HomeMy WebLinkAbout05. Review draft Position Paper to authorize the General Manager to transfer funds in the Fiscal Year 2016-17 Capital Improvements Budget for the Walnut Creek Sewer Renovations, Phase 11, District Project 8422 r
Central San 50
BOARD OF
DIRECTORS �
77
IT
POSION P
Beard Meeting Date: July 6, 2017
Subject: AUTHORIZE THE GENERAL MANAGER TO TRANSFER FUNDS IN THE
FISCAL YEAR 2010-17 CAPITAL IMPROVEMENTS BUDGET FOR THE
WALNUT CREED SEWER RENOVATIONS PHASE 11 , DISTRICT
PROJECT 8422
Submitted By: Initiating Dept./Div.:
Edgar J. Lopez Engineering and Technical services/
Capital Projects Division Manager capital Projects
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
T. Vassallo— Finance Manager
JM. Petit — Director of Engineering and Technical Services Roger S.Bailey
General Manager
ISSUE: Board of Directors (Board) authorization is required to transfer funds within the
Capital Improvements Program in an amount exceeding $500,000.
BACKGROUND: The Walnut creek Sewer Renovations Phase 11 Project Project
was awarded by the Board on April 0, 2017. The general contractor for the Project,
Cratus Inc., mobilized with multiple crews and has made significant construction
progress. As of the end of May, approximately 49% of the 0,100 feet of sewer lines
have been installed and staff is projecting 75% Project completion b the end of the
p y
Fiscal Year {FY} June 30, 2017. In addition, staff issued a change order to Cratus, Inc.
to repair the piping associated with the St. Mary's College sinkhole in the Town of
Moraga.
With the change order and the rapid pace of construction by the contractor, more funds
are required in the project for FY 2010-17.
FINANCIAL IMPACTS: The total estimated project costs is $3,034,000 as shown in
the FY 2017-18 capital Improvements Budget (CIB) for thisJ
ro�ect. Most of these costs
p
were anticipated in FY 2017-18. However, the Project needs $800,000 in FY 2010-17 to
pay for the construction costs that will be incurred by June 30 2017.
There is no net impact to the CIB and no additional budget is being requested for the
Project. several projects will be closing in FY 2010-17 and the remaining funds will be
transferred to the CIB contingency account. Attachment 1 represents theJ
ro'ects that
p
would fund the requested transfer amount. Staff recommends transferring $800,000
from the contingency account prior to the close of the fiscal year toa for early
Y
spending under this Project.
ALTERNATIVES/CONSIDERATIONS: A financial alternative would be to transfer the
funds from, other sources outside the CIB, which is not recommended since there is
Page 1 of 3
POSITION PAPER
Board Meeting Date: July 6, 2017
Subject AUTHORIZE THE GENERAL MANAGER TO TRANSFER FUNDS IN THE
FISCAL YEAR 2016-17 CAPITAL IMPROVEMENTS BUDGET FOR THE
WALNUT CREEK SEWER RENOVATIONS PHASE 11, DISTRICT
PROJECT 8422
adequate funding within the Capital Improvements Program. Staff will report the end of
year expenditures, all project close outs (not all project close outs are shown in
Attachment 1), and amended budgets to the Board at a future Board meeting.
COMMITTEE RECOMMENDATION: The Engineering and Operations Committee
reviewed this subject at the meeting on June 6, 2017, and recommended approval of
the transfer.
RECOMMENDED BOARD ACTION: Authorize the General Manager to transfer
$8010,000 from the CIB Contingency Account to the Walnut Creek Sewer Renovations
Phase 11, District Project 8422.
Attached Sypportin-a Document:
1. Transfer Source of Funds
Page 2 of 3
ATTACHMENT 1
TRANSFER SOURCE OF FUNDS
as of May 31, 2017
Total Remaining
Project No. Project Title Bud et
Closed CIB Contingency account to date, includes executed $2571661
close outs
7300 Refinery Recycled Water (Close out in progress) $19,812
7324 Substation 16 Switchgear Replacement (Close out in $44,631
progress)
5999 Cured-in-Place Pipe Blanket Contract (Close out in $8,446
progress
8426 Lafayette Sewer Renovations, Phase 10 (Close out in $80,872
progress)
8429 Fairview Maltby Pump Station Upgrades (Close out in $164,199
progress)
8415 Martinez Sewer Renovations Phase 4 $67,676
(Close out in progress)
7311 TP Safety Enhancements Phase 4 (Close out in $150,9r__0-7
progress)
Total Amount Being Transferred to Contingency $ 804,224
Account
8422 Transfer to the Walnut Creek Sewer Renovation Phase
�1 -$800,000
Remaining in Contingency Account $ 4,224
Page 3 of 3