Discussion and possible action to: (a) approve a contract amendment in the amount of $2,954,774 with MGC Contractors, Inc. to construct the Sonoran Mountain Inline Booster Pump Station upgrades; and (b) authorize a budget amendment in the amount of $165,625 from the General Fund Contingency account to the Jomax Booster Station Upgrades Outside Sources account to appropriate a developer contribution related to this project.

The City’s FY2021-FY2030 Capital Improvement Program (CIP) includes Jomax Booster Station Upgrades and Water Facility Reconditioning projects. The Jomax Booster Station Upgrades project provides funding for design and construction of equipment and infrastructure upgrades to accommodate additional capacity from the Pyramid Peak Water Treatment Plant (PPWTP) expansion. The Water Facility Reconditioning project provides funding for water facilities requiring rehabilitation and improvements to meet system operational needs. The improvements at Sonoran Mountain Ranch Inline Booster Pump Station will be funded by both projects since the upgrades are required for the additional PPWTP capacity, the adjacent Aloravita development, and necessary improvements due to facility age and condition.

The Sonoran Mountain Ranch (SMR) Inline Booster Pump Station (BPS), located at the northeast corner of 75th Avenue and Jomax Road requires upgrades to accommodate additional capacity from the PPWTP expansion. The City of Peoria (City) owns 11 million gallons per day (MGD) of capacity in the PPWTP, and the expansion will increase the City’s ownership to 24 MGD in 2021. In order to fully utilize the additional capacity, the City will need to upgrade existing facilities downstream of PPWTP, including the SMR Inline BPS. Other City facilities, including the Jomax Inline Booster Station and the Peoria Turnout Structure at 67th Avenue and Jomax Road also require upgrades for the additional PPWTP capacity, and construction for these site improvements will be covered under a separate construction contract to be approved at a later date.

In addition to the improvements for the additional capacity from PPWTP, upgrades at this facility are required to serve the growing Aloravita master planned development adjacent to the site. Due to this rapid growth, construction for the SMR Inline BPS improvements has been expedited and will be completed ahead of the other facilities to accommodate the new development demand. The Aloravita developer made a $165,625 contribution for the improvements required at the SMR Inline BPS for Phase 2 of the development. When Phases 3 and 4 of the development move forward, the developer will be required to contribute additional funding for the pump station improvements.

Last, the SMR Inline BPS is over 15-years old and requires maintenance and rehabilitation efforts to continue to provide reliable, quality water to the surrounding area. Construction of this project will bring the site up to current city standards, while providing increased operational efficiency and water system redundancy in the surrounding area.

The upgrades and improvements to be completed at the SMR Inline BPS include:

• Replacement of two existing vertical turbine booster pumps

• Addition of a third vertical turbine booster pump

• New aboveground and below grade piping

• New disinfection system

• New surge tank & controls

• New emergency diesel generator

• Electric facilities

• Instrumentation & controls

The City is using a Job Order Contract with MGC Contractors, Inc. (MGC) to complete the improvements.  City staff previously entered into a pre-construction services contract with MGC to provide constructability reviews, conduct field investigations, and cost estimating services for the project. The original contract was administratively approved in March 2020. The project was setup as a phased award, and this amendment is for the construction phase. MGC has provided a guaranteed maximum price of $2,954,774 to complete the site improvements.

Council approved the design contract with Brown and Caldwell for engineering design services for the project on March 3, 2020.

A: Approve a contract amendment with MGC Contractors, Inc. for $2,954,774 and a budget transfer in the amount of $165,625 from the General Fund Contingency account (1000-0300-570000) to the Jomax Booster Station Upgrades Outside Sources account (4810-4810-543002-CIPWR-UT00285).

B: Deny approval of the contract amendment with MGC Contractors, Inc. for $2,954,774 and the budget transfer. This will result in cancellation of the project.

Staff recommends approval of the contract amendment with MGC Contractors, Inc. for $2,954,774 and a budget transfer in the amount of $165,625 from the General Fund Contingency account (1000-0300-570000) to the Jomax Booster Station Upgrades Outside Sources account (4810-4810-543002-CIPWR-UT00285).

Funding for this contract amendment is available in the Jomax Booster Station Upgrades and Water Facility Reconditioning projects. Payments will be made from the Water System Accounts 2050-2140-CIPWR-543002-UT00206, 2166-2226-543002-CIPWR-UT00285, and 4810-4810-543002-CIPWR-UT00285.