Discussion and possible action to approve a contract design amendment and construction agreement in the amount of $12,997,577 with Felix Construction Company to provide design and construction services for the Zone 6E Reservoir and Booster Pump Station project, in accordance with budget authority previously approved by Council.

With the ongoing drought in the southwest region of the United States and resulting Colorado River supply challenges, the City is anticipating significant reductions to the Central Arizona Project (CAP) water supplies in the near future.  Peoria’s water system, particularly north of Bell Road, is heavily dependent on receiving water from the CAP and any reductions could have significant impact on the City’s water system.  Additionally, Peoria recognizes the significant residual business opportunities that come with the completion of the Taiwanese Semiconductor Manufacturing Company (TSMC) Plant in north Phoenix.  This facility has led to a lot of interest in the Lake Pleasant Parkway corridor from the SR Loop 303 to SR 74 (Carefree Highway). 

The City’s FY2023-FY2032 Capital Improvement Program (CIP) includes two projects which provide funding to construct new infrastructure for a redundant water supply in north Peoria to ensure we can meet demands of potential growth, regardless of what happens with the CAP system.  The two projects, CAP/LPP Intersection Wellfield (UT00523) and Zone 6E Reservoir & Booster Pump Station (UT00526) combined, will construct five new groundwater wells, a regional storage reservoir, a booster pump station, and all associated water treatment and pipeline systems to deliver water to the Peoria system.  These two projects are being designed and constructed concurrently in order to meet the aggressive project schedule based on the recent information regarding the Colorado River challenges.

This contract amendment is for the Zone 6E Reservoir & Booster Pump Station project which will serve as a regional storage and booster pump facility for a large geographical area near Lake Pleasant Parkway between SR 303L and SR 74.  The facility project scope will include design and construction of the following improvements:

•  Water storage reservoir
•  Booster pump stations serving Pressure Zones 5E and future Zone 6E infrastructure
•  Chlorine disinfection
•  Possible arsenic treatment
•  Onsite pipeline
•  Electrical, instrumentation and control equipment

In September 2022, City staff went through a competitive selection process to hire an experienced and qualified Design-Build Manager to construct the site and water infrastructure improvements. Staff selected Felix Construction Company (Felix) and entered into a predesign/preconstruction services (Phase 1) contract with Felix. Felix provided data collection; preliminary sizing analysis; coordination with the Wellfield team, vendors, and outside agencies; developed preliminary site layouts; and conducted a comparison analysis of various site components, in preparation for detailed design and construction.

The project was setup as a phased award, and this amendment is for detailed design, reservoir construction, and procurement of long lead and critical materials.  Such materials include, but are not limited to, vertical turbine pumps, electrical switchgear, emergency standby generator, electrical control & pump panels, and other miscellaneous electrical equipment.  Early purchase of these items will reduce risk of delays from potential procurement issues and allow the project to meet the aggressive project schedule.  Felix has provided a Guaranteed Maximum Price (GMP) of $12,997,577.

One more construction contract amendment with Felix for the balance of site construction is anticipated through project completion and is included in the contract summary below.  That future amendment will be brought back to Council for approval in summer 2024.

There are no previous Council actions on this project.  The City Attorney’s Office, Materials Management Division, and the Engineering Department administratively approved all previous contractual items.

Staff recommends approval of GMP1A and 1B with Felix Construction Company in the amount of $12,997,577, in accordance with budget authority previously approved by Council.

Funding for this contract amendment spans across two fiscal years, FY2023 and FY2024, in the Zone 6E Reservoir & Booster Pump Station (UT00526) Capital Improvement Program budget. As such, the contract effective date will be July 1, 2023, when FY2024 funding becomes available. Payments will be made from the project’s respective water fund accounts.