Loading...
HomeMy WebLinkAbout36. 16-217APRIL 26, 2016 16-217 RESOLUTION (CARRIED__7-0_____ LOST _______ LAID OVER _______ WITHDRAWN _______) PURPOSE: AMEND 2015 AND 2016 CAPITAL IMPROVEMENT PROGRAMS TO INCREASE AVAILABLE PROJECT FUNDS FOR THE FERNAU WATERSHED – NORTH MAIN STREET AREA WET DETENTION BASIN INITIATED BY: DEPARTMENT OF PUBLIC WORKS WHEREAS, the Common Council previously approved a Capital Improvement Budget which included $1,400,000 for the construction of the North Main Street Area Wet Detention Basin – Fernau Watershed; and WHEREAS, the bid for the construction of this project was higher than anticipated and resulted in an approximately $2,500,000 deficit for this project; and WHEREAS, it is necessary to amend the 2015 Capital Improvements Program to increase the amount allocated for estimated costs for the construction of the North Main Street Area Wet Detention Basin – Fernau Watershed; and WHEREAS, other funds within the 2016 Capital Improvements Program have been identified where savings may be had. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Oshkosh that the 2015 Capital Improvement Program is hereby amended to increase available project funds for the construction of the North Main Street Area Wet Detention Basin – Fernau Watershed from $1,400,000 to $3,900,000 to be funded by reducing the 2016 Capital Improvement Program funds allocated for the North Main Street Area Detention Basin -- Libbey/Nicolet Watershed by $2,500,000; BE IT FURTHER RESOLVED that the appropriate city officials are hereby authorized and directed to take such further action and to sign all documents necessary to accomplish said purposes. � O HKO H ON THE WATER MEMORAN M TO: Honorable Mayor and Members of the Co m Council FROM: James Rabe, Director of Public Works DATE: April21, 2016 RE: Amend 2016 Capital Improvement Program (CIP) to Increase Available Project Funds for the Fernau Watershed — North Main Street Area Wet Detention Basin BACKGROUND During the preparation of plans and specifications for the Fernau Avenue — North Main Street Area Wet Detention Basin and the Libbey-Nicolet Watersheds — North Main Street Area Wet Detention Basin, the Department of Public Works felt combining the projects into a single bid would attract larger contractors and produce favorable bids. Upon review of the bid submitted, it was determined that the combination of the projects did not produce the desired result, and sufficient funds were not available to award the project. After reviewing the needs of both watersheds, and the commitments the City made to the Wisconsin Department of Natural Resources (WDNR) to provide post- construction storm water management for the North Industrial Park, and projects such as the Bemis expansion, it was determined we would separate the projects and re-bid the Fernau Watershed portion of the project. The Fernau Watershed — North Main Street Area Wet Detention Basin project was re-bid as a standalone project. Five bids were received. The bids were much more favorable than when bid together with the Libbey-Nicolet — North Main Street Area Wet Detention Basin. There is sufficient funds in the 2016 CIP to construct the project, if we amend the CiP to reallocate funds from other projects. ANALYSIS Upon close review, staff determined an error was made when preparing the original CIP budget estimate for the Fernau Watershed project. The CIP budget was prepared while still working to determine the necessary project size. Unfortunately, the project budget of $1.4 million reflected a smaller project scope than the project that was determined necessary to meet the needs of the Fernau Watershed, and the North Industrial Park TIF #27. In order to meet the needs of the North Industrial Park TIF #27, and meet the commitments made to the WDNR to provide post-construction storm water management for the North Industrial Park, staff felt the prudent course of action would be to reallocate $2.5 million in funding from the Libbey-Nicolet — North Main Street Wet Detention Basin project. This will provide a total of $3.9 million available for the Fernau Watershed project. This reallocation will result in the Libbey-Nicolet project being delayed to a future year. The reallocation may impact the ability to complete the acquisition projects, but it is too soon to know for sure yet. We are still working with our consultants to complete the studies to identify the project locations. FISCAL IMPACT The overall impact of amending the CIP will result in $700,000 less borrowing for the Storm Water Utility in 2016, and increase a future borrowing in order to complete the construction of the Libbey-Nicolet Watershed — North Main Street Area Wet Detention Basin. Staff has also identified a potential state grant opportunity that would help to offset the future borrowing for the Libbey-Nicolet Watershed project, if successful in obtaining the grant. I:\Engineering12016 CONTRACTS\16-01 Libbey WVshed-N Main St Area Det Basin- P2gB 1 Of 2 Const\Project_Information\Correspondence\Memo\16-0t CIP Amendment Memo_4-21-t6.docx RECOMMENDATIONS The pricing received from this most recent bid is very reasonable, and reflect what staff would have expected bids to be for a project of this scope and magnitude to be. Therefore, I believe the City has obtained the best possible price we could for this project, and feel it is in the best interest of the City to approve amending the CIP in order to award the construction project. Approved, �-- � � / Mar A. Rohloff City Manager JER/tlt I:1Engineering�2016 CONTRACTS\16-01 Libbey Wtrshed-N Main St Area Det Basin- P8g8 2 Of 2 Const\Project_Information\Correspondence\Memo\16-01 CIP Amendment Memo_4-21-16.docx 2016 CAPITAL IMPROVEMENT PROGRAM ADJUSTMENTS PROP. IMP.PARK ADOPTED AMENDMENTS 01.26.16 PAGESTREETSTRAFFICEQUIPMENTIMPROVSIDEWALKSWATERSANITARYSTORMTOTAL 2016-2 North Main Street Reconstruction: $ -$ -$ -$ - $ -$ -$ -$ -$ - Reallocate $72,000 in City Contribution from Street improvements to Traffic improvements$ -$ -$ -$ - $ -$ -$ -$ -$ - ADOPTED AMENDMENTS 02.23.16 Water Filtration Plant (WFP) Equipment Replacement:$ -$ -$ -$ - $ -$ -$ -$ -$ - Reallocate $25,000 Algal Toxin Readiness Study (2014 CIP) and $ -$ -$ -$ - $ -$ -$ -$ -$ - $30,000 Southwest Water Tower Chemical Addition Study (2015 CIP) to Fund: Sodium Hydroxide Tank Replacement (2015 CIP), Caustic System Piping Study (2015 CIP), Intake Chloramine Feed System $ -$ -$ -$ - $ -$ -$ -$ -$ - (2014 CIP), and Air Conditioner Replacement (2013 CIP). $ -$ -$ -$ - $ -$ -$ -$ -$ - $ -$ -$ -$ - $ -$ -$ -$ -$ - PROP. IMP.PARK PROPOSED AMENDMENTS 04.26.16 PAGESTREETSTRAFFICEQUIPMENTIMPROVSIDEWALKSWATERSANITARYSTORMTOTAL Fernau Avenue Watershed (2015 CIP): $ -$ -$ -$ - $ -$ -$ -$ -$ - Reallocate $2,500,000 Libbey/Nicolet Watershed/North Main Street Area Detention Basin (2016 CIP). $ -$ -$ -$ - $ -$ -$ -$ -$ - $ -$ -$ -$ - $ -$ -$ -$ -$ -