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Home My WebLink About14 - Big Canyon Reservoir - Award of C-5027= CITY OF NEWPORT REACH [I FOP City Council Staff Report Agenda Item No. 14 February 26, 2013 • ' '1��ll1G1' 7 L0I][1111 FROM: Public Works Department David Webb, Public Works Director 949 - 644 -3311, dawebb()newportbeachca.gov PREPARED BY: Michael J. Sinacori, P.E. 949 - 644 -3342, msinacori(anewportbeachca.gov APPROVED: �✓a G� 1r.iM v TITLE: Big Canyon Reservoir Floating Contract No. 5027 ABSTRACT: Cover Replacement - Award of The Big Canyon Reservoir (BCR) in Corona del Mar is a 200 - Million Gallon domestic water reservoir which serves the entire City of Newport Beach and is equipped with a floating cover. The floating cover has shown signs of extensive deterioration and inspection reports have recommended that it be replaced. Staff received favorable construction bids for the BCR Cover Replacement Project and is requesting City Council's approval to award a contract to MPC Containment International (MPC). RECOMMENDATIONS: 1. Approve the project drawings and specifications. 2. Award Contract No. 5027 to MPC for the total bid price of $5,720,500.00 and authorize the Mayor and City Clerk to execute the contract. 3. Establish a contingency of $300,000 to cover the cost of unforeseen work not included in the original contract. 4. Approve Budget Amendment No. 13BA- 033appropriating $2,347,723.00 from the Water Enterprise Capital Improvement Fund (510) to the Big Canyon Cover Replacement CIP Account No. 7511- C6002011. FUNDING REQUIREMENTS: Upon approval of the proposed Budget Amendment, sufficient funding will be available for the award of this contract. Funding in the amount of $3,932,814.00 is currently budgeted for this project in the FY 12 -13 CIP budget. This budget amendment essentially advances necessary water CIP funding to replace this cover ahead of the Master Plan schedule of FY 2025/26 due to the pre- mature failure of the existing cover material. As a result of this 1 of 4 Big Canyon Reservoir Floating Cover Replacement - Award of Contract No. 5027 February 26, 2013 Page 2 advancement of funding, it will be necessary to postpone or adjust the amount of Master Planned water main replacement work over the next couple of years, including lines in the Newport Heights and Via Lido areas. Staff is in the process of reevaluating water CIP funding needs to ensure the Master Planned projects are being completed in a timely manner. The following funds are planned to be expensed: Account Description Water Enterprise — BCR Cover Proposed uses are as follows: Vendor MPC Containment Int. MPC Containment Int. MWH Global Various DISCUSSION: Account Number 7511- C6002011 Purpose Construction Contract Construction Contingency Const. Support Services Printing & Incidentals Total: Amount $ 6,280,537.00 Amount $ 5,720,500.00 300,000.00 250,037.00 10,000.00 $ 6,280,537.00 The City -owned and operated BCR is a 600 -acre foot (200M- gallon) potable water storage reservoir located in Corona del Mar. This reservoir at full capacity provides enough water to supply the City with 10 days of average water usage. This facility was originally constructed in the early 1960's as a main delivery point for imported water from the Metropolitan Water District. When it was constructed, an open water reservoir was a more typical and acceptable facility. However, as water quality standards have became more stringent over the years, the Department of Health Services (DHS) mandated that the City cover the reservoir or abandon the facility. In 2005 the City completed the installation of the current floating cover to satisfy this state requirement. The cover was intended to last 20 years; however, City staff noticed a significant amount of degradation to the cover after approximately 5 years of the 20 -year lifespan. In December of 2011, the City filed a complaint against the contractor and subcontractors associated with the manufacturing and installation of the BCR cover. In summary, the City's complaint alleges the contractor and subcontractors failed to properly manufacture and install the cover. Thus they violated contractual and other legal duties to the City. The litigation is still ongoing. Due to the significant amount of degradation, staff and contract inspection firms recommend replacing the cover to avoid a failure that may result in taking the reservoir