HomeMy WebLinkAboutItem 5j. Award the Construction Contract for Reservoir No. 2 Cover Replacement Project (Spec. No. 2000034-2) Item 5j
Department: Public Works
Cost Center: 6004
For Agenda of: 12/5/2023
Placement: Consent
Estimated Time: N/A
FROM: Matt Horn, Public Works Director
Prepared By: Anthony Ramos, Engineer III
SUBJECT: AWARD A CONSTRUCTION CONTRACT FOR THE RESERVOIR NO. 2
COVER REPLACEMENT PROJECT, SPECIFICATION 2000034-2
RECOMMENDATION
1. Authorize the City Manager to award a Construction Contract to Layfield USA
Corporation in the amount of $2,891,917.26 for the Reservoir No. 2 Cover
Replacement project, Specification Number 2000034-2; and
2. Authorize the appropriation and budget transfers to the Reservoir No. 2 Cover
Replacement Project account (2000034) as follows:
a. $516,031 from Water Fund Unreserved Working Capital; and
b. $60,379.26 from Water Fund Undesignated Capital (Completed Projects); and
3. Authorize the City Engineer to approve Contract Change Orders up to the available
project budget; and
4. Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San
Luis Obispo, California, authorizing use of Unreserved Working Capital Fund to
support the Reservoir No. 2 Cover Replacement, Specification Number 2000034 -2.”
POLICY CONTEXT
Per the May 16, 2023 Council Agenda Report, the Reservoir No. 2 Cover Replacement
Project (Project) must be awarded by Council if the construction contract is higher than
the publicly disclosed funding amount.
DISCUSSION
Background
Reservoir 2 is the City’s largest treated water storage reservoir with a capacity of
approximately 7.50 million gallons and provides supply for both drinking and firefighting
uses. The reinforced concrete reservoir has been in operation since its original
construction in the early 1940s. The reservoir has two separate basins that include a
floating cover and plastic liner for each basin designed to protect the water from
contamination and reduce evaporation from the reservoir. The Project will replace the
existing floating cover and liner that have reached the end of their service life and upgrade
water quality sampling instrumentation and the chlorine feed system.
Page 273 of 325
Item 5j
On May 16, 2023, City Council authorized the invitation of bids for the Reservoir No. 2
Cover Replacement. On July 20, 2023, a bid opening was held where one bid was
received by Layfield USA Corporation at a price of $3,264,881.00 (Attachment A).
On September 22, 2023, the City Manager authorized staff to reject all bids and re-
advertise the Project (Attachment B). After review of the bid results from the first project
advertisement, staff split the bid items into a base bid and an additive alternative “A”. The
base bid includes all work required to replace the floating cover, reservoir liner, and
stormwater discharge pumps. Additive alternative “A” includes the chlorine analyzer
system, chemical metering pumps and delivery system, tank mixers, the instrumentation
and controls, and the electrical work required to complete these items. The goal of the
base bid and additive alternative was to solicit responsive bids within the publicly
disclosed funding amount to begin repairs at the beginning of next year. While the intent
of this action was to complete all work items of the original project plan with the awarded
contract, the priority is to replace the cover and liner since the existing cover and liner will
likely not last another year.
The project went out to bid a second time on October 12, 202 3, including the base bid
and an additive alternative A. On November 2, 2023, a bid opening was held where a bid
was submitted by Layfield USA Corporation and came in at a price of $2,891,917.26 for
the total bid (Base Bid + Add. Alt. “A”) which was over t he engineer's estimate of
$2,403,000 for the total bid (Attachment C).
Table 1: Bid results for bid opening on November 2, 2023
Engineer’s Estimate Layfield USA Corporation
Base Bid $2,232,000 $2,498,107.90
Additive Alternative A $171,000 $393,809.36
Total Bid (Base + Add Alt. “A”) $2,403,000 $2,891,917.26
The bid price may be attributed to overall construction cost escalation as well as a lack of
competitiveness in this specialized area of construction as demonstrated by the number
of bids received for both bid openings.
