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HomeMy WebLinkAbout11 Power Point Amendment to the Coldstream Development and Reimbursement Agreement• Per District Code Section 7.12.030, approval by the Board of Directors is required for any development agreement where the total value of on -site improvements being installed by the applicant to be conveyed to the District for ownership, operation and maintenance exceeds $400,000 • At the June 3, 2020 meeting, the Board approved a development and reimbursement agreement between the District and Coldstream Properties, I.I.C. for the construction of certain potable water system improvements associated with Phase 3 of the Coldstream Development (PC-1) • The water utility system improvements include • On -site water utility distribution system infrastructure within the development's phase 3 parcels • The design and construction of an off -site potable water storage tank at the District's Red Mountain facility • In June, 2020, Teichert Construction issued a request for bids for the construction of the Red Mountain potable water storage tank • The Scope of Work included • Construction of a 205,000 gal. welded steel potable water storage tank • Site preparation • Demolition and removal of existing facilities • Earthwork, grading and • Construction of foundation • Construction and retrofit of new and existing underground pipe and control valves • Received bids were reviewed based upon the following criteria • Total cost • Compliance with project specifications • Contractor experience and familiarity with similar projects • Proposed project schedule • Following a review of bids received and with staff approval, Teichert Construction identified Crosno Construction from Arroyo Grande, CA as the most favorable contractor for the project • Total bid price for the project is $869,820 • This total bid price exceeds the original development and reimbursement agreement limit of $500,000 • Factors contributing to the increased cost include • Additional site excavation and preparation required as identified in the geotechnical survey • Construction of retaining wall to support necessary grade changes at the facility • Additional pipe modifications to existing facility pipe alignments. • The original development and reimbursement agreement includes provisions for both parties (Developer and District) to meet and confer if total costs to design and construct the Red Mountain storage tank exceed $500,000 • Staff has worked with Teichert and District Counsel to arrive at amendment to the original development and reimbursement agreement • The proposed amendment includes provisions to • Reimburse the developer up to $500,000 of actual costs to design and construct the tank facilities in accordance with Sections 14D through F of the Development agreement • Reimburse the developer with a "Lump Sum Payment" for actual costs to design and construct the tank facilities in excess of $500,000 upon completion of the project and final acceptance of ownership by the District Total estimated costs for the design and construction of the Red Mountain storage tank facilities are provided below 6 tl Red Mountain Site Survey Geotechnical Analysis Civil Engineering. Design Site Prep and Tank Construction EstimatedTotalCost11� • Approval of the amendment to the agreement as proposed, would result in the following reimbursement schedule • Actual costs for design and construction of tank facilities up to $500,000 to be reimbursed by water facility fees collected from parcels within Phase 3 of the Coldstream Development • Actual costs for design and construction of tank facilities in excess of $500,000 to be reimbursed in a "Lump Sum Payment" upon final acceptance of the Red Mountain storage tank to be funded by the District's Water Facility Fees Reserve Funds • Sufficient funds exist in the District's Water Utility Facility Fees Reserve Fund for this project with a current balance of just over $1.5M • Approve the First Amendment to the development and reimbursement agreement and authorize the General Manager to execute the First Amendment to Phase 3 Final Development Agreement and Reimbursement Agreement between the Truckee Donner Public Utility District and Coldstream Properties, LLC for Construction of Certain Potable Water System Improvements.