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HomeMy WebLinkAboutPublic Works Department FY 2021 Budget Amendment Well 17 Water Treatment Faciltiy Item#15. Mayor Robert E. Simison E IDIAtN� City Council Members: Treg Bernt Brad Hoaglun Joe Borton Jessica Perreault I n A H Luke Cavener Liz Strader TO: Mayor Robert E. Simison Members of the City Council FROM: Kyle Radek Assistant City Engineer DATE: 05/28/2021 SUBJECT: BUDGET AMENDMENT IN THE AMOUNT OF $500,000 FOR WELL 17 WATER TREATMENT ANTICIPATED COUNCIL PRESENTATION DATE: 06/15/21 I. RECOMMENDED ACTION A. Move to: 1. Approve the Well 17 Water Treatment Budget Amendment for$500,000. 2. Authorize the Mayor to sign the amendment. II. DEPARTMENT CONTACT PERSONS Brent Blake, Engineering Project Manager 489-0340 Kyle Radek,Assistant City Engineer 489-0343 Warren Stewart, City Engineer 489-0350 Dale Bolthouse, Director of Public Works 985-1257 III. DESCRIPTION A. Background City Council approved the budget,starting in FY20,for an iron and manganese treatment facility at Well 17 that will improve the water quality supplied by this well. This project was accelerated because Well #17 manganese levels are approaching Environmental Protection Agency health advisory levels. Some phases of the project have been completed including pilot testing, equipment procurement, and design of the treatment facility. The project is now ready for the construction phase of the treatment facility which includes construction of the building, equipment installation, and site work. B. Reason for Amendment Bids for the construction phase of the treatment facility were opened on May 12, 2021. The low bid exceeded the balance of the FY21 available funding. In order to award a contract for construction, and complete the balance of the project, additional funds are Page 270 Public Works Department . 33 E.Broadway Avenue,Suite 200,Meridian,ID 83642 Phone 208-898-5500 . Fax 208-898-9551 . www.meridiancity.org item#�5. needed. The primary reason for the shortfall is related to the current bidding environment. Contractors have many opportunities with the rapid growth taking place, and don't have to compete as aggressively for new work. The rising cost of materials, equipment, asphalt, steel, and lumber has also contributed to higher than anticipated costs. IV. IMPACT A. Strategic Impact: This project meets our mission requirements to identify and prioritize work to anticipate, plan, and provide public services and facilities that support the needs of our growing community and ensure modern reliable facilities while maintaining financial stewardship. B. Service/Delivery pact: This project will improve level of service to customers by removing iron and manganese and associated taste and odor from water supplied by Well 17. C. Fiscal Impacts The overall budget for the Well 17 Treatment Project will increase by$500,000 in order to provide adequate funding to complete the project. The current Enterprise Fund balance can support the additional funding required. Total project funding will increase from$2,000,000 to $2,500,000. Budgeted/Estimated Costs Actual/Bid Costs FY20 Design Contracts $ 300,000 $ 300,786 Design Services During Construction $ 100,000 $95,185 Well Assessment/Well Reconstruction Labor $ 10,000 $ 2,500 Equipment Procurements $ 460,000 $ 471,164 Misc. Expenses/Contingency $ 30,000 $ 31,000 FY20 Total $ 900,000 $ 900,635 FY21 Construction $ 1,000,000 $ 1,498,477* Bid Alternate 1 &2 $ 0 $ 33,855* Contingency $ 100,000 $ 67,033 FY 21 Total $ 1,100,000 $ 11599,365 Project Total $ 2,000,000 $ 2,500,000 Budget Shortfall $ 500,000 Public Works Department . 