HomeMy WebLinkAboutAgenda - 08-21-2012 - 5n 001
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: August 21, 2012
Action Agenda
Item No. 5-n
SUBJECT: Efland Phase 2/Buckhorn Sanitary Sewer Project Update
DEPARTMENT: Asset Management Services; PUBLIC HEARING: (Y/N) No
Planning
ATTACHMENT(S): INFORMATION CONTACT:
1) August 23, 2011 Abstract Jeff Thompson, 919-245-2658
2) State Approval of Gravity Outfall Craig Benedict, 919-245-2592
Loan Kevin Lindley, 919-245-2583
PURPOSE: To provide the Board a project status of the Efland Phase 2/Buckhorn sanitary
sewer project and change order cost reconciliation associated with the State approved
deepening of the Brookhollow Road Lift Station ("BRLS").
BACKGROUND: On August 23, 2011 the Board awarded the general construction contract for
this project to J.F. Wilkerson Contracting Company of Morrisville, North Carolina. Construction
began soon thereafter. Sanitary sewer line work for the entire project is nearly 95% complete.
On August 23, 2011, the Board also authorized the Manager to pursue planning for an
additional gravity sewer outfall connection between the new BRLS and the end-of-life McGowan
Creek Lift Station ("MCLS"), due mainly to the availability of surplus State Revolving Loan funds
within the project account because of the attractive construction bid well under the estimated
construction cost. The August 23, 2011 abstract and its relevant section B-5 ("Relevant
Alternate Outfall Engineering Design") is provided as Attachment 1. This strategy would
effectively eliminate the need for a new MCLS lift station estimated to cost $400,000 and would
open up a larger section of the Efland Economic Development District to development through
the availability of sanitary sewer services.
In March 2012, the State approved the allocation of State Revolving Loan funds in the amount
of $755,450 for the gravity outfall connecting the end-of-life McGowan Creek lift station to the
new BRLS (note Attachment 2, "Clean Water State Revolving Fund — Notice of Intent to Fund"
dated March 29, 2012). The State granted the County the loan funds for the outfall project on
the merits of the County's application and the apparent loan surplus available for construction
after bid opening of the original project.
On July 17, 2012 the State granted final design approval on the deepened Brookhollow Road
Lift Station ("BRLS"), a step necessary to provide the capacity for the gravity outfall project.
With these design approvals, the Contractor, JF Wilkerson, is preparing final pricing on the
approved design and will be submitting proposed change orders to the Manager in the near
future. In an effort not slow down the project, the County Manager authorized the continuation
002
of the work during the Board's summer break in anticipation of bringing a project reconciliation
report including the lift station modifications to the Board at this first regular meeting.
The following shows the project budget and the contingency allocation to these proposed
change orders estimated by the designer:
Revenues -
#30042 4,848,400
Expenses Encumbered and Reserved for Encumbrances
P/A/E, Easements (637,000)
Construction (2,942,954)
Contingency (484,000)
Balance 784,446
Proposed change orders ("PCOs") against contingency:
Available Contingency: 484,000
PCO1: Approved increase of force main from 6" to 8" (30,000)
PCO2: Approved deepening of BRLS (230,000)
PCO3: Material unit price contract reconciliation
Buckhorn 57,000
Efland (153,000)
Net contingency balance after change orders 128,000
PC03 represents an estimate of the material quantities necessary for the project (rock,
unsuitables, fill, etc.). This may be a series of change orders in accordance with the State's
contract procedure, be it a debit or credit to the project, and will be fully reconciled once the
entire project is complete.
FINANCIAL IMPACT: There are sufficient funds within the project to cover the necessary
change orders.
RECOMMENDATION: The Manager recommends the Board accept this information regarding
the project status of the Efland Phase 2/Buckhorn sanitary sewer project and the change order
cost reconciliation associated with the State approved deepening of the Brookhollow Road Lift
Station ("BRLS").
