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HomeMy WebLinkAbout04. Review draft Position Paper to approve a contingency project in the amount up to $395,000 for the Miner Road Sewer Repairs, District Project 8439 Central San 40 BOARD OF DIRECTORS POSITION PAPER D Bmvy Board Meeting Date: April 20, 2017 Subject: APPROVE A CONTINGENCY PROJECT IN AN AMOUNT UP TO $3957000 FOR THE MINER ROAD SEWER REPAIRS, DISTRICT PROJECT 8439 Submitted By: Initiating Dept./Div.: Edgar J. Lopez Engineering and Technical Capital Projects Division Manager Services/Capital Projects REVIEWED AND RECOMMENDED FOR BOARD ACTION: JM. Petit— Director of Engineering and Technical Services A. Sasaki — Deputy General Manager Roger S. Bailey General Manager ISSUE: Board of Directors' (Board) approval is required for any contingency project in an amount above $100,000. Board approval is also required to budget projects or transfer funds from the Sewer Construction Fund. BACKGROUND: On January 11 , 2017, after several days of heavy rain, a large sinkhole enveloped two Central San gravity sanitary sewers that run along Miner Road in Orinda. Thus, both sewer lines, a 15-inch sewer and an 18-inch sewer, ruptured, and heavily-diluted sewage was discharged into Lauterwasser Creek, which flows into the San Pablo Reservoir, a drinking water reservoir operated by East Bay Municipal Utility District. The City of Orinda (City) owns a 72-inch storm drain that is located at the bottom of the sinkhole. Central San has been bypassing sewage on Miner Road since the sinkhole event. The City has been actively working on obtaining all necessary permits and is also seeking emergency funding.. To date, they are evaluating two possible alternatives for the sewer repairs, as follows: 1 Alternative 1: The City signed an emergency contract for repair of the culvert and roadway, and included an optional item for Central San's sewer repairs. If the same contractor is used for the sewer repairs, the project cost is estimated to be $180,000, including associated staff time. 2. Alternative 2: The City culvert repair may be delayed for several months (or longer) depending on obtaining permits and funding, therefore, the City has notified Central San that they may install a temporary bridge to reopen Miner Road. The City believes they can construct a temporary bridge quickly and restore traffic in a timely manner. Installation of a temporary bridge would result in staff recommending permanent sewer repairs that would not conflict with any future City culvert. The permanent repairs would consist of a creek crossing design with concrete piers, steel casings, and is estimated to cost $395,000, including staff time. Page 1 of 3 POSITION PAPER Board Meeting Date: April 20, 2017 Subject-' APPROVE A CONTINGENCY PROJECT IN AN AMOUNT UP TO $3955000 FOR THE MINER ROAD SEWER REPAIRS, DISTRICT PROJECT 8439 Staff is requesting that the Board approve a contingency project with associated funding to cover either alternative, so we can quickly respond to the City's need. Regarding Alternative 2, due to the timing and complications, staff would prefer to complete the repairs by change order executed under a current sewer renovation contract or by emergency action since the City's 100-foot long temporary bridge would not allow operations of the current sewer bypass system. Staff has designed a permanent repair and solicited proposals from three qualified contractors, and will select the best proposal based on construction schedule and costs. ALTERNATIVES/CONSIDERATIONS: Staff considered a temporary repair but elected not to take this approach due to the uncertainty of the City's implementation, timing, exposure to the creek, and the likelihood that the work would have to be redone later. The State of California, Contra Costa County, and the City of Orinda have all proclaimed a state of emergency. A financial alternative would be to transfer the funds from other active Capital Improvement Budget (CIB) projects, which is not recommended since it may result in budget overruns or delays to other ongoing projects. Another alternative would be to partially fund the Project when closeouts are done by the end of June 2017, which is not recommended because of timing. FINANCIAL IMPACTS: The total cost of the repair project may reach up to $395,000, which includes design, contractor costs, construction management, and contingency. The General Manager has already authorized $95,000 for the contingency project. The requested budget of $300,000 will be transferred from the Sewer Construction Fund by the General Manager, There is only $10,000 remaining in the CIB contingency, therefore, an additional budget approval in the amount of $300,000 is being requested from the Sewer Construction Fund to continue the Project for the remainder of the fiscal year (FY). There are adequate funds available in the Sewer Construction Fund. COMMITTEE RECOMMENDATION: The Engineering and Operations Committee reviewed this subject at the meeting on April 11 5 2017, and recommended to approve/not approve the budget for the contingency project. Page 2 of 3 POSITION PAPER Board Meeting► Date: April 20, 2017 subject: APPROVE A CONTINGENCY PROJECT IN AN AMOUNT UP TO $3951000 FOR THE MINER ROAD SEWER REPAIRS, DISTRICT PROJECT 8439 RECOMMENDED BOARD ACTION: 1. Approve a contingency project in the amount up to $395,000 for the Miner Road Sewer Repairs, District Project 8439. 2. Authorize the General Manager to add $300,000 to the Collection System Program contingency account for the FY 2016-17 CIB for the Miner Road Sewer Repair Project, District Project 8439, from the Sewer Construction Fund. Page 3 of 3