AgdaPkt 2008-06-09 - Laserfiche WebLink

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5.1F previous year was significantly less than originally expected. The primary reason for Page 2 this shift was that the project team amended its approach to the irrigation site retrofits, and instead of scheduling construction on customer sites ahead of installation of distribution pipelines, the work was pushed back to immediately follow pipelines. This provided more time for acquiring customer applications for service, gain design approval from the State Department of Public Health, and finally to negotiate and receive site entry agreements for each customer site. Since this pre-retrofit work was accomplished by several project team members working together, the average monthly costs for Kennedy/Jenks services were relatively low. However, since Retrofit Bid Package NO.1 was awarded in the spring of 2007 and future Retrofit Bid Packages are currently being designed, the amount of time required of Kennedy/Jenks staff has increased significantly. This pace will exceed the previously-projected peak level, as all remaining commercial and streetscape irrigation retrofits of the 57 sites are approved and constructed in Redwood Shores and the Seaport area, and additional sites that were not originally included are incorporated into the future bid packages. Homeowner association sites that may voluntarily apply for service were not included in the scope of Amendment No.2 of the agreement. However, staff has received numerous inquiries from homeowner associations who have interest in connecting to the recycled water system and the retrofit cost for these sites has therefore been incorporated into Amendment No.3. Also included in Amendment No. 3 is the continuing support that Kennedy/Jenks will provide with bidding and construction management services for the additional bid packages, as well as additional customer site supervisor training. And finally, Kennedy/Jenks expertise in the team will support a learning process for new Public Works Services employees, who will follow up the initial retrofits with continuing customer service, regulatory inspections and reporting, and problem-solving as needed. Kennedy/Jenks will also provide technical support and assistance to industrial customers in the Seaport area for their process plant retrofits. Staff has concluded that the original team assumptions about the level of technical/regulatory support services that industrial customers will need for successful completion of retrofit designs were too conservative. What has been learned in working with businesses in the Seaport Area is that technical/operation staff members and their consultants need more guidance and problem-solving help in order to correctly design changes for maximizing the use of recycled water. The team feels that adding Kennedy/Jenks resources, as well as other project assistance, is vital to reaching the goal of maximum industrial conversions by 2010. The anticipated outcome of the changes, emerging challenges, and adding additional retrofit sites as described above is that the project will require a higher level of effort in Phase One than initially estimated. Staff originally expected to return to Council in early 2009 with an additional amendment to the agreement. However, staff has gained a more refined understanding of needs for customer site retrofits in both Redwood Shores and the Seaport area. Staff recommends that the City Council approve an additional funding authorization of $862,391, amending the Agreement in the not-to-exceed amount of $862,391, from $1,640,400 to $ 2,502,791. At the current expenditure rate, this amendment should sustain work through at least the end of 2010. AL TERN A TIVES The work included in the scope of services could be provided by adding city staff for the remaining project period (2008 through 2010). However, this would entail at least six months of delay in the project, and would result in a staff down-sizing at the end of the