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HomeMy WebLinkAbout12-10-12 EO&WR Committee PacketOTAY WATER DISTRICT ENGINEERING, OPERATIONS & WATER RESOURCES COMMITTEE MEETING and SPECIAL MEETING OF THE BOARD OF DIRECTORS 2554 SWEETWATER SPRINGS BOULEVARD SPRING VALLEY, CALIFORNIA Board Room MONDAY December 10, 2012 12:00 P.M. This is a District Committee meeting. This meeting is being posted as a special meeting in order to comply with the Brown Act (Government Code Section §54954.2) in the event that a quorum of the Board is present. Items will be deliberated, however, no formal board actions will be taken at this meeting. The committee makes recommendations to the full board for its consideration and formal action. AGENDA 1. ROLL CALL 2. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S JU- RISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA DISCUSSION ITEMS 3. APPROVE CHANGE ORDER NO. 2 TO THE EXISTING CONTRACT WITH GARCIA JUAREZ CONSTRUCTION, INC. IN THE AMOUNT OF $22,460 FOR THE CALAVO GARDENS SEWER REHABILITATION PROJECT (MARTIN) [5 minutes] 4. AWARD A CONSTRUCTION CONTRACT TO BASILE CONSTRUCTION, INC. FOR THE 12-INCH POTABLE WATER PIPELINE IN ORANGE AVENUE, I-805 CROSS- ING IN AN AMOUNT NOT-TO-EXCEED $872,000 (CAMERON) [5 minutes] 5. INFORMATIONAL UPDATE ON THE RANCHO DEL REY GROUNDWATER WELL DEVELOPMENT PROJECT (MARCHIORO) [5 minutes] 6. INFORMATIONAL REPORT REGARDING THE USE OF AS-NEEDED SERVICES TO SUPPORT THE DELIVERY OF THE DISTRICT’S CAPITAL IMPROVEMENT PRO- GRAM (MARTIN) [5 minutes] 7. STATUS REPORT ON THE FIRST QUARTER OF FISCAL YEAR 2013 CAPITAL IM- PROVEMENT PROGRAM (MARTIN) [10 minutes] 8. SAN DIEGO COUNTY WATER AUTHORITY UPDATE (WATTON) [10 minutes] 2 9. ADJOURNMENT BOARD MEMBERS ATTENDING: Gary Croucher, Chair David Gonzalez All items appearing on this agenda, whether or not expressly listed for action, may be delib- erated and may be subject to action by the Board. The Agenda, and any attachments containing written information, are available at the Dis- trict’s website at www.otaywater.gov. Written changes to any items to be considered at the open meeting, or to any attachments, will be posted on the District’s website. Copies of the Agenda and all attachments are also available through the District Secretary by contacting her at (619) 670-2280. If you have any disability that would require accommodation in order to enable you to partici- pate in this meeting, please call the District Secretary at 670-2280 at least 24 hours prior to the meeting. Certification of Posting I certify that on December 7, 2012 I posted a copy of the foregoing agenda near the regular meeting place of the Board of Directors of Otay Water District, said time being at least 24 hours in advance of the meeting of the Board of Directors (Government Code Section §54954.2). Executed at Spring Valley, California on December 7, 2012. ______/s/_ Susan Cruz, District Secretary _____ STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: January 8, 2013 SUBMITTED BY: Dan Martin Engineering Manager PROJECT: S2019-001103 S2020-001103 S2022-001103 S2026-001103 DIV. NO. 3 APPROVED BY: Rod Posada, Chief, Engineering German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: Change Order No. 2 to the Contract with Garcia Juarez Construction Inc. for the Calavo Gardens Sewer Rehabilitation Project GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) approve Change Order No. 2 to the existing contract with Garcia Juarez Construction, Inc. (GJC) in the amount of $22,460.00 for the Calavo Gardens Sewer Rehabilitation Project (see Exhibit A for Project location). COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain Board authorization for the General Manager to execute Change Order No. 2 in the amount of $22,460.00 to the contract with GJC for the Calavo Gardens Sewer Rehabilitation Project. ANALYSIS: At the February 1, 2012 Board Meeting, the Board awarded a construction contract in an amount of $2,316,275.00 to GJC for the Calavo Gardens Sewer Rehabilitation Project. AGENDA ITEM 3 2 Subsequently at the November 7, 2012 Board Meeting, the Board approved a Credit Change Order in the amount of <$22,040.00> to the contract for a new construction contract value of $2,294,235.00. The Project consists of the replacement and capacity upgrades of approximately 4,500 linear feet of 8-inch and 10-inch sewer in the streets of Avocado Boulevard, Calavo Drive, Louisa Drive, Challenge Boulevard, and Hidden Mesa Drive in the Rancho San Diego area. The Project also includes a new flow control and diversion vault structure for the Calavo Sewer Lift Station. GJC has completed the sewer replacement in the streets of Calavo Drive, Louisa Drive, Challenge Boulevard, Hidden Mesa Drive, and most of Avocado Boulevard. GJC is approximately 60% complete overall with the Project. Change Order No. 2 (Exhibit B) includes a variety of items related to a storm drain conflict that was discovered during construction and required a redesign of the sewer main. The sewer line in question was originally designed to be installed parallel with Avocado Boulevard. However, the vertical location of the existing box culvert storm drain prevented the contractor from installing the sewer per plan. Therefore, the sewer was re-routed across Avocado to allow for proper gravity flow. The costs associated with the construction of this new sewer line re-routed line across Avocado are $85,790.00. The change order will also delete the original sewer line installation in favor of the redesigned sewer main described above. This deletion results in a credit of <$73,180.00>. Lastly, Change Order No. 2 includes a redesign of the sewer main located on the east side of Avocado Boulevard due to a conflict with existing electrical lines. The redesign involved moving a planned manhole, additional sewer pipe to support the new manhole location, and provisions for a siphon to support the construction. The costs associated with the construction of these items are $9,850.00 The following is a table summarizing the items in Change Order No. 2. A more detailed description of each item is provided in Exhibit B. The items below are located at Site 1 as shown in Exhibit A: Item Description Amount 1 Re-route sewer line across Avocado Boulevard $85,790.00 2 Delete original sewer line work in Avocado Boulevard <$73,180.00> 3 Re-route sewer line due to electrical line $9,850.00 $22,460.00 3 In summary, the net increase to the Project for Change Order No. 2 is $22,460.00. FISCAL IMPACT: Joe Beachem, Chief Financial Officer Funding for the overall Project comes from four CIP projects - S2019, S2020, S2022, and S2026. The total budget is $3,335,000. The total budget for CIP S2019, as approved in the FY 2013 budget, is $2,275,000. Total expenditures, plus outstanding commitments and forecast, is $2,189,065. See Attachment B-1 for budget detail. The total budget for CIP S2020, as approved in the FY 2013 budget, is $600,000. Total expenditures, plus outstanding commitments and forecast, is $595,576. See Attachment B-2 for budget detail. The total budget for CIP S2022, as approved in the FY 2013 budget, is $180,000. Total expenditures, plus outstanding commitments and forecast, is $179,265. See Attachment B-3 for budget detail. The total budget for CIP S2026, as approved in the FY 2013 budget, is $280,000. Total expenditures, plus outstanding commitments and forecast, is $279,279. See Attachment B-4 for budget detail. Based on a review of the financial budget, the