project is complete and all necessary permits from governing
environmental agencies to commence the dredging operation have been obtained. Permitting
agencies include Army Corp of Engineers, California Department of Fish and Wildlife, and t he
California Water Control Board. These permits are valid for a five -year period, starting in
August of 2019, and have an option for a one-time extension of five additional years.
In January of 2020 Council authorized City Staff to advertise the Laguna Lake Dredging project.
The project was advertised, and bids were received on April 9, 2020. The project was not
awarded due to the COVID pandemic and the anticipated decline in general fund revenue.
Council approved the deferral and de-appropriation of this project’s funding with the 2020-21
Supplemental Budget. With the approval of Measure G-20 by the City’s voters and an improved
economic outlook, staff is requesting that funding be appropriated in the upcoming 2021-23
Financial Plan to complete the project.
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The scope of work for the Laguna Lake 2021 Maintenance Dredging Project will be to remove
2,000 cubic yards (CY) of accumulated sediment at the mouth of the Prefumo Creek , which
discharges into the Lake from the south. In addition to this dredging operation, the project
includes approximately 90 linear feet (LF) of bank stabilization at the Lake’s main parking lot.
This will prevent further deterioration of the bank and prevent asphalt from eroding into the
Lake.
Although the permits received allow for up to 4,000 CY of annual sediment removal, City staff is
recommending limiting the total volume in the first year to 2,000 CY to determine the benefits of
this methodology with the intent of increasing volumes in subsequent years if the project work is
successful. The nature of this project is highly logistical, and staff intends to use the first year’s
dredging efforts to refine the work and increase efficiencies moving forward. Essentially, the
project is a pilot and staff is expecting to learn from it and leverage this knowledge for future
phases of dredging and bidding for this work.
Fresh water lake dredging work is a highly specialized in nature, and contractors that perform
this work are not commonly available in this area. For this reason, the bidding period for this
project is longer than typical with the hope of attracting multiple competitive bids from qualified
contractors.
Reason for Project Plan and Bid Release Now Ahead of 2021-23 Financial Plan Adoption
Due to the specialized nature of hydraulic dredging work staff feels that advertising the project
well ahead of the anticipated start of construction will attract the maximum number of qualified
bids. Environmental permits require that the dredging be completed during the dry season
between April 15 and November 1. Staff intends on starting construction in July. The project is
subject to 2021-23 CIP approval and funding allocations as well as engineers estimate.
Previous Council or Advisory Body Action
This project was originally identified in the 2015-17 Financial Plan that was approved by
Council. Subsequently, funding was appropriated in the 17-19 and 19-21 Financial Plans.
In addition to the above budget adoptions, Council took the following actions:
➢ August 18, 2015 – Authorize the issuance of a Request for Proposals (RFP) for phase I
of the Laguna Lake Dredging and Sediment Management Project in furtherance of the
City’s Laguna Lake Natural Reserve Conservation Plan
➢ January 19, 2015 – Award and approve a consultant services agreement with the firm
MNS Engineers, Inc. (“MNS”) in an amount not-to-exceed $445,000 for Laguna Lake
Dredging and Sediment Management
➢ September 20, 2016 - Receive and file the Preliminary Dredging Report (the “PDR”)
prepared by MNS Engineers, Inc. and, as further described in the PDR, direct staff to
proceed with further analysis and further recommendations.
➢ October 24, 2017 – Approve a Resolution to adopt a Mitigated Negative Declaration of
Environmental Impacts for the Laguna Lake Dredging and Sediment Management
Project.
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➢ May 8, 2019 – The City of San Luis Obispo received the California State Fish and
Wildlife 1600 Lake Alteration Agreement, permitting the alteration of the Lake’s bed.
➢ August 7, 2019 – The City of San Luis Obispo received the Army Corp of Engineers 404
permit allowing for the discharge of dredged material into the waters of the United States.
➢ September 11, 2019 – The City of San Luis Obispo received the 401 permit from the
California Water Control Board, which expands on the 404 permit received from the
Army Corp by outlining water quality guidelines that must be maintained during
construction.
