AgdaPkt 2014-06-09 Closed and Joint SA

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7.1.D. - Page 2 After the reservoir was drained and cleaned, staff performed several close up inspections of the reservoir interiors. These areas were inaccessible or were not available for inspection during the design process. Although the reservoir's overall condition is relatively good for its age, staff identified additional damaged structural wood rafters and beams, rotted roof plywood, additional cracks in the reservoir concrete flooring, and other as-built non-conforming conditions that require immediate attention. While more detailed inspections and estimates will be necessary during the course of construction to determine the precise amount of additional work needed, the recommendation to increase the contingency amount to 35% is a result of staff's initial inspections. Staff is requesting a larger than customary contingency because it is difficult to determine the extent of the work necessary due to the age and complexity of the reservoir. The entire contingency may not be used, however it will allow for the project completion to be expedited. It is important to note that even with the 35% contingency, the final contract amount is under the original engineer's construction estimate and budget of $800,000.00. With full use of the 35% contingency, the total amount of the contract would be approximately $782,000.00. Furthermore, up to 75% of all construction costs for this project will be reimbursed by the FY2012 Pre-Disaster Mitigation Competitive Grant from FEMA. ALTERNATIVES Council may choose to authorize a smaller contingency amount, or maintain the approve contingency amount of 10%. However, this could delay the overall timeline, as staff would need to seek Council approval when unforeseen conditions arise. Alternatively, the Council could also forego the additional repairs at this time, however the areas of damaged wood, roof, and floor would further deteriorate and may lead to more expensive repairs in the near future. FISCAL IMPACT Funds for the general work of this project have been approved and appropriated in the Fiscal Year 2013/14 budget as Water Fund Capital Projects — Carson Tank Rehabilitation which has an available balance of $412,851.19 as of April 30, 2014. Up to 75% of the project's construction cost will be reimbursed by FEMA/Cal OES through the FY2012 Pre-Disaster Mitigation Competitive Grant which has been accepted by City Council on September 9, 2013. ENVIRONMENTAL REVIEW As the lead agency, City of Redwood City has determined that the Carson Reservoir Seismic Improvement Project meets the California Environmental Quality Act (CEQA) exemption criteria as set forth in Section 21080(b)(4) (Specific actions necessary to prevent or mitigate an emergency) of the Public Resources Code. Furthermore, all improvements, maintenance and upgrades as proposed are categorically exempt from the requirements of the California Environmental Quality Act (CEQA) per Section 15301 (b) (Existing facilities of both investor and publicly-owned utilities used to provide electric power, natural gas, sewerage, or other public utility services) and (d) (Restoration or rehabilitation of deteriorated or damaged structures, facilities, or mechanical equipment to meet current standards of public health and safety...)