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W A T E R I E N E R G Y I l I E E RIVERSIDE PUBLIC UTILITIES Board Memorandum P U B L I C U T T I I T T F $ BOARD OF PUBLIC UTILITIES DATE: December 3, 2010 ITEM NO: 7 SUBJECT: CONSTRUCTION OF THE 12TH STREET WATER DISTRIBUTION MAIN REPLACEMENT PROJECT— PHASE II, WORK ORDER NO. 1013088 ISSUE: That the Board of Public Utilities consider an additional capital expenditure in the amount of$330,000 for construction and paving of the 12th Street Water Distribution Main Replacement Project— Phase II. RECOMMENDATION: That the Board of Public Utilities approve the additional capital expenditure in the amount of$300,000 for Work Order No. 1013088 for the 12th Street Water Distribution Main Replacement Project— Phase II. This will bring the total cost of the Work Order to $1,624,000. BACKGROUND: On July 16, 2010, the Board approved the capital expenditure of$1,294,000 for the construction of the 12th Street Water Distribution Main Replacement Project—Phase II. City forces will be completing construction of approximately 5,630 linear feet of eight-inch and 12-inch ductile iron pipe by the end of December 2010. However, additional funding of$200,000 is necessary to complete construction of this project. This is due to the fact that the project area is an old section within the City and various unknown utilities exists within the streets which caused realignment of the main water line. Additionally, due to the derogated condition of the asphalt concrete structural section of the streets within the project area, an additional increase in asphalt concrete paving in the amount of $100,000 is necessary. Award for the paving portion of the project will be brought to the Board at the beginning of January 2011. FISCAL IMPACT: The additional capital expenditure for Work Order No.1013088 is estimated to be $300,000 with a $30,000 contingency for construction and paving as summarized below, for a total estimated cost of$1,624,000: Item Cost Approved by Board 7-16-10 $1,294,000 Additional Funding for Construction $200,000 Additional Funding for Paving $100,000 Contingency (10%) $30,000 Work Order Total $1,624,000 Funds are budgeted and available in the Public Utilities' Water Facilities Rehabilitation Account No. 6230000-470707.