Although the bid from Layfield USA Corporation was over the engineer’s estimate, staff
is recommending the award of the contract (Attachment D) and transferring $516,031
from Water Fund Unreserved Working Capital to the project account and $60,379.26 from
Water Fund Undesignated Capital (Completed Projects) to the project account to fund the
Project as described in the Fiscal Impact section of this report. Staff recommends award
of the Project to ensure the cover is replaced before November 2024 due to seasonal
demands of the water treatment system.
Previous Council or Advisory Body Action
On May 16, 2023, the City Council authorized staff to advertise for bids for the Reservoir
No. 2 Cover Replacement project. Award of the project contract requires consideration
and approval by Council if the construction bids are higher than the publicly disclosed
funding limit.
Page 274 of 325
Item 5j
Public Engagement
This project was included in the public engagement process as a part of the 2021 -23
Financial Plan. No specific public engagement was performed for this project.
CONCURRENCE
The Public Works Department and Utilities Department concur with the recommendations
in this report.
ENVIRONMENTAL REVIEW
This project is categorically exempt from environmental review pursuant to section 15301
of the CEQA Guidelines (Existing Facilities) since it is a maintenance and replacement
project. A Notice of Exemption has been filed through the Community Development
Department.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2023-24
Funding Identified: Yes
Fiscal Analysis:
Funding Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund
State
Federal
Fees
Water Fund –
Reservoir No. 2
Cover Replacement
(2000034, Task 01)
$2,752,007 $0 $0
Water Fund –
Unreserved
Working Capital
$12,545,850 $516,031 $12,029,819
Water Fund –
Undesignated
Capital (Completed
Projects)
$296,224.24 $60,379.26 $235,844.98
Total $15,594,081.24 $576,410.26 $12,265,663.98 $0
Page 275 of 325
Item 5j
Reservoir 2 Cover Replacement, Specification No. 2000034-2
Reservoir
Maintenance
Account
(2000034, Task
01)
Unreserved
Working
Capital
Water Completed
Projects
(601.9501.71501)
Project Total
Costs
Total Project Bid $2,315,507 $516,031 $60,379.26 $2,891,917.26
Contingencies (15%) $434,000 $0 $0 $434,000
Printing: $2,500 $0 $0 $2,500
Total Project Cost $2,752,007 $516,031 $60,379.26 $3,328,417.26
Current Project Balance $2,752,007 $12,545,850 $296,224.24
Remaining Balance $0 $12,029,819 $235,844.98
The Reservoir 2 Cover Replacement Project had a $714,126 project balance after
appropriations in FY 2019-20 and FY 2020-21. Additional funding was appropriated in FY
2021-22 for $10,000, in FY 2022-23 for $950,000, and in FY 2023-24 for $200,000. To
support the project cost, staff transferred $999,279.70 from the Water Fund Undesignated
Capital account based on the available balance described in the Council Report to
advertise the project (Item 6h, 5/16/2023). After all design expenses have been expended
or obligated, the Reservoir 2 Cover Replacement Project has an available balance of
$2,752,007.
Staff are requesting approval for $576,410.26 more for the Reservoir 2 Cover
Replacement project, due to bids exceeding the publicly disclosed funding limit. Staff are
proposing that this additional funding be transferred from the following accounts:
1. $516,031 is being requested from Water Fund Unreserved Working Capital (Draft
Resolution - Attachment E). This amount will be offset by a deferral of the Edna
Saddle Water Tank Coating project identified in the 2023-25 Financial Plan for
FY2024-25. Resolution 11440 previously appropriated $483,969 from Water Fund
Unreserved Working Capital for the Johnson Waterline Replacement project and
was also offset by Edna Saddle Water Tank Coating project.
2. $60,379.26 is being requested from the Water Fund Undesignated Capital
account, which represents cost savings from projects that have been completed
underbudget.
