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HomeMy WebLinkAbout08-16-2016 Item 05 Margarita Lift Station Replacement Meeting Date: 8/16/2016 FROM: Carrie Mattingly, Utilities Director Prepared By: Jennifer Metz, Utilities Project Manager SUBJECT: MARGARITA LIFT STATION REPLACEMENT, SPECIFICATION NO. 91214 RECOMMENDATION 1. Approve plans and specifications for the Margarita Lift Station Replacement, Specification No. 91214 and authorize staff to advertise for bids; and 2. Approve a Budget Amendment Request to transfer $152,000 from Sewer Fund Working Capital to the construction phase of the project; and 3. Authorize the City Manager to award the contract if the lowest responsible bid is within the Engineer's estimate of $762,000. DISCUSSION Background The Margarita Lift Station, and its associated 230 feet of six-inch cast iron force main, serves properties east of South Higuera Street adjacent to Margarita Avenue and was put into service in 1971. At 45 years old, it is operating beyond its life expectancy. Due to the age and condition of the lift station, budget for the design of a replacement station was identified in the Capital Program in the 2013-15 Financial Plan. The City Council authorized a request for proposals and the City Manager awarded a contract for design services to replace the lift station in November 2013 and March 2014, respectively. Construction funding for the project was identified in the 2015-17 Financial Plan, Capital Improvement Plan. The existing Margarita Lift Station is located along the Margarita Avenue street frontage adjacent to the Margarita Apartments which are owned and managed by the San Luis Obispo Housing Authority (HASLO). The new Margarita Lift Station will be located on an easement obtained by the City from HASLO. The City and HASLO collaborated on the project’s fencing, lighting, sound attenuation, service access, and the connection of recycled water for irrigation on the property. The old station will be abandoned and the property upon which it was located will become part of the Margarita Apartments landscaping. ENVIRONMENTAL REVIEW This project is categorically exempt from the California Environmental Quality Act pursuant to CEQA Guidelines section 15302 (Replacement or Reconstruction of existing structures and facilities). 5 Packet Pg. 62 CONCURRENCES The Public Works Department has reviewed the plans and special provisions and provided comments that have been incorporated; Community Development concurs with the environmental review findings. FISCAL IMPACT $950,000 was budgeted for design, easement acquisition, construction, and construction management services from the Sewer Fund for this project in the 2015-17 Financial Plan (page 3-67 of the Capital Improvement Plan). Additional funding in the amount of $152,000 is required to support updated cost estimates for construction and construction management services due to the project’s complexity including limited site area and duration of equipment procurement. The Engineer’s estimate for project construction is $762,000. Original Project Budget $950,000 Increased Construction Estimate (including contingencies) $127,500 Increased Construction Management Estimate $24,500 Proposed Project Budget $1,102,000 Additional funding for the proposed project budget is recommended to come from Sewer Fund Working Capital. The Sewer Fund Working Capital balance as of July 15, 2016 is $12,030,620. ALTERNATIVES Deny or defer approval to advertise. The City Council may choose to deny or defer the approval to advertise this project. If Council elects to defer the project, Utilities would continue to work to maintain the station in operable condition. Efforts already made to prolong the life of the station include repairs to the floor of the sump pump due to leaks in 1995; cathodic protection to extend the life of the structure in 1996; additional leaks were repaired on the floor and walls in 2010. If the station is run to failure requiring emergency replacement, emergency construction costs and impacts to the adjacent housing and the environment would be significant. Attachments: a - Council Reading File - Margarita Lift Station Planset-Full Size 051016 b - Council Reading File - 100% Special Provisions and Tech Specs 5 Packet Pg. 63