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REVISED 8/23/11
8/23/11 BOCC Regular Meeting
Abstract and Attachment 3—See Highlighted Portions °l~f)' << O 2-7
ORANGE COUNTY
BOARD OF COMMISSIONERS
[C ACTION AGENDA ITEM ABSTRACT
I=i_J�+® F ' (eeting Date: August 23, 2011
Action Agenda
Item No. '-
SUBJECT: Central Efland and Northern Buckhorn Sewer Extensions—Funding (Including
Budget Amendment#1-A) and Bid Award and-Construction
DEPARTMENT: Manager's Office, Planning, PUBLIC HEARING: (YIN) N
Financial Services,Asset
Management Services (AMS)
ATTACHMENT(S): INFORMATION CONTACT:
1. Notice and Acceptance of EPA Frank W. Clifton,.Jr., Co. Manager,
Special Appropriations Grant-Funds 245-2300
2. Acceptance of State Revolving Loan Craig Benedict, Planning Director,
_and Conditions by Resolution 245-2592
3. a.dI-aEijiat o Kevin Lindley,PE, Staff Engineer,
4. Resolution of Award 245-2583
5. Construction Contract Clarence-Grier, Financial Services
Director, 245-2450
Pam Jones, AMS Director, 245-265.2
David Cannell, Purchasing Agent,
245-2651
PURPOSE: To consider multiple actions related to the funding and construction of the
Central Efland and Northern Buckhorn sewer system. -
BACKGROUND: These sewer projects have been in process of funding since 1997 and
design since 2004. The projects have now been permitted and approved by the state (SRF
Loan Project No. CS370884-01) and Federal EPA (STAG Project No. XP95456411-01).
The following is an outline of the proposed BOCC actions related to these,projects. There
are two main project aspects - Funding and Bid Award/Construction. Many of these funding
actions_have been noted this year in previous Board agenda items (June 7th and June 215,
2011). The abstract notes each aspect and the recommendations are detailed on the last
page.
A. Funding
1. Acceptance of EPA Special Appropriations- Grant Funds for Construction of the
Central Efland & North Buckhorn Sewer Improvements;
2. Acceptance of Central Efland --Phase 2 Northern.Buckhorn Sewer Systems State
Revolving Loan; and
3. Approval of Budget Amendment#1-A.
B. Bid Award and Construction
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•solution of-Award awarding the bid to J.F. Wilkerson of Morrisville, North •
Carolina at a cost of$2,942,954.46;
2. Authorize the Manager to execute change orders up to$250,000;
3. Authorize the Chair to-sign the Resolution of Award on behalf of the Board;
4. Approve and authorize the Chair to sign the contract on behalf of the Board,
-pending execution of bonds, insurance and County Attorney approval; and
5. Authorize related alternate engineering design.
A.1 ACCEPTANCE OF EPA SPECIAL APPROPRIATIONS GRANT FUNDS FOR
CONSTRUCTION OF THE CENTRAL EFLAND & NORTH BUCKHORN SEWER
IMPROVEMENTS
PURPOSE: To consider accepting the EPA. Special- Appropriations (SPAP.) grant funds for
construction-of the Central Efland and North Buckhornr Sewer Improvements.
BACKGROUND: rn both 2003-and 2005, Congressman David Price worked to receive funding
totaling $900,000 arid-$500,000 respectively in the-EPA's SPAP program. Since that time, the
County has worked through the appropriate processes. and .was given a Notice of Award for
these two grants in December 2010 (Attachment 1) which was conditionally affirmed pending
Capital-Investment Plan (CIP) and companion loan acceptance.
The net of the two EPA SPAP grants is $1,348,400. Because the EPA delegates a large
amount of review authority for grant funded projects to the State's Construction Grants & Loans
division of North- Carolina Department of Environment and Natural Resources (NCDENR), the
State receives a percentage of the grantto cover-the administrative costs.
Because County financial policy requires the BOCC to formally accept grant funds prior to
expenditure, staff is requesting that the.BOCC approve acceptance of these grant funds for the
purpose of constructing the Central- Efland and North Buckhorn Sewer Improvements. The
grant funds will provide approximately 1/3 of_the total construction costs and are -a vital
financing component for this project. In addition, these funds have already been incorporated
into the County's CIP as part of this project.
FINANCIAL IMPACT: Accepting these funds will provide $1,348,400 towards the construction
of the Central'Efland and North Buckhorn Sewer Improvements.
