Agenda 10/12/2010 Item #10C
Agenda Item No. 10C
October 12,2010
Page 1 of 6
EXECUTIVE SUMMARY
Recommendation to authorize a budget amendment to reallocate funds in the amount of
$4,000,000 from Reserves to the South Reverse Osmosis Raw Water Wellfield Pipeline
Project, project number 70030; and, to declare a valid public emergency with regard to the
continued provision of project-related services hy Malcolm Pirnie, Inc.
OBJECTIVE: The public purpose of this project is to provide a reliable raw water supply for
the reverse osmosis water treatment system at the South County Regional Water Treatment Plant
(SCRWTP) that serves customers throughout the water service area. This summary is to report
aetions taken to maintain the project's schedule to repair and re-commission the wellfield, to
obtain authorization for a budget amendment, and to declare a valid public emergency with
regard to the continued provision of project-related services by Malcolm Pirnie, Inc.
CONSIDERATIONS: On March 9, 2010, Agenda Item l6C4, the Board of County
Commissioners (Board), approved a budget amendment to provide initial emergeney repairs to
the failed pipeline. On June 8, 2010, Agenda Item lOC, the Board approved a budget
amendment for additional proj ect funding based on a more detailed assessment of the damage.
On June 22, 2010, Agenda Item l6K3, the Board authorized filing civil action, if necessary,
against Camp Dresser & McKee, Inc., Hazen & Sawyer, P.c., and John Reynolds & Sons, Inc.,
dlb/a Reynolds, Ine., to recover the cost of damages resulting from the pipeline failure.
The plan for repairing and re-commissioning the South Reverse Osmosis (SRO) Well field
presented to the Board on June 8, 2010, included
. Phase I: initial repair of failed pipe.
. Phase II: forensic evaluation of the cause of the pipeline failure.
· Phase III: risk identification and mitigation of the impact of potential future failures.
· Phase IV: complete the repairs, implement risk mitigation measures, and re-commission
the SRO Well field.
. Phase V: return to long-term, sustainable operation, and obtain full cost reimbursement.
Phases I and II are complete. Phase III activitics are undelWay, as well as the procurement of
long lead-time equipment and services required for Phase IV. Phase IV will be completed in two
stages. The first stage includes re-commissioning up to I I wells, including a portion of the
wellfield transmission mains. The second stage includes repair and re-commissioning of the
remaining wells and transmission main (a total of23 wells re-commissioned). Experiences from
the first stage construction and operational performance will be incorporated into the second
stage design and construction for completion of Phase IV.
Camp Dresser & McKee, Inc., agreed to provide the design and limited services during
construetion at no-cost to the Collier County Water-Sewer District (CCWSD). Construction will
be proeured through a competitive bid solicitation. All materials and equipment will be
-- purchased through the Utility Parts Contract (Contract #09-520 I) with Ferguson Enterprises, Inc.
A request for proposal was advertised to obtain construction engineering inspection services.
Agenda Item No. 10C
October 12, 2010
Page 2 of 6
A work order was issued to Malcolm Pirnie, Inc., to provide project oversight during the design,
construction, re-commissioning, and initial operation of the facilities. Malcolm Pirnie will
provide assistance throughout the duration of the project, as well as with the recovery of the cost
of damages to the SRO Wellfield. Malcolm Pirnie's services were procured under a fixed term
agreement, and work orders issued for the phases of work through Fiscal Year 2011.
Malcolm Pirnie was contracted for service immediately after and as a direct result of the pipe
failure. Staff reviewed the services being provided by Malcolm Pirnie and does not believe that
its contracted services are subject to competition under the Consultants' Competitive Negotiation
Act (or "CCNA"). Nonetheless, in an abundance of caution, staff recommends that the Board
declare a valid public emergency pursuant to Section 287.055(3) (a).I, and authorize staff to
continue the services of Malcolm Pirnie, in phases, through the duration of the project. The
continuity of Malcolm Pirnie's continued review, input, and coordination with outside counsel
and the Office of the County Attorney is vital as this matter moves from restoration towards cost
recovery litigation.
The current status of critical activities is as follows: (l) malfunctioning gate valves have been
removed and returned to the manufacturer for repair; (2) design is underway and will be
complete prior to obtaining services for the renewaIlreplacement of the pipeline components,
including the air release assemblies. Thc dclivery time for components of the air release valve
system and coated tittings is estimated at 8 to 12 weeks. During removal of the gate valves it
was determined that there was extensive corrosion on all ductile iron fittings. A corrosion expert
reviewed the extent and cause of the corrosion ,md recommended the replacement of all ductile
iron fittings and appurtenances. This issue has lcd to significant increases to the project costs. A
time line of project activities is attached.
