HomeMy WebLinkAboutStaff Report 108-11
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: UTILITIES
DATE: JANUARY 10, 2011 CMR: 108:11
REPORT TYPE: CONSENT
SUBJECT: Approval of Amendment No. 1 to Contract C10135713 with K. J.
Woods Construction, Inc. in the Amount of $170,000 for a Total Not
to Exceed Amount of $2,202,800 for Asbestos Cement Pipe Removal
and Disposal for Capital Improvement Program Project WC-08012
(Wastewater Rehabilitation and Augmentation Project 21) and
Adoption of a Wastewater Enterprise Fund Budget Amendment
Ordinance for Fiscal Year 2011 to Transfer Appropriation to Capital
Improvement Project WC-08012 Wastewater Rehabilitation and
Augmentation (Project 21) from Capital Improvement Project WC-
07004, Wastewater Rehabilitation and Augmentation (Project 20) in
the Amount of $170,000
RECOMMENDATION
Staff recommends that Council:
1. Approve Amendment No. 1 to Contract C10135713 with K. J. Woods, Inc. in the Amount of
$170,000 for a Total Not to Exceed Amount of $2,202,800 for Asbestos Cement Pipe Removal
and Disposal for Capital Improvement Program Project WC-08012, (Wastewater Rehabilitation
and Augmentation Project 21); and 2) Adopt a Budget Amendment Ordinance for Fiscal Year
2011 to Transfer Appropriation to Capital Improvement Project WC-08012, Wastewater
Rehabilitation and Augmentation (Project 21) from Capital Improvement Project WC-07004,
Wastewater Rehabilitation and Augmentation (Project 20) in the Amount of $170,000.
BACKGROUND
On June 21, 2010, the City Council approved and authorized the City Manager to execute a
contract with K. J. Woods Construction, Inc. (KJW) for rehabilitating the sanitary sewer and
related structures for Sanitary Sewer Rehabilitation Capital Improvement Program Project WC-
08012 (Project 21 – Barron Park, Alma, Baylands) (CMR:271:10). The original contract
included $1,848,000 for construction, plus a contingency of $184,800, for a total not to exceed
amount of $2,032,800.
The original scope of work to be performed under the contract was for the replacement of
approximately 22,083 linear feet of sanitary sewer mains of various sizes, 63 sewer manholes,
and 380 sewer service laterals. The project is primarily located in the Barron Park area with
some of the work in non-contiguous areas along a part of Alma and by the Baylands Ranger
Station and Baylands Interpretive Center. The size of this project significantly exceeds our in-
house resources making it necessary to contract out the work.
CMR: 108:11 Page 1 of 3
CMR: 108:11 Page 2 of 3
DISCUSSION
During the design phase of the project wastewater laterals were specified to be replaced by pipe
bursting methods. Pipe bursting is the most cost effective replacement method for wastewater
laterals, involving minimal excavation. During project construction staff determined that a
higher than normal percentage of the laterals were made of Asbestos Concrete (AC) pipe. The
high percentage of AC pipe could not be anticipated because existing records were incomplete as
a result of this neighborhood being annexed into the City of Palo Alto in 1975. According to the
contract, most of the laterals were to be replaced by a method that burst the existing pipe while
inserting a new pipe.
Federal, State and local regulations prevent the use of this method for AC pipe. Since the pipe
bursting approach was not acceptable and required a modified replacement method, the project
involved unanticipated excavation and proper disposal of the AC materials. There have been two
change orders executed to cover part of the open cut AC lateral replacement and part of the
removal and disposal of AC pipe material. These two change orders have already used 92% of
the original contingency. Although approximately 8% of the original contingency is still
available, the project is only 15% complete. Staff anticipates that there may be insufficient funds
available if additional change orders are needed. The recommended contract amendment will
add $170,000 to the total contract price, and increase the 10% contingency from $184,400 to
$200,255, to cover future change orders. The contract amendment also clarifies the contractor’s
responsibility for proper handling of hazardous materials.
Generally, the City has limited quantities of AC pipe in the wastewater collection system. Based
on the pipe types that are identified in our database, the AC portion of the system is less than 2%
of the total inventory in the wastewater collection system. For this project, however, located
primarily in the Barron Park area, staff has subsequently determined that approximately 50% of
the affected laterals scheduled for replacement are AC. This was due to the fact that when
Barron Park was annexed in the 70’s, there were incomplete utility records. This was unforeseen
and unexpected.
RESOURCE IMPACT
Staff requires $170,000 to amend the contract with K. J. Woods Construction to cover additional
change orders that may include removal and disposal of AC pipes. The existing appropriation of
Project 21 is not sufficient to cover the cost of this amendment. Capital Improvement Project
WC-07004 (Project 20) has sufficient remaining available appropriation that will be transferred
to cover the additional cost of Project 21. This transaction has no impact on the Wastewater
Collection Fund rate stabilization reserve balance.
