HomeMy WebLinkAbout06.f. Allocate additional funds to complete the Lafayette Sewer Renovations, Phas 8, DP 8404Central Contra Costa Sanitary District
' BOARD OF DIRECTORS
POSITION PAPER
Board Meeting Date: September 3, 2015
Subject: 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
Services Kent Alm Roger . Baile
District Counsel General Manag r
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.
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.
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POSITION PAPER
Board Meeting Date: September 3, 2015
Subject: PROJECT BUDGET OVERRUN; AUTHORIZE THE GENERAL MANAGER
TO ALLOCATE ADDITIONAL FUNDS TO CLOSE OUT THE LAFAYETTE
SEWER RENOVATIONS, PHASE 8, DISTRICT PROJECT 8404
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 annually in the CIB.
COMMITTEE RECOMMENDATION: The Engineering and Operations Committee
reviewed this project at its August 26, 2015 meeting and recommended approval.
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.
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