During implementation of the plan to repair and IT-commission the SRO Wellfield, the expedited
procurement of long lead-time parts, equipment, and services continues to be necessary to
maintain the completion and re-commissioning schedule. The continuity of consulting and
expert services throughout the duration of the project and cost recovery proceedings is also
necessary. At this stage of the project, the full extent of the restoration work is still being
determined. Over the next four months extensive testing of the SRO W cllfield pipeline will be
performed. Based on the findings (including any unknown damages) additional funding will be
required to complete the repairs and re-commissioning necessary for Stage II of the project. All
expenditures will be pursued in Phase V for full cost reeovery.
FISCAL IMPACT: The current approved budget for the project is $2,950,000. To date,
$1,369,200 has been expended or encumbercd. The remaining available budget is $1,580,800.
A Budget Amendment is required to transfer $4,000,000, in additional funds, from Capital
Reserves to Project 70030, SRO Wellfield Pipeline Repair. The source of funding is Water User
Fees (412).
LEGAL CONSIDERA nONS: This item has been reviewed and approved by the County
Attorney's Office and is legally sufficient for Board action - SRT.
Agenda Item No. 10C
October 12, 2010
Page 3 of 6
GROWTH MANAGEMENT IMPACT: This project meets current Growth Management
Plan standards to ensure the adequacy and availability of viable public facilities.
RECOMMENDA TIONS: That the Board of County Commissioners, as Ex-officio Governing
Board of the Collier County Water-Sewer District approve a budget amendment to reallocate
funds in the amount of $4,000,000 from Reserves, to the South Reverse Osmosis Raw Water
Wellfield Pipeline Repair Project, project number 70030; declare a valid public emergency under
Section 287 .055(3)(a).I; and, authorize staff to modify, if necessary, the existing work order with
Malcolm Pirnie, Inc., for project-related services.
Prepared by: Alicia Abbott, Project Manager, Public Utilities Planning and Project
Management.
Agenda Item No. 10C
October 12,2010
Page 4 of 6
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
Item Number:
Item Summary:
10C
Meeting Date:
Recommendation to authorize a budget amendment to reallocate funds in the amount of
$4,000,000 from Reserves to the South Reverse Osmosis Raw Water Wellfield Pipeline
Project, project number 70030, and to declare a valid public emergency with regard to the
continued provision of project-related services by Malcolm Pirnie Inc. (Jim DeLany, Public
Utilities Administrator)
10/12/20109:00:00 AM
Prepared By
Alicia Abbott, E.!.
Project Manager
Date
Public Utilities Division
Public Utilities Engineering
9/23120108:39:41 AM
Approved By
Kelsey Ward
Manager. Contracts Administration
Date
Administrative Services
Division
Purchasing & General Services
9129120105:03 PM
Approved By
Paul Mattausch
Director. Water
Date
Public Utilities Division
Water
912912010 5: 1 0 PM
Approved By
Mark Sunyak
Project Manager, Principal
Date
Public Utilities Division
Public Utilities Engineering
9129/20105:25 PM
Approved By
Pamela Libby
Manager.Operations-Water/WW
Date
Public Utilities Division
Water
9130120108:34 AM
Approved By
Steve Carnell
Director. Purchasing/General Services
Date
Administrative Services
Division
Purchasing & Genera! Services
91301201010:06 AM
Approved By
Thomas Wides
Director ~ Operations Support ~ PUD
Date
Public Utilities Division
Utilities Finance Operations
9130/201010:11 AM
Approved By
Scott R. Teach
Deputy County Attorney
Date
County Attorney
County Attorney
9130/2010 11 :26 AM
Approved By
Agenda Item No. 10C
October 12, 2010
Page 5 of 6
Margie Hapke
Operations Analyst
Date
Public Utilities Division
Public Utilities Division
9/30/201012:17 PM
Approved By
James W. Delany
Public Utilities Division Administrator
Date
Public Utilities Division
Public Utilities Division
9/30/20101:16 PM
Approved By
OMS Coordinator
Date
County Manager's Office
Office of Management & Budget
9/30/2010 1 :51 PM
Approved By
Jeff Klatzkow
County Attorney
Date
10/1/20101:21 PM
Approved By
Susan Usher
Management/Budget Analyst, Senior
Date
Office of Management &
Budget
Office of Management & Budget
1014120104:06 PM
Approved By
Leo E. Ochs, Jr.
County Manager
Date
County Managers Office
County Managers Office
1014120104:38 PM
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