out of service and possibly interfering with normal water system operations. The project contract documents were completed in the fall calling for replacement of the existing polypropylene cover with a new Chlorosulfonated Polyethylene (CSPE) cover. The project also includes the introduction of a new baffle curtain to improve circulation throughout the reservoir. CSPE cover material has been utilized in the water industry for more than 40 years. Polypropylene has been used for just over 20 years. The City chose polypropylene in 2004 due to the lower cost, lighter weight and expected 20 year lifespan. Unfortunately, 2 of 4 Big Canyon Reservoir Floating Cover Replacement - Award of Contract No. 5027 February 26, 2013 Page 3 the polypropylene cover material experienced premature failure. Staff presented the options to the Council Finance Committee on September 12, 2012, and recommended proceeding with the cover replacement project utilizing the longer lasting CSPE material, with an expected lifespan of 30 years. After their review, the committee concurred with the staff recommendation. At 10:00 A.M. on February 12, 2013, the City Clerk opened and read the following bids for this project: BIDDER AS -BID AMOUNT CORRECTED AMOUNT Low MPC Containment Int. $5,720,500.00 2 Layfield $5,799,528.00 3 SCCI Spiess Const. $6,656,500.00 4 Vido Samarzich, Inc. $7,478,000.00 The low total bid amount is 12 percent below the Engineer's Estimate of $6,500,000. The low bidder, MPC possesses a California State Contractors License Classification "C -61" as required by the project specifications. A check of the contractor's references indicates satisfactory completion of similar projects for other public agencies. The work necessary to complete this contract consists of removal of the existing polypropylene cover, installation of a new CSPE floating cover, side slope chafer, a water quality separation baffle and other incidental work to complete the replacement. Project plans call for work to be completed within 175 working days, which includes time for material manufacturing and fabrication. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this project exempt from the California Environmental Quality Act ( "CEQA ") pursuant to Section 15302(c) (Replacement and reconstruction of existing utility systems and /or facilities involving negligible or no expansion of capacity) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential to have a significant effect on the environment. NOTICING: This agenda item has been notico according to the Brown Act (72 hours in advance of the meeting at which the City Counc/f onsiders the item). Submitted 4 Public Works Director Attachment: A. Location Map 3of4 A OA A PROJECT LOCATION MAP ATTACHMENTA ��P O 010 �O ZIP SAN / 81G CANYON RESERVOIR i vp G � Z f� y 04� I WNp R q0 qq J O - 000 e BIG CANYON RESERVOIR FLOATING COVER REPLACEMENT City of Newport Beach NO. BA- 13BA -033 BUDGET AMENDMENT 2012 -13 EFFECT ON BUDGETARY FUND BALANCE: Increase Revenue Estimates X Increase Expenditure Appropriations AND Transfer Budget Appropriations SOURCE: from existing budget appropriations from additional estimated revenues PX from unappropriated fund balance EXPLANATION: This budget amendment is requested to provide for the following: AMOUNT: $2,347,723.00 Increase in Budgetary Fund Balance X Decrease in Budgetary Fund Balance No effect on Budgetary Fund Balance To increase expenditure appropriations from advances in Water Capital CIP funding allocations for FY13 -14 to replace the Biq Canvon Reservoir Cover. ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Fund Account 510 3605 REVENUE ESTIMATES (360 1) Fund/Division Account EXPENDITURE APPROPRIATIONS (3603) Amount Description Debit Credit Water Capital Fund - Fund Balance $2,347,723.00 ' Description AvIometic Signed: //a v FinaYrcial Approval: Finance Director Signed: Adminisha ive Approval: City M ager Signed: City Council Approval: City Clerk $2,347,723.00 1'2. Date 2 11 .-' z Date Date Description Division Number 7511 Distribution & Piping Account Number C6002011 Big Canyon Reservoir Cover Division Number Account Number Division Number Account Number Division Number Account Number Division Number Account Number AvIometic Signed: //a v FinaYrcial Approval: Finance Director Signed: Adminisha ive Approval: City M ager Signed: City Council Approval: City Clerk $2,347,723.00 1'2. Date 2 11 .-' z Date Date