POLICY IMPLICATIONS
Amending the contract is consistent with Council policy. This recommendation is consistent
with the Council approved Utilities Strategic Plan Key Strategy #2, “invest in utility
infrastructure to deliver reliable service.”
ENVIRONMENTAL REVIEW
This project is categorically exempt from California Environmental Quality Act (CEQA)
pursuant to CEQA Guideline Sections 15301 (b) repair, maintenance of existing facilities and
15302 (c) replacement or reconstruction of existing facilities.
ATTACHMENTS
A. AmendmentNo. 1 to Conn-aetNo. ClO135713
B. Budget Amendment Ordinance
PREPARED BY:
REVIEWED BY:
DEPARTMENT APPROVAL:
CITY MANAGER APPROVAL:
CMR: 108:11
ROBERT ITEM, Project Engineer-S, WGW Engine-J21Jti
EDWARD WU, Sr. Project Engineer, WGW Engine:t::.~
GREG SCOBY, Engineering Manager, WGW Engineering~
TOMM MARSHALL, A~sistant Director Utilitie~
A~ VALERIE . FO'
Director of hties
JAMES
City Mana er
Page 3 on
Attachment B
ORDINANCE NO.
ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO ADOPTING A
WASTEWATER ENTERPRISE FUND BUDGET AMENDMENT ORDINANCE FOR
FISCAL YEAR 2011 TO TRANSFER APPROPRIATION TO CIP PROJECT WC-
08012, WASTEWATER REHABILITATION AND AUGMENTATION (PROJECT
21) FROM CIP PROJECT WC-07004, WASTEWATER REHABILITATION AND
AUGMENTATION (PROEJCT 20) IN THE AMOUNT OF $170,000
The Council of the City of Palo Alto does ordain as follows:
SECTION 1. The Council of the City of Palo Alto finds and
determines as follows:
A. Pursuant to the provisions of Section 12 of Article
III of the Charter of the City of Palo Alto, the Council on
June 28, 2010 did adopt a budget for fiscal year 2011; and
B. In fiscal year 2008 Council initially appropriated
$265,000 for the design cost of CIP Project WC-08012,
Wastewater Rehabilitation and Augmentation (Project 21). In
fiscal year 2009, Council increased the appropriation by
$2,700,000 for the construction cost bringing total
appropriation to $2,965,000; and
C. Project 21 will replace approximately 22,083 linear
feet of sanitary sewer main of various sizes, 63 manholes and
380 sewer service laterals. Project 21 will be located in the
Barron Park area with some of the work in non-contiguous areas
along a part of Alma Street, Baylands Ranger Station and
Baylands Interpretive Center; and
D. The original design of the Project 21 was to use the
“pipe bursting” method which is the most cost effective, and
involves minimal excavation. Pipe bursting does not remove
existing laterals but instead burst the existing pipe while
inserting a new pipe. However, during the construction of
this project it was determined that a high percentage of the
laterals were made of Asbestos Concrete (AC); and
environmental regulations require the AC laterals to be
removed and disposed of via an alternative method, such as
open-cut replacement; and
E. An estimated amount of $170,000 is needed to amend the
contract with K.J. Woods Construction should additional change
order be required to cover the removal and disposal of any
remaining pipes, or for any other unforeseen but necessary
work. The existing appropriation of Project 21 is not
sufficient to cover the cost of this change. CIP Project WC-
07004 (Project 20) has sufficient remaining available
appropriation that will be transferred to cover the additional
cost of Project 21; and
G. City Council authorization is needed to amend the 2011
budget as hereinafter set forth.
SECTION 2. The sum of One Hundred Seventy Thousand
Dollars ($170,000) is hereby appropriated to CIP Project WC-
08012, Wastewater Rehabilitation and Augmentation (Project
21).
SECTION 3. The appropriation for CIP Project WC-07004
(Project 20), Wastewater Rehabilitation and Augmentation is
hereby reduced by One Hundred Seventy Thousand Dollars
($170,000).
SECTION 4. The transactions above will have no impact on
the Wastewater Collection Fund reserve balance.
SECTION 5. As specified in Section 2.28.080(a) of the
Palo Alto Municipal Code, a two-thirds vote of the City
Council is required to adopt this ordinance.
SECTION 6. As provided in Section 2.04.330 of the Palo
Alto Municipal Code, this ordinance shall become effective
upon adoption.
SECTION 7. The project is categorically exempt from
California Environmental Quality Act (CEQA) pursuant to CEQA
guideline Sections 15301(b) repair, maintenance of existing
facilities and 15302 (c) replacement or reconstruction of
existing facilities.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
ATTEST: APPROVED:
City Clerk Mayor
APPROVED AS TO FORM:
City Manager
Sr. Assistant City Attorney Director of Utilities
Department
Director of Administrative
Services