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® 6 ° °- TON THE CITY OF CITY COUNCIL AGENDA REPORT pL EASANTON. August 16, 2016 Engineering TITLE: APPROVE EXPANSION OF THE RECYCLED WATER INFRASTRUCTURE PROJECT TO INSTALL MAINLINE PIPING ON GIBRALTAR AVENUE, CONSTRUCT IMPROVEMENTS AT THE TASSAJARA RESERVOIR VALVE VAULT, AND CONSTRUCT A WATER PRESSURE BOOSTER STATION AT KEN MERCER SPORTS PARK UTILIZING AVAILABLE CALIFORNIA CLEAN WATER STATE REVOLVING FUNDS AND PROPOSITION 1B GRANT FUNDS SUMMARY The construction of the Recycled Water Infrastructure Expansion Phase 1A project, CIP No. 141026, is nearly complete. The original budget for the project approved by City Council at their meeting on June 16, 2015, indicated that all California's Clean Water State Revolving Fund (CWSRF) loan and Prop 1B grant (Loan and Grant) would be expended on the project. The budget included a 10% construction contingency or $1,490,000 for unforeseen conditions that was funded by the Loan and Grant. Construction Change Orders to date that are eligible for Grant and Loan reimbursement total approximately $558,000, leaving a contingency balance of $932,000 that can be used to construct additional recycled water infrastructure, provided the additional work is found eligible for Loan and Grant funding. In addition, after the construction began, the State Water Resources Control Board (SWRCB) staff determined that the full lane paving work included in the project plans was not an eligible Loan and Grant expense. Because of this finding, $600,000 from the Streets Miscellaneous Capital Reserve was added to the project budget by the City Council as part of the CIP update that occurred at the Council meeting on June 21, 2016. While it is unfortunate the SWRCB made this finding late in the process, it does mean that there is now $600,000 of Loan and Grant funds available that can also be used to construct additional recycled water infrastructure provided the work is found eligible for Loan and Grant funding. Finally, the construction contract bid price is based on an estimate of the number of units that will be constructed, e.g., feet of pipe, number of air relief valves, etc. These quantities are estimated by City staff prior to advertising the project for construction bid. Each bidder submits their price per unit, which they then multiply by the staff estimated quantity of units. Each unit price multiplied by the estimated quantity is known as a line item price. For this project there were more than 200 line item prices. The sum of the line item prices results in the total bid price. The contract is awarded to the contractor that has the lowest total bid price. However, payment to the contractor is based upon measured quantities of work actually constructed. After the completion of all work and all items are measured,