STAFF REPORT

Operations Committee, January 3, 2008

Contract amendment and appropriation of funds to the Morrisville Merger Project (WT1116) (PWUT08-14)
Consideration of funding for Amendment No. 7 for $99,979 with CH2M Hill for services related to utility line surveying and easement acquisition for the transfer of private water and sewer line easements to the Town of Cary
Speaker:  Mr. Mike Bajorek

From:  Michael J. Bajorek, Interim Director, Public Works and Utilities
Prepared by:  John D. Holloway, PWUT Operations Analysis Supervisor
Approved by:  William B. Coleman, Jr., Town Manager
Approved by:  Benjamin T. Shivar, Assistant Town Manager

Staff is requesting that Council approve funding for the proposed Amendment No. 7 to the professional services agreement with CH2M Hill. This amendment is needed to provide continuing assistance to staff in transferring private water and sewer and their respective utility easements to the Town of Cary resulting from the Morrisville utility merger project. The Town of Cary requires that private water and sewer lines be accessible to utility staff through obtaining utility asset transfers and property easements so the Town is able to perform maintenance of the asset.  

More than 200 properties were initially identified as potentially requiring survey and recorded mapping to support property transfers and easements to the Town of Cary.  Amendment No. 6 presented in an FY2007 staff report – PWUT07-06 – provided for these services for 75 property owners.  An additional 8 property owners contacted the Town at that time, and this amendment provides for the required transfer services.  In addition, the scope of work in this amendment provides for the identification of remaining property owners who have not responded.  As these property owners are contacted, appropriate maps and documentation will be prepared.  Staff will monitor the work to be completed for these properties as they arise.

A copy of the amendment to CH2M Hill’s agreement is attached.  The additional cost of this amendment, as with the cost of the current agreement, and its previous amendments, will be recovered through the water and sewer rates charged to the Morrisville utility customers over the next 15 years.

Fiscal Impact: 

Operating Impact:

There are no operating impacts associated with this staff report.

Funding Impact:

A total of $671,661 has been appropriated to the WT1116 - Morrisville Merger - Utility Merger Study project to date.  Expenditures/encumbrances to date total $671,660 leaving no available balance within the project.  Staff estimates that an additional $99,979 is necessary to complete the scope of work in Amendment No. 7.  Staff requests that an additional $99,979 in utility capital reserve unrestricted fund balance be appropriated to WT1116 bringing the CH2M Hill contract total to $725,240, and the total project budget to $771,640.

Staff Recommendation:  Staff requests that Council approve the appropriation of $99,979 from utility capital reserve unrestricted fund balance to the WT1116 - Morrisville Merger - Utility Merger Study project.  These funds should be budgeted within the contracted services account within WT1116 for expenditure.  If approved, this appropriation will bring the total project budget for WT1116 to $771,640.