Project Manager anticipates that these budgets will be sufficient to support the Project. Finance has determined that 100% of the funding is available from the Betterment Fund for CIPs S2019 and S2022 and 100% of the funding is available from the Replacement Fund for CIPs S2020 and S2026. STRATEGIC GOAL: This Project supports the District’s Mission statement, “To provide high value water and wastewater services to the customers of the Otay Water District in a professional, effective, and efficient manner” and the General Manager’s Vision, “A District that is at the forefront in innovations to provide water services at affordable rates, with a reputation for outstanding customer service.” LEGAL IMPACT: None. 4 DM:jf P:\WORKING\CIP S2019, S2020, S2022 Avocado Sewer\Staff Reports\Change Order No. 2 to GJC\BD 01-08-2013, Change Order No 2 to Garcia Juarez Construction, (DM).docx Attachments: Attachment A – Committee Action Attachment B-1 – S2019 Budget Detail Attachment B-2 – S2020 Budget Detail Attachment B-3 – S2022 Budget Detail Attachment B-4 – S2026 Budget Detail Exhibit A – Location Map Exhibit B – Change Order No. 2 ATTACHMENT A SUBJECT/PROJECT: S2019-001103 S2020-001103 S2022-001103 S2026-001103 Change Order No. 2 to the Contract with Garcia Juarez Construction Inc. for the Calavo Gardens Sewer Rehabilitation Project COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on December 10, 2012. The Committee supported Staff’s recommendation. NOTE: The "Committee Action" is written in anticipation of the Committee moving the item forward for Board approval. This report will be sent to the Board as a Committee approved item, or modified to reflect any discussion or changes as directed from the Committee prior to presentation to the full Board. ATTACHMENT B-1 – Budget Detail SUBJECT/PROJECT: S2019-001103 S2020-001103 S2022-001103 S2026-001103 Change Order No. 2 to the Contract with Garcia Juarez Construction Inc. for the Calavo Gardens Sewer Rehabilitation Project Date Updated: November 15, 2012 Budget 2,275,000 Planning 001101 Labor 23,026 23,026 - 23,026 Settlements 2,100 2,100 - 2,100 GARY THOMAS JALATY Office Supplies 14 14 - 14 PETTY CASH CUSTODIAN Consultant Contracts 11,287 11,287 - 11,287 LEE & RO INC Total Planning 36,427 36,427 - 36,427 Design 001102 Labor 149,522 149,522 149,522 Settlements 5,500 5,500 - 5,500 JUAN NAVARRO Settlements 5,900 5,900 - 5,900 LN REAL ESTATE LLC Professional Legal Fees 2,632 2,632 - 2,632 STUTZ ARTIANO SHINOFF Other Agency Fees 27 27 - 27 PETTY CASH CUSTODIAN Other Agency Fees 3,460 3,460 - 3,460 COUNTY OF SAN DIEGO Consultant Contracts 4,900 4,900 - 4,900 SAN-LO AERIAL SURVEYS Consultant Contracts 1,550 1,550 - 1,550 AFFORDABLE DRAIN SERVICE INC Consultant Contracts 1,947 1,947 - 1,947 CPM PARTNERS INC Consultant Contracts 60,264 60,264 - 60,264 LEE & RO INC Consultant Contracts 13,000 13,000 - 13,000 MICHAEL D KEAGY REAL ESTATE Consultant Contracts 8,830 8,830 - 8,830 DARNELL & ASSOCIATES INC Consultant Contracts 8,204 8,204 - 8,204 SOUTHERN CALIFORNIA SOIL Consultant Contracts 525 525 - 525 MWH CONSTRUCTORS INC Construction Contracts 17,933 17,933 - 17,933 LEE & RO INC Service Contracts 672 672 - 672 UNION TRIBUNE PUBLISHING CO Total Design 284,866 284,866 - 284,866 Construction 001103 Labor 200,000 88,350 111,650 200,000 Settlements 5,000 5,000 - 5,000 KIM-THOA THI HOANG Other Agency Fees 248 248 - 248 COUNTY OF SAN DIEGO - DPW Consultant Contracts 120,000 108,048 11,952 120,000 VALLEY CONSTRUCTION MANAGEMENT Consultant Contracts 6,030 6,030 - 6,030 MTGL INC Consultant Contracts 5,806 5,806 - 5,806 LEE & RO INC Consultant Contracts 4,000 4,000 - 4,000 RBF CONSULTING Consultant Contracts 2,685 2,685 - 2,685 DARNELL & ASSOCIATES INC Consultant Contracts 3,955 3,955 - 3,955 ALTA LAND SURVEYING INC Consultant Contracts 926 926 - 926 CPM PARTNERS INC Consultant Contracts 157 157 - 157 SOUTHERN CALIFORNIA SOIL Construction Contracts 1,438,537 722,675 715,862 1,438,537 GARCIA JUAREZ CONSTRUCTION INC (22,040) (22,040) - (22,040) Change Order No. 1 22,460 22,460 - 22,460 Change Order No. 2 Construction Contracts 2,979 2,979 - 2,979 CLARKSON LAB & SUPPLY INC Construction Contracts 76,507 37,241 39,265 76,507 COMMUNITY BANK Service Contracts 522 522 - 522 FAVELA PRINTING INC Total Construction 1,867,772 989,042 878,729 1,867,772 Grand Total 2,189,065 1,310,335 878,729 2,189,065 Vendor/Comments Otay Water District S2019 - Avocado Boulevard 8-inch Sewer Main Impr Committed Expenditures Outstanding Commitment & Forecast Projected Final Cost ATTACHMENT B-2 – Budget Detail SUBJECT/PROJECT: S2019-001103 S2020-001103 S2022-001103 S2026-001103 Change Order No. 1 to the Contract with Garcia Juarez Construction Inc. for the Calavo Gardens Sewer Rehabilitation Project Date Updated: November 15, 2012 Budget 600,000 Planning 001101 Labor 5,352 5,352 - 5,352 Consultant Contracts 2,185 2,185 - 2,185 LEE & RO INC Total Planning 7,537 7,537 - 7,537 Design 001102 Labor 24,159 24,159 - 24,159 Other Agency Fees 3,460 3,460 - 3,460 COUNTY OF SAN DIEGO Consultant Contracts 8,000 8,000 - 8,000 DARNELL & ASSOCIATES INC Consultant Contracts 4,430 4,430 - 4,430 MTGL INC Consultant Contracts 21,588 21,588 - 21,588 LEE & RO INC Supplier Contracts 188 188 - 188 US BANK CORPORATE PAYMENT Service Contracts 145 145 - 145 US BANK CORPORATE PAYMENT Total Design 61,970 61,970 - 61,970 Construction 001103 Labor 45,000 37,576 7,424 45,000 Consultant Contracts 18,240 18,240 - 18,240 VALLEY CONSTRUCTION MANAGEMENT Consultant Contracts 1,250 1,250 - 1,250 ALTA LAND SURVEYING INC Consultant Contracts 400 400 - 400 LEE & RO INC Construction Contracts 433,271 170,172 263,099 433,271 GARCIA JUAREZ CONSTRUCTION INC Construction Contracts 22,804 8,956 13,847 22,804 COMMUNITY BANK Construction Contracts 1,865 1,865 - 1,865 HELIX WATER DISTRICT Service Contracts 967 967 - 967 MAYER REPROGRAPHICS INC Service Contracts 735 735 - 735 AFFORDABLE DRAIN SERVICE INC Service Contracts 1,505 1,505 - 1,505 HELIX WATER DISTRICT Service Contracts 32 32 - 32 US BANK CORPORATE PAYMENT Service Contracts - - - - MAIL MANAGEMENT GROUP INC Total Construction 526,069 241,699 284,370 526,069 Grand Total 595,576 311,206 284,370 595,576 Vendor/Comments Otay Water District S2020 - Calavo Drive 8-inch Sewer Main Replacement Committed Expenditures Outstanding Commitment & Forecast Projected Final Cost ATTACHMENT B-3 – Budget Detail SUBJECT/PROJECT: S2019-001103 S2020-001103 S2022-001103 S2026-001103 Change Order No. 1 to the Contract with Garcia Juarez Construction Inc. for the Calavo Gardens Sewer Rehabilitation Project Date Updated: November 15, 2012 Budget 180,000 Planning 001101 Labor 1,321 1,321 - 1,321 Total Planning 1,321 1,321 - 1,321 Design 001102 Labor 22,637 22,637 - 22,637 Other Agency Fees 3,460 3,460 - 3,460 COUNTY OF SAN DIEGO Consultant Contracts 4,989 4,989 - 4,989 LEE & RO INC Consultant Contracts 6,000 6,000 - 6,000 DARNELL & ASSOCIATES INC Total Design 37,087 37,087 - 37,087 Construction 001103 Labor 29,000 28,381 619 29,000 Consultant Contracts 403 403 - 403 LEE & RO INC Consultant Contracts 400 400 - 400 ALTA LAND SURVEYING INC Construction Contracts 104,522 103,571 951 104,522 GARCIA JUAREZ CONSTRUCTION INC Construction Contracts 5,501 5,451 50 5,501 COMMUNITY BANK Service Contracts 1,000 1,000 - 1,000 MAYER REPROGRAPHICS INC Service Contracts 32 32 - 32 US BANK CORPORATE PAYMENT Total Construction 140,858 139,238 1,620 140,858 Grand Total 179,265 177,645 1,620 179,265 Vendor/Comments Otay Water District