33 E.Broadway Avenue, Suite 200,Meridian,ID 83642 Page 271 Phone 208-898-5500 . Fax 208-898-9551 . www.meridiancity.org Item#15. Bid (all bids include bid alternate of Well 17 Bidding Contractors stainless steel pump column & bowls) Cascade Enterprises Inc. $1,738,651 IMCO General Construction $ 2,017,036 *Irminger Construction (winning bidder) $ 1,532,332 JC Constructors, Inc. $ 1,684,699 The Ewing Company $1,829,258 V. ALTERNATIVES The City could choose not to approve the budget amendment and delay award of a construction contract to the next fiscal year. This would require re-bidding in hopes of a more favorable construction estimate. Additionally, filter equipment has already been procured for the project and would need to be stored. VI. f TIME CONSTRAINTS This project is currently planned for completion in spring of 2022. Choosing not to approve this request will result in delay of project completion. This will also delay the improvements in level of service associated with this project. Approved for Council Agenda: Public Works Department . 33 E.Broadway Avenue,Suite 200,Meridian,ID 83642 Page 272 Phone 208-898-5500 . Fax 208-898-9551 . www.meridiancity.org M N wo N 1: 0 (6 w d C t+ m N a=i E V Q CD m m z z° ., O LL a rn o a0 ❑' ❑ o 'w O M I� A N �i N N O £ L m ., m m 4 O O C o o ^ c CN N L m a 33 ❑� o � � 3 M co a _ � ' O Gfl d d o} u al m m G M (6 i tA ao a E o ~ lb r ❑ > ' p m y O a1 m a` o Q m O N w U- E 2 C t w Q. n w om c ai ci m ,t ❑ Sao +��. c E m 'G q C a a O m W o m E v, tian ,A ,ny .nNNyN 'ANto h C = > E w E 4 cu O N a C Q e .°—_: d on 3 LL L R _ o F 12 e l ro CL - o o u m m c a w C2, O — — — o [V g Ln n CDF F L, L, F m C [i N cu O O tn 44 V� 46 w LLa0 C H d _ro C n Ntz o ' r 'a O m � } o X n C w V C 'v a c w d = d 0 0l p w chi ro O m O O O W E M p L F OC F- .Q- m ,y a F n a Q Q U O C O N ij p O LL N ❑ p m Q N N � +' ❑ 0 7t H E E T # F 7t n 35 m C O �n O U` f0 F a c U W o E V' l7 3 l7 ?i n o S w a w 7t w w w w w w w 00 3t w w w w w w w w w w w w w 2t w w w w w co Yt w w w 0o m o0 00 00 m 00 90 00 00 00 00 00 00 co 90 00 00 � 00 0o m a0 00 00 00 'o 0 0 0 0 0 00 0 •o 00 , 0000000000 a 'o 0 0 0 0 0 0 'o 00 0 0 0 L w w w w w w w w L w w w w w w w w w w w w L w w w w w w w w w a LL C O i0 O a w N m Ln # n # W J o o �"� O f V f V " N J J w J 'a V Q Q Q Q Q Q V 'D (l E H Q y U rn O 4'tm m o 00 0 0 0 0 0 ,,, o 0 0 0 0 0 00 0 0 0 0 0 0 0 0 0 0 pp po p p y o }j 0. Qi Qt Oi Q� O) O O, 6i EJ C Oi Oh Oi Q� 6i Oi O� Oi 6� Ot U� Q� Q. N D- LO tyQJ u m m m m m m m m x w m m m m m m m m m m m m m 0 m m m m m m Q 0 m m m +^+ A C c O d cd C oq LL sc C d �? a 0 � H Item#15. :05 PM City of Meridian FY2020 Budget Amendment Form Prior Years) Fisca.Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Department Name: Public Works Funding 2020 2021 2022 2023 2024 Title: Well 17 Water Treatment Personnel $ $ $ - $ $ Ion.few s WAWAwondwom: Operating $ S $ $ $ > DrW K*wdtmmd".wmertwOhDa.Ftzn5"t .toF (kpftet AN J$ft Capital $ 900,000 $ 1,100,000 > OFwRm.ot-0 add A-1d .Mtocour.-AAg 4vv"fty.a.m.q. Son. v Total $ - $ 900,000 $ 1,100,000 $ - $ - $ - > Fbyntr w.W tend dmrndmna to Cam-61 thn for symhsrr s Coir&O Uai A vnr send stned Amendmrnt to Flu * Total Estimated Project Cost: $ 21000,000 > FMM@I&A"AndFutwN$"W pvroerd+enrndmnstto The Metor for&*wwaeremrnv,aor &I Evaluation Questions MaVw vAH send.^.4d t On rhr ON C$wk'toFKe Please answer all Evaluation Questions using the financial data referenced above. "n"`o°FWfle°°`° I.TheO""'N"""Fo"Nd90P"'eA`ri°°'dW .P"I 1. Describe what is being requested? $500,000 is being requested to provide additional funding to award the low bid for the construction and completion of the Well 17 Water Treatment Project. This project is in year two of two years. Pilot testing has been completed,equipment has been procured and purchased,and facility design has been completed. Facility construction Is the last remaining phase of the project. The current Enterprise Fund balance will support the addition of this funding to FY21. 