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Appropriation Adjustment and Addition of Contingency Funds to Lonerock Inc. Contract <br />September 15, 2020 <br />Page 2 <br />contractor to install an additional pump and monitor the well to remove the ground water until <br />construction of the diversion structure were to be completed. Based on time and material costs, <br />the request for additional services will total $500,000. <br />The construction contingency originally allocated for this project has been depleted due to change <br />orders, such as additional excavation, subgrade treatment, material import, Continuous Deflective <br />Separation unit modification, catch basin, trail, permits, water main, electrical conduit, and irrigation <br />mainline. Staff is recommending an increase in contingency (Exhibit 2), funded by the Federal <br />Clean Water Protection Enterprise Fund, to cover the additional services provided by Lonerock, <br />Inc. <br />ENVIRONMENTAL IMPACT <br />On May 3, 2016, the City Council approved a mitigated Negative Declaration (MND) in accordance <br />with the California Environmental Quality Act (CEQA). The proposed project would have a less <br />than significant impact on the environment. As planned, the Delhi project would eliminate dry <br />weather flows in the Santa Ana Delhi Channel to help improve water quality in downstream <br />receiving waters including Upper Newport Bay. <br />FISCAL IMPACT <br />The table below summarizes the original authorized construction expenditures. The requested <br />increase in contingencies of $500,000 will be funded by the project's available balance from prior <br />years of $275,000 and the requested appropriation adjustment in the amount of $225,000. <br />EXPENDITURE <br />CATEGORY <br />ORIGINAL <br />AMOUNT <br />ADDITIONAL <br />AMOUNT <br />NEW TOTAL <br />Construction Contract <br />$4,593,375 <br />$0 <br />$4,593,375 <br />Construction Administration <br />$409,920 <br />$0 <br />$409,920 <br />Inspection and testing <br />$358,680 <br />$0 <br />$358,680 <br />Contingencies <br />1 $1,024,800 <br />$500,000 <br />$1,524,800 <br />TOTAL: <br />1 $6,386,775 <br />$500,000 <br />$6,886,775 <br />Approval of the appropriation adjustment will recognize $225,000 in the Federal Clean Water <br />Protection Enterprise, Prior Year Fund Balance revenue account (No. 05717002-50001) and <br />appropriate same into the Federal Clean Water Protection Enterprise, Improvements Other Than <br />Building expenditure account (No. 05717640-66220) to fully fund the requested increase in <br />contingencies. The funds currently budgeted in the amount of $275,000 will be carried forward <br />from FY 2019-20 to FY 2020-21. <br />20A-2 <br />