A.2 CENTRAL EFLAND — PHASE 2 NORTHERN. BUCKHORN STATE'REVOLVING LOAN
SEWER FUNDING
PURPOSE: To ratify a Resolution reiterating the Board's decision from June 21, 2011,
approving the offer of a State Revolving Fund (SRF) Loan to fund the construction of the Efland
and North Buckhorn sewer extensions.
BACKGROUND: The BOCC was previously presented with the opportunity to accept a SRF
loan in the amount of$3,500,000 for the construction of sewer improvements in the Efland and
North Buckhorn communities. The loan is from the North Carolina Department of Environment
and Natural Resources. The BOCC approved this loan offer on June 21, 2011. Since that
time, staff has been notified that in order to formally accept the loan, the loan approval must
take the form of a Resolution.
005
.
Attachment 2 is a Resolution, dated June 21, 2011, that states the BOCC's acceptance of the
SRF loan and conditions. Staff requests the BOCC ratify this Resolution to formally accept the
SRF loan on Project No. CS370884-01, STAG Project No. XP95456411-01,
FINANCIAL IMPACT: As.noted in the abstract from the Board's June 21-, 2011 meeting, there
is a $70,000, or 2%, dosing fee for the SRF loan that will be due in September. The payments
for the SRF loan are anticipated to begin approximately in June 2013, or six months after
construction is complete. The annual loan payments would be approximately $225,000. Both
the closing fee and the debt service payments are included in the County's Capital Investment
Plan.
A-3 BUDGET AMENDMENT#1-A -
Total-estimated project costs included in the Capital Investment Plan were $4;727,101, which
did not include the $475,000 planned for the McGowan Creek Pump. Station planning for
FY2012-13. Since receiving very aggressive -bids for the Central Efland/Nodh .Buckhorn
Project, both projects can be combined with the McGowan Creek Pump Station Project with an
overall project cost of $4,848,400, Budget Amendment #1-=A below provides details of the
proposed budget.
Central Efland and Northern Buckhorn Sewer Project:
Project#30042
Revenues for this project:
FY2010-11 Aug.23,2011 FY 2011-12
Amendments Amendment Revised
EPA SPAP Grant $1,348,400 $1,348,400_
State Revolving Loan Funds 3,500,000 3,500,000
. Totai Project Revenues $4,848,400 $4,848,400
Appropriated for this project:
Prior Years Aug,23,2011 FY 2011-12
Amendment Amendment _ Revised •
_Professional Services -$ 519,000 $ 519,000
Construction 4,304,400 4,304,400•
Other 25,000 25,000
Total Project Appropriation $4,848,400 $4,848,400
The larger budget amount in excess of the bid award will be explained below in-section B.5.
B. BID AWARD AND CONSTRUCTION
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B.1.b — to consider awarding a bid to J.F. Wilkerson of Morrisville, North Carolina for the
construction the Central Efland and Northern Buckhorn Sewer Extensions.
BACKGROUND: The County has been working towards construction of an extension to the
Efland sewer system and an extension of the City of Mebane's sewer system into the Northern
Buckhorn community. The work for this project involves the construction of approximately
5,370 linear feet of 8 inch gravity sanitary sewers to serve the Buckhorn Area north of 1-85 and
006
19,514 linear feet of 8 inch gravity sewers with a 250 G.P.M. Pump Station and 2,460 linear feet
of 6 inch ductile iron-force main to serve the Efland Community. Bids for this project were
advertised and received one June 23, 2011. Nine bidders submitted responses-to the solicitation
including Triangle Grading-&-Paving_
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B.1,b: To consider a Resolution awarding the construction contract for Central Efland Phase 2
and North Buckhorn sewer system extensions to J. F. Wilkerson Contracting Company_
_BACKGROUND: Bids were received for this-project (Project No. CS3-70884-01, STAG Project
No,XP-95456511-0) on June 23, .201:1. After a period of review of the bid documents by the .
County's engineering consultant, Coulter, Jewell, Thames, and due diligence investigation by
County staff, J.F. Wilkerson Contracting -Company was- determined to be a responsive,.
responsible bidder for this project. With the agreed to withdrawal of Triangle Grading &
Paving's bid, J.F. -Wilkerson. Contracting Company- becomes the lowest, responsive and
responsible bidder for this project.
