TO: LINDA REICH, CITY MANAGER
FROM: HYE JIN LEE, PE, DIRECTOR OF PUBLIC WORKS
SUBJECT
title
Amendment to the Reimbursement Agreement with the Inland Empire Utilities Agency (IEUA) for The Preserve Lift Station Expansion and Improvement Project (SW201).
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RECOMMENDATION
recommendation
1) Appropriate $283,375 from the Sewer Fund (Fund 530) reserves; 2) increase the project budget of The Preserve Lift Station Expansion and Improvement Project (SW201) by $283,375 for a revised project budget amount of $1,243,375; 3) approve Amendment No. 1 to the reimbursement agreement #2022-322, with the Inland Empire Utilities Agency (IEUA) in the amount of $840,160 for a revised total contract amount not to exceed $1,242,936; and 4) authorize the City Manager to execute all necessary documents on behalf of the City.
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FISCAL IMPACT
The Preserve Lift Station Expansion and Improvement Project (SW201) requires an appropriation of $283,375 from the Sewer Fund (Fund 530) reserves. There are sufficient reserves in the Sewer Fund 530 for the additional appropriation.
|
Project Budget - SW201 |
|
Fund |
Adopted Budget |
Appropriations |
Budget Total |
|
Fund 262 - Preserve Sewer DIF Fund |
$402,776.00 |
$0 |
$402,776.00 |
|
Fund 530 - Sewer Fund |
$557,224.00 |
$283,375.00 |
$840,599.00 |
|
TOTALS: |
$960,000.00 |
$283,375.00 |
$1,243,375.00 |
The on-going costs to operate and maintain the Preserve Sewer Lift Station facility are paid for by the properties that are subject to the sewer rate approved by City Council Resolution No. 2018-014.
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES
The recommendation detailed above further the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
• Positive City Image
• Financial Stability
• Responsible Long-Range Planning
• Public Service Excellence through Internal and External Partnerships
|
Revenue: |
Expenditure: 5307340 - 40010-SW201 |
|
Transfer In: |
Transfer Out: |
BACKGROUND
The Preserve Lift Station (Preserve LS) collects and conveys sewer flows that are gravity-fed to the southern portion of The Preserve up to the Inland Empire Utilities Agency’s (IEUA) Kimball Interceptor. The Preserve LS then pumps the sewer flow to IEUA’s Regional Plant 5 for treatment and processing. The facility was constructed by the Lewis Company, the developer, with the City granting Development Impact Fee credits with plans to add additional pumps to increase the capacity as development within The Preserve continues. The annual operation, maintenance, and replacement costs of the Preserve LS are paid by properties utilizing the facility through the Sewer Lift Station Fee. The Preserve LS has been in operation since the summer of 2018 with IEUA operating and maintaining the facility per a reimbursement agreement between IEUA and the City, approved by the City Council on July 17, 2018.
During the first year of operation, IEUA staff identified necessary preventative maintenance improvements and requested City authorization to complete the work at the Preserve LS. The work included adding a Passive Bypass ($24,357) and a Cleaning Cycle ($17,135) for a total City share of the cost of $41,492. The Preserve LS was built to accommodate flow of 0.5 million gallons per day (MGD) with plans to expand as development increased. Both the City and IEUA recognized that development progressed more quickly than anticipated, with flows averaging 1 MGD, requiring the addition of a pump to accommodate the high flow periods. In early 2020, IEUA provided the City with an engineer’s estimate of $361,284 to purchase, install, program a new chopper pump, and administrative costs to address the current flow demand. On March 3, 2020, City Council approved a reimbursement agreement with IEUA for a total cost of $402,776, to address the several operational issues identified in the first year of operation and to prevent sanitary sewer overflows due to the rapid increase in development.
ISSUES/ANALYSIS
The Council approved the Preserve Lift Station maintenance cost reimbursement agreement with IEUA in 2020. The preventive maintenance improvement cost estimate was based on historical bid data before IEUA procured engineering design plans. IEUA recommended programming a cleaning cycle for the sewage wet well. The Cleaning Cycle work included a new programming written by IEUA Operations staff to operate pumps that will remove a large portion of solid waste debris. The programming was performed by IEUA staff and completed in October 2020. Operations at the Preserve LS are successfully performing the cleaning cycle. The Passive Bypass project was put on hold due to the cost escalation with the addition of a third pump project.
The design engineer's original estimate for the construction of the additional pump was $750,000 based on the 2020 market conditions. The original estimate was preliminary and there were items that were not included (which became more expensive during the COVID-19 pandemic), the more detailed engineer’s cost estimate during bid time was about $790,000.
On October 18, 2022, IEUA staff solicited a Notice Inviting Bids in the Chino Champion newspaper, and the project plans and specifications were advertised on PlanetBids. IEUA Staff held a Mandatory Pre-Bid meeting on-site at the facility grounds on November 1, 2022. On November 17, 2022, IEUA received three (3) construction bids which were evaluated and ranked in the following order:
|
Rank |
Contractor |
Location |
Cost |
|
1. |
Tharsos, Inc. |
La Mesa, CA |
$781,000 |
|
2. |
Genesis Construction |
Hemet, CA |
$828,830 |
|
3. |
SCW Contracting Corp. |
Fallbrook, CA |
$1,114,000 |
City staff in collaboration with IEUA staff reviewed the bids against the engineer’s estimate and agreed that the lowest bid was reasonable/acceptable. City staff along with IEUA staff recommended to award a construction contract to keep the project moving forward. During construction, the contractor discovered that the procurement and manufacturing market for equipment post COVID-19 pandemic were significantly delayed. As a result, the estimated expenditures anticipated to be reimbursed to IEUA to perform the project management, inspection, and construction management for the project were increased due to the longer construction schedule.
The Project Expenditure Plan is shown in the Table below:
|
Task |
Total |
|
PS&E and Construction Support (Arcadis) |
$155,463.00 |
|
Estimated Administrative Soft Costs (Planning/CEQA/Compliance/Utility Fees) |
$75,000.00 |
|
Construction Cost (Tharsos) |
$781,000.00 |
|
Change Orders (Tharsos) |
$69,285.00 |
|
IEUA Labor and Inspection |
$162,188.00 |
|
Estimated Total: |
$1,242,936.00 |
Tharsos, Inc. has complied with the terms of the construction contract for the additional pump. The estimated administrative soft costs above reflect the remaining project closeout task by IEUA staff to prepare the Notice of Completion for filing with the San Bernardino County Recorder’s Office and release of the retention funds following the 35-day lien period.
The City Council appropriation of $283,375 from the Sewer Fund (Fund 530) reserves and approval of Amendment No. 1 to the reimbursement agreement with Inland Empire Utilities Agency (IEUA) will result in an increase of $840,160 and a revised total agreement amount not to exceed $1,242,936.
Attachments: Exhibit A - Project Vicinity Map (SW201)
Exhibit B - IEUA SW201 Reimbursement Agreement