Agenda - 06-20-2017 - 8-g - Efland Sewer to Mebane, Phase 2 Extension – Construction Contract Authorization

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2 This is one of the last phases of the project and it has been under design and easement acquisition for a few years. Funding occurred over a four-year period beginning in 2013 for the overall comprehensive economic infrastructure plan for the Efland/Buckhorn/Mebane EDD area. McGill Associates is the engineering design and bid award consultant and has provided the engineer's recommendation for the responsible and responsive bidder/contractor (See Attachment 5). The Planning & Inspections Department had requested, through the upcoming FY2017-18 Capital Investment Plan (CIP), additional funding for this proposed sewer project, based on McGill's revised/updated plans and cost estimate that now supports a larger service area within the economic development zone. However, the low bid came in on June 1' 2017 at approximately $1 million less than the new estimate, which had reflected the increase cost of material and labor in the improved construction economy. The project construction costs, as bid and including two (2) add alternates, are $3,586,121. Add Alternates 1 & 2 are within the future land use designation of commercial-industrial; however, there are some homes, homes with businesses, commercial and undeveloped parcels in the corridor. Alternate 1 (Line B) could serve eight additional parcels fronting on Center Street and south of Turner Street, seven of which include existing residences. Alternate 2 (Line C) could serve four additional parcels fronting on the west side of Mt. Willing Road and south of Turner Street, three of which contain existing residences. There are additional opportunities for service further north on each of these streets, through future extension of the main lines, pursuant to other actions noted below by the property owners. As the entire Efland System will be transferred to Mebane following completion of this project, connections to the sewer will be in accordance with Mebane's policies at that time, as well as County zoning and related policies. Currently, Mebane charges both tap fees, based on sewer service size (outside city limits applies), and connection fees, based on customer type plus water meter size. Private on-site sewer lateral construction costs would be the responsibility of the property owner. This project only provides the main public system. Sewer laterals to individual parcels were only included strategically, where easements were needed. This work is the is one of the final phases of the master planned sewer infrastructure in the Efland to Buckhorn area, which will culminate in Mebane taking over ownership, treatment and maintenance responsibilities of the sewer system. Mebane currently maintains the Efland Sewer System under an interlocal agreement with Orange County, and the Town of Hillsborough currently treats the wastewater. When complete, this project will switch the Efland sewer flow to Mebane and Mebane will then be entirely responsible for maintenance and treatment. This work is consistent with the planning efforts for the Buckhorn Economic Development District, Efland Mebane Small Area Plan, Article 46 sales tax Economic Development infrastructure initiative, and the area transportation access management plan, as well as past and current Orange County CIPs. It is also consistent with the County's Utilities Infrastructure Interlocal Agreement with the City of Mebane adopted in 2003 and revised in 2011. The advertisement for bids along with the related construction documents were made available to bidders on April 28, 2017, and three subsequent addenda were issued. Orange County's Living Wage Contractor Policy was included. Bids were opened June 1, 2017.