S2022 - Hidden Mesa Drive 8-inch Sewer Main Rehabiliation Committed Expenditures Outstanding Commitment & Forecast Projected Final Cost ATTACHMENT B-4 – Budget Detail SUBJECT/PROJECT: S2019-001103 S2020-001103 S2022-001103 S2026-001103 Change Order No. 1 to the Contract with Garcia Juarez Construction Inc. for the Calavo Gardens Sewer Rehabilitation Project Date Updated: November 15, 2012 Budget 280,000 Planning 001101 Labor 1,371 1,371 - 1,371 Total Planning 1,371 1,371 - 1,371 Design 001102 Labor 7,718 7,718 - 7,718 Other Agency Fees 3,460 3,460 - 3,460 COUNTY OF SAN DIEGO Consultant Contracts 9,581 9,581 - 9,581 LEE & RO INC Consultant Contracts 4,800 4,800 - 4,800 DARNELL & ASSOCIATES INC Consultant Contracts 4,000 4,000 - 4,000 MTGL INC Total Design 29,560 29,560 - 29,560 Construction 001103 Labor 27,000 24,131 2,869 27,000 Consultant Contracts 270 270 - 270 ALTA LAND SURVEYING INC Construction Contracts 209,044 198,592 10,452 209,044 GARCIA JUAREZ CONSTRUCTION INC Construction Contracts 11,002 10,452 550 11,002 COMMUNITY BANK Service Contracts 1,000 1,000 - 1,000 MAYER REPROGRAPHICS INC Service Contracts 32 32 - 32 US BANK CORPORATE PAYMENT Total Construction 248,348 234,477 13,871 248,348 Grand Total 279,279 265,408 13,871 279,279 Vendor/Comments Otay Water District S2026 - Challenge Blvd 8-Inch Sewer Main Repl Committed Expenditures Outstanding Commitment & Forecast Projected Final Cost VICINITY MAP IMPERIAL CORONADO CHULA VISTA EL CAJON BEACH LA MESA PROJECT SITES CIP Title - Calavo Gardens Sewer Rehabilitation Project: S2019/S2020/S2022/S2026 Consultant/Contractor:Garcia Juarez Construction Subproject: 001103 APPROVED C.O.AMOUNT BY DATE DESCRIPTION TYPE C.O. 1 ($22,040.00)Board 11/7/2012 Eight Items: Open Cut in lieu of jack & bore, delete MH refurbishment, modify MH replacements, T&M settlement, revised alignment, street light relocation, additional paving, and unknown utilities Owner 2 $22,460.00 Board Nine Items: 8-inch siphon, 30LF of additional 8-inch sewer, delete 164LF of 8-inch sewer, delete 33LF of steel casing, add an additional manhole, additional potholing, casing credit back to contractor, and additional cost for new 8-inch sewer alignment. Owner 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 3435 Total C.O.'s To Date: $420.00 0.0% Original Contract Amount:$2,316,275.00 Current Contract Amount:$2,316,695.00 Month Net C.O.$Limit Authorization Absolute C.O.$ C.O. % 12/12 $22,460.00 $2,000 Insp 0.0% $10,000 PM/Sr. Engr.0.0% $20,000 DivM 0.0% $25,000 Chief 0.0% $35,000 AGM 0.0% $50,000 GM 0.0% >$50000 Board $22,460.00 1.0% CHANGE ORDER LOG P:\WORKING\CIP S2019, S2020, S2022 Avocado Sewer\Staff Reports\Change Order No. 2 to GJC\COLOG-No 2.xls1 12/5/2012 STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: January 8, 2013 SUBMITTED BY: Kevin Cameron Assistant Civil Engineer Ron Ripperger Engineering Manager PROJECT: P2513- 001103 DIV. NO. 2 APPROVED BY: Rod Posada, Chief, Engineering German Alvarez, Asst. General Manager Mark Watton, General Manager SUBJECT: Increase the CIP Budget for CIP P2513 in an amount of $100,000 and Award of a Construction Contract to Basile Construction, Inc. for the 12-Inch Potable Water Pipeline in Orange Avenue, I-805 Crossing GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) authorize the increase in the CIP budget P2513 of $100,000 to an overall budget of $1,300,000 and award a construction contract to Basile Construction, Inc. (Basile) for the 12-Inch Potable Water Pipeline in Orange Avenue, I-805 Crossing (Project) in an amount not- to-exceed $872,000 (see Exhibit A for Project location). COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain Board approval to increase the budget for CIP P2513 in an amount not-to-exceed $100,000 and to obtain Board authorization for the General Manager to enter into a construction contract with Basile in an amount not-to-exceed $872,000.00 for the Project. AGENDA ITEM 4 2 ANALYSIS: The District operates two (2) pipelines that cross Interstate 805 (I- 805) freeway; a 10-inch pipeline within the East Palomar Overpass, and a 12-inch pipeline that runs under the freeway approximately 1300 feet south of East Palomar. These pipelines feed approximately 850 meters west of the freeway in the 458 pressure zone (see Exhibit B for service area). Caltrans has prior rights for the Palomar crossing which was installed in the bridge in 1998. In November 2010, Caltrans notified the District about plans to demolish and reconstruct the East Palomar Bridge Overpass. Caltrans is planning to construct a Direct Access Route (DAR) carpool lane that would begin at the East Palomar Bridge, then run north to the I- 805/I-15 interchange. The Palomar Bridge project is scheduled to begin in Spring 2013. Caltrans and the City of Chula Vista (City) elected to completely demolish the bridge in an effort to speed up construction and reduce traffic concerns. With the bridge out, the 10-inch pipeline would also be out of service. Using hydraulic analysis, Staff evaluated the District’s ability to meet projected demands and fire flow requirements with only the 12-inch pipeline in service. The results revealed that fire flow requirements would not be met using only the 12-inch pipeline and a second source would be required. Staff and the District’s As-Needed Design Engineer, Lee & Ro, Inc. (Lee & Ro), evaluated multiple options to meet the required demands. Staff, along with input from Caltrans, decided that the easiest and most cost effective solution would be to construct a permanent pipeline across the East Orange Ave/Olympic Parkway Overpass. The Orange Bridge has an existing empty utility corridor reserved for future use. This third crossing would provide redundancy to the service area and allow future maintenance on any one of the crossings without interruption of service. Lee & Ro provided the engineering design plans and the District’s As- Needed Traffic Engineer, Darnell & Associates (Darnell), provided the traffic control plans. The traffic control was especially challenging since the pipeline alignment would cross the northbound on-ramp and the southbound off-ramp of I-805 which would require extensive detour routes and the plans would have to be approved by both Caltrans and the City. During the plan review, both the City and Caltrans required night work for the construction of the pipeline. This would allow maximum working hours and minimal traffic delays. 3 The District submitted the Project to Caltrans for review on March 27, 2012. The initial design called for 12-inch steel pipe within the bridge and PVC pipe in Caltrans’ Right-of-Way (ROW) and the City’s ROW. However, late in the design review process and after the budget had been approved for FY 2013, Caltrans requested that steel pipe be used throughout their ROW. This design requirement replaced approximately 800 feet of pipe from PVC to steel, and added $220,000 to the construction cost. The Project was advertised for bid on November 6, 2012. A Pre-Bid Meeting was held on November 15, 2012 with eight (8) contractors in attendance. Three (3) addenda were sent out to all plan holders and plan houses to address contractors' questions asked during the bidding period. Staff contacted several contractors during the bid process to encourage them to submit a bid for the Project. Seven (7) bids were received on November 29, 2012. The table below provides the bid results: CONTRACTOR TOTAL BID AMOUNT CORRECTED BID AMOUNT 1. Basile Construction, Inc. $ 872,000.00 2. TC Construction Company $ 916,570.00 3. Schilling Paradise Corporation $ 898,111.00 $ 918,111.00 4. Arrieta Construction, Inc. $ 977,119.00 5. Burtech Pipeline, Inc. $1,026,674.00 6. GRFCO, Inc. $1,172,700.00 7. CCL Contracting, Inc. $1,185,650.00 The Engineer's Estimate is $960,000. The evaluation process included reviewing all bids submitted for conformance to the contract documents. The lowest bidder, Basile, submitted a responsible bid and holds a Class A Contractor’s license which expires on April 30, 2013. Staff checked the references provided with Basile’s bid, and the reference checks indicated a good performance record by Basile on similar past projects. Staff has verified that the bid bond provided by Western Surety Company is valid. Once Basile signs the contract, they will furnish the performance bond and labor and materials bond. Staff will verify both bonds prior to executing the contract. 