Title
Resolution to Appropriate Funds and Approve Contract Amendment #9 with FCR LLC for MRF Single Stream Recycling Upgrades and Processing Changes ($250,000.00) (8 Votes Required)
Memorandum
The attached resolution authorizes and approves contract amendment #9 with FCR LLC, d/b/a RRS, Inc. (FCR), the operator of the City owned Material Recovery Facility (MRF) and Transfer Station (TS). On November 5, 2009 City Council approved $3,250,000.00 for the MRF Single Stream Upgrades.
The $250,000.00 being requested today is to cover costs after having received all the final designs and competitive bids for the remaining work to complete the project. The original contract amount included some estimates, and did not include contingencies for the final design cost adjustments. The major items covered by the additional $250,000.00 are:
· Bunker push walls: Additional push walls needed beyond the 200 feet in the original specifications (Cost: $15,320.00). There was a gap in the tip floor that separates the tip floor from the maintenance area. The additional push walls were needed to protect the maintenance area from the tip floor. The original proposal included 200 feet of walls and when the final design was done there were more than 200 feet needed.
· Remote control - bin opening/closing: This is a safety issue; in previous design, operator would have to stand on belt to operate switch (Cost: $25,650.00)
· Sort area curtain system: This is to protect the sorters during inclement weather ($4,870 higher than original estimate). This provides a wind barrier for the sorters on the platform. There are no environmental enclosures and this is in lieu of enclosures. It is estimated that the option to provide full enclosures would have cost over $250,000.00.
· Move tip door & Pit work: Original estimate: $45,392.00; final bid through competitive bid process: $119,194.00. There was an additional scope for the concrete work due to the final design of the pits being more complicated and needing to add the replacement of the current commingled tip floor.
· Electrical work: Original estimate: $75,000.00; final bid through competitive bid process: $117,800.00. There was additional power into the building required due to a change in the scope of the final design.
· Compactor: Original estimate: $30,000.00; final bid through competitive bid process: $78,000.00. The additional cost here was mostly due to the more complicated pit configuration.
· Contingency: A $22,603.00 contingency is requested for small adjustments that may be needed to complete the project. This is .7 percent of the total project cost.
The $250,000.00 requested in this amendment represents 7.7% of the initial project request, which is within the amount typically requested for a contingency. It is expected that this will be the final amendment requested for the single stream MRF upgrade.
It is calculated that these changes will lengthen the previous 6.7 year payback that was calculated for this project by .4 years, for a total of 7.1 years.
Staff
Prepared by: Tom McMurtrie, Systems Planning Unit
Reviewed by: Sue F. McCormick, Public Services Administrator
Approved by: Roger W. Fraser, City Administrator
Body
Whereas, Implementation of upgrades to the Material Recovery Facility (MRF) to accept single stream recycling provides a number of benefits to the City, including a cleaner community, greater operating efficiencies, overall increases in recycling and rewards to City's residents for recycling;
Whereas, City Council previously approved Contract Amendment #8 with FCR LLC, d/b/a RRS, Inc. (FCR), for single stream MRF upgrades;
Whereas, the $250,000.00 represents 7.7 percent of the original $3,250,000.00 project budget, which is within the range of a typical project contingency;
Whereas, the project will lengthen the original calculated 6.7 year payback by .4 years, for a total of 7.1 years;
Whereas, Funds for these upgrades are available in the Solid Waste Fund Balance; and
Whereas, FCR received HR approval on June 3, 2010;
RESOLVED, That $250,000.00 be appropriated from the Solid Waste Fund Balance to the FY2011 Solid Waste Capital Budget for the purpose of Single Stream Recycling upgrades and be available for the life of the project;
RESOLVED, That Council approve contract amendment #9 with FCR in the amount of $250,000.00 to complete the upgrade of the MRF for single stream recycling, which includes $22,603.00 for contingencies approved by the City Administrator;
RESOLVED, That the Mayor and City Clerk be authorized and directed to execute each contract after approval as to form by the City Attorney and approval as to substance by the City Administrator; and
RESOLVED, That the City Administrator be authorized to take the necessary administrative actions to implement this resolution.