Page 276 of 325
Item 5j
ALTERNATIVES
1. Deny the award of the construction contract and defer the project for re-
advertisement in the Winter of 2024. The City Council may choose to not award
the contract at this time, reject all bids, and defer the project for re-advertisement in
Winter of 2024. Staff does not recommend this option as it would further delay
construction and risk catastrophic failure. The risk also includes that project costs
continue to rise resulting in an increased bid price.
2. Deny the award of the construction contract and cancel or defer the project to
a future budget cycle. The City Council may choose to not award the contract, reject
all bids, cancel the project entirely, or defer the project for a future budget cycle. Staff
does not recommend this option because the condition of the floating cover is in poor
condition and needs to be repaired prior to failure.
ATTACHMENTS
A - Bid Results from 07-20-2023
B - City Manager Report Authorizing Re-advertising
C - Bid Results from 11-02-2023
D - Draft Agreement with Layfield USA Corporation
E - Draft Resolution authorizing use of Water Fund Unreserved Working Capital to
support the Reservoir No. 2 Cover Replacement
Page 277 of 325
Page 278 of 325
Item No.SS Item Description Unit of Measure Estimated Quantity Unit Price Total
1 7, 013233,
019310 GENERAL CONDITIONS/MOBILIZATION LS 1 69,548.00$ 69,548.00$
2 334700,
334713 REMOVE AND DISPOSE OF EXISTING LINER AND COVER LS 1 185,328.00$ 185,328.00$
3 334713 CONDUCTIVE GEOTEXTILE UNDERLAYMENT SYSTEM LS 1 153,985.00$ 153,985.00$
4 334713 RESERVOIR LINER SYSTEM LS 1 386,796.00$ 386,796.00$
5 334700
FLOATING RESERVOIR COVER WITH EIGHT (8) ACCESS HATCHES, AND
RAINWATER COLLECTION/DISPOSAL SYSTEM LS 1 1,275,361.00$ 1,275,361.00$
6 431000 TANK MIXER EA 2 36,040.50$ 72,081.00$
7 TS DIV. 26,
TS DIV. 40 CHEMICAL METERING PUMPS AND DELIVER SYSTEM LS 1 220,187.00$ 220,187.00$
8 TS DIV. 26,
TS DIV. 40 CHLORINE ANALYZER SYSTEM LS 1 63,157.00$ 63,157.00$
9 TS DIV. 26 ELECTRICAL LS 1 461,410.00$ 461,410.00$
10 TS DIV. 26,
TS DIV. 40 INSTRUMENTATION AND CONTROLS LS 1 -$ -$
11 334700 FLOATING COVER INFLATIN/INSPECTION LS 1 184,713.00$ 184,713.00$
12 334700 DISINFECTION LS 1 91,005.00$ 91,005.00$
13 7 OSHA COMPLIANCE LS 1 -$ -$
14 334700 REPLACE CONCRETE ANCHOR BOLTS FOR LINER/COVER EA 50 162.50$ 8,125.00$
15 334700 REPLACE SS BATTEN BARS LF 50 41.50$ 2,075.00$
16 030130 CONCRETE CRACK REPAIR LF 50 41.00$ 2,050.00$
17 030130 REPAIR OF SPALLED CONCRETE TO A DEPTH OF TWO (2) INCHES SQFT 100 236.50$ 23,650.00$
18 15 REPLACEMENT FENCE POSTS EA 20 3,270.50$ 65,410.00$
Layfield
BASE BID ITEMS
3,264,881.00$ TOTAL PROJECT BID
Page 279 of 325
Page 280 of 325
City of San Luis Obispo, City Manager Report
Final City Manager Approval Approver Name Date Approved
ACM Community Services WM 9/21/23
Reviewer Routing List Reviewer Name Date Reviewed
Finance EJ 9/22/23
City Attorney SMS (please see
approval note)
9/18/23
Department Analyst Nicole Lindner 9/17/23
City Engineer Brian Nelson 9/15/23
September 7, 2023
FROM: Matt Horn, Director of Public Works MH 9/17/2023
PREPARED BY: Anthony Ramos, Engineer III
SUBJECT: Authorization to Reject All Bids and Re-Advertise the Reservoir No. 2
Cover Replacement Project, Specification No. 2000034-2
RECOMMENDATION
Reject all bids and authorize staff to re-advertise the Reservoir No. 2 Cover Replacement Project for
bids with a Base Bid and Additive Alternative.