4 The budget increase is due to the added cost of steel pipe versus PVC pipe in Caltrans’ ROW which was requested after the budget cycle was approved. Caltrans also requested other miscellaneous design changes which added minor costs to the project. The $100,000 increase amounts to an 8.3% increase in the Project budget. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The total budget for CIP P2513, as approved in the FY 2013 budget, is $1,200,000. Total expenditures, plus outstanding commitments and forecast, are $1,299,817.13. See Attachment B for budget detail. Based on a review of the financial budgets, the Project Manager anticipates that with a budget increase of $100,000 the Project will be completed within the new budget amount of $1,300,000. As a part of the 2013 budget process, the reserve where this CIP is funded from, Replacement Fund, will be assessed and will be allocated the necessary funds at that time. It is anticipated that the actual overall CIP expenditures will be well below the overall CIP budget making sufficient reserves available to fund this budget increase. STRATEGIC GOAL: This Project supports the District’s Mission statement, “To provide high value water and wastewater services to the customers of the Otay Water District in a professional, effective, and efficient manner” and the General Manager’s Vision, “A District that is at the forefront in innovations to provide water services at affordable rates, with a reputation for outstanding customer service.” LEGAL IMPACT: None. KC/RR:jf P:\WORKING\CIP P2513 East Orange Ave I-805 Overcrossing\Staff Reports\BD 01-08-2013, Staff Report, Award of a Construction Contract to Basile Const, (KC-RR).docx Attachments: Attachment A – Committee Action Attachment B – Budget Detail Exhibit A – Location Map Exhibit B – Service Area Map ATTACHMENT A SUBJECT/PROJECT: P2513-001103 Increase the CIP Budget for CIP P2513 in an amount of $100,000 and Award of a Construction Contract to Basile Construction, Inc. for the 12-Inch Potable Water Pipeline in Orange Avenue, I-805 Crossing COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on December 10, 2012. The Committee supported Staff's recommendation. NOTE: The “Committee Action” is written in anticipation of the Committee moving the item forward for Board approval. This report will be sent to the Board as a Committee approved item, or modified to reflect any discussion or changes as directed from the Committee prior to presentation to the full Board. ATTACHMENT B SUBJECT/PROJECT: P2513-001103 Increase the CIP Budget for CIP P2513 in an amount of $100,000 and Award of a Construction Contract to Basile Construction, Inc. for the 12-Inch Potable Water Pipeline in Orange Avenue, I-805 Crossing I-805 S I-805 N O l e a n d e r A v e E O r a n g e A v e N a c i o n Av e M e lr o s e A v e R i v e r a S t L a u r e l A v e Spruce St L il a c A v e R a v e n A v e W i s t e ri a S t A z a l e a S t O ri o l e P l Ocala Ave E P a l o m a r S t E R i e n s t r a S t Slate St N o l a n A v e O c a l a C t L a n t a n a A v e P a r k D r Oak Pl J a s m i n e S t Q u ail P l S a n d s t o n e S t Sonora Dr Q u i n c e P l P e a rl w o o d S t J u n i p e r S t P e c a n P l P o i n s e t ti a S t Brandywine Ave R i v e r a C t O r i o l e C t G e or g eto w n Pl Q u a il C t Hibiscus Ct R i e n s tr a C t S l a t e C t M a r l C t Pine Ct Senna Way U S AUSA M E X I C OMEXICO P:\WORKING\CIP P2513 East Orange Ave I-805 Overcrossing\Staff Reports\Exhibit A.mxd OTAY WATER DISTRICT12-INCH POTABLE WATER PIPELINE INORANGE AVENUE, I-805 CROSSINGEXHIBIT A PROJECT SITE VICINITY MAP NTS DIV. 5 DIV. 2 DIV. 1 DIV. 3 DIV. 4 5 8 8 805 11 9454 94 125 905 125 905 125 NEW 12-INCHPOTABLE WATERPIPELINE EASTPALOMAROVERPASSO W D B O U N D A R Y I-805 S I-805 N M e lr o s e A v e Oleander Ave M a x A v e E O r a n g e A v e Main StBrandywine Ave E P a l o m a r S t N a c i o n A v e M o n s e r a t e A v e E R i e n s tr a S t E O x f o r d S t Sequoia St N o l a n A v e Marl Ave Loma Ln R a v e n A v e R i v e r a S t Walnut Dr Malta Ave Diamond Dr S i p e s C ir Palm Rd E Q u i n t a r d S t L a u r e l A v e J u d s o n W a y Spruce StE P a i s l e y S t L il a c A v e Lotus Dr E O rl a n d o S t Ewing DrO w e n D r Ocala Ave Spruce Rd Maple Dr Talus St Medical Center Dr W i s t e ri a S tAzalea S t Olive Ave T h r u s h S t Slate St O ri o l e P l F i n c h P l N a p a A v e O c a l a C t Venters Dr M y r a C t Lee Cir Auto Park Dr L a r k h a v e n D r Lantana Ave O l y m p i c P k w y N e p t u n e D r Orange Dr P a r k D r S a n d s t o n e S t N a n t u c k e t D r Oak Pl J a s m i n e S t Marble Ct Q u ail P l Point la Jolla Dr Alber St Rainier Ct Topaz Ct Sonora Dr N il e A v e M e n d o c i n o D r Point Arguello Dr R e d w i n g R d A r i e s C t Q u i n c e P l E E m e r s o n S t Tanbark St M i s s i o n A v e J u n i p e r S t Tourmaline Ct P e c a n P l Q u a i l D r T i m b e r S t P o i n s e t t i a S t T a m a r a c k S t Point Estero Dr Kelso Ct L o m a C t T e s o t a C t C h e r y l P lM y r a A v e T a r a t a C t Long Point Ct E O x f o r d S t Myra Ct U S AUSA M E X I C OMEXICO P:\WORKING\CIP P2513 East Orange Ave I-805 Overcrossing\Staff Reports\Exhibit A.mxd OTAY WATER DISTRICT12-INCH POTABLE WATER PIPELINE INORANGE AVENUE, I-805 CROSSINGEXHIBIT B PROJECT SITE VICINITY MAP NTS DIV. 5 DIV. 2 DIV. 1 DIV. 3 DIV. 4 5 8 8 805 11 9454 94 125 905 125 905 125 NEW 12-INCHPOTABLE WATERPIPELINE EAST PALOMAROVERPASS10-INCH PIPELINETO BE TEMPORARILYOUT OF SERVICE O W D B O U N D A R Y 12-INCH PIPELINEUNDER I-805 Service Area Affected byCaltrans Work in the458 Pressure Zone SWEETWATERAUTHORITY O W D B O U N D A R Y Potable Pipelines458 Pressure Zone 0 1,000500Feet 458-1 & 458-2TANKS STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: January 8, 2013 SUBMITTED BY: Jeff Marchioro Senior Civil Engineer Ron Ripperger Engineering Manager CIP./G.F. NO: P2434- 001102 DIV. NO. 2 APPROVED BY: Rod Posada, Chief, Engineering German Alvarez, Asst. General Manager Mark Watton, General Manager SUBJECT: Informational Update for the Rancho del Rey Groundwater Well Development Project GENERAL MANAGER’S RECOMMENDATION: No recommendation. This is an informational item only. COMMITTEE ACTION: Please see Attachment A. PURPOSE: To update the Otay Water District (District) Board of Directors (Board) on the progress of the Rancho del Rey Groundwater Well Development Project (Project). ANALYSIS: In 1997, the District purchased property along Rancho del Rey Parkway within the City of Chula Vista with an existing brackish