R2010-46 APPROVING CONTINGENCY FOR THE 1,000,000 GALLON COMPOSITE WATER TANK AND BOOSTER PUMPING STATION

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Public Works Memorandum NO. 2010-14 DATE: March 2, 2010 TO: Honorable Mayor McElroy and City C uncil FROM: Ryan P. McCrady, City Manager Richard G. Marley, P.E., Director of Public Works �� ,'�� Keith D. Alexander, Director of Water Management SUBJECT: Project Contingency Authorization for the Construction of the South Elevated Water Storage Tank, Booster Pump Station, and the Water Distribution Main from the SWTP to the Elevated Tanks City Projects 06-17 and 03-23 SUMMARY RECOMMENDATION: Staff recommends that the City Council approve, that the Mayor be authorized to execute and the City Clerk to attest the attached resolutions: 1. Resolution authorizing $77,640 in contingency for the construction ofthe 1,000,000 Gallon Composite Water Tank and Booster Pumping Station Project, City Project 06-17. The requested contingency is 3% of the awarded construction contract amount of$2,588,000 and is included as part of the I-EPA loan. 2. Resolution authorizing$172,744 in contingency for the construction ofthe M L King Water Main Project, City Project 03-23. The requested contingency is 3% of the awarded construction contract amount of$5,758,139.75 and is included as part of the I-EPA loan. PRIOR COUNCIL ACTION: Apri12, 2001 —to December 15, 2008 Council took eight actions on this project. Please refer to Appendix A for a description of prior actions. July 6, 2009 - Council approved Resolutions R2009-109 and R2009-110, which authorized agreements with BGM to provide construction engineering and resident inspection services for construction of the South Elevated Water Storage Tank and Booster Pump Station and the Water Distribution Main from the South Water Treatment Plant (SWTP)to the City's elevated water tanks on East Garfield Avenue and West Division Street. The agreements were for a total of$700,000. Council was informed that the City was applying for a low interest loan through the I-EPA to cover this work and that the work may be eligible for American Reinvestment and Recovery Act (ARRA) funds to cover a portion of the work. October 5, 2009—Council approved Ordinance Number 2009-71 authorizing the City of Decatur to borrow up to $15 million from the Public Water Supply Loan Program. The proposed loan covers engineering and construction costs associated with the construction of the South Elevated Water Storage Tank, Booster Pump Station and the Water Distribution Main from the South Water Treatment Plant (SWTP)to the City's elevated water tanks on East Garfield and West Division. Page � 1