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HomeMy WebLinkAbout10 Change order allowance Donner Lake Substatin Agenda Item # 10 Ili CONSENT To: Board of Directors From: Neil Kaufman Date: September 10, 2014 Subject: Consideration of an Adjustment of the Change Order Allowance for the Donner Lake Substation Civil Improvements Construction Contract 1. WHY THIS MATTER IS BEFORE THE BOARD Board approval is required for change orders to a construction contract. 2. HISTORY The District is rebuilding the Donner Lake Substation to increase station capacity, add another feeder, improve coordination with the adjacent transmission line, improve protection of substation equipment, and provide compliance with current code requirements. On July 16, 2014, the Board awarded the construction contract for the Donner Lake Substation Civil Improvements to Longo Incorporated. The bid price from Longo was $226,986. At that time, the Board also established a change order allowance of $23,014. 3. NEW INFORMATION Longo Incorporated began work at the site on August 8. The project is on schedule with construction of the drainage channel and installation of the vaults and conduits essentially complete. Work is currently progressing on the retaining walls and driveway realignment. Three change order items have been identified so far. These include: 1) The soils at the substation site consist of about four feet of natural soil above the granite bedrock. The site has a significant slope that runs downhill from north to south. There is a noticeable quantity of water that moves underground along the interface between the natural soils and the bedrock. This flow of water is being intercepted by one of the conduit trenches. In order to address this situation, it was decided to install a cut-off wall and associated drainage piping. 2) The original bid included the removal of three large trees. There are three additional trees along the driveway that Electric Department would like to remove. It is planned to have the trees topped by Wright Tree Service, which currently has the Electric Department's tree trimming contract. Longo will then dig out the stumps and remove them for disposal. 3) The original bid included about $20,000 of paving. This is based on a unit price of $270 per cubic yard. This covered about half of the driveway associated with the substation site. Originally, the Electric Department had planned to perform the additional paving work in 2015. However, the Electric Department recently determined that it would be preferable to perform all of the paving work at one time. This additional paving will essentially double the amount of work to be performed. The work of Item 1 has already been performed. The work of Items 2 and 3 has not yet been performed, but it is expected that total cost of these three items will exceed the established change order allowance of$23,014. 4. FISCAL IMPACT It is also recommended that the change order allowance for the project be increased by $23,000, its current amount of$23,014 to $46,014. 5. RECOMMENDATION a) Adjust the change order allowance for the Donner Lake Substation Civil Improvements from $23,014 to $46,014. b) Authorize the transfer of up to $273,000 from Electric Department Facilities Fees to the Electric Department General Fund. Michael D. Holley General Manager/Water Utility Manager