DISCUSSION
On May 16, 2023, the City Council authorized inviting bids (Attachment A) for the Reservoir No. 2
Cover Replacement Project, Specification Number 2000034-1. The same action also authorized the
City Manager to award the contract if the lowest bid was within the publicly disclosed funding
amount of $2,500,000. One bid was received (Attachment B) and opened on July 26, 2023; Layfield
USA Corporation was the only bidder with a bid of $3,264,881, which is greater than the Publicly
Disclosed Funding Amount by $764,881.
Staff is recommending that the bid from Layfield USA Corporation be rejected and the project be
re-advertised in September of 2023 with a Base Bid and an Additive Alternative “A” in order to
provide additional flexibility to award the project. After bid opening, staff will prepare a
recommendation to award the construction contract if the lowest responsible bid is within the
publicly disclosed funding amount of $2,500,000 authorized by Council using either:
· TOTAL PROJECT BID, if bid for Base Bid + Add. Alt. “A” is less than $2,500,000; or
· BASE BID, if Base Bid is less than $2,500,000 and Base Bid + Add. Alt. “A” is greater
than $2,500,000.
Page 281 of 325
Authorization to Reject and Re-Advertise Bids - Res 2 Cover Replacement Page 2
Due to the deteriorating condition of the reservoir’s floating cover, the Base Bid will include all
work required to replace the floating cover, reservoir liner, and stormwater discharge pumps. The
base bid will also include any electrical and mechanical work within the reservoir that requires the
reservoir to be drained. The Additive Alternative will include the chlorine analyzer system,
chemical metering pumps and delivery system, tank mixers, the instrumentation and controls, and
the electrical work required to complete these items. These items came in significantly higher than
the Engineer’s Estimate, so staff believes that separating them into an Additive Alternative will
solicit responsive bids within the publicly disclosed funding amount to allow staff to begin needed
repairs at the beginning of this next year. The goal is that all elements of the original project plan be
completed under the awarded contract, but the priority (as made clear in the Council Agenda
Report) is to replace the cover and liner since staff does not believe the existing cover and liner will
last another year.
Staff believes this to be the most expeditious route in order to ensure construction can start in early
February and be complete by the 2024 winter season.
FISCAL IMPACT
There are no fiscal impacts associated with rejecting all bids. Completing the project fiscal
impacts are unchanged as detailed in the Council Agenda Report (See Attachment A).
ALTERNATIVES
Reject All Bids and Cancel Project – The City Manager could reject all bids and decide not to
re-advertise. Staff advises against this action, as the condition of the floating cover is in poor
condition and needs to be repaired prior to failure.
