HomeMy WebLinkAbout09 - Big Canyon Reservoir Floating CoverCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 9
February 22, 2011
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Public Works Department
Michael J. Sinacori, Assistant City Engineer
949- 644 -3342 or Msinacori @newportbeachca.gov
SUBJECT: BIG CANYON RESERVOIR FLOATING COVER REPAIRS
ISSUE
The Big Canyon Reservoir was equipped with a floating cover in 2005, as required by the
State Department of Health Services. The cover was provided with a 20 year prorated
material only warranty. This past year, several defects have been discovered necessitating
repairs though the cover is only six years old. Staff has expended approximately $120,000
from water maintenance and repair accounts to fund necessary repairs which were not
anticipated in this year's budget. Staff is requesting that the fund be restored so normal
maintenance activities can continue through the rest of the fiscal year.
:7*i]i51PF4►I1 `11611
Authorize budget amendment transferring $120,000 from the unappropriated Water
Enterprise Fund Reserve to Maintenance and Repair Account No. 5500 -8156 ($85,000)
and Professional and Technical Services Account No. 5500 -8080 ($35,000).
DISCUSSION
On February 10, 2004, the City Council authorized the award of the Big Canyon Reservoir
Covering and Disinfection Facilities contract to Banshee Construction Company. The
contract provided for the installation of a floating cover and new disinfection facilities to
comply with a mandate from the State Department of Health Services. The City Council
accepted the floating cover and facilities on October 25, 2005. The floating cover was
provided with a 20 year material only prorated warranty.
In the Spring of 2010, the operations staff begin to notice deterioration in areas of the
floating cover in and around the hatches and along the mixing pump cages in the four
corners of the reservoir. Holes could be seen in several locations. The manufacturer of the
cover material, The Cooley Group, was notified that their material was not performing as
expected and was showing signs ( "Cooly ") of premature failure. Independent testing of the
material by Cooley and the City determined that the material has completely lost its
ultraviolet (UV) protection. A UV protection additive is included in the cover material as part
of the manufacturing process. Essentially no UV additive was detected in the testing, thus
we believe this is the reason for the cover material to show signs of premature failure.
Big Canyon Floating Cover Repairs
February 22, 2011
Page 2
Cooley has cooperated with the City to provide new cover material to allow the necessary
repairs to take place. To date staff has expended $85,000 in cover repair efforts and also
contracted with a cover expert for $35,000 to oversee the repairs and provide
recommendation to the City in its negotiations with Cooley. Staff is now working with the
City Attorney's office to seek recovery from Cooley of expenses related to the premature
failure of the cover and related repairs and replacement. Staff anticipates that the cover will
need to be completely replaced within the next few years, as the cover will most likely
deteriorate beyond a point to perform anticipated normal and required maintenance efforts
on the cover.
ENVIRONMENTAL REVIEW
Staff recommends that the City Council find this action is not subject to the California
Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not
result in a direct or reasonably foreseeable indirect physical change in the environment) and
15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA
Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential
for resulting in physical change to the environment, directly or indirectly.
PUBLIC NOTICE
Notice for this budget amendment was provided in accordance with the Brown Act 72 hours
prior to the City Council meeting.
FUNDING AVAILABILITY
The repair and consultant cost expended to date was not anticipated in this year's water
enterprise maintenance and operations budget. Staff is requesting approval of the attached
budget amendment transferring $120,000 from the unappropriated Water Enterprise Fund
Reserve to the Water Maintenance and Repair Account No. 5500 -8156 ($85,000) and
Professional and Technical Services Account No. 5500 -8080 ($35,000). Funds are
available in the Water Enterprise Reserve to accommodate this proposed budget
amendment. Any warranty reimbursement funding received from Cooley will be returned to
the Water Enterprise Fund Reserve.
Prepared by:
I trnacori, P.E.
t Ity Engineer
Attachment: Location Map
Submitted by:
Big Canyon Floating Cover Repairs
February 22, 2011
Page 3
Locati ®n Map
City of Newport Beach
BUDGET AMENDMENT
2010 -11
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:
NO. BA- 11BA -030
AMOUNT: 51zo,000.00
IdIncrease in Budgetary Fund Balance
Decrease in Budgetary Fund Balance
No effect on Budgetary Fund Balance
To increase expenditure appropriations from the Water Enterprise unappropriated fund balance to cover
the cost of the Big Canyon Reservoir floating cover repairs.
ACCOUNTING ENTRY:
BUDGETARY FUND BALANCE
Fund Account Description
500 3605 Water Enterprise Fund - Fund Balance Control
REVENUE ESTIMATES (3601)
Fund/Division Account
EXPENDITURE APPROPRIATIONS (3603)
Division
Number
Account
Number
Division
Number
Account
Number
Division
Number
Account
Number
Division
Number
Account
Number
Signed: r�
7 Financial
Signed:
Signed:
Description
Description
5500 Utilities - Water Utilities
8156 Wells & Pump Station Maintenance
5500 Utilities - Water Utilities
8080 Services: Professional & Technical NOC
City
City Council Approval: City Clerk
Services Director
Amount
Debit Credit
$120,000.00
$85,000.00
$35,000.00
Date
,q'I ),l
Date
Date