➢ January 14, 2020 – City Council Authorized the advertisement of the 2020 Lake
Dredging Project.
➢ June 2, 2020 – Council gave the Public Works Department the authorization to reject
bids received on April 9th, 2020.
Policy Context
Per the October 2018 Purchasing Policy Update to the July 2015 Financial Management Manual,
Council approval is required for Public Projects that cost over $175,000.
Public Engagement
Public engagement was done during the initial identification of this project to be included in the
2015-17 Financial Plan and again during subsequent Financial Plans and preparation of the
construction documents.
In addition, a neighborhood organization referred to as “The Friends of Laguna Lake” has
continued to communicate with, and receive progress updates from, City staff. During this time
“The Friends of Laguna Lake” have acted as liaison between the City and community
stakeholders by providing progress updates regarding permitting, design, and construction
timelines. City staff anticipates that this level of communication will continue throughout the life
of the project.
CONCURRENCE
The Administration and Parks and Recreation departments concur with the proposed
recommendation outlined in this document.
ENVIRONMENTAL REVIEW
Council approved a Mitigated Negative Declaration for the project on October 24, 2017. All
environmental mitigations have been outlined in the permits that have been issued by the Army
Corp., California Water Board, and Department of Fish and Wildlife. No additional
environmental review is required.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2019-22
Funding Identified: Yes
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Fiscal Analysis:
Funding Sources Current FY Cost
Annualized
On-going Cost
Total Project
Cost
General Fund
State
Federal
Fees
Other: Local Sales Tax
Fund
$700,500
Total $700,500
201 Fund
Engineer's Estimate:$550,000 $550,000
Contingencies (20%)$110,000 $110,000
Total for Construction $660,000 $660,000
Monitoring Services:$20,000 $20,000
Water Quality Sampling:$20,000 $20,000
Printing:$500 $500
Total Project Cost $700,500 $700,500
Current Project Balance(91392):$111 $111
Current Project Balance(99110):$8,921 $8,921
Additional Funding w/ FY21/23 FP:$840,000 $840,000
Post Project Remaining Balance:$139,611 $139,611
Publicly Disclosed Funding Amount:$650,000
Laguna Lake 2021 Maintenance Dredging, Specification No. 91392
Laguna Lake Dredging and
Sediment Maintenance
Project Implementation
Account (91392)
Project Total
Costs
There is currently an available balance of $111 in the Laguna Lake Dredging and Sediment
Maintenance Project Implementation Account (Award 91392) and an available balance of $8,921
in the Laguna Lake Dredging Account (Award 99110) left over from the design phase of the
project. Additional funding of $840,000 from the Local Revenue Measure Fund is proposed in
the 2021-2023 Financial Plan Capital Improvement Plan to provide adequate funding for this
project and the ensure the project can be awarded without the need to return to Council for award
of the construction contract. Delays during the award phase could impact the City’s ability to
complete the project within the regulatory permit window. Furthermore, if funds remain after
project completion, those could be utilized for design services for refinement of project design
elements (if necessary) and continued payments of regulatory permit fees.
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While the construction estimate is $550,000, staff is requesting authorization to award a contract
up to the Publicly Disclosed Funding amount of $650,000 in compliance with Public Contract
Code Section 20103.8C.
If the budget is approved as proposed, the funding will be made available July 1, 2021 to
complete the summer 2021 dredging efforts. If funding appropriated by Council with the
FY21/23 Financial Plan is less than the proposed $700,500 total estimated project cost, staff may
need to modify the project scope to a new budget appropriation limit, which could delay the
project.
ALTERNATIVES
Deny Authorization to advertise. Council could choose to not authorize City staff to advertise
the dredging of Laguna Lake. This is not recommended since sediment will continue to
accumulate, requiring more frequent or larger more costly dredging operations in the future.
Additionally, dredging the Lake has been identified as an “Other I mportant Council Objective”.
Attachments:
a - COUNCIL READING FILE - Laguna Lake Dredging Plan Set 2021
b - COUNCIL READING FILES - Laguna Lake Dredging - 2021 Specification 100%
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