HomeMy WebLinkAbout11 Red Mountain Tank RepairsTRUCKEE DONNER '
Public Utility District
MEETING DATE: May 4, 2022
TO: Board of Directors
FROM: Neil Kaufman, Water System Engineer
Chad J. Reed, Water Utility Director
SUBJECT: Consideration of a Contract to Repair Storm Damage to the Red
Mountain Tank
APPROVED BY
Brian C. Wright, General Manager
RECOMMENDATION:
a) Dispense with competitive bidding for the storm damage repairs to the Red
Mountain Tank
b) Authorize the General Manager to execute a contract with Crosno Construction to
conduct repairs to the Red Mountain Tank in the amount not to exceed $52,830,
including a 10% change order allowance.
DISCUSSION:
The Red Mountain Tank was constructed by Coldstream Properties LLC as part of the
development agreement for the Coldstream Development (PC-1). This development
agreement was originally approved by the Board of Directors in June 2020. An
amendment to the development agreement was approved by the Board in August 2020.
The Red Mountain Tank was placed into service in October 2021. During the severe
snowstorms in December 2021, the tank and a ground level safety railing at the site were
damaged by falling trees. Damage to the tank involved the exterior ladder and the safety
railing on top the tank. Currently, the exterior ladder is unusable and access to the top of
the tank is only possible with a bucket truck. The attached photographs depict the
damage.
Page 1 of 2
Crosno Construction was retained by Coldstream Properties to construct the tank. The
tank is still within the original warranty period. The damage to the tank associated with the
recent winter storms is not related to workmanship or a failure of Crosno to construct the
tank properly. Therefore, the District does not intend to submit a claim against the
warranty for the project.
Therefore, it is recommended that the Board dispense with competitive bidding and the
District utilize Crosno to perform the tank repairs in order to maintain the warranty. Crosno
has provided a price proposal of $48,028 for this work. A change order contingency is
recommended, consistent with most all repair projects.
OBJECTIVES & GOALS:
1.05.020 Objectives:
3. Provide reliable and high quality water supply and distribution system to meet
current and future needs.
6. Manage the District in an effective, efficient and fiscally responsible manner.
1.05.030 Goals:
1. Manage for Financial Stability and Resiliency.
FISCAL IMPACT:
The price proposal from Crosno is $48,028. It is recommended that a ten percent change
order allowance be established for a total authorization not to exceed $52,830.
Repairs are an operating expense, not a capital expenditure. This repair cost is not
budgeted and represents an increase of 0.5% in water utility total expenses 2022 Budget.
In 2022, Water's operating reserve (general fund) year-end 12/31/2022 budgeted balance
of $5.5 million will be reduced by $52.8k or 0.9% for this non -budgeted expense repair.
Longer -term (18-36 months), the District estimates this cost will be eligible and recovered,
as part of an application for CaIOES or other State of Emergency grant funds related to the
storm which caused the damage to the tank.
ATTACHMENTS:
Attachments 1-3 Storm damage photographs
Page 2 of 2