REPORT TO THE CITY COUNCIL
September 15, 2016
FROM: THOMAS C. ESQUEDA, Director
Department of Public Utilities
THROUGH: MICHAEL CARBAJAL, Planning Manager
Department of Public Utilities - Water Division
BY: GLENN A. KNAPP, Professional Engineer
Department of Public Utilities - Water Division
SUBJECT
Title
Approve Contract Change Order No. 1 to the contract to reduce the original contract price by $11,442 for a final contract price of $10,077,577 with Mountain Cascade Inc. for the T4 3 million gallon water storage tank and booster pump station project. (Council District 3)
Body
RECOMMENDATIONS
Staff recommends that Council approve Contract Change Order No. 1 to the Contract with Mountain Cascade Inc. (MCI) for the T4 3 Million Gallon Water Storage Tank and Booster Pump Station project to add 195 calendar days to the Contract Time resulting in a revised Substantial Completion Date of May 10, 2016, and to reduce the Original Contract Price by $11,442 for a Final Contract Price of $10,077,577.
EXECUTIVE SUMMARY
The downtown area requires additional drinking water supplies and fire suppression capability to support current and planned occupancy. The T4 3 Million Gallon Water Storage Tank and Booster Pump Station will operate in conjunction with transmission mains to import water supply from west Fresno, including the South East Surface Water Treatment Facility, into downtown. The City entered into a contract with MCI on July 9, 2014 to build the project for a contract price of $10,089,000 with a Substantial Completion date of October 28, 2015. Early in construction, an undocumented underground storage tank was found on the project site. Removal and remediation activities resulted in a 163 calendar day delay to construction completion. This delay, plus the approved 32 Adverse Weather Days, results in a revised Substantially Completion date of May 10, 2016. The facility was placed in service prior to the revised Substantially Completion date, so no liquidated damages are to be assessed. The final reconciliation of all approved changes results in a net decrease to the Original Contract Price of $11,442 for a Final Contract Price of $10,077,577.
BACKGROUND
In 2005, the Department Public Utilities, Water Division staff began exploring water supply options to adequately and efficiently increase water supply and fire suppression capability in the downtown area. Existing groundwater contamination and proposed redevelopment activity has limited site acquisition for new water wells. Due to these limitations, the Water Division determined it was necessary to construct a potable water storage tank and booster pump station that will operate in conjunction with water transmission mains to import water supply from west Fresno into downtown. This concept is further enhanced by the current construction of the new South East Surface Water Treatment Facility and Regional Transmission Mains under the Recharge Fresno Program.
On July 9, 2014 the City entered into a contract with MCI to construct the T4 3 Million Gallon Water Storage Tank and Booster Pump Station for a contract price of $10,089,000. Notice to Proceed was issued on August 8, 2014 with a Substantial Completion date of October 28, 2015, and on September 25, 2014, an undocumented chemical underground storage tank was found on the site by MCI. A temporary Stop Work Order was issued to MCI suspending work in the vicinity of the underground storage tank, and the Stop Work Order was lifted in May 2015 after all regulatory agencies had signed off on the City’s remediation efforts. The City and MCI agreed that the total time impact of the Stop Work Order is 163 calendar days of delay. Change Order No. 1 adds 163 calendar days to the contract time as well as 32 approved Adverse Weather Days, resulting in a revised Substantial Completion date of May 10, 2016.
MCI achieved Substantial Completion and placed the T4 facility in service on May 10, 2016 resulting in no liquidated damages begin assessed. A final reconciliation of all contract quantities and miscellaneous change costs against the $200,000 contract Supplemental Allowance results in a Final Contract Price of $10,077,577. Change Order No. 1 reduces the contract price by $11,442.
ENVIRONMENTAL FINDINGS
An Initial Study and Finding of Conformity to the 2025 General Plan MEIR No. 10130 (MEIR) was adopted by the Council on August 30, 2012 for this project and a Notice of Determination was filed September 17, 2009. This was followed by two addenda to the Initial Study and Findings of Conformity prepared in November 2010 and October 2012. An analysis has been performed pursuant to CEQA Guidelines §15162 to determine whether subsequent environmental review is required for the project. Based on this analysis the following findings are made to support the determination that no subsequent environmental review is required:
No substantial changes are proposed in the project which will require major revisions of the previous addenda to the Initial Study Findings of Conformity due to the involvement of new significant environmental effects, or a substantial increase in the severity of previously identified significant effects.
No substantial changes occur with respect to the circumstances under which the project is undertaken which will require major revisions of the previous addenda to the Initial Study Findings of Conformity due to the involvement of new significant environmental effects, or a substantial increase in the severity of previously identified significant effects.
There is no new information which was not known or could not have been known at the time of the previous addenda to the Initial Study Findings of Conformity that the project will have significant effects not discussed in the addenda to the Initial Study Findings of Conformity. Furthermore, since a Finding of Conformity to the MEIR was previously adopted for this project, the considerations set forth in CEQA Guidelines §15162(a)(3)(C) and (D), related to the adequacy and feasibility of previously adopted mitigation measures, are not applicable. Based upon these findings, it has been determined that no further environmental documentation is required for this project.
LOCAL PREFERENCE
Local preference is not a consideration on this action since the change order affects an existing City contract that was awarded in 2014.
FISCAL IMPACT
The change order to this project will not have any impact to the General Fund. Appropriations for the award of the construction contract were included in Water Division's Fiscal Year 2014 Capital Improvement Program budget within the Water Enterprise Fund (40101). No additional funding is required for this action. When the purchase order for this project is closed out, any unexpended funds will be added to the retained earnings of the Water Enterprise Fund.
Attachment:
Contract Change Order No.1