ATTACHMENTS
1. Attachment A – CAR to Advertise
2. Attachment B – Bid Results
https://slocitycloud.sharepoint.com/sites/SLOHub/Administration/Documents/City Manager Reports/Public Works/2023/CIP
Engineering/2000034-2 Reservoir No. 2 Cover Replacement - Reject Bids CMR to Reject and Re-Advertise - Spec 2000034-2.docx
Page 282 of 325
Item No. SS Item Description Unit of Measure Estimated Quantity Unit Price Total
1 7, 013233,
019310 GENERAL CONDITIONS/MOBILIZATION LS 1 14,109.57$ 14,109.57$
2 334700,
334713 REMOVE AND DISPOSE OF EXISTING LINER AND COVER LS 1 211,552.43$ 211,552.43$
3 334713 CONDUCTIVE GEOTEXTILE UNDERLAYMENT SYSTEM LS 1 137,126.65$ 137,126.65$
4 334713 RESERVOIR LINER SYSTEM LS 1 376,039.10$ 376,039.10$
5 334700
FLOATING RESERVOIR COVER WITH EIGHT (8) ACCESS HATCHES, AND
RAINWATER COLLECTION/DISPOSAL SYSTEM LS 1 1,391,644.86$ 1,391,644.86$
6 7 OSHA COMPLIANCE LS 1 -$ -$
7 334700 CONCRETE ANCHOR BOLTS FOR LINER/COVER EA 50 159.99$ 7,999.50$
8 334700 SS BATTEN BARS LF 50 39.43$ 1,971.50$
9 30130 CONCRETE CRACK REPAIR LF 50 38.40$ 1,920.00$
10 30130 REPAIR OF SPALLED CONCRETE TO A DEPTH OF TWO (2) INCHES SQFT 100 225.35$ 22,535.00$
11 15 FENCE POSTS EA 20 3,221.55$ 64,431.00$
12 334700 FLOATING COVER INFLATION/INSPECTION LS 1 179,053.99$ 179,053.99$
13 334700 DISINFECTION LS 1 89,724.30$ 89,724.30$
14 431000 TANK MIXER EA 2 59,335.19$ 118,670.38$
15 TS DIV. 26,
TS DIV. 40 CHEMICAL METERING PUMPS AND DELIVER SYSTEM LS 1 213,547.25$ 213,547.25$
16 TS DIV. 26,
TS DIV. 40 CHLORINE ANALYZER SYSTEM LS 1 61,591.73$ 61,591.73$
Layfield
BASE BID ITEMS
2,891,917.26$ TOTAL PROJECT BID
BASE BID 2,498,107.90$
ADDITIVE ALTERNATIVE A 393,809.36$
Page 283 of 325
Page 284 of 325
AGREEMENT
THIS AGREEMENT, made on _________________________, by and between the City of
San Luis Obispo, a municipal corporation and charter city, San Luis Obispo County,
California (hereinafter called the Owner) and LAYFIELD USA CORPORATION
(hereinafter called the Contractor).
WITNESSETH:
That the Owner and the Contractor for the consideration stated herein agree as follows:
ARTICLE 1, SCOPE OF WORK: The Contractor shall perform everything required to be
performed, shall provide and furnish all of the labor, materials, necessary tools,
expendable equipment, and all utility and transportation services required to complete all
the work of construction of
RESERVOIR NO. 2 COVER REPLACEMENT PROJECT, SPEC NO. 2000034-2
in strict compliance with the plans and specifications therefor, including any and all
Addenda, adopted by the Owner, in strict compliance with the Contract Documents
hereinafter enumerated.
It is agreed that said labor, materials, tools, equipment, and services shall be furnished and
said work performed and completed under the direction and supervision and subject to the
approval of the Owner or its authorized representatives.
ARTICLE II, CONTRACT PRICE: The Owner shall pay the Contractor as full consideration
for the faithful performance of this Contract, subject to any additions or deductions as
provided in the Contract Documents, the contract prices as follows:
Item
No.
Item
Description
Unit of
Measure
Estimated
Quantity
Item Price
(in figures)
Total
(in figures)
BASE BID ITEMS
1 GENERAL
CONDITIONS/MOBILIZATION
LS 1 --- $14,109.57
2 REMOVE AND DISPOSE OF
EXISTING LINER AND COVER
LS 1 --- $211,552.43
3 CONDUCTIVE GEOTEXTILE
UNDERLAYMENT SYSTEM
LS 1 --- $137,126.65
4 RESERVOIR LINER SYSTEM LS 1 --- $376,039.10
5 FLOATING RESERVOIR COVER
WITH EIGHT (8) ACCESS
HATCHES, AND RAINWATER
COLLECTION/DISPOSAL SYSTEM
LS 1 --- $1,391,644.86
6 OSHA COMPLIANCE LS 1 --- $0
7 CONCRETE ANCHOR BOLTS FOR
LINER/COVER
EA 50 $159.99 $7,999.50
DocuSign Envelope ID: 96E97ED1-DB2A-4537-A28B-18BF7DB4E6CC
Page 285 of 325
8 SS BATEN BARS LF 50 $39.43 $1,971.50
9 CONCRETE CRACK REPAIR LF 50 $38.40 $1,920.00
10 REPAIR OF SPALLED CONCRETE
TO A DEPTH OF TWO (2) INCHES
SQFT 100 $225.35 $22,535.00
11 FENCE POSTS EA 20 $3,221.55 $64,431.00
12 FLOATING COVER
INFLATION/INSPECTION
LS 1 --- $179,053.99
13 DISINFECTION LS 1 --- $89,724.30
Base Bid $2,498,107.90
Item
No.