groundwater production well on site (see Exhibit A for Project location). In 1999, the District split the property and sold the excess land. The property modification was approved through the City of Chula Vista planning process that included preparing a tract map with plans for a developer to build a childcare facility (Childtime) and a common driveway to serve Childtime’s and the District’s sites. The District acquired an access easement from Childtime in 2001. AGENDA ITEM 5 2 At the time the property was purchased, the Project was considered economically unfeasible. Consequently, the Project was suspended until the cost of imported water began to escalate in recent years. In 2010, a new production well was constructed by AECOM Technical Services, Inc. (AECOM). After development of the well, AECOM recommended that 450 gallons per minute (725 acre- feet per year) maximum safe yield pumping rate be used for design purposes. Subsequently, staff contracted with Separation Processes, Inc. (SPI), a well-known membrane treatment firm, to conduct a feasibility study for the Project. In April 2011, the Board awarded a professional services contract to Tetra Tech, Inc. (Tetra Tech) to design the treatment plant facility. To date, Tetra Tech has completed the 90% design submittal. Tetra Tech is currently proceeding to the 100% design level. In parallel with Tetra Tech’s ongoing design effort, staff has been working on the following components of the overall Project: 1. Sewer: Waste will be transported through the City of Chula Vista’s (Chula Vista) existing sewer collection system, the County of San Diego’s (County) existing Spring Valley Outfall, and the Metropolitan Wastewater Joint Powers Authority’s (Metro) sewage system for treatment. The District will utilize existing sewer capacity rights in the County’s Spring Valley Outfall and in Metro’s South Metro Interceptor and Point Loma Wastewater Treatment Plant. The District will be invoiced by Chula Vista, the County, and Metro for Project sewer discharges separately. Staff is working with Chula Vista to develop a new sewer agreement to discharge brine to the sewer. Staff is also working with the City of San Diego to obtain a new Metro Industrial User Discharge Permit. The overall cost for the sewer connection including Chula Vista, County, and Metro fees is anticipated to be roughly $200/acre-foot. 2. Storm Drain: Staff is working with the City of Chula Vista and the Regional Water Quality Control Board to obtain coverage under existing National Pollutant Discharge Elimination System (NPDES) Permit for discharge of non-spec potable water to the storm drain. 3. Hazardous Materials Storage/Handling: Staff met with the City of Chula Vista Fire Department in December 2011 to 3 review the draft design. A County Hazardous Materials Business Plan application was submitted to the County in April 2012. 4. Operation Options: Staff is currently considering three options for operation of the facility including: a) operation by a private company, b) operation by District in-house staff, and c) operation by the Sweetwater Authority. 5. San Diego Gas & Electric (SDG&E) Power Supply: Coordination with SDG&E has been completed for the design phase. Staff is working with SDG&E to gain a better understanding of future changes in electricity rates. 6. Funding: District staff is working on a Bureau of Reclamation funding application for up to 25% of the cost of the Project ($2.18M in initial cost savings, which is equivalent to a $223/acre-foot savings). Funding through the San Diego County Water Authority’s (SDCWA) Local Water Supply Development (LWSD) Program (up to $200/acre-foot) and the Metropolitan Water District of Southern California (up to $250/acre-foot) is currently unavailable. 7. Design: Tetra Tech has designed the treatment facility to the 90% design level and is currently proceeding to the 100% design level. Staff considers it prudent at this time to complete the following items:  Design phase  Lock in the City of Chula Vista sewer agreement  Permit the storm drain connection  Continue Agency coordination regarding hazardous materials  Obtain a better understanding of future changes in electricity rates  Secure available funding However, once the design has been completed, the Project construction phase should be put on hold due to the uncertainty of the items summarized in the table below: 4 Assumption: Economic Impact: Reliability Impact: SDCWA/Poseidon Resources current draft water purchase agreement moves forward Increase in SDCWA Rates would increase Project appeal No change - regional treated water supply would increase; however, the Project would remain the sole non-SDCWA source SDCWA and Metropolitan Water District of Southern California treated water rate increases long-term Increase in SDCWA Rates would increase Project appeal Not applicable Rosarito Desalination project moves forward Unknown The additional non-SDCWA source would decrease Project appeal SDG&E rate increases per November 7, 2012 District Staff Report Increase in electricity cost would decrease Project appeal Not applicable Once staff has a better understanding of when the SDCWA all- inclusive treated rate will approach the projected Project unit cost (currently estimated at $2,000/acre-foot) continuing with the construction phase could be re-evaluated (see presentation attached as Exhibit B). FISCAL IMPACT: Joe Beachem, Chief Financial Officer No fiscal impact. The total budget for CIP P2434, as approved in the FY 2013 budget, is $8,700,000. CIP expenditures prior to FY 2009 (prior to commencing the SPI feasibility study and prior to drilling the new production well) were $551,303. CIP expenditures to date (through October 24, 2012) were $3,481,978. Total CIP expenditures, plus outstanding commitments and forecast, are approximately $8,694,729. See Attachment B for budget detail. STRATEGIC GOAL: This Project supports the District’s Mission statement, “To provide high value water and wastewater services to the customers of the Otay Water District in a professional, effective, and efficient manner” and the General Manager’s 5 Vision, “A District that is at the forefront in innovations to provide water services at affordable rates, with a reputation for outstanding customer service.” LEGAL IMPACT: None. JM/RR:jf P:\WORKING\CIP P2434 - RDR Well\Staff Reports\BD 01-08-13, Staff Report, Project Update Info Item, (JM-RR).doc Attachments: Attachment A – Committee Action Attachment B – Budget Detail Exhibit A – Location Map Exhibit B – Presentation ATTACHMENT A SUBJECT/PROJECT: P2434-001102 Informational Update for the Rancho del Rey Groundwater Well Development Project COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on December 10, 2012. The Committee supported staff’s recommendation. NOTE: The “Committee Action” is written in anticipation of the Committee moving the item forward for Board approval. This report will be sent to the Board as a Committee approved item, or modified to reflect any discussion or changes as directed from the Committee prior to presentation to the full Board. ATTACHMENT B SUBJECT/PROJECT: P2434-001102 Informational Update for the Rancho del Rey Groundwater Well Development Project Date Updated: October 24, 2012 Budget 8,700,000 Planning 001101 Labor 352,285 352,285 - 352,285 Land 326,092 326,092 - 326,092 Permits 125 125 - 125 CITY OF CHULA VISTA-DEPT. OF Materials 1,348 1,348 - 1,348 VARIOUSRental159 159 - 159 PENHALL COMPANYConstruction Costs 