HomeMy WebLinkAbout23A - APRV INCREASE WALNUT PUMP STATIONREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
NOVEMBER 21, 2017
TITLE:
APPROVE CONTINGENCY INCREASE FOR
WALNUT PUMP STATION UPGRADES
TO COVER UNFORESEEN COSTS
(PROJECT: 11-6412)
(STRATEGIC PLAN NO. 6, 1C}
CI MANAGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
❑ As Recommended
❑ As Amended
❑ Ordinance on 1� Reading
❑ Ordinance on 2nd Reading
❑ Implementing Resolution
❑ Set Public Hearing For
CONTINUED TO
FILE NUMBER
Approve a contingency increase of $250,000 for construction of the Walnut Pump Station Building
Upgrade, to cover costs related to unforeseen conditions encountered during construction.
DISCUSSION
The City of Santa Ana operates several water wells and pump stations to produce and distribute
potable water for consumption by Santa Ana residents and businesses. One of the primary pump
stations is the Walnut Pump Station located at 723 West Walnut Street (Exhibit 1). Since 1956, this
pump station has pumped well water from the First Street Reservoir which is hidden from view and
located underground. Rehabilitating this facility has become very important to ensure water quality
and reliability.
On the September 20, 2016, City Council awarded a contract to Arnaz Engineering Contractors, Inc.
in the amount of $3,596,000 to construct the Walnut Pump Station Building Upgrade project. The City
Council also authorized a total estimated project delivery cost of $4,854,600, which included the
contract base amount, administration, inspection, testing, and $899,000 contingency. Staff
recommends adding $250,000 to the project contingency to ensure the project continues and is
completed without interruption. As explained below, unforeseen conditions have impacted the cost of
the project. Construction is far enough along, however, that new unforeseen conditions are not likely.
The scope of work for the Walnut Pump Station Building Upgrade project involved replacing the aging
building, and mechanical, electrical, piping, and plumbing systems on the surface. Other
improvements include new fencing, concrete practice tennis wall, a carport, asphalt paving, drainage,
drought -tolerant landscaping, and miscellaneous site improvements.
While the scope of the construction contract consisted of the demolition of the entire facility, the
underground piping, header, valves, pumps, and motors were to remain. However, during demolition
of the building and site, several issues arose that needed immediate attention. The existing five
discharge pumps, motors, and appurtenances in line to the discharge header were in poor shape, not
salvageable, and required replacement. The cost of this change significantly impacted the
construction contingency.
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Contingency Increase for Walnut Pump Station Upgrades
November 21, 2017
Page 2
As work progressed additional unforeseen conditions were discovered. An existing oversized
foundation in the construction area needed to be demolished and removed, existing water vaults were
deteriorated beyond repair that needed to be demolished and replaced, and existing underground 24 -
inch cement mortar pipes had excessive corrosion and required replacement.
The above unforeseen additional work was not part of the original scope but was necessary to
complete the pump station facility so that it may be reopened and put back on-line. These
unforeseen issues have depleted the construction contingency and, with approximately 40 percent of
the construction remaining, staff recommends the additional contingency funds for the project. From
this point forward, unforeseen conditions are not likely, and the added funds will ensure the project is
completed without interruption, should unforeseen conditions arise.
STRATEGIC PLAN ALIGNMENT
Approval of this item supports the City's efforts to meet Goal #6 - Community Facilities &
Infrastructure, Objective #1 (establish and maintain a Community Investment Plan for all City assets),
Strategy C (invest resources and technology to extend the service life of existing infrastructure to
protect the City's investment and support a high quality of life standard).
ENVIRONMENTAL IMPACT
An environmental report was prepared for the project prior to the construction contract award. This
recommended action does not create any new impacts.
FISCAL IMPACT
The Project Cost Analysis originally estimated project expenditures of $4,854,600, which included the
construction contract, construction administration, inspection, testing, surveying and contingencies
(Exhibit 2). An additional $250,000 will be added into the contingency account for use via change
order approval. Funding is available in the Water Utility Capital Projects Fund (Account No.
06617647-66301) for expenditure in Fiscal Year 2017-18.
i�o� F�wr
—Fred
Executive Director
Public Works Agency
FM/EWG/TC
Exhibits: 1. Location Map
2. Cost Analysis
APPROVED AS TO FUNDS & ACCOUNTS:
Francisco Gutierrez
Executive Director
Finance & Management Services Agency
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COST ANALYSIS
PROJECT NO. 11-6412: WALNUT PUMP STATION BUILDING UPGRADE PROJECT
Construction Contract
$3,596,000.00
Contract Administration
$187,931.00
Inspection and Testing
$171,669.00
Survey
$0.00
Contingencies
$899,000.00
Additional Contingencies (this action)
$250,000.00
TOTAL ESTIMATED PROJECT DELIVERY COST
$5,104,600.00
EXHIBIT 2
November 21, 2017
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