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HomeMy WebLinkAbout10 Sun Valley Water Pipeline Projectenda Item # CONSENT 10 To: Board of Directors From: Neil Kaufman Date. August 19, 2015 Subject: Authorize the General Manager to Enter Into a Contract with Longo Incorporated for the Sun Valley Water Pipeline Project I 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. On July 15, 2015, a workshop was held with the Board of Directors to discuss the Water Department's Capital Improvement Program. One item that was idened at the workshop involved increasing the footage of water mains that replaced in the future. Another facet of that discussion involved the bidding of a second relatively small pipeline replacement project to be constructed in the Fall of 2015. This project involved the replacement of about 750 feet of main along Sun Valley Road in Tahoe Donner, The Water Department has performed numerous leak repairs on this pipe segment including four repairs during the Summer of 2015. Based upon feedback from the Board, the Water Department proceeded with bidding of the project. 3. NEW INFORMATION The bid opening was held at 2:00 PM on August 11, 2015. Two bids were received. A summary of the bids is given below: Bidder Location Amount Responsive Longo Incorporated Tahoe City, CA $225,634.00 Yes Sierra Nevada Construction Sparks, NV $259,007,00 Yes Longo Incorporated has constructed a number of projects for the District in the past. The most recent project was the Donner Lake Substation Civil Improvements project in 2014. The District has retained outside consultants to perform environmental services, geotechnical testing and surveying associated with the District Pipeline Replacement - 2015 project. Sufficient funds exist within these existing contracts to accommodate the work on Sun Valley Road. The current project schedule is given below: • Bid Award -August 19, 2015 • Begin Construction - Late August 2015 • Complete Construction - October 2014 4. FISCAL IMPACT The bid price from Longo Incorporated is $225,634.00. It is recommended that a 10 percent change order allowance be established. The proposed funding source for the project is the Water Department Capital Replacement Fund, 5. RECOMMENDATION Award the Sun Valley Road Pipeline Replacement project to Longo Incorporated in the amount of $225,634.00 plus a 10 percent change order allowance for a total amount not to exceed $248, 200. Michael D. Holley General Manager / Water Utility Manager