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HomeMy WebLinkAbout7 Pipeline Replacement Project - Contractenda Item # CONSENT To: Board of Directors 7 From: Neil Kaufman Date. April 04, 2018 Subject: Consideration to Approve a Contract with Longo Incorporated for the 2018 Pipeline Project 1. WHY THIS MATTER IS BEFORE THE BOARD Board approval is required for expenditures in excess of $15,000. 2. HISTORY 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 3. NEW INFORMATION The District Pipeline Replacement - 2098 project covers about 2,100 feet of pipeline at three locations in the Tahoe Donner area: Baden Road Sitzmark tank site Skiview Loop In addition to the pipeline work, the contract includes the installation of conduit, pull boxes, meter boxes and transformer pads at the Roundhill and Sitzmark tank sites. This work will allow for the electrical service at these two sites be converted from overhead to underground, removing some outdated electrical transformers. The work will also enable upgrading of the communications capabilities at both sites. The final component of the contract involves the installation of conduit and fiber optic inner duct to enable upgrading of the communications capabilities at the Falcon Point and Innsbruck tank sites. The bid opening was held at 2:00 PM on March 15, 2018. One bids was received: TOTAL AMOUNT OF BID Bidder Location Amount Responsive Longo Incorporated Tahoe City, CA $15196,852.00 Yes In addition to the construction contract, the District will retain outside consultants to perform environmental services, geotechnical testing, and surveying during the construction period. The costs for this work are: Environmental Services -Inland Ecosystems - $3,250 Geotechnical Testing - CME - $60,000 Surveying - Sage Land Surveying Inc. - $5,500 It should be noted that the contract with CME was previously authorized by the Board on December 6, 2017 as part of the annual procurements. 4. FISCAL IMPACT The bid price from Longo Incorporated is $1,196,852.00. The funding source for water pipe components of the project is the Water Department General Fund. The funding source for water electrical and communications components of the project is the Electric Department General Fund. The funding breakdown is: Component Total Water Department General Fund Electric Departmer General Fund Mobilization $55,000,00 $40,998,12 $14,001,88 Skiview Loop $626,498,00 $626,498,00 $0.00 Baden Road $114,880000 $114,880,00 $0.00 Sitzmark Tank Site $162,800,00 $107,448000 $55,352,00 Roundhill Tank Site $46,675,00 $2,333,75 $44,341,25 Innsbruck Tank Site $31,350,00 $0.00 $31,350,00 Falcon Point Innerduct Installation $159,649,00 $0.00 $159,649.00 Total $1,196,852,00 $892,157,87 $304,694,13 It is recommended that a 10 percent change order allowance be established. 5. RECOMMENDATION 1) Authorize the General Manager to enter into a contract with Longo Incorporated for the District Pipeline Replacement = 2018 project in an amount of $1,196,852, plus a ten percent change order allowance of $119,648, for a total authorzation not to exceed $1,316,500 2) Authorize the transfer of up to $335,150 from the Electric Department General Fund to the Water Department General Fund to pay for the Electric Department portion of the project. Michael D. Holley General Manager / Water Utility Manager