HomeMy WebLinkAbout05. Draft PP to allocate additional funds to complete Lafayette Sewer Renovations, Ph 8Central Contra Costa Sanitary District
' BOARD OF DIRECTORS •
POSITION PAPER o
Board Meeting Date: September 3, 2015
Subject: DISTRICT PROJECT BUDGET OVERRUN; AUTHORIZE THE GENERAL
MANAGER TO ALLOCATE ADDITIONAL FUNDS TO CLOSE OUT THE
LAFAYETTE SEWER RENOVATIONS, PHASE 8, DISTRICT
PROJECT 8404
Submitted By: Initiating Dept. /Div.:
Edgar J. Lopez, Capital Projects Division Engineering and Technical
Manager Services /Capital Projects
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
J -M Petit — Director of Engineering and Technical
Kent Alm Roger S. Bailey
Services District Counsel General Manager
ISSUE: Action is required by the Board of Directors to allocate funds for project budget
overruns greater than 15% of the final project budget established at the time of the
construction contract award.
RECOMMENDATION: Authorize the General Manager to allocate $240,000 to the
Lafayette Sewer Renovations, Phase 8, District Project 8404, from the Collection
System Program Contingency Account.
FINANCIAL IMPACTS: The Fiscal Year (FY) 2015 -16 Collection System Program
Contingency Account has $900,000 budgeted. An allocation of $240,000 to the
Lafayette Sewer Renovations, Phase 8 project, will leave a remaining contingency
balance of $660,000 for the Collection System Program.
ALTERNATIVES /CONSIDERATIONS: Do not authorize staff to allocate additional
funds for the project. This action is not recommended.
BACKGROUND: The Lafayette Sewer Renovations, Phase 8, District Project 8404,
renovated approximately 8,400 lineal feet of 6- and 8 -inch sewer mains in the South
Peardale area of Lafayette.
On March 21, 2013, the Board authorized a final project budget of $2,379,500 for the
subject project, which included planning, design, bid price, contract contingency, and
construction management. The General Manager authorized a budget overrun close to
15% ($355,500) to cover the expenses of reviewing potential change orders and a
claim issued by the general contractor, Carone and Company, Inc.
C:\ Users \CGranzella\AppData \Local \Microsoft \Windows \Temporary Internet Files \Content.Outlook \YTOD71 EQ \Draft 8404
Allocation GM - Lafayette 8 el.doc
POSITION PAPER
Board Meeting Date: September 3, 2015
subject: DISTRICT PROJECT BUDGET OVERRUN; AUTHORIZE THE GENERAL
MANAGER TO ALLOCATE ADDITIONAL FUNDS TO CLOSE OUT THE
LAFAYETTE SEWER RENOVATIONS, PHASE 8, DISTRICT
PROJECT 8404
To date, the total allocated project budget is $2,735,000. Staff estimates that an
additional $240,000 is needed to close out the project, which will bring the total project
budget to $2,975,000.
The Capital Improvement Budget (CIB) provides for program contingency funding of
capital projects. The program contingency is set aside in a separate account and used
for new projects not identified in the CIB, or to fund budget overruns, and /or pay for
urgent /emergency work as needed. The authorization limits for contingency spending
are shown and approved in the CIB.
COMMITTEE RECOMMENDATION: To be reviewed by the Engineering and
Operations Committee at its August 26, 2015 meeting.
RECOMMENDED BOARD ACTION: Authorize the General Manager to allocate
$240,000 to the Lafayette Sewer Renovations, Phase 8, District Project 8404, from the
Collection System Program Contingency Account.
C:\ Users \CGranzella\AppData \Local \Microsoft \Windows \Temporary Internet Files \Content.0utlook \YT0D71 EQ \Draft 8404
Allocation GM - Lafayette 8 el.doc