HomeMy WebLinkAbout17 Pipeline Replacement
AGENDA ITEM #17
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MEETING DATE: February 2, 2022
TO: Board of Directors
FROM: Neil Kaufman
SUBJECT: Award of the District Pipeline Replacement – 2022 Construction
Contract
APPROVED BY
Brian C. Wright, General Manager
RECOMMENDATION:
Consideration to Award the District Pipeline Replacement – 2022 contract to C&D
Contractors in an amount of $2,681,035.00, plus a ten percent change order allowance of
$268,965 for a total authorzation not to exceed $2,950,000.
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 – 2022 project covers about 7,000 feet of pipeline at
three locations:
Bull Pine Trail & Donner Trail Road
Copenhagen Drive
Swiss Lane
These pipeline segments are shown on the attached figure.
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The bid opening was held at 2:00 PM on January 11, 2022. Five bids were received:
TOTAL AMOUNT OF BID
Bidder Location Amount Responsive
C&D Contractors Nevada City, CA $2,681,035.00 Yes
Rapid Construction Carson City, NV $3,115,511.30 Yes
FW Carson Incline Village, NV $3,382,598.00 Yes
Aspen Developers Reno, NV $3,483,000.00 Yes
MKD Construction Mound House, NV $3,550,513.00 Yes
In addition to the construction contract, the District will retain outside consultants to perform
construction inspection, environmental services and geotechnical testing and for this this
project. The costs for this work are:
Construction Inspection – CME – Estimated at $100,000
Environmental Services – Inland Ecosystems – Estimated at $5,000
Geotechnical Testing – NV5 – Estimated at $50,000
The CME and NV5 contracts were approved by the Board of Directors on December 1,
2021, as part of the annual procurement process.
FISCAL IMPACT:
Pipeline Replacement totaling $22m is a core component of the $88m ten-year Water
Capital Improvement Plan (CIP). The CIP is based on estimated overall pipeline
replacement needs, whereas, each year’s actual projects such as this 2022 project are
based on specific engineering ready areas within the District’s pipeline system.
The 2022 Budget included $2,384,025 for pipeline replacement (5500ft at $433.46/ft cost
estimate). The subject contract is for 7000ft for contract dollar amount, including change
orders contingency, of $2,950,000. The project total including other costs identified in
previous paragraph of $155,000 amounts to a total of $3,105,000 or 443.57/ft.
The $3.1m is $720.975 greater than budget of $2.4m, driven primarily by the 1,500 greater
feet of pipeline replacement ready for project in 2022. The higher cost per foot for this
project versus budget is driven primarily by the mix of 8” versus 12” pipe in Budget 2022
versus this project bid. The budget had 91% 8” and 9% 12” pipeline, whereas the project is
at 70% 8” and 30% 12” pipeline. The larger 12” pipeline has a higher cost per foot. Overall,
these variances to budget and the CIP for 2022 are timing between years and the Water
Utility has sufficient funds to cover the overage in 2022 compared to Budget. Specifically,
the December 2021 year end forecasted balance for Operating Reserve (general fund) is
$4.7m and $1.0m for Capital Reserve
The 2022 Budget’s Water capital expenditures total $8.29m, funded $2.50m from rates and
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$5.79m from new debt issuance. The District anticipates new debt issuance funding in the
2nd quarter of 2022, consistent with Budget
ATTACHMENTS:
Pipeline Replacement Figure