AgdaPkt 2004-07-26 - Laserfiche WebLink

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��-z en� of construction, which could be credited back to the project account. The attached Technical Memorandum prepared by the project construction manager, The Covello Group, provides additional information and a recommendation to proceed with pre- purchase. Alternatives 1. Do not proceed with pre-purchase of steel and instead advertise construction bids in the winter of 2004/05 to include purchase and delivery of steel. Based on the market trends cited in the Technical Memorandum, steel costs could escalate from zero to 50% in the next six months. If the 4-month escalation of 10.5% is applied to the two-month time gain realized by pre-purchase, savings could be in the range of $75,000. Additionally, the two-month gain in schedule will mitigate other construction inflation, especially concrete and other steel components. 2. In lieu of utilizing a steel sheet pile-based cofferdam as recommended, incorporate a concrete reinforced slurry wall system into the lateral support/structural concrete design. This option was also studied as an alternative, driven by potential cost savings. However, due to the SBSA soils characteristics and strength, the depth of the slurry wall below sub-grade would be approximately 40 feet. At that depth, this would result in the majority of the slurry wall not functioning as part of the final facility structure, making the slurry wall option overly expensive and not cost- effective. Instead of a cost savings, the additional cost over the steel sheet pile option was estimated to be approximately $2 million. Structural steel internal bracing would be required in both lateral support alternatives, and although not identical in design, the cost savings with the slurry wall for the internal bracing would be nominal. Consequently, the steel sheet pile design is the best and most economical excavation support option for the recycled water facilities construction. Fiscal Impact Of the $7.1 million budgeted for the project to date by the City Council, approximately $5 million is available as of June 30, 2004. The Council will consider a refined financing plan and connection fees ordinance in the fall of 2004. Prior to the Council's approval of the project, and the subsequent Task Force report and recommendations, staff had estimated that annual water rate increases ranging from 6% to 9% per year for 10-13 years would be required to generate the additional revenues needed to finance the project. A portion of connection fees collected during that time (could be as much as 40% of total sts) would offset those impacts. •, / /� Peter Ingram E Everett Director, Public orks Services City Manager Attachment Technical Memorandum prepared by the project construction manager, The Covello Group, dated July 9, 2004. Page 2 of 2