Item
Description
Unit of
Measure
Estimated
Quantity
Item Price
(in figures)
Total
(in figures)
ADDITIVE ALTERNATIVE A BID ITEMS
14 TANK MIXER EA 2 $59,335.19 $118,670.38
15 CHEMICAL METERING PUMPS
AND DELIVERY SYSTEM
LS 1 --- $213,547.25
16 CHLORINE ANALYZER SYSTEM LS 1 --- $61,591.73
Additive Alternative A $393,809.36
Base Bid $2,498,107.90
BID TOTAL: $2,891,917.26
Payments are to be made to the Contractor in compliance with and subject to the provisions
embodied in the documents made a part of this Contract.
Should any dispute arise respecting the true value of any work omitted, or of any extra work
which the Contractor may be required to do, or respecting the size of any payment to the
Contractor, during the performance of this Contract, said dispute shall be decided by the
Owner and its decision shall be final, and conclusive.
ARTICLE III, COMPONENT PARTS OF THIS CONTRACT: The Contract consists of the
following documents, all of which are as fully a part thereof as if herein set out in full, and if
not attached, as if hereto attached:
1. Notice to Bidders and Information for Bidders
2. Standard Specifications and Engineering Standards
3. Special Provisions, any Addenda, Plans and Contract Change Orders
4. Caltrans Standard Specifications and Standard Plans 2015
5. Accepted Bid and Bid Bond
6. List of Subcontractors
7. Public Contract Code Sections 10285.1 Statement
8. Public Contract Code Section 10162 Questionnaire
9. Public Contract Code Section 10232 Statement
10. Labor Code Section 1725.5 Statements
DocuSign Envelope ID: 96E97ED1-DB2A-4537-A28B-18BF7DB4E6CC
Page 286 of 325
11. Bidder Acknowledgements
12. Qualifications
13. Non-collusion Declaration
14. Agreement and Bonds
15. Insurance Requirements and Forms
ARTICLE IV INDEMNIFICATION: The Contractor shall indemnify, defend with legal
counsel approved by City, and hold harmless City, its officers, officials, employees and
volunteers from and against all liability, loss, damage, expense, cost (including without
limitation reasonable legal counsel fees, expert fees and all other costs and fees of
litigation) of every nature arising out of or in connection with the Contractor’s negligence,
recklessness or willful misconduct in the performance of work hereunder or its failure to
comply with any of its obligations contained in this Agreement, except such loss or damage
which is caused by the sole or active negligence or willful misconduct of the City. Should
conflict of interest principles preclude a single legal counsel from representing both the City
and the Contractor, or should the City otherwise find the Contractor’s legal counsel
unacceptable, then the Contractor shall reimburse the City its costs of defense, including
without limitation reasonable legal counsel fees, expert fees and all other costs and fees of
litigation. The Contractor shall promptly pay any final judgment rendered against the City
(and its officers, officials, employees and volunteers) with respect to claims determined by
a trier of fact to have been the result of the Contractor’s negligent, reckless or wrongful
performance. It is expressly understood and agreed that the foregoing provisions are
intended to be as broad and inclusive as is permitted by the law of the State of California
and will survive termination of this Agreement.
