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HomeMy WebLinkAbout16 Water Pipeline Replacement Project Agenda Item # 16 TRUCKEE DONNER PULAC Utility District WORKSHOP To: Board of Directors From: Neil Kaufman Date: February 04, 2009 Subject: Discussion of the 2009 Water Pipeline Replacement Project and 2006 COP Funding Review 1. WHY THIS MATTER IS BEFORE THE BOARD This item is intended to update the Board regarding the current status of the pipeline replacement program. 2. HISTORY In 2005, the Water Department conducted a comprehensive review of the condition of the water distribution system. About 150,000 feet of pipeline was identified as needing replacement due poor condition and leak repairs. This total was broken into three groups (Priority 1, Priority 2 & Priority 3) of about 50,000 feet each based on condition of the pipeline, the number of leaks repaired and the difficulty in repairing those leaks. In 2006, the Water Department issued a Certificate of Participation (COP). $11.33 million of the COP funds were dedicated to the replacement of deteriorated leaking pipelines. It was expected that this $11.33 million would cover replacement of all the Priority 1 pipelines, covering about 47,700 feet of main line pipe. 3. NEW INFORMATION Using the COP funds, the District has completed pipeline replacement projects in 2006, 2007 and 2008. About 44,200 feet of pipeline was installed over these three years. The total amount of COP money spent for the 2006 and 2007 work was $4.36 million. It is estimated that the total amount of COP money spent for the 2008 work will be $3.5 million. Each year, the Water Department has updated this analysis of pipeline condition. Certain pipeline segments have been reclassified from Priority 1 to lower priorities, while others have been moved into the Priority 1 category. Figure 1 shows the current status of pipeline condition. Another pipeline replacement project is planned for the Summer of 2009 covering about 18,000 feet of pipeline. The 2009 project has been broken into three separate contracts to allow smaller contractors an opportunity to pursue the work. The bid openings for these contracts are scheduled for February 24 and the Water Department plans to make recommendations for award at the March 4 Board meeting. It is expected that the total bid prices for all three contracts will be $3.0 to 3.2 million. The District will incur additional costs of about $500,000 for District labor, outside consultants (for geotechnical testing and environmental compliance) and expected change orders associated with this construction. It is estimated that about one million in COP monies will remain to be spent for pipeline replacement in 2010. However, depending upon the bid prices received at the February 24 bid openings, the Water Department may recommend issuing a fourth contract for pipeline replacement in 2009. Attachments: Figure 1 4. FISCAL IMPACT There is no fiscal impact associated with this workshop item. 5. RECOMMENDATION R71v is report provide comment. E Michael D. Ho ey Water Utility Manager General Manager