7,yIgv was_thp�huduut no ubmii�pd dr�n�t��u�ntLfaar bud�t�icE �The need for additional funding was not known at the time the 2021 budget request was made. The primary reason for the shortfall is related to the current bidding environment.Contractors have many opportunities with the rapid growth taking place,and don't have to compete as aggressively for new work. The r'sing cost of mater als,equipment,asphalt,steel,and lumber has also contributed to higher than antici ted costs. 3. What is the"nation for not submitting this budget request during the next fiscal year budget cycle? Waiting until the next fiscal year to provide funding for the project would delay project completion by at least 5 months and incur additional expense for storage of water treatment equipment which has already been purchased and must be incorporated into the construction. 4.Describe the proposed method of funding? If funding Is split between Funds(i.e..Genera I,Enterprise,Grant),please include the percentage split. List the amounts and sources of anticipated additional revenue that will result from approval of this request, Enterprine Furxd. S.Does this request align with the Department/City's strategic plan? If not,please explain how this request was not included in the Department/City strategic plan? Yes-Public Health and Safety. 6. Does this request require resources to be provided by other departments? If yes,please describe the necessary resources to be provided by,other departments. Yes•Purchasing for contract execution. T 7.Does this Amendment include ikny needed Equipment or software that will utilize the Ci 's network? Yes or No S.Is the amendment oing to result in the dis1,3osal of an asset? es or No 9.Anw additional comments? Total Amendment Request $ 500,000 Every effort should be mode to avoid reopening the budget for an amendment. Departments will need to provide backup and appear before the City Council to justify budget amendments. Budget amendments are intended for emergency or mandatory changes to the original balanced budget. Changes to the original balanced budget may cause a funding shortfall. Page 275 City of Meridian FY2020 Budget Amendment Form S Min nBusOpslBusOps%BudgetRateslBudget Prep Rec_10 years'.Bud get'21LAmendmentslWell 17 TreatmenilFY 21 Budget Amendment Well 17-bb Item#15. Mayor Robert E. Simison E IDIAN � City Council Members: Treg Bernt Brad Hoaglun Joe Borton Jessica Perreault d A H L Luke Cavener Liz Strader TO: Mayor Robert E. Simison Members of the City Council FROM: Kyle Radek Assistant City Engineer DATE: 05/28/2021 SUBJECT: BUDGET AMENDMENT IN THE AMOUNT OF $500,000 FOR WELL 17 WATER TREATMENT ANTICIPATED COUNCIL PRESENTATION DATE: 06/15/21 I. RECOMMENDED ACTION A. Move to: 1. Approve the Well 17 Water Treatment Budget Amendment for$500,000. 