Because this project is funded by- both.an EPA Special Appropriations Grant and a State
Revolving-Fund Loan, the State Construction Grants & Loans (CG&L) office must review the bid
documents and other information regarding the project prior to issuing an "Authority to Award"
notice to the County. The deadlines imposed_by the•SRF Loan process required that Orange
County be issued the "Authority to Award" from the State CG&T. office on or before August 1,
2011., or risk losing the S-RF Loan-funds. As a part of the Project Bid Information packet, the
CG&L office typically requires that the governing board adopt a Resolution of Tentative Award,
which says the board intends to award the contract to the lowest, responsible, responsive
bidder once given the "Authority to Award"from the State.
in this case, however, the BOCC was on summer breaks when the bids came in. This meeting
is the first opportunity available for the Resolution of Tentative Award. The CG&L office has
granted the County a variance from its normal procedure by allowing'the BOCC to adopt the
Resolution of Award now, after the Authority to Award had been issued by the State-on August
1, 2011. Therefore, the Resolution before the Board is a Resolution of Award rather than a
Resolution of Tentative Award because the State has already reviewed the contractor choice
and issued the Authority to Award.
This Resolution, along with the actual contract and supporting documents, will be submitted to
the State CG&L office for review. Submission and approval of the contract documents and this
Resolution are required in order to meet the next funding deadline on September 1, 2011.
J.F. Wilkerson submitted the lowest responsible bid that was responsive. A copy of the
tabulation is Attachment 3. The Resolution of Award is Attachment 4. If the Board awards this
bid, a notice to proceed will be issued in mid-September with an estimated completion date of
December 2012.
•
B-5 RELATED ALTERNATE 'OUTFALL' ENGINEERING DESIGN
007
After strategic review of the existing and proposed sewer systems in Efland, an alternative
engineering design may create short and long term benefits in costs and service area. Abrief
explanation follows;
The present Efland sewer system flows by gravity to the existing McGowan Creek Lift Station
(MCLS) built in 1988 near Efland-Cedar Grove Road. From this collection point sewage is then
a pumped via a sewage force main to the Town of Hillsborough for treatment. The Central
Efiand Phase II (area east of and downstream from the MCLS) proposes a new sewage lift
station on Brookhollow Road (BRLS) which collects a-new service area that flows by gravity to
this new station that is then pumped 'upstream'to the old MCLS.
Since the proposed BRLS 'is 'downstream' from-the old MCLS, a-new gravity sewer main or
interceptor can be designed to allow existing sewer flows to-flow through (without pumping) the
MCLS and continue through this new gravity line (approximately 2,000 LF) to the BRLS. This
alternate design accomplishes several_goals:-
1. Eliminates the need for a new lift station (BRLS) to pump to an old lift station (MCLS)
which is to need of approximately$400,000 of repair.
2. Creates a new interceptor service area (consistent with the Efland-Mebane Small Area
Plan) for additional property and customers that were not included in the original design.
3. Reduces the distance of .pumping to Hillsborough since the BRLS is closer and
• eventually can be the one lift station instead-of two (major reduction in maintenance and
operating costs)that changes pumping direction to another treatment system.
4. Removes the old MCLS function which is close to McGowan Creek.
There are two funding sources for-this project- $3.5 million from the State Revolving Loan Fund
and-a grant of $1,348,400 from an EPA SPAP Grant. The State agrees monies from.the SRF
loan can be used to expend-on this Alternate which enhances the existing and proposed
systems. Projected-monies from EPA and SRF sources 'can accommodate-the-original and
alternate design because of lower construction bids. The difference between the bid and the
budget is reserved for this alternate project. This alternate design still needs to be engineered,
permitted and:bid-and, if at all possible from a timing standpoint, coordinated into the proposed
project.
The design for this work will begin as soon as a design and construction administrator is
chosen. .A separate_bid for construction will be necessary at a later date. Whether design and
permitting can '-catch up' to the present work is not yet known. 1n any event, this proposed
design enhancement will provide a system that can be more efficiently operated.
FINANCIAL IMPACT: There. is no financial impact from approving the Resolution of Award.
