HomeMy WebLinkAbout06.f. Authorize transfer of funds for Walnut Creek Sewer Renovations Ph 11, DP 8422 Central San 6ofm
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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 SEINER 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 A C TION:
T. Vassallo--Finance Manager -�-�
JM. Petit-- Roger of Engineering and Technical Services Roder S.Bailey
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General Manager
ISSUE: Board of Directors (Board) authorization is required to tra �#er funds for 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 5, 2017. The general contractor for the Project,
Cratus Inc., mobilized with several crews and has made significant construction
progress. As of the end of May, approximately 49% of the 9,100 feet of sewer lines
have been installed and staff is projecting 75% project completion by the end of the
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 2016-17.
FINANCIAL IMPACTS: The total estimated project costs is $3,934,000 as shown in the
FY 2017-18 capital Improvements Budget (CIB). Most of these costs were anticipated in
FY 2017-18. However, the Project needs $800,000 in FY 2015-17 to pay for the
construction costs that will be incurred by June 30, 2017.
Staff recommends transferring $800,000 from the Sewer construction Fund — capital
Reserve prior to the close of the fiscal year to pay for the Project. There is no net
impact to the CIB and no additional budget is being requested for the Project.
ALTERNATIVESICONSIDERATIONS: A financial alternative would be to transfer the
funds from other CIB projects or sources, which is not recommended since there is
adequate funding within the Sewer Construction Fund -- Capital Reserve. Staff will
report the end of year expenditures, all project close outs, and amended budgets to the
Board at a future meeting.
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POSITION PAPER
Board Meeting Date: .l U ly 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
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
$800,000 from the Sewer Construction Fund — Capital Reserve to the Walnut Creek
Sewer Renovations Phase 11, District Project 8422.
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