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Home My WebLink About12 Pioneer Trail Pipeline - Award'400 TRUCKEE DONNER AGENDA Public Utility District MEETING DATE: June 1, 2022 TO: Board of Directors FROM: Neil Kaufman, Water System Engineer Chad Reed, Water Utility Director SUBJECT: Consideration of the Pioneer Trail Pipeline Construction Contract �/ APPROVED BY Brian C. Wright, General Manager RECOMMENDATION: Authorize the General Manager to execute a contract with C&D Contractors in an amount of $4,497,043, plus a ten percent change order allowance for a total authorization not to exceed $4,950,000 for the Pioneer Trail Pipeline Project BACKGROUND: The Tahoe Donner subdivision consists of approximately 5,600 single family homes, about 400 multi -family residential units, a golf course, downhill ski area, cross-country ski area and other amenities. This represents about 44% of the water system customers. An additional 500 residential units are expected in the Tahoe Donner area at buildout conditions. The entire subdivision is served by a single 14" welded steel pipeline with two pump stations and two storage tanks that essentially serve as forebays. These facilities were constructed in the early 1970s and are approaching the end of their useful life. The District previously identified the need to construct a second pipeline into Tahoe Donner. This project was planned for and discussed in the current Water System Master Plan (Master Plan). The Master Plan identified the need for a 20" pipeline, but more recent estimates of buildout water demand have determined that the pipeline can be downsized to 16" diameter. On the eastern end, the new pipeline will connect to an existing 24" pipe near Pioneer Trail and Comstock Drive. The western end will connect to an existing 16" pipe at the intersection of Northwoods Boulevard and Lamplighter Way. Additionally, in alignment with the Strategic Plan, the District intends to install electrical and communications Page 1 of 4 conduits in a joint trench with the water pipeline in preparation for future electric distribution system redundancy and fiber communication network completion. A new pump station will be needed to lift water into the Tahoe Donner area. The planned location for the pump station is on District -owned property in close proximity to the TNT Materials concrete batch plant. The project has been broken into two separate construction contracts — one covering the pump station and the other covering the pipeline and conduits. The Board previously awarded three contracts with outside consulting firms associated with this project: • In November 2020, a contract was awarded Water Works Engineers (WWE) to provide design assistance with the crossing of Trout Creek and performance of a hydraulic transient analysis. • In October 2021, a contract was awarded to Sauers Engineering to design the pump station. • In October 2021, a contract was awarded to Helix Environmental Consulting to perform the environmental review of the project. The CEQA Initial Study/Mitigated Negative Declaration (IS/MND) was made public on March 12, 2022 and the public comment period closed on April 12, 2022. On May 4, 2022, the Board of Directors approved the project for the purposes of CEQA. On April 18, 2022, the District began advertising for bids for the pipeline construction contract. The bid opening was held at 2:00 PM on May 19, 2022. Two bids were received: TOTAL AMOUNT OF BID Bidder Location Amount Responsive C&D Contractors Nevada City, CA $4,497,043 Yes Burdick Excavating Carson City, NV $5,296,845 Yes As noted above, this is a joint project between the Water Department and the Electric Department. The overall project scope includes: • Approximately 8,150 feet of 16-inch water pipe • Approximately 7,800 feet of 6-inch and 2-inch conduit • Five fire hydrants • Valves and pipe fittings • Eleven primary power vaults and one switchpad • Construction of a utility crossing of Trout Creek on the existing bridge Page 2 of 4 A tentative construction timeline has been set. Due to the long lead time for acquiring 16- inch water pipe, the great majority of the project construction will occur during the summer of 2023. Work completed in the summer of 2022 will include the Trout Creek utility crossing and the installation of a valve at the east end of the pipeline that will serve as the interface between the pipeline and pump station construction contracts. On April 6, 2022, the Board approved the purchase of the water piping materials for this work. The contractor will be responsible for obtaining all other materials for the project. The District has received the 95% design submittal from Sauers Engineering for the pump station project. It is expected that advertising for bids will begin in early June with a bid opening planned for early July. ANALYSIS/BODY: Part of the mission statement of the District is to "provide reliable, high quality water ... while meeting customer demand." The Pioneer Trail Pipeline project exemplifies this by adding additional reliability and redundancy to the water system for the customers in the Tahoe Donner community and removes the potential single point of failure. Over the past year staff has seen several projects come in over the engineers estimate including those incorporated into the water utility capital improvement plan. Often these overages have been several times the anticipated cost due to increasing materials and labor costs. This project is over the estimated budget however, staff is recommending to move forward with this project due to the redundancy it provides in both potable water deliveries and fire flow protection to more than 6,000 customers. Additionally, the second pipeline significantly limits the risk of a catastrophic failure of the existing pipeline constructed nearly 50 years ago. Staff is recommending the additional electrical and communication conduit installations OBJECTIVES & GOALS: This item is in support of the following goals and objectives: District Code1.05.020 Objectives: 3. Provide reliable and high quality water supply and distribution system to meet current and future needs. Strategic Goals: 1. Manage for Financial Stability and Resiliency FISCAL IMPACT: The bid price from C&D Contractors is $4,497,043. It is recommended that a ten percent change order allowance be established for a total authorization of $4,950,000. Page 3 of 4 Using the individual bid items from the bid schedule and C&D bid prices, the cost allocation between the Water Department and Electric Department was calculated and is given in the table below: Amount Percentage Water Department $ 3,613,391 80.4% Electric Department $ 883,652 19.6% Change Order $452,957 10% Total $4,950,000 110% The Water Department budget includes $2,555,000 for the Pioneer Trail Pipeline in 2022. With this bid, the water department's portion of cost including potential change orders is $3,980,000. The increase in cost of $1,425,000 is projected to be absorbed over -time within the 10-year capital improvement plan, due to the timing of projects over future years. The commitment to the Pioneer Trail Pipeline project also commits the District to the Pioneer Trail Pump Station project, which has a budget of $2,865,000 ($350,000 in Budget 2022 and $2,515,000 in Budget 2023). As noted above, the bid documents for the pump station are still being finalized and the project has not yet been placed out to bid. Both projects are budgeted and recommended to be funded by the water new debt issuance. The Electric Department portion of this project ($970,000 including potential change orders) is not specifically budgeted in Electric's capital improvement plan or Budget 2022 & 2023. Sufficient funds for this expenditure are available in the Electric Department capital reserve, which had a balance of $11.3 million as of December 31, 2021. ATTACHMENT: None Page 4 of 4