| ITEM #: 20. DATE: 07/08/2024 AI #:2104 |
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CITY COUNCIL ACTION REPORT
| SUBJECT: | AUTHORIZE CONTRACT AMENDMENT FOR THE EXPENDITURE OF FUNDS FOR CIP PROJECT #60077 RAINBOW VALLEY WATER RECLAMATION FACILITY (WRF) EXPANSION AND #60110 RAINBOW VALLEY WRF OPERATIONAL IMPROVEMENTS |
| STAFF PRESENTER(S): | Barbara Chappell, Water Services Director |
SUMMARY
A request to authorize a contract amendment for the expenditure of funds for Capital Improvement Program (CIP) Project #60077 Rainbow Valley WRF Expansion and #60110 Rainbow Valley WRF Operation Improvements up to $7,750,000 to execute Guaranteed Maximum Price 2 (GMP 2).
STRATEGIC PLAN ALIGNMENT
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RECOMMENDATION
Authorize the contract amendment for the expenditure of funds for Capital Improvement Program (CIP) Project #60077 Rainbow Valley WRF Expansion and #60110 Rainbow Valley WRF Operation Improvements for GMP2 up to $7,750,000. (Barbara Chappell, Water Services Director)
FISCAL IMPACT
This action will allow the expenditure of up to $7,750,000 for improvement and expansion of the Rainbow Valley WRF. With a previous authorization of $4,705,000, the total authorized expenditure for this purpose is $12,455,000. This amount is currently included in the fiscal year (FY) 2025 budget in the amount of $54,121,500 in CIP Project #60077 Rainbow Valley WRF Expansion ($45,739,500) and CIP Project #60110 of Rainbow Valley WRF Operational Improvements ($8,382,000).
BACKGROUND AND PREVIOUS ACTIONS
In accordance with City Code 3-4-8 and Resolution 08-1255, all contracts in excess of $500,000 must obtain Council authorization for expenditure.
On October 24, 2022 (AI-1114), Council approved the creation of CIP Project #60110 – Rainbow Valley WRF Operational Improvements and related budget amendment of $1,875,000 and approved the expenditure of up to $650,000 for master planning and conceptual design.
On March 20, 2023 (AI-1371), Council approved the expenditure of up to $755,000 for construction of operational improvements at the Rainbow Valley WRF.
On December 18, 2023 (AI-1765), Council approved the budget amendment of $12,158,800 for CIP Project #60077 - Rainbow Valley WRF Expansion and $3,772,000 for CIP Project #60110 of Rainbow Valley WRF Operational Improvements, along with expenditure of funds up to $3,300,000 for design services at the Rainbow Valley WRF.
On October 24, 2022 (AI-1114), Council approved the creation of CIP Project #60110 – Rainbow Valley WRF Operational Improvements and related budget amendment of $1,875,000 and approved the expenditure of up to $650,000 for master planning and conceptual design.
On March 20, 2023 (AI-1371), Council approved the expenditure of up to $755,000 for construction of operational improvements at the Rainbow Valley WRF.
On December 18, 2023 (AI-1765), Council approved the budget amendment of $12,158,800 for CIP Project #60077 - Rainbow Valley WRF Expansion and $3,772,000 for CIP Project #60110 of Rainbow Valley WRF Operational Improvements, along with expenditure of funds up to $3,300,000 for design services at the Rainbow Valley WRF.
STAFF ANALYSIS
The Rainbow Valley WRF is currently committed above 80% of the plant capacity and expansion is required to continue to support growth in the Estrella and Canta Mia communities. The project will increase Rainbow Valley WRF capacity to 2.0 million gallons per day to meet 10-year growth projections. Approval of this request will allow staff to amend the contract to procure long lead equipment (GMP 2) of CIP Project #60077 Rainbow Valley WRF Expansion.