2. Authorize the Mayor to sign the amendment. II. DEPARTMENT CONTACT PERSONS Brent Blake, Fngineering Project Manager 489-0340 Kyle Radek, Assistant City Engineer 489-0343 Warren Stewart, City Engineer 489-0350 Dale Bolthouse_ Director of Public Works 985-1257 III. DESCRIPTION A. Background City Council approved the budget, starting in FY20,for an iron and manganese treatment facility at Well 17 that will improve the water quality supplied by this well. This project was accelerated because Well i!17 manganese levels are approaching Environmental Protection Agency health advisory levels. Some phases of the project have been completed including pilot testing, equipment procurement, and design of the treatment facility. The project is now ready for the construction phase of the treatment facility which includes construction of the building, equipment installation, and site work. B. Reason for Amendment Bids for the construction phase of the treatment facility were opened on May I2, 2021. The low bid exceeded the balance of the FY21 available funding. In order to award a contract for construction, and complete the balance of the project, additional funds are Public Works Department . 33 E. Broadway Avenue, Suite 200,Meridian, ID 83642 Page 27s Phone 208-898-5500 . Fax 208-898-9551 . www.meridiancity.org item#�5. needed. The primary reason for the shortfall is related to the current bidding environment. Contractors have many opportunities with the rapid growth taking place, and don't have to compete as aggressively for new work. The rising cost of materials, equipment, asphalt, steel, and lumber has also contributed to higher than anticipated costs. IV. IMPACT A. Strategic Impact: This project meets our mission requirements to identify and prioritize work to anticipate, plan, and provide public services and facilities that support the needs of our growing community and ensure modern reliable facilities while maintaining financial stewardship. B. Service/Delivery Impact: This project will improve level of service to customers by removing iron and manganese and associated taste and odor from water supplied by Well 17. C. Fiscal Impacts The overall budget for the Well 17 Treatment Project will increase by$500,000 in order to provide adequate funding to complete the project. The current Enterprise Fund balance can support the additional funding required. Total project funding will increase from $2,000,000 to $2,500,000. Budgeted/Estimated Costs Actual/Bid Costs FY20 Design Contracts $ 300,000 $ 300,786 Design Services During Construction $ 100,000 $95,185 Well Assessment/Well Reconstruction Labor $ 10,000 $ 2,500 Equipment Procurements $ 460,000 $ 471,164 Misc. Expenses/Contingency $ 30,000 $ 31,000 FY20 Total $ 900,000 $ 900,635 FY21 Construction $ 1,000,000 $ 1,498,477* Bid Alternate 1&2 $ 0 $ 33,855* Contingency $ 100,000 $ 67,033 FY 21 Total $ 1,100,000 $ 1,599,365 Project Total $ 2,000,000 $ 2,500,000 Budget Shortfall $ 500,000 Public Works Department . 33 E, Broadway Avenue, Suite 200,Meridian, ID 83642 Page 277 Phone 208-898-5500 . Fax 208-898-9551 . www.meridiancity.org Item#15. Bid (all bids include bid alternate of Well 17 Bidding Contractors stainless steel pump column & bowls) Cascade Enterprises Inc. $1,738,651 IMCO General Construction $ 2,017,036 *Irminger Construction (winning bidder) $ 1,532,332 JC Constructors, Inc. $ 1,684,699 The Ewing Company $1,829,258 V. ALTERNATIVES The City could choose not to approve the budget amendment and delay award of a construction contract to the next fiscal year. This would require re-bidding in hopes of a more favorable construction estimate. Additionally, filter equipment has already been procured for the project and would need to be stored. VI. TIME CONSTRAINTS This project is currently planned for completion in spring of 2022. Choosing not to approve this request will result in delay of project completion. This will also delay the improvements in level of service associated with this project. Approved for Council Agenda: Public Works Department . 33 E. Broadway Avenue, Suite 200, Meridian, ID 83642 Page 27s Phone 208-898-5500 - Fax 208-898-9551 - www.meridiancity.org