HomeMy WebLinkAbout01/21/2003, BUS 4 - WATER REUSE PROJECT - APPROVE PLANS AND SPECIFICATIONS councit 1 /21 /03
agcnaa Report N°!.
CITY OF SAN LUIS OBISPO
FROM: John Moss,Utilities Director
Prepared By: David Pierce,Water Projects Manager
SUBJECT: WATER REUSE PROJECT—APPROVE PLANS AND SPECIFICATIONS
CAO RECOMMENDATION
1) Approve plans and specifications for the Water Reuse Project - Water Reclamation Facility
Improvements Specification No. 99124-90553-A, 2) Approve plans and specifications for the
Water Reuse Project - Recycled Water Transmission/Distribution Pipelines Specification No.
99124-90553-B, 3) Authorize staff to solicit bids, 4) Authorize the CAO to award the contracts
if the total is within the engineer's estimate for the two projects combined of $13,626,790,
contingent upon approval by the State Water Resources Control Board (SWRCB), 5) Adjust the
project budget to $18,262,500,.and 6) Appropriate the additional funding of$3,770,700 from the
SWRCB loan proceeds.
DISCUSSION
Brown and Caldwell with Cannon Associates has completed the plans and specifications for the
Water Reuse Project which will be bid and constructed as two separate projects. Project A is for
the modifications at the Water Reclamation Facility. This project will provide facilities for the
addition of chemicals, for disinfection using chloramines, for storage, and for pumping. Project B
is for the pipeline that extends from the west end of Los Osos Valley Road to the East end of Tank
Farm Road along the route shown on the attached project map(attachment 1).
The following is the estimated schedule for the project
Bid Opening March 2003
Contract Award June 2003
Construction Start July 2003
Project Completion December 2004
FISCAL IMPACT
Engineers Estimate:
Water Reclamation Facility Improvements $5,640,000
Recycled Water Transmission/Distribution Pipelines $7,626,700
TOTAL $13,626,790
The Water Reuse Project CIP (FY 2001-2003 Financial Plan appendix B page 106) construction
account currently has a balance of$10,449,000. An additional $3,777,700 needs to be appropriated
Water Reuse Project—Approve Plans and Specifications
Page2
to fund the current construction estimate, including contingencies ($600,000).
Grant funds for this project have been awarded from the State of California to the City in the
amount of$3,390,000. In addition, the State has guaranteed a low interest State Revolving Fund
Loan for up to $12,600,000 (The exact amount of the loan will be determined by the construction
bids). At this time, staff estimates the interest on the loan will be about three percent.
The following cost estimate for the Water Reuse Project as of January 21, 2003 includes the
revised construction estimate, an increase for Construction Management (approved when the
City Council awarded a contract to Tetra Tech on September 3, 2002) and an increase in the
costs of the design contract with Brown and Caldwell reflecting both those addendum previously
approved by the City Council and addendum 4 for $467,000 to provide design engineer services
during construction. (Addendum No. 4 also on this Council Agenda for January 21, 2003).
Project Costs (1121703)
Approved
Funding Additional Total
Appropriation
Environmental eview215,000
Environmental Mitigation 1,070,000 1,070,000
User Site Modification 502,939 502,939
Design 1,012,310 467,000 * 1,479,310
Construction 9,849,090 3,777,700 13,626,790
Construction Management 768,410 768,410
Contingency 600,000 1 600,000
o > >
Project Funding(1121103)
Approved Additional Total
Funding Appropriation
State of Califomia
Grant Funds 3,390,000 3,390,000
Low Interest Loan Funds 8,410,000 3,777,700 12,187,700
Water Fund 2,217,749 467,000 * 2,684,749
o 9449
(*This item is considered on separate report"Water Reuse Project—Office Engineering Services")
To date more than $1.5 million has been spent from the Water Fund on this project. The annual
analysis of the water fund provided for the payment of the project debt service, currently
estimated at $846,918, based on a three percent interest rate. While the estimated debt service is
more than was calculated in last year's fund analysis, the water fund will be able to support this
payment. A combination of factors (first SRF repayment due in 2005; reduction in interest
payment from the recent refinancing of the water bonds; other interest payment for master plan
improvements likely not coming on line in 2005 as assumed in analysis, as well as the ability of
the water fund to pay directly for some of the improvements) make it likely that the next water
`'T—a
Water Reuse Project—Approve Plans and Specifications
Page3 .
fund analysis will show that rates will not increase more than forecasted over the near term to
bring in this new water supply. Rates were estimated to increase by only about three percent.
The water fund worldng.capital was estimated at about $4.8 million at the conclusion of the
2002-03 fiscal year. The proposed actions will not reduce the water fund working capital
balance below the minimum level of 20% of operating expenditures ($1,007,000).
ATTACHMENTS
1. Project Map
AVAILABLE FOR REVIEW IN THE COUNCIL OFFICE .
1. Water Reuse Project - Water Reclamation Facility Improvements
Specification No. 9912490553-A
2. Water Reuse Project -Recycled Water Transmission/Distribution Pipelines
Specification No. 9912490553-B
3. Engineer's Estimate
\\879_MORRO\SYS\GROUPS\UTIL\Council Agenda Reports\2003 Council Agenda Reports\WRP_Approve_P&S_CARdoc
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