26,154 26,154 - 26,154 CHILDTIME CHILDCARE, INC. Professional Legal Fees 5,619 5,619 - 5,619 GARCIA CALDERON & RUIZ LLP Outreach Materials 1,876 1,876 - 1,876 MARSTON+MARSTON INC Regulatory Agency Fees 50 50 - 50 PETTY CASH CUSTODIAN Consultant Contracts 19,871 19,871 - 19,871 JONES & STOKES ASSOCIATES INC Consultant Contracts 13,825 13,825 - 13,825 MWH CONSTRUCTORS INC Consultant Contracts 1,100 1,100 - 1,100 SOUTHWESTERN COLLEGE Consultant Contracts 3,065 3,065 - 3,065 SOUTHERN CALIFORNIA SOILConsultant Contracts 14,993 14,993 - 14,993 SEPARATION PROCESSES INC Consultant Contracts 6,930 6,930 - 6,930 VALLEY CONSTRUCTION MANAGEMENT Consultant Contracts 1,718,505 1,718,505 - 1,718,505 AECOM TECHNICAL SERVICES INC Service Contracts 5,100 5,100 - 5,100 S R BRADLEY & ASSOCIATES INC Service Contracts 257 257 - 257 SAN DIEGO DAILY TRANSCRIPT Service Contracts 245 245 - 245 SAN DIEGO UNION-TRIBUNE LLC Service Contracts 2,500 2,500 - 2,500 FIRST AMERICAN TITLE CO Service Contracts 624 624 - 624 UNION TRIBUNE PUBLISHING COService Contracts 399 399 - 399 REPROHAUS CORPService Contracts 440 440 - 440 URBINA'S MASTER SWEEPING INC COUNTY OF SAN DIEGO 6 6 - 6 COUNTY OF SAN DIEGO COURIER EXPRESS, INC.134 134 - 134 COURIER EXPRESS, INC. USA SIGN CO.205 205 - 205 USA SIGN CO. QUALITY ASSURANCE LABORATORY 3,226 3,226 - 3,226 QUALITY ASSURANCE LABORATORY MULTI WATER SYSTEMS 7,108 7,108 - 7,108 MULTI WATER SYSTEMS BARRETT CONSULTING GROUP 1,955 1,955 - 1,955 BARRETT CONSULTING GROUP EARTH TECH 5,665 5,665 - 5,665 EARTH TECHCITY OF CHULA VISTA 3,344 3,344 - 3,344 CITY OF CHULA VISTA BOYLE ENGINEERING CORPORATION 16,714 16,714 - 16,714 BOYLE ENGINEERING CORPORATION MONTGOMERY WATSON LABORATORIES 112 112 - 112 MONTGOMERY WATSON LABORATORIES ANDREW A. SMITH COMPANY 2,500 2,500 - 2,500 ANDREW A. SMITH COMPANY ENARTEC ENGINEERING PLANNING 2,000 2,000 - 2,000 ENARTEC ENGINEERING PLANNING ALCEM FENCE COMPANY INC.35,200 35,200 - 35,200 ALCEM FENCE COMPANY INC. Total Planning 2,579,729 2,579,729 - 2,579,729 Design 001102 002102 Labor 390,736 390,736 40,000 430,736 Professional Legal Fees 5,118 5,118 - 5,118 STUTZ ARTIANO SHINOFF Consultant Contracts 646,457 404,445 242,011 646,457 TETRA TECH INC Consultant Contracts 7,847 7,847 - 7,847 PBS&J Consultant Contracts 11,940 11,940 - 11,940 ATKINSConsultant Contracts 6,130 6,130 - 6,130 MTGL INCConsultant Contracts 3,200 3,200 - 3,200 ALTA LAND SURVEYING INC Consultant Contracts 8,154 8,154 - 8,154 V & A CONSULTING ENGINEERS Consultant Contracts 4,500 4,500 - 4,500 ENGINEERING PARTNERS INC, THE Consultant Contracts 1,980 1,980 - 1,980 HERNDON SOLUTIONS GROUP Consultant Contracts 79,472 42,717 36,754 79,472 ARCADIS US INC Service Contracts 294 294 - 294 REPROHAUS CORP Service Contracts 130 130 - 130 SAN DIEGO DAILY TRANSCRIPT Service Contracts 343 343 - 343 SAN DIEGO UNION-TRIBUNE LLC- 20,000 20,000 Planset Reproduction/Distribution Total Design 1,166,300 887,534 318,766 1,206,300 Construction 001103 Labor 14,715 14,715 200,000 214,715 101,786 101,786 101,786 TETRA TECH INC3,814,900 3,814,900 Treatment Plant Construction 350,000 350,000 Construction Management 407,300 407,300 Chula Vista Sewer Connection Total Construction 116,500 14,715 4,873,986 4,888,700 Grand Total 3,862,529 3,481,978 5,212,751 8,694,729 Vendor/Comments Otay Water District P2434 - Rancho Del Rey Well Development Committed Expenditures Outstanding Commitment & Forecast Projected Final Cost P: \ W O R K I N G \ C I P P 2 4 3 4 - R D R W e l l \ G r a p h i c s \ E x h i b i t s - F i g u r e s \ E x h i b i t A , L o c a t i o n M a p . m x d OTAY WATER DISTRICTRANCHO DEL REY WELL PROJECTLOCATION MAP EXHIBIT A CIP P2434 F 0 75 150Feet PROJECT SITE TERR A NOV A D R RAN C H O CALLE L A G A S C A DEL REY PKW Y127 VICINITY MAP PROJECT SITE NTS ?ò ?ä ?Ë ;&s ! DIV. 5 DIV. 2 DIV. 3 DIV. 1 DIV. 4 F Rancho del Rey Groundwater Well Development Project Informational Update for: January 8, 2013 Exhibit B Presentation Outline 1.Project Overview 2.Recent Efforts 3.Costs 4.Schedule 2 Project Overview New Potable Water Source (600 AFY): Production well (900’ deep, 450 gpm) Nested Monitoring Well (5 sub-monitoring wells) RO Treatment Facility (80-90% recovery) Discharge Brine to Sewer 3 4 5 Old Well New Well 6 Childtime 7 Architectural Elevations 8 Tetra Tech 100% Design •90% reviewed by District staff, CDPH, and Value engineering and constructability consultant (Arcadis) Sewer •City of Chula Vista •County •Metro Recent Efforts 9 Sewer Connection 10 City of Chula Vista •New Agreement •$406K in initial costs (pipeline capacity, shared sewer system improvement costs, CCTV) and $11k+/- quarterly for conveyance •Possible additional costs (scale removal, manhole relining) County •Utilize existing agreement & existing pipeline capacity in the County’s Spring Valley Outfall Metro •Utilize existing agreement & existing pipeline and treatment capacity in Metro’s South Metro Interceptor and Point Loma Wastewater Treatment Plant •Industrial User Discharge Permit Sewer Connection 11 Storm Drain connection and NPDES Permit Hazardous Materials Storage/Handling •County Hazardous Materials Business Plan •Chula Vista Fire Department Operation Options •Private Company (Veolia, Cal Am, United Water, Degremont, IDE) •In-House (District hire two T3 Operators) •Sweetwater Authority Recent Efforts (continued) 12 SDG&E Power Supply •Agreement •Possible Rate Increases Funding •United States Bureau of Reclamation grant request Recent Efforts (continued) 13 Initial (CIP Budget) $8.7M •Treatment Facility $3.8M •Expenditures to Date $3.8M •Other (e.g., Admin, Construction Mgt.) $1.0M •City of CV Sewer Connection $0.4M Annual $650K/year Cost of Water $2,000/AF Current Cost Model 14 Preliminary Design Report Oct 2011 (complete) 90% Design May 2012 (complete) 90% Design Review Aug 2012 (complete) Final Design Mar 2013 Project Schedule 15 SDCWA/Poseidon Resources draft water purchase agreement Long-term SDCWA and Metropolitan Water District of Southern California treated water rates Rosarito Desalination project Future SDG&E rate increases Drivers for Placing Project on Hold (after completion of design) 16 Questions? 17 STAFF REPORT TYPE MEETING: Engineering, Operations, and Water Resources Committee MEETING DATE: January 8, 2013 SUBMITTED BY: Dan Martin Engineering Manager PROJECT: Various DIV. NO. ALL APPROVED BY: Rod Posada, Chief, Engineering German Alvarez, Asst. General Manager Mark Watton, General Manager SUBJECT: Informational Item – As-Needed Services to support the delivery of the Capital Improvement Program GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) receive as an informational item a report that presents information on the use of As-Needed Services to support the delivery of the District’s Capital Improvement Program. COMMITTEE ACTION: Please see Attachment A. PURPOSE: To provide information to the Board on the role that As-Needed Services play in the delivery of the District’s Capital Improvement Program and how these Services contribute to attaining the District’s Strategic Goals and Objectives. ANALYSIS: Background During the October 9, 2012 District Board meeting, items were presented by staff to award an As-Needed Construction Management and AGENDA ITEM 6 2 Inspection Services (CMIS) contract for Fiscal Year (FY) 2013 through FY 2015 and an As-Needed Engineering Design contract for FY 2013 and FY 2014. During the presentations, Board members asked staff various questions related to the use of As-Needed Services to support the