HomeMy WebLinkAbout15 Pipeline Replacement - Bid AwardAGENDA ITEM# 15
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MEETING DATE:March 25, 2021
TO:Board of Directors
FROM:Neil Kaufman, Water Systems Engineer
SUBJECT:Award of the District Pipeline Replacement –2021 Construction
Contract
APPROVED BY______________________________
Brian C. Wright, Interim General Manager
RECOMMENDATION:
Award the District Pipeline Replacement –2021 project to Rapid Construction and
authorize the Interim General Manager to execute a construction contract in the amount of
$1,123,321.10,plus a ten percent change order allowance of $112,678.90,for a total
amount not to exceed $1,236,000.
BACKGROUND:
The Water Department has an ongoing need to replace existing water pipelines that fall
into two basic categories.
1)Pipes that are in poor condition and require repeated repairs
2)Pipes that are old, undersized (typically 4-inch diameter and smaller) and have
exceeded their useful life
The District Pipeline Replacement –2021 project covers about 3,750 feet of pipeline at
three locations in the Tahoe Donner subdivision:
Northwoods Boulevard, south of the driving range
Muhlebach Way & Falcon Point Place
Snowpeak Way & Matterhorn Place
These pipeline segments are shown on the attached figure.
The bid opening was held at 2:00 PM on March 25,2021.Seven bids were received:
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TOTAL AMOUNT OF BID
Bidder Location Amount Responsive
Rapid Construction Carson City, NV $1,123,321.10 Yes
Aspen Developers Reno, NV $1,258,519.00 Yes
Vinciguerra Construction Sutter Creek, CA $1,320,832.00 Yes
Burdick Excavating Carson City, NV $1,326,908.00 Yes
Longo Tahoe City, CA $1,494,495.50 Yes
C&D Contractors Nevada City, CA $1,499,803.00 Yes
McGuire & Hester Alameda, CA $1,533,965.00 Yes
In addition to the construction contract, the District will retain outside consultants to perform
construction inspection,environmental services and geotechnical testing for this project.
The costs for this work are:
Construction Inspection –CME –Estimated at $50,000
Environmental Services –Inland Ecosystems –Estimated at $4,000
Geotechnical Testing –NV5 –Estimated at $30,000
OBJECTIVES:
In addition to infrastructure life-cycle replacement, this project also supports the District’s
overall goal to reduce unaccounted for water loss and establish overall improvements in
system efficiency. Specifically, District Goal 3.4 is applicable:
3.4. Conduct effective and efficient operations, maintenance, and replacement
programs.
3. Provide reliable and high quality water supply and distribution system to meet
current and future needs.
FISCAL IMPACT:
The Board Adopted Budget (AB)in fall of 2019 included Water 2021 Capital Expenditures
of $2,009,000. This budget did not include the pipeline replacement project and assumed
an annual water rate increase of 3%. However, the approved 10-year water capital
infrastructure replacement study includes pipeline replacements for FY2021 and the
recently approved water rate schedule includes an increase of approximately 9% for FY
2021 to fund the additional capital expenses.
Water 2021 Capital Expenditures Forecast for 2021 is $3.1M, for a variance to AB of
$1,091,000.The funding source for this project is rates. The water rates increase for 2021
generates and estimated incremental $770,000 and savings in Water SCADA and Facility
Metering projects for 2021 compared to AB are estimated at $200,000, combining for a
total of $970,000.The remaining gap of up to $121,000 (assuming 100% of contingency of
$113k utilized) would be funded from operating reserves balance.
ATTACHMENTS:
Figure 1