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File Number: 15-337 <br />progress. Responsibility for the delay hasn’t yet been determined but will likely not rest solely <br />with one party, as we anticipate that both the City and Contractor will share delay costs in <br />some proportion. Attributable proportions for each party will not be determined until after <br />construction is complete. <br /> <br />Analysis <br />The original budget for the construction phase (including construction, construction <br />management, utility costs, permits, inspection, and special inspection) was $50,000,000 of <br />which 10%, or $5,000,000, was designated as a contingency fund for unexpected costs. <br />In November 2013, 1.7% or $848,957 was added for construction by a budget adjustment, <br />transferring funds from two CIP expenditure accounts as follows: <br />·$545,735.05 from an account for WPCP improvements that was created to fund these <br />four items: <br />1. WPCP Plant Expansion (property acquisition) <br />2. WPCP Improvement Master Planning <br />3. Motor Control Center Replacements <br />4. Electrical Service Improvements and Peak Wet Weather Flow Improvements <br />Items 1and 2 have been completed. Items 3 and 4 will be completed under the current <br />construction contract. <br />·$303,222.52 from an account for WPCP boiler replacement that was created to <br />refurbish the boiler system for digesters 1 and 2. The boilers have been replaced and <br />digesters one and two will be rehabilitated under the current construction contract. <br />In January, 2014, the budget was increased by 5.3% or $2,650,000 to cover additional <br />disposal costs for excavated soil with unexpectedly high levels of contaminants that could not <br />be disposed of as originally planned. <br />The delay in completion has had a significant impact on project costs for the City and the <br />Contractor, S.J. Amoroso. Until the responsibility for these costs is negotiated we will cover <br />our staff costs as well as those of our consultants while S.J. Amoroso will cover their added <br />costs and those of their sub-contractors. The approval of an additional appropriation of <br />$451,000 will cover our project administration costs through project completion. <br />The Contractor is working on an analysis of the cause and responsibility for the project delay. <br />We will review their analysis for accuracy upon receipt. Only when the analysis is acceptable <br />to both parties will the apportionment of delay costs be known. Until these delay costs are <br />known, there is potential that we will be responsible for costs that may not be covered with the <br />current budget. It is also possible that the Contractor and City will fail to agree upon the delay <br />analysis and delay cost apportionment. <br />Current Agency Policies <br />Council Goal D: Maintain and enhance the City’s infrastructure . <br />Page 2 City of San Leandro Printed on 7/14/2015