MEMORANDUM. Isaac Brownman, Public Works Director and Sue Smith, Finance Director

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1 MEMORANDUM TO: FROM: Tom Harmer, Town Manager Isaac Brownman, Public Works Director and Sue Smith, Finance Director DATE: February 26, 2018 SUBJECT: Ordinance , Amending the FY Budget to Provide for Streets, Water/Wastewater, and Drainage Improvement Project for Emerald Harbor Neighborhood Recommended Action Pending first reading, public hearing, and discussion, forward Ordinance to the April 9, 2018 Regular Meeting for second reading and public hearing. Background The Emerald Harbor neighborhood ( Emerald Harbor ) is located at 5820 Gulf of Mexico Drive in Longboat Key, FL. It is situated approximately mid-key featuring eighty (80) singlefamily residential units and approximately 1.3 miles of roadway. Emerald Harbor has experienced multiple issues regarding the infrastructure, including road depression, subsidence of road and curbing throughout the neighborhood, and degradation of the potable water distribution system and the sewer collections system for over a decade. The Town contracted with Kimley Horn and Associates, Inc. (KHA), to perform evaluation and engineering services to design and upgrade the infrastructure. The Town has also contracted with Magnum Builders as the Construction Manager at Risk (CMAR) to deliver pre-construction services and potentially deliver the construction of the project through a Guaranteed Maximum Price ( GMP ) Agreement. The original purpose of this project was to rehabilitate the existing seven (7) lift stations and associated force mains within the development limits and replace the water services throughout the neighborhood to the metered service at each home. The roadway improvements consisted of milling and resurfacing the roads and providing base repair based on a graphic prepared from a site visit. During data collection, Public Works and KHA also discussed the structural integrity of the water main and also noticed in the field that several of the storm water pipes would be exposed to the roadway construction having a negative impact to these pipes. The Town and KHA concluded that it would be best to replace the entire water main as well as the individual service connections and reset some of the storm water inlets and associated piping to avoid conflicts with the roadway construction. In addition, electrical upgrades to two (2) lift stations were also added to the project. Therefore, the design moved forward with new water and wastewater infrastructure as well as storm water, roadway, and electrical improvements added to the scope of work. Public Works received 60% and 90% estimates from Magnum Builders for the above referenced work and the construction cost with contingency is currently estimated at

2 $2,910,808. During the time when it was determined that the project estimates exceeded the available budget, Public Works met with both KHA and Magnum to explore ways to reduce scope. One of the goals is to complete the utility work and resurfacing all at one time so the road and residents access is not disturbed again. While some savings were identified as part of value engineering, the project design and scope remains over the current budget. Due to the nature and need of the infrastructure improvements, Public Works recommends proceeding with the project and the current scope to produce long-lasting infrastructure and minimize the number of disruptions to the neighborhood over time. In addition, to the construction cost, KHA will also need to perform engineering construction phase services during the duration of project construction. The scope and fee for the KHA work is $129,250. The available unencumbered budget amount for the project is $1,299,157. Project Costs Magnum Total 90% Design Estimate $2,910,808 (includes mill and resurface) KHA Construction Services $129,250 Total Remaining Project Cost $3,040,058 Less Mill and Resurface $433,741 (to be paid from Streets Fund) Total Amount Related to Utilities $2,606,317 Available Budget Amount: $1,299,157 Additional Funding Requested $1,307,160 A proposed budget amendment using both the Utility Fund Contingency Budget and Utility Fund unappropriated fund balance reserves is as follows: Funding Sources USE OF FUND BALANCE $1,107, CONTINGENCY $ 200,000 Funding Uses: EMERALD HARBOR UTILITY UPGRADE $1,307,160 The estimated opening unrestricted net position in the Water and Sewer Utility Fund for FY is approximately $14.1 million (pending audit results of FY2017). If the budget amendment is approved, the total use of fund balance including FY2018 operating and capital budgets is $4.0 million, reducing the unrestricted net position to $10.1 million. The Contingency budget will be reduced to zero for the remainder of FY2018. Upon approval of the budget amendment, Project Notice-to-Proceed (NTP) and mobilization is intended to begin April/May 2018 after season and the duration is anticipated at a little over one year.

3 Opportunities will be pursued during construction to install conduit to serve the neighborhood underground project to further minimize neighborhood disruption. These would be paid for by the neighborhood undergrounding project. Ordinance was placed on the February 21, 2018, Regular Workshop Meeting for Commission consideration and forwarded to the March 5, 2018 Regular Meeting for first reading and public hearing.

