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Home My WebLink About7-16-24 BOS Meeting CIP Presentation JP amiss Co vNr CCUA 5-Year Capital Improvement Program CIP It)/ A UTV4 rem! • 4 1+ --- :`. ..."41(1:111111:111 . 1 .22,1ii - ' s. ,*>>mo .. • t— s July 16, 2024 s ,.S(,T}om� ' f • .� .�•4 ` v Nci..s\h„,,,, '1...,'A... .... ., ,- • • • • • - • - • ....-in - r, 1 - rAti ,. i -' • At-' .e' . -. ,;. . , , .-''.. ' '• :_ir ';.<-e . i,,a,..:;;;10. Ilk.:S Nig Peters Creek WRF Potable Reuse Pilot Plant couN, CCUA DRAFT 5-YEAR CIP or MaJUpcoming Projects rafil � � Ty AUTt'00 1. Construction of Meadowbrook WTP Upgrades ~ r r f -5 4 w( ✓ Lakeside 2. Construction of Spencers Crossings WTP Upgrades --• - 5 4 0 Fkming0 C 4 Island 3 . North Middelburg WM Extension ( Resiliency Project) . .s. \,., � �`m. • 4. Lift Stations 11, 41, 69, & 51 Rehabilitation _ :.. Green cove • Springs Jig 5 . Utility Relocation Projects CCUADRAFT5YEARCIP �%COv�Ty Heavy Construction Market Conditions roti•,, ., ,,, -11"Y A U-TVON • Construction Costs have Escalated Over the Past Two Years • CIP Construction costs have increased 1.6 to 2 times • Specialty Construction costs increased 2- 4 times • Reasons for the increases • Limited Contractors/Subs vs. Number of Projects. Long backlogs in Florida market. Supplier inflation . • Contractors are more selective in bidding due to their current workload • Some subs extremely constrained ( Electrical/H VAC) �� C O tiNT CCUA DRAFT 5-YEAR CIP y Recent CCUA Bids vs Estimates :_}, `�TYAUTI�� Lowest Bid / Opinion of Propobable Construction Cost (OPCC) • CCUA Bid Prices 2.0 vs OPCC varied • Sw.mmrng Penn WM Extn, . Fkl'u`""WTP `.S2a3 Tank Between 150 to Comdned (Rejected Bd) 1.5 • 200% • Peter's Creek WRF &Prpel.nes Mod-Clay BTU Evanston lJ • 0 d 1a p 1.0 ` • - 1 _ - J IX - • • Rrdeutht Gov Park Rennes To Gov.rnor's Perk WTP tD • WRF LS&RWPS Henley M.edow pekes • WTP Espansron �se.t_ga Sprr+gs • WTP&WRF Fl.mng BTU 0.5 lS 3 (No Bd) 0.0 • Jun-20 Jan-21 Jul-21 Feb-22 Aug-22 Mar-23 Oct-23 Apr-24 Bid Oppening Date • Project Bid • Rejected or No Bid 9cj CO(NCCUA DRAFT 5-YEAR CIP Recent CCUA Bids vs Estimates • Construction materials & labor costs f°� °°= AG C • Higher Year-over-year change in producer price index (PPI) for nonresidential inputs ( , A 1 THE Co .• ON and average hourly earnings (AHE) for production employees in construction, ASSOCIATION Construction Feb. 2020 - Apr. 2024 25% Material Costs 2020- 2022 20% PPI for nonresidential inputs Yielded Increased 15% AHE for Bid Prices production %change since: 10% employees in Apr. Feb. construction 2023 2020 5% AHE' 4.5% 21% • Material prices PPI" 1.5% 40% appear to have 0% Feb-20 r 1 020 Dec-2020 May-2021 Oct-2021 Mar-2022 Aug-2022 Jan-2023 Jun-20 Nov-2023 Apr-2024 level off -5% -Seasonally adjusted(SA) ••Not seasonally adjusted(BLS does not post SA data for this series) 6 I Source:Bureau of labor Statistics,PPI,www a3 EOM/Do ;AHE,httos://www.bls.eoy/ces/ C2024 The Anocuued General C«wacton ornn+erKa.Inc CCUA DRAFT 5-YEAR CIP & i- How We Are ManagingThese . . Market Conditions /e, tY ,Au-no ls • Using a four-phased explicit approach, using comprehensive studies to define large projects and refining costs at each phase. • Request - CIP project Identified through a study, but project costs are not well defined. • Concept — Identified project evaluated and preliminary engineering performed to refine project details and costs • Design — The final design provides the needed details to refine project costs before bidding. • Construction — Awarded design to the contractor for construction � �� C O vtiT , CCUA DRAFT 5-YEAR CIP i- How We Are ManagingThese . . Market Conditions /e, tY4u-ivo • Continue prepurchase of long lead items for any time-critical work • Packaging multiple projects together to get a larger project • Consulting with Neighboring Utilities to avoid bid saturation. • Communicating with the bidding community well ahead of time. • Increasing in-house pipeline design • Explore working directly with equipment manufacturers to conduct equipment upgrades and replacements (bypass contractors) tkv CCUA Draft 5-Year �-� , , Capital Improvement Program (CIP) ',,i rot �� STY AU1Ho Thank you . July 16, 2024 QUESTIONS ?