RECOMMENDATION TO COUNCIL
Staff recommends that City Council authorize the Environmental Utilities Director or his designee to approve and pay for contract change orders for the Design-Assist and Construction Agreement for the Pleasant Grove Wastewater Treatment Plant Expansion Project with W.M. Lyles Company that could increase the original contract amount of $54,400,000 by no more than 10%, or $5,440,000, up to a not-to-exceed total contract amount of $59,840,000.
| BACKGROUND
The Pleasant Grove Wastewater Treatment Plant (PGWWTP) Expansion Project is currently under construction to add new primary clarification, additional solids handling, and new anaerobic digestion of primary solids and waste-activated sludge. The two new anaerobic digesters will produce digester gas that will be supplied to the PGWWTP Energy Recovery Project (which is being constructed as a separate project) for generation of renewable compressed natural gas (rCNG) to be used by the City’s Waste Services collection vehicles as fuel, and production of electrical power to offset a portion of the PGWWTP’s power demands.
The City awarded the Design-Assist and Construction contract on November 6, 2019. W.M. Lyles received the Notice to Proceed on November 13, 2019. Construction of the PGWWTP Expansion Project was expected to be completed June 20, 2022; however, based on the Contractor’s progress, it is currently estimated that the project completion is now June 2023.
The City Council approved and awarded the Design-Assist and Construction Agreement to W.M. Lyles Company for the Project in the amount of $54,400,000 (Attachment A). In addition, the City Council authorized the Environmental Utilities Director or his designee to approve and pay for contract change orders for the Project that could increase the contract amount by no more than 5% or $2,720,000.
The current approved change orders on the Project total $215,816; however, the lump sum change orders to be processed are approximately $1,000,000, and it is anticipated that the existing time and material change order work will be approximately $500,000. It is expected that the total change orders will continue to increase over the next 11 months of construction and could soon exceed the approved 5% allowance; therefore staff recommends increasing the change order allowance from 5% to 10% to assure there is enough contract allowance to complete this Project.
The cause of the Project construction changes is based on many factors including material suppliers issues, inefficiencies, City staff requested changes due to lessons learned or technology changes, City standards updates, unknown factors prior to construction, clarifications to the design documents, and other recommended improvements or negotiations related to the construction through the design-assist construction process.
| FISCAL IMPACT
The cost for the agreement is $54,400,000 and any approved change orders will be expended over a 41-month period. Funding for this Project is provided under the capital improvement projects for South Placer Wastewater Authority (SPWA). The SPWA Board has authorized the Project and adequate budget to fund the requested increase in change order allowance from $2,720,000 to $5,440,000. This project is funded by the SPWA through regional wastewater connection fees collected by the Regional Partners (approximately 65% City of Roseville, 11% Placer County and 24% South Placer Municipal Utility District).
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ENVIRONMENTAL REVIEW
Implementation of the PGWWTP Expansion Project was previously evaluated in the Pleasant Grove Wastewater Treatment Plant Expansion and Energy Recovery Project Final Initial Study/Mitigated Negative Declaration (IS/MND) (SCH# 2016122040) (certified by the City Council on April 6, 2017), and the Addendum to the IS/MND (SCH# 2016122040) (certified by the City Council on November 7, 2018). The improvement plans included in the design-assist and construction agreement are consistent with the project evaluated in the certified Final IS/MND and the Addendum, and consequently no additional CEQA action is required for the design-assist and construction agreement contract change order allowance approval.
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CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal F - Invest in well-planned infrastructure and growth
| Respectfully Submitted,
Tracie Mueller, Senior Engineer
Richard Plecker, Environmental Utilities Director | | | 
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Dominick Casey, City Manager
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