The Contractor obligations under this section apply regardless of whether such claim,
charge, damage, demand, action, proceeding, loss, stop notice, cost, expense, judgment,
civil fine or penalty, or liability was caused in part or contributed to by an Indemnitee.
However, without affecting the rights of the City under any provision of this agreement, the
Contractor shall not be required to indemnify and hold harmless the City for liability
attributable to the active negligence of City, provided such active negligence is determined
by agreement between the parties or by the findings of a court of competent jurisdiction. In
instances where the City is shown to have been actively negligent and where the City’s
active negligence accounts for only a percentage of the liability involved, the obligation of
the Contractor will be for that entire portion or percentage of liability not attributable to the
active negligence of the City.
ARTICLE V. It is further expressly agreed by and between the parties hereto that should
there be any conflict between the terms of this instrument and the bid of said Contractor,
then this instrument shall control and nothing herein shall be considered as an acceptance
of the said terms of said bid conflicting herewith.
IN WITNESS WHEREOF, the parties to these presents have hereunto set their hands this
year and date first above written.
DocuSign Envelope ID: 96E97ED1-DB2A-4537-A28B-18BF7DB4E6CC
Page 287 of 325
ATTEST:
_____________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM
CITY OF SAN LUIS OBISPO
A Municipal Corporation
_______________________________
Erica A. Stewart
Mayor
CONTRACTOR:
Layfield USA Corporation
________________________________
J. Christine Dietrick
City Attorney
________________________________
Robert Rempel
Vice President
________________________________
Steve Palubiski
Chief Financial Officer
DocuSign Envelope ID: 96E97ED1-DB2A-4537-A28B-18BF7DB4E6CC
Page 288 of 325
R ______
RESOLUTION NO. _____ (2023 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AUTHORIZING USE OF UNRESERVED
WORKING CAPITAL FUND TO SUPPORT THE RESERVOIR NO. 2
COVER REPLACEMENT PROJECT, SPECIFICATION NUMBER
2000034-2
WHEREAS, in June of 2019, City Council approved the 2019-21 Financial Plan,
which identified funds for Reservoir Maintenance, including the Reservoir No. 2 Cover
Replacement Project (Project) and a balance of $714,146 was carried forward to the
Project account for design and construction efforts; and
WHEREAS, in June of 2021, City Council approved the 2021-23 Financial Plan
which identified the Reservoir No. 2 Cover Replacement project with a budget of
$960,000 for design and construction efforts; and
WHEREAS, in June of 2023, City Council approved the 2023-25 Financial Plan
which identified the Reservoir No. 2 Cover Replacement project with the budget of
$200,000 to support construction efforts; and
WHEREAS, in May of 2023, staff transferred $999,279.70 from the Water Fund
Undesignated Capital account to support construction efforts for the Reservoir No. 2
Cover Replacement project (Project); and
WHEREAS, the Project total cost is estimated to be $3,328,417.26 and the
available project balance is $2,752,007, therefore, an additional $576,410.26 is needed
to fund the construction contract; and
WHEREAS, to fund the Project, a transfer of $60,379.26 from the Water Fund
Undesignated Capital account will be made, which has a balance of $296,224.24 to
supplement partial funding needed; and
WHEREAS, to provide funding to fully support the total construction contract for the
Project, staff is recommending City Council approve the use of an additional $516,031 from
the Unreserved Working Capital Fund; and
WHEREAS, a balance of $12,545,850 is available in the Unreserved Working
Capital fund.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
Page 289 of 325
Resolution No. _____ (2023 Series) Page 2
R ______
SECTION 1. The City Council appropriates $516,031 from the Unreserved
Working Capital Fund to the Reservoir No. 2 Cover Replacement project account
2000034.
Upon motion of _______________________, seconded by
_______________________, and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _____________________ 2023.
___________________________
Mayor Erica A. Stewart
ATTEST:
__________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
__________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ______________________.
___________________________
Teresa Purrington
City Clerk
Page 290 of 325