delivery of the District’s Capital Improvement Program and how these services contribute to attaining the District’s Strategic Goals and Objectives. The Board directed staff to present findings to the Otay Water District Engineering, Operations & Water Resources Committee. The following report provides an overview on why the District contracts out for As-Needed Services, presents information on the benefits to “bundling” the District’s engineering consultant service needs into larger contracts with longer terms, and describes how these services support the District’s Strategic Plan efforts. Why do we contract out services for engineering, construction management, and inspection services? From FY 2006 to FY 2012, the Capital Improvement Program (CIP) expenditures have ranged from $36.3 million in FY 2006 to $18.7 million in FY 2012. During this time the District has taken steps to assure that the required level of resources are available to deliver the CIP by using a combination of Full Time Employees (FTE) and Consultants. Over the same period of time, the Engineering FTE totals have gone from 28 positions to 21. The Engineering FTE total included in the approved budget for FY 2013 is 19. The District has taken care to effectively manage the number of Engineering FTE to assure that the level of District staff is aligned with the program need. The District’s Engineering staff focuses on the core business of developing and delivering the CIP aligned with the District’s Mission and Values. The District uses consultants to augment staff. This practice has demonstrated the following benefits in the delivery of the program:  Provides a resource to manage the workload peaks and valleys that occur while delivering the CIP, while assuring that the level of Engineering FTE is appropriate from one fiscal year to another  Supplies additional professional expertise to the District’s projects to complement the existing areas of expertise possessed by staff  Provides a more diverse set of experience to successfully deliver the CIP  Allows the District’s Engineering staff to concentrate on the District’s core business of developing, managing, and delivering the Six-Year CIP by tasking a portion of the technical deliverables to consultants. 3 The District strikes a balance between levels of Engineering FTE and consultants needed to deliver the Six-Year CIP. The District contracts with consultants to provide the services and resources needed to deliver the District’s program. Staff manages Consultant costs and deliverables to assure that the District is getting high value in the delivery of the District’s projects. In addition, the District assures an appropriate level of FTE Staff to preserve organizational knowledge to plan for the future. The result is an effective, efficient program that provides savings to the District in the form of hiring less FTE’s. What are the benefits to “bundling” the District’s engineering consultant service needs into larger contracts with longer terms? The District has experienced several benefits to “bundling” the District’s contracting needs including, but not limited to, the following:  Contracts advertised with larger contract amounts generate a greater interest by the professional consultant community. This translates to a larger pool of potential professional consultants who possess a greater degree of experience for the District to choose from.  Rates from consultants potentially differ by length of engagement. Short-term engagements will usually command a higher hourly rate when compared to long-term work in order to cover the direct fixed costs of running their respective business. Long-term work represents less risk and thus lowers the consultant’s expenses that influence their rates. The District has taken a balanced approach to mitigate the potential for rates influenced by short-term engagements by providing one and two-year As-Needed Services contracts.  The estimated cost to complete procurement for a professional consultant such as CMIS in accordance with the District’s Policy Number 21 ranges from $4,500 to $9,000 depending on the value of the procurement. By building an estimate of the District’s consultant engineering service needs based on the CIP over a two-year horizon and “bundling” these needs into a single procurement the overall number of procurements performed by staff is reduced which results in a savings to the District. This was demonstrated on the recent CMIS procurement where nine projects were bundled into a single procurement. The savings associated with bundling these nine projects into a single procurement in lieu of nine separate procurements is estimated to be $36,000. 4 This “bundling” approach to contracting for services is balanced by the use of As-Needed Services on a task order basis which assures that the District only pays for consultant services when these services are rendered to actively complete projects. In addition, the length of a contract is limited to a one or two-year duration to assure that the District is getting high value by receiving the benefit of a competitive procurement on a planned strategic basis. How do we measure if we are being successful using consultants? While staff has not specifically developed a measurement strategy related to the use of consultants, the use of consultants is a widely employed industry practice due to the benefits described above. The District realizes these benefits at the program level. Consultants serve as an extension of District staff in the delivery of the CIP. Through task orders issued by District staff, consultants are responsible for delivering a variety of activities that move the District’s projects forward to completion. These activities include, but are not limited to, design engineering, construction management, inspection, plan review for recycled water, development of master plans, environmental support, survey, and utility mark-outs. These activities and deliverables are represented as a component in the District’s Strategic Plan Objectives and Performance Measures including the following established for Engineering: Plan Objectives ID No. Description 3.1.1.1 Prepare and implement a Waste Water Management Plan 3.1.1.5 Work with the District’s largest potable water customers to convert landscape and interior water use to recycled water where fiscally feasible and safe Performance Measures ID No. Description 2.2.200 CIP Project Expenditures vs. Budget 2.2.201 Construction Change Order Incidence (without allowances) 2.2.202 Mark-out Accuracy 2.2.203 Project Closeout Time The performance of these Plan Objectives and Performance Measures is reported to the Board each fiscal year on a quarterly basis. Staff is responsible for the management of the consultants to achieve the established measurement strategy or respective target. 