Loading...
HomeMy WebLinkAbout9 Pedestrian Bridge Pipeline Approval (Remove and re-schedule).docTRUCKEE DONNER ' ' ' Public Utility District MEETING DATE: May 4, 2022 TO: Board of Directors FROM: Neil Kaufman, Water System Engineer Chad Reed, Water Utility Director SUBJECT: Consideration of an Agreement with the Town of Truckee Regarding Installation of a Water Pipeline as Part of the Truckee River Legacy Trail Phase 4 Project APPROVED BY Brian C. Wright, General Manager RECOMMENDATION: Authorize the General Manager to execute a reimbursement agreement with the Town of Truckee for construction of a water pipeline as part of the Truckee River Legacy Trail Phase 4 Project with an overall cost not to exceed $600,000. BACKGROUND: The Truckee River runs northeasterly through the District's service area. The river presents a significant barrier to the movement of vehicles and the provision of utility services. The District has ten active potable water wells that are used to supply water to customers. Airport Well and Martis Valley Well (two of the District's three largest production wells) are located in the Martis Valley groundwater basin to the south of the Truckee River. The Water System Master Plan also envisions the construction of additional wells south of the river to serve future growth. There are currently two water pipelines that cross the Truckee River in the downtown area, allowing transmission of water from these wells to a large portion of the District's service area north of the river. Page 1 of 4 The Town of Truckee is undertaking the Truckee River Legacy Trail — Phase 4 project. This project involves the construction of a paved recreation trail that runs southwesterly along the south side of the Truckee River from the Hilltop area near the Cottonwood Restaurant to the Nevada County — Placer County line near State Route 89. The scope of the overall project is shown on the attached Vicinity Map (Attachment 1). One component of the project involves the construction of a new pedestrian bridge across the Truckee River approximately 1,100 feet west of the existing vehicle bridge. This bridge will provide a connection to the planned park that will be located at the old Nevada County Public Works Yard on West River Street. The District has been working with the Town of Truckee and the Truckee Donner Land Trust to install a water pipeline on this new pedestrian bridge in order to improve the ability to move potable water across the Truckee River and to provide redundancy in case a problem develops with one of the existing pipes across the river. The proposed routing of this water pipe is also shown on the Vicinity Map. Lumos and Associates (Lumos) was selected by the Town of Truckee to be the lead designer for the overall trail project. In July 2021, the District retained Lumos to design a water pipeline that would connect the new pedestrian bridge to existing water pipelines on either side of the river. This pipeline would be included in the overall bid package for the trail project. The cost proposal from Lumos for this work was $13,000. The District has also been working directly with the bridge designer (Nutt, Redfield & Valentine) to include the water pipeline in the design documents for the bridge. The engineers estimate for the overall project is $8.2 million not including any contingencies. Based on this engineer's estimate, the District's share of the project was projected to be approximately $450,000. The Town of Truckee began advertising for bids in February 2022, with a bid opening on April 15, 2022. The apparent low bidder was Mercer -Fraser of Eureka, California with an overall bid price of just under $12.4 million. The great majority of difference between the engineer's estimate and the bid price involved the pedestrian bridge ($5.5 million actual vs. $2.0 million estimate). The bid item associated with the water pipe portion of the bridge also showed a sizeable increase ($107,400 actual vs. $71,600 estimate), with the District share of the overall project totaling approximately $477,000, not including any contingencies. A reimbursement agreement between the District and the Town of Truckee is necessary for this project. The draft agreement has been reviewed by staff and a copy is attached. It should be noted that there is also cost sharing agreement between the Town of Truckee and the Truckee Donner Land Trust (TDLT) regarding the cost of the bridge. The actual bid price for the bridge results in a cost to TDLT that significantly exceeds its available budget for the project. Page 2 of 4 The bid opening information was presented at the Town of Truckee Council Meeting on April 26, 2022. Four potential options were presented to the Town Council. 1. Award the contract to the low bidder and work with the contractor to develop a less costly design for the bridge by changer order. 2. Reject all bids and rebid the trail project without the bridge. A revised bridge design would then be developed as part of a separate project or contract. 3. Accept the higher bid price and proceed with the project as currently designed with the Town covering the additional costs. 4. Accept the higher bid price and proceed with the project as currently designed with the Town and TDLT revising their cost sharing agreement and financial arrangements. According to Town of Truckee staff, it is expected that a recommendation for action will be presented at the Town of Truckee Council Meeting on May 10, 2022. 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: Based on the low bid, the District's share of the construction cost is $440,852. The Town has estimated additional administrative costs (permitting, construction management, etc) at $35,422 for a total of $476,274. Adding a ten percent contingency/change order allowance results in a total cost to the District of approximately $524,000. The District is also responsible for a portion of the design costs for the bridge. The District is awaiting final information from the bridge designer and this amount is currently estimated at $10,000. One final cost involves an easement across the TDLT property on the south side of the Truckee River. Preliminary discussions have been held with TDLT, but an agreement has not been finalized. An overall cost of about $600,000 is currently anticipated. While this project was not specifically budgeted in the Water CIP, the project qualifies for Water Facility Fees Funding. Water Facility Fees balance was $2.274 million as of December 31, 2021, and the Water CIP has only $1.0 million currently identified for water facility fee funded capital expenditures. Water Facility Fees are also utilized for a portion Page 3 of 4 of the 2006 COP bond debt of approximately $359,000 per year through 2036. The 5- year average in Water Facility Fee revenues is $701,000 per year. The Financial Master Plan (FMP) for current budget utilized a conservative average water facility fees revenues of $385,000 per year for 2022 to 2031, has 1 project of $1.0 million (2023 portion of 6170 tank), and the COP debt service of $359,000 per year. The FMP ending balance projected for 2031 is $1.7 million. Accordingly, water facility fee funds are sufficient to fund this project. Based on the conservative estimates in the FMP and adequate funds, this project is recommended to be funded solely from Water Facility Fees. Alternatively, this project could be funded from the FY 2023 budget which includes about $3.9 million for pipeline replacement and new pipeline construction. This $3.9 million total does not include the Pioneer Trail Pipeline project, which is a separate budget item. It is not recommended that the $600,000 cost of this project be funded from the FY2023 new debt funded projects, nor is it recommended that existing system replacement capital expenditures be lowered to accommodate this new system capital project... ATTACHMENTS: 1. Vicinity Map 2. Town of Truckee Council Meeting Staff Report 3. Draft Agreement with the Town of Truckee Page 4 of 4