4 ORDINANCE AN ORDINANCE AMENDING THE WATER AND SEWER CAPITAL FUND BUDGET OF THE, FLORIDA, FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2017, AND ENDING SEPTEMBER 30, 2018; TRANSFERRING FUNDS FROM UNAPPROPRIATED UTILITY CONTINGENCY BUDGET AND UNAPPROPRIATED FUND BALANCE TO COVER THE EMERALD HARBOR UTILITY UPGRADE PROJECT; PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEAL OF ALL ORDINANCES IN CONFLICT; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the Town has initiated a design and construction project to rehabilitate seven lift stations and associated force mains in the Emerald Harbor neighborhood ( Emerald Harbor ) located at 5820 Gulf of Mexico Drive; and WHEREAS, it was determined that it is the best interest of the Town to also address the structural integrity of the water main and related storm water pipes at the same time; and WHEREAS, the revision to project estimates based on this new scope with contingency will exceed the available budget by $1,307,160; and WHEREAS, the Town desires to amend the Water and Sewer Capital Fund Budget for Fiscal Year to pay for the revised scope of the project; and WHEREAS, the Finance Director certifies that sufficient unappropriated balances are available in the Fund to make the required appropriations; and WHEREAS, Article V, Section 9 of the Town Charter provides for such a supplemental appropriation. NOW, THEREFORE, BE IT ORDAINED BY THE, FLORIDA, THAT: SECTION 1. ratified and confirmed. The above Whereas clauses are true and correct and are hereby SECTION 2. The Water and Sewer Capital Project Fund budget of the Town of Longboat Key for the fiscal year beginning October 1, 2017, and ending September 30, 2018, as adopted pursuant to Ordinance is hereby amended to increase the available funds for the Emerald Harbor Utility Upgrade Project in the amount of One Million Three Hundred Seven Thousand One Hundred Sixty Dollars and 00/100 ($1,307,160.00) from unappropriated fund balance and other funding sources as follows: Funding Sources USE OF FUND BALANCE $1,107, CONTINGENCY $ 200,000 Page 1 of 2 Ordinance

5 Funding Uses: EMERALD HARBOR UTILITY UPGRADE $1,307,160 SECTION 3. If any section, subsection, sentence, clause, or provision of this Ordinance is held invalid, the remainder of the Ordinance shall not be affected. SECTION 4. All ordinances or parts of ordinances in conflict herewith shall be and the same are hereby repealed. SECTION 5. This Ordinance shall take effect upon second reading and public hearing in accordance with Law and the Charter of the Town of Longboat Key. Passed on the first reading and public hearing the day of, Adopted on the second reading and public hearing the day of, ATTEST Terry A. Gans, Mayor Trish Shinkle, Town Clerk Page 2 of 2 Ordinance

6 EMERALD HARBOR BUDGET AMENDMENT Town Commission Regular Meeting March 5, 2018

7 EMERALD HARBOR CIP PROJECT Background: Project to address roadway subsidence and certain utility infrastructure Original Project Scope involved seven (7) lift stations, related force mains, water services, and roadway resurfacing. Project Team: Engineer of Record Kimley-Horn & Associates, Inc. Construction Manager at Risk Magnum Builders, Inc.

8 EMERALD HARBOR PROJECT SCOPE Background: As project developed into design, structural integrity of water main, curb elevations, storm sewer, and known areas of drainage concern were discussed. To avoid future disruption to the area and ensure longevity of the utility/storm infrastructure, scope elements were added.

9 Replacement of water, pressurized sewer, and storm EMERALD HARBOR AREA Resurfacing roadway and repairing base and curb

10 EMERALD HARBOR OPINIONS OF COST Current Status: Original Project Budget contemplated use of CIP Utility dollars and Resurfacing dollars to fund the total project cost. Engineer-of-Record and Construction Manager produced cost estimates. Scope and fees exceeded available project budget Engineer-of-Record, Construction Manager, and Town Public Works worked diligently to review opportunities to value engineer. The current 90% Construction Document (CD) estimate reflects current pricing for all the scope elements involved.

11 EMERALD HARBOR BUDGET AMENDMENT Project Costs: Magnum Construction Estimate: KHA Construction Services: $129,250 Total Remaining Project Cost $3,040,058 $2,910,808 (mill and resurface) Less Mill and Resurface $433,741 (funded from Streets) Total Amount Related to Utilities $2,606,317 Available Budget Amount: $1,299,157 Additional Funding Requested $1,307,160

12 EMERALD HARBOR BUDGET AMENDMENT Proposed Transfer: Portions of Utility Fund Balance and Utility Contingency Funding Sources USE OF FUND BALANCE $1,107, CONTINGENCY $ 200,000 Funding Uses: EMERALD HARBOR $1,307,160

13 STAFF RECOMMENDATION Pending first reading and public hearing, forward Ordinance to the April 9, 2018, Regular Meeting for second reading and public hearing Next Steps: If budget amendment is approved, finalize design plans and develop Guaranteed Maximum Price (GMP). Prepare GMP Agreement for Town Manager signature. Proceed with construction April/May Anticipated construction duration a little over 1-year.

14 QUESTIONS?

15 End of Agenda Item