5 FISCAL IMPACT: Joe Beachem, Chief Financial Officer No fiscal impact as this is an informational item only. STRATEGIC GOAL: This report supports the District’s Mission Statement, “To provide high value water and wastewater services to the customers of the Otay Water District in a professional, effective, and efficient manner” and the General Manager’s Vision, “A District that is at the forefront in innovations to provide water services at affordable rates, with a reputation for outstanding customer service.” LEGAL IMPACT: None. DM/RP:jf P:\WORKING\As Needed Services\BD 01-08-13, Staff Report, Informational Item - As Needed Services for CIPs, (DM-RP).docx Attachment: Attachment A – Committee Action ATTACHMENT A SUBJECT/PROJECT: Various Informational Item – As-Needed Services to support the delivery of the Capital Improvement Program COMMITTEE ACTION: The Otay Water District Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on December 10, 2012. The Committee supported Staff’s recommendation. NOTE: The “Committee Action” is written in anticipation of the Committee moving the item forward for Board approval. This report will be sent to the Board as a Committee approved item, or modified to reflect any discussion or changes as directed from the Committee prior to presentation to the full Board. STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: January 8, 2013 SUBMITTED BY: Dan Martin Engineering Manager PROJECT: Various DIV. NO. ALL APPROVED BY: Rod Posada, Chief of Engineering German Alvarez, Asst. General Manager Mark Watton, General Manager SUBJECT: Informational Item – First Quarter Fiscal Year 2013 Capital Improvement Program Report GENERAL MANAGER’S RECOMMENDATION: That the Otay Water District (District) Board of Directors (Board) accept the First Quarter Fiscal Year 2013 Capital Improvement Program (CIP) Report for review and receives a summary via PowerPoint presentation. COMMITTEE ACTION: Please see Attachment A. PURPOSE: To update the Board about the status of all CIP project expenditures and to highlight significant issues, progress, and milestones on major projects. ANALYSIS: To keep up with growth and to meet our ratepayers' expectations to adequately deliver safe, reliable, cost-effective, and quality water, each year the District staff prepares a Six-Year CIP Plan that identifies the District’s infrastructure needs. The CIP is comprised of four categories consisting of backbone capital facilities, replacement/renewal projects, developer's reimbursement projects, and capital purchases. AGENDA ITEM 7 The First Quarter Fiscal Year 2013 update is intended to provide a detailed analysis of progress in completing these projects within the allotted time and budget of $18 million. Expenditures through the First Quarter totaled approximately $2.7 million. Approximately 15% of the Fiscal Year 2013 expenditure budget was spent. FISCAL IMPACT: Joe Beachem, Chief Financial Officer No fiscal impact as this is an informational item only. STRATEGIC GOAL: The Capital Improvement Program supports the District’s Mission statement, “To provide high value water and wastewater services to the customers of the Otay Water District, in a professional, effective, and efficient manner” and the General Manager’s Vision, “A District that is at the forefront in innovations to provide water services at affordable rates, with a reputation for outstanding customer service.” LEGAL IMPACT: None. DM/RP:jf P:\CIP\CIP Quarterly Reports\2013\Q1\Staff Report\BD 01-08-13, Staff Report, First Quarter FY 2013 CIP Report, (DM-RP).docx Attachments: Attachment A – Committee Action Attachment B - Fiscal Year 2013 First Quarter CIP Expense Report Attachment C – Presentation ATTACHMENT A SUBJECT/PROJECT: Various Informational Item – First Quarter Fiscal Year 2013 Capital Improvement Program Report COMMITTEE ACTION: The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a Committee Meeting held on December 10, 2012. The Committee supported staff’s recommendation. NOTE: The “Committee Action” is written in anticipation of the Committee moving the item forward for Board approval. This report will be sent to the Board as a Committee approved item, or modified to reflect any discussion or changes as directed from the Committee prior to presentation to the full Board. Otay Water District Capital Improvement Program Fiscal Year 2013 First Quarter (through September 30, 2012) Calavo Gardens Sewer Rehabilitation 08/13/12 Attachment C Background The approved CIP Budget for Fiscal Year 2013 consists of 70 projects that total $18 million. These projects are broken down into four categories. 1.Capital Facilities $ 7.6 million 2.Replacement/Renewal $ 9.6 million 3.Capital Purchases $ .8 million 4.Developer Reimbursement $ 0.0 million Overall expenditures through the First Quarter Fiscal Year 2013 totaled $2.7 million, which is 15% of the Fiscal Year budget. 2 Fiscal Year 2013 First Quarter Update ($1,000) CIP CAT Description FY 2013 Budget FY 2013 Expenditures % FY 2013 Budget Spent Total Life-to- Date Budget Total Life-to-Date Expenditures % Life-to- Date Budget Spent 1 Capital Facilities $7,588 $1,069 14% $111,138 $40,127 36% 2 Replacement/ Renewal $9,559 $1,433 15% $59,506 $26,741 45% 3 Capital Purchases $794 $236 30% $14,222 $8,796 62% 4 Developer Reimbursement $53 $0 0% $6,513 $1 0% Total: $17,994 $2,738 15% $191,379 $75,665 40% 3 Fiscal Year 2013 First Quarter CIP Budget Forecast vs. Expenditures 4 $17,994,000 $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 $18,000,000 $20,000,000 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun FISCAL YEAR PERIOD IN MONTHS Expenditure Forecast FY 2013 Expenditures District Map of Major CIP Projects 5 5 CIP Projects in Construction Phase I of 944-1R Recycled Water Pump Station Improvements (R2091) Installation of New Pump New Instrumentation New Suction Header Piping Three (3) New Pressure Reducing Stations $1.88M Budget Start: June 2011 Substantially Complete: 8/3/12 Above: New Pump No. 3 and Suction Header Piping at 944 Pump Station 6 07/02/12 CIP Projects in Construction RWCRWF Upgrades (R2096) New Aeration System, Blower System, and Electrical Instrumentation $4.95M Budget Start: July 2011 Substantially Complete: 7/31/12 Refurbished Aeration Basin under operation 06/28/12 7 CIP Projects in Construction La Presa System Improvements (P2370) Demolition of 850-1 and 657-1 Pump Stations and Forebay Reservoir Multiple interconnections throughout Spring Valley Demolition of Dorchester Reservoir and Pressure Reducing Station $1.43M Budget Start: November 2011 Substantial Completion: 8/16/12 Completed PRV Station at La Presa Site 8 07/19/12 CIP Projects in Construction Calavo Gardens Sewer Rehabilitation (S2019, S2020, S2022, S2026) Replacement of 4,500 Linear Feet of Sewer Manhole Rehabilitation/Replacement Capacity Upgrades New Flow Control and Diversion Vault for Calavo Lift Station $3.35M Budget Start: February 2012 Estimated Completion: May 2013 Compacting Trench in Avocado Boulevard 9 08/14/12 CIP Projects in Construction 10 Hunte Parkway 30-Inch Potable Pipeline (P2514) Installation of 2,250 LF of Polyurethane Coated Steel Pipe $1.55M Budget Start: April 2012 Estimated Completion: January 2013 Dry grinding the road 11 Construction Contract Status PROJECT TOTAL % R2091 944-1R RecycledPump Station Upgrade & System Enhancments Sepulveda $1,099,423 $1,162,423 $0 0.0% R2096 RWCWRF Upgrades Newest $3,349,000 $3,499,000 $72,807 2.2% P2370 La Presa System Improvements TC Construction $938,995 $978,995 $82,548 8.8% S2019/S 2020/S2 022/S20 26 Calavo Gardens Sewer Rehabilitation Garcia Juarez Construction $2,232,275 $2,316,275 $0 0.0% P2491 850-3 Reservoir Coating Advanced Industrial Services $273,300 $293,300 $400 0.1% P2514 30-Inch Potable Pipeline in Hunte Parkway Sepulveda $1,172,257 $1,212,257 $0 0.0% TOTALS:$9,065,250 $9,462,250 $155,755 1.7% *NET CHANGE ORDERS DO NOT INCLUDE ALLOWANCE ITEM CREDITS. IT'S A TRUE CHANGE ORDER PERCENTAGE FOR THE PROJECT CIP NO.PROJECT TITLE CONTRACTOR BASE BID AMOUNT CONTRACT AMOUNT W/ ALLOWANCES NET CHANGE ORDERS LTD* Consultant Contract Status 12 Consultant Contract Status 13 QUESTIONS? 14