HomeMy WebLinkAbout13 Red Mountain Tank Project Final PaymentAM TRUCKEE DONNERAGENDA
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 Accepting the Red Mountain Tank Construction
Project as Complete and authorize Payment of Reimbursable Costs
APPROVED BY
Brian C. Wright, General Manager
RECOMMENDATION:
Accept the Red Mountain Tank Construction Project as complete and authorize payment of
reimbursable costs in accordance with the Board approved Phase 3 Final Development
and Reimbursement Agreement Between the Truckee Donner Public Utility District and
Coldstream Properties, LLC for Construction of Certain Potable Water System
Improvements
BACKGROUND:
At the August 5, 2020 meeting, the Board approved an amendment to the Coldstream
Development and Reimbursement Agreement between the District and Coldstream
Properties, LLC for the construction of certain potable water system improvements
associated with Phase 3 of the Coldstream Development (PC-1). The water utility system
improvements included the on -site water utility distribution system infrastructure within the
development's Phase 3 parcels, as well as the design and construction of a potable water
storage tank at the Red Mountain site, which is located on the south side of Donner Lake.
A copy of the First Amendment to the agreement has been included with this report as
Attachment 1
In June, 2020, the developer had issued a request for bids for the construction of the Red
Mountain Tank. The scope of work included the construction of a welded steel potable
water storage tank as well as site work such as grading, foundation construction and the
associated underground piping. Following review of bids for compliance with District
standards and specifications, contractor experience and familiarity with similar projects in
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the region, and proposed construction schedules, the developer with approval from staff,
identified Crosno Construction from Arroyo Grande, CA as the most favorable contractor
for the project. The total bid price for the tank project was $869,820.
The development agreement outlines specific provisions for reimbursements to the
developer for construction of the storage tank. An initial change order allowance of ten
percent ($86,982) was included in reimbursement agreement.
Section 3.1 of the First Amendment to Phase 3 Final Development Agreement and
Reimbursement Agreement Between Truckee Donner Public Utility District and
Coldstream Properties, LLC for Construction of Certain Potable Water System
Improvements requires that "any Change Order that would increase the original amount
owed under the Construction Contract by more than 10% may be approved by the
District's Board of Directors."
Construction of the tank began in June 2020. It was planned to complete all of the grading,
tank foundation and site piping work during 2020. Work would then pause for the winter of
2020-21, with construction of the actual tank and completion of the project planned for the
summer of 2021.
A summary of the approved change orders is provided below:
1. The contractor encountered some difficulties during the site grading portion of the
project involving large boulders and saturated soils. A number of discussions
occurred involving Crosno, the developer and the District along with the design
engineer and geotechnical engineer for the project. It was eventually agreed that
Crosno was due an additional $55,428.68. This total covered the issues associated
with the boulders and soils, along with some modifications to the site piping and
additional rebar for the retaining wall at the site.
2. In June 2021, a change order for $26,551 was approved by District staff. This
change order covered the addition of three items not included in the original design:
• A safety handrail along the top of the retaining wall
• A safety platform for improved access to the exterior tank ladder
• A stilling well for level sensing instrumentation inside the tank
NOTE: The total change order approvals at this point in the project
were in the amount of $81, 979.68, which is approximately 9.4 % of the
original contract amount.
3. In July 2021 staff was informed that the exterior coating system specifications
included in the original project bids were not the optimum specifications for above
ground welded steel tanks located in regions with climates similar to Truckee.
Following further evaluation, staff determined that authorizing the upgrade in coating
systems to be in the best interest of preserving the longevity of the new tank.
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On July 21, 2021 the Board approved an increase in the total project change
order authorization from 10% ($86,982) to 12% (104,379) establishing a new
construction project total not to exceed $974,199.
On April 11, 2022 the District received a written request for final acceptance of the project
and payment for all reimbursable costs to date. A copy of the request for final acceptance
has been included with this staff report as Attachment 2. Included with the request for final
acceptance is a summary of the total reimbursable costs upon project completion
(Attachment 3), totaling $1,075,135.37. This total includes the final construction costs as
completed by Crosno Construction, Inc., Project Design Engineering completed by Sauers
Engineering Inc., and geotechnical and construction inspection services provided by NV5
Engineering Services.
Goals and Objectives:
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.
Strateaic Goals:
1. Manage for Financial Stability and Resiliency
ANALYSIS:
The Red Mountain Storage Tank construction has been completed to the District's
satisfaction. Staff have worked with Coldstream Properties, LLC., Teichert Construction
Crosno Construction, Sauers Engineering and NV5 Engineering Services to ensure final
inspections, testing and punch list items have all been completed in accordance with the
development agreement, construction contract and District specifications. Following review
of all construction as-builts, field inspections and testing, staff is recommending final
acceptance of the project.
As set forth in the Development Agreement entered into on June 10, 2020, and amended
on August 6, 2020, Coldstream is entitled to reimbursement of actual costs to design and
construct the Red Mountain Tank facilities. The final total for reimbursable construction
costs is $1,075,135.37. In accordance with the amended reimbursement agreement
$500,000 of the total project costs will be reimbursed by facilities fees collected from within
the Coldstream Development. At the time of publication of this staff report, the total
applicable facilities fees collected to date are $198,089.48. Any project costs in excess of
the $500,000 facilities fee reimbursements will be paid by the District to Coldstream
Properties LLC. in a lump sum payment following final acceptance of the tank facilities
construction. Including the final change order of $100,936.37 identified in this staff report
(pending Board approval), the lump sum payment due to Coldstream Properties, LLC.
Following final acceptance is $575,135.37.
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FISCAL IMPACT:
The Red Mountain Tank Construction project was not included in FY2022-23 Water Budget
but is being funded by the Phase 3 Final Development and Reimbursement Agreement
between the Truckee Donner Public Utility District and Coldstream Properties, LLC for
Construction of Certain Potable Water System Improvements and available funds as
follows:
• $500,000 - Facilities collected from the Cold Stream Properties Development
(PC-1) ($198,089.48 to 3/11/2022 collected and currently payable)
• $575,135.37 - Donner Lake Assessment District Improvement Fund (fund
balance $101,178.28 post this payment)
Attachments:
1. First Amendment to Phase 3 Final Development Agreement and Reimbursement
Agreement Between the Truckee Donner Public Utility District and Coldstream
Properties, LLC for Construction of Certain Potable Water System Improvements
2. Request for Final Acceptance of the Red Mountain Tank Construction Project from
Coldsteam Properties, LLC
3. Summary of Actual Construction Costs for the Red Mountain Tank construction
project
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