The contract with J.F. Wilkerson Contracting Company is for $2,942,954.46 and has been
accounted for in the County's GIP and is within budgeted amounts.
RECOMMENDATiON(S): The Manager recommends that the Board:
A. Funding
1. Accept the EPA Special Appropriations Grant Funds for Construction of the
Central Efland & North Buckhom Sewer Improvements (Attachment 1)
2. Ratify the Resolution noting acceptance of Central Efiand — Phase 2 Northern
Buckhorn Sewer Systems State Revolving Loan (Attachment 2)
3. Approve Budget Amendment#1-A
008
B. Bid Award and Construction
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1.b. Approve the Resolution of Award awarding the bid to J.F. Wilkerson of
Morrisville, North Carolina at a cost of$2,942,954.46;
2. Authorize the Manager to execute change orders up to $250,000;
3. Authorize the Chair to sign the Resolution of Award (Attachment 4) on behalf of
the Board;
4. Approve and authorize the Chair to sign the -contract on behalf of the Board
(Attachment 5), pending execution of bonds, insurance -and County Attorney
approval (bid unit prices are available-in the Clerk to the Board's-office); and
5. Authorize staff to proceed withxelated alternate engineering design.
•
/•��7/.�eE{�Cis'(' 2_
009
ArA
NCDETIR`
North Carolina Department of Environment and Natural Resources
Division of Water Quality
Beverly Eaves Perdue Charles Wakild, P.E. Dee Freeman
Governor Director Secretary
March 29,2012
Mr.Frank Clifton, County Manager 1�.�� �. k•Orange County -� 1' ,
PO Box 8181
Hillsborough,NC 27278
SUBJECT: Clean Water State Revolving Fund
Notice of Intent to Fund
McGowan Creek Interceptor
March 1st,2012 Application Cycle
Dear Mr. Clifton:
Congratulations! Your application for a Clean Water State Revolving Fund(CWSRF)loan has
been reviewed and your proposed project found eligible to receive a low-interest CWSRF loan.
The total loan amount will be$755,450.
Please note that this intent to fund is contingent on approval of the loan through the Local
Government Commission. This intent to fund is also contingent on meeting all milestones
outlined based on our Intended Use Plan(IUP) as shown below.
Milestone Date
Engineering Report Submittal July 2,2012
Engineering Report Approval _ December 3, 2012
Plans &Specifications Submittal June 3,2013
Plans &Specifications/Permit Approval September 2, 2013
Advertise Project,Receive Bids, Submit December 2, 2013
Bid Information, and Receive CG&L's
Authority To Award
Execute Construction Contract(s) January 2,2014
The next milestone is the submittal of an Engineering Report by close of business on
July 2,2012. The Engineering Report must be developed using the guidance found on our
website. Reports not received in this office on or before July 2,2012 will be returned and
CWSRF funding for the proposed project will be forfeited.
Failure to meet this or any other IUP milestone will result in the forfeit of CWSRF funding for
your proposed project,and a new application must be submitted for consideration during a
future application cycle.
Infrastructure Finance Section
1633 Mail Service Center,Raleigh,North Carolina 27699-1633 One
Location:8th Floor Archdale Building,512 N.Salisbury St.Raleigh,North Carolina 27604 NorthCarolina
Phone::www. cwater FAX:orq 919-715-6229 atura//"
Internet:www.ncwaierauatitv.orq
An Equal Opportunity\Affirmative Action Employer
010
Mr.Frank Clifton,County Manager
March 29,2012
Page Number 2
Please note that if funding is based on the recipient's agreement to develop an Asset
Management Plan,that plan must be adopted by the recipient and approved by the Infrastructure
Finance Section before the contract execution milestone. Otherwise,project funding will be
forfeited. The TOP and an overview of our CWSRF funding process are available on our website
(http://portal.ncdenr.org/web/wq/ifs).
If you have questions,please contact the Mr. Seth Robertson,P.E. Supervisor,Design
Management Unit at 919-707-9175.
Sincerely,
Kim H. Colson,P.E., Chief
Infrastructure Finance Section
JMH
cc: Mark Hubbard
Jennifer Haynie
SRF File
1