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10.A.
City Council Meeting - FINAL (2)
Meeting Date:
12/06/2016
Co-Submitter:
Brad Hill
From:
Ryan Roberts, Utilities Engineering Manager

TITLE:

Consideration and Approval of Contract:  Red Gap Ranch Pipeline Feasibility Study – Approve Change Order No. 7 to Jacobs Engineering Contract

RECOMMENDED ACTION:

Approve Change Order No. 7 with Jacobs Engineering in the amount of $470,759 and extend the contract by 182 calendar days. The current contract completion date is September 30, 2017. Acceptance of this change order #7 will approve a new completion date of March 31, 2018

Executive Summary:

Red Gap Ranch Pipeline Project – Contract Scope, Fee, and Schedule Adjustments (Proposed Change Order No. 7).  This Change Order will increase the JACOBS Engineering contract by $470,479 to a total of $2,470,184.  There are multiple reasons for the increased additional funding.  The project was put on-hold in 2009 and costs and fees of JACOBS and their sub-consultants have increased over the following 7 years.  During this intervening time, JACOBS conducted out-of-scope work associated with the ADOT I-40 Intergovernmental Agreement that was adopted by Council in January 2016.  Environmental clearances need to be re-done including a new requirement for a full-time archeologist to monitor field activities.   The scopes of work associated with the remaining tasks needed to be revised to meet the overall project goals, new or redefined agency requirements and lastly the desire to reintroduce the Phase 3 tasks that were previously eliminated.  

Financial Impact:

This pipeline design feasibility study project is funded from water capacity funds (100%).  Funding for this additional scope of work is available within the Water Enterprise Fund account # 202-08-370-3198. The water capacity fund is dedicated for capital projects involving growth and development of future water resources for the City Utilities Division. 

Connection to Council Goal and/or Regional Plan:

COUNCIL GOALS:
1) Ensure Flagstaff has a long-term water supply for current and future needs
2) Provide sustainable and equitable public facilities, services, and infrastructure systems in an efficient and effective manner to serve all population areas and demographics
3) Continue to implement the Flagstaff Regional Plan and focus efforts on specific plans

Has There Been Previous Council Decision on This:

Yes, the original contract with Jacobs Engineering was approved  on July 16, 2008 in the amount of $1,999,425 on June 3, 2008 (Item 7K) in the amount of $1,999,425.

Options and Alternatives:

  1. Approve the Change Order as recommended which would satisfactorily complete the project.
  2. Reject the Change Order, which will result in the Phase 2 feasibility study and engineering cost estimates to be left unfinished. 

Background/History:

As a part of Utilities water resources planning efforts, the need to supplement the City’s existing water supplies to meet projected future needs has been identified. These planning efforts identified numerous options to meet this estimated unmet water demand.  Red Gap Ranch was identified as one option and the voters approved bonding authority in 2004 and City Council authorized the purchase of the ranch in 2005.  The ranch is an 8,500 acre parcel of land located approximately 40 miles east of the City and is intended to be a future source of groundwater supply.  The City has performed several hydrogeologic studies at the ranch to determine the potential water supply yield.  The Arizona Department Water Resources has approved this groundwater supply as part of the City's Designation of Adequate Water Supply.

The City commissioned this feasibility study in June of 2008 to analyze alternative pipeline alignments to convey water from the ranch to the City. This feasibility study progressed through Phase I and then was placed on hold in 2009 due to negotiations with the Hopi Tribe and the Arizona Department of Transportation (ADOT) regarding right-of-way (ROW) along the selected alignment. The result of these negotiations modified the alignment such that it no longer crosses Hopi lands and is within the ADOT I-40 ROW for approximately 17 miles of the overall pipeline alignment. With a pathway forward for permitting of the preferred alignment, this feasibility study is now proceeding forward towards completion

Attached is the letter request from Jacobs Engineering to City of Flagstaff (City) for approval of Change Order No. 7 for the Red Gap Ranch Pipeline Feasibility Study. The change order is based on scope and schedule discussions with the City, requirements definition with stakeholder agencies, and scope and fee renegotiations with subconsultant team. Primary work tasks include:

  1. Additional Phase II tasks to meet overall project goals
  2. Additional Phase II tasks to meet new or redefined agency requirements
  3. Reintroducing Phase III tasks that were previously eliminated to partially fund the out-of-scope work related the ADOT I-40 IGA.  The primary reasons for these scope and fee changes are as follows:
  • Environmental:
  • Revising previous work from 7 years ago to current, environmental resource evaluation and site visit to 41 test pit locations and 4 pump station sites, additional full time monitoring at test pit locations and additional public outreach support.
  • Surveying: Aerial mapping updates and field services to coordinate with environmental surveys and locate 41 test pits and 4 pump station sites, with careful consideration given to environmental resources, adjacent landowners and boundaries.

      4. Test Pits: Updated geotechnical exploration plan, including backhoe time for excavating the test pits.
      5. Energy Sources: Added investigation of natural gas sources for pump stations.
      6. Permitting: Added coordination with permitting agencies for final project phases with emphasis on federal and state lands.  
      7. Outreach Events: Added support for public meetings in the final report phases.
      8. Project Management and Fee Escalation: Coordination and project restart for 7 subconsultants, including updated rates for professional services originally developed in 2008. (Note: the above work which completes the project though Phase III includes local effort performed by EnviroSystems Management Inc. and The WLB Group Inc. that represents approximately $187,000 or 40 percent of the fee request)
      9. Contingency: An account was established to allow for unknowns in the remaining work to be addressed, such as design requirements and coordination in the ADOT corridor (provisions ADOT will require).

The contract structure remains “Time and Materials Not to Exceed,” allowing the City to modify Jacobs labor level as needed to complete the final stages of the project. 

Change orders 1 through 6 were time extensions only to accommodate the time needed for Hopi Tribe and ADOT negotiations.

Community Involvement:

Inform:
A number of presentations were made to the City Council, Water Commission, and several outside groups during this Phase 1 portion of the pipeline alignment feasibility study.   There will additional public presentations a meetings associated with remaining Phase2 & 3 tasks.

Expanded Options and Alternatives:

  1. Approve the Change Order as recommended. 
  2. Reject the change Order, which would result in further negotiations with Design Consultant (Jacobs Engineering).

Attachments