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HomeMy WebLinkAbout10-Consideration of an Adjustment to the Change Order Allowance for the District Pipeline Replacement - 2013 ProjectMW TRUC EE D 11 NE Public Utility District CONSENT To: Board of Directors From: Neil Kaufman Date: August 21, 2013 Subject: Consideration of an Adjustment to the Change Order Allowance for the District Pipeline Replacement - 2013 Project 1. WHY THIS MATTER IS BEFORE THE BOARD Board action is required to approve change orders for a construction contract. 2. HISTORY On April 3, 2013, the Board awarded a contract for construction of the District Pipeline Replacement - 2013 project to A&K Earthmovers. The bid price was $489,714. The Board also established a change order allowance of $48,986 associated with this contract for a total authorization not to exceed $538,700. The project consists of pipeline replacement on five different segments within the Tahoe Donner area: 1. Davos Drive at Heidi Way; 2. Northwoods Blvd at Norse Avenue; 3. Northwoods Blvd above Chamonix Road; 4. Northwoods Blvd at Coyote Moon Golf Course; and 5. Northwoods Blvd at Viking Way 3. NEW INFORMATION As of August 16, the work on segments 1 and 4 is essentially complete with minor cleanup remaining. The work on segments 2 and 5 is about 80 percent complete with paving and site cleanup yet to be performed. Segment 5 is about 65 percent complete with tie-ins, reconnection of services, paving and cleanup still outstanding. Segments 1, 4 and 5 proceeded with little difficulty and minor change order issues. However, there were significant issues with sub -surface water on both Segments 2 and 3. On Segment 2, there was a constant flow of water entering the work zone from a drainage ditch along the west side of the road. The source of this water is believed to be a natural spring located along Rhineland Avenue. On Segment 3, the entire subsurface area was saturated, and there was a significant amount of water entering the excavation from both sides and the uphill end of the pipe trench. It is believed that some of this water was from leaks on existing water pipes within the work zone. However, there was additional water entering the trench from an area uphill of the pipeline segment that is being replaced. The source of this additional water has not been identified. The presence of significant amounts of water impacts the construction by requiring changes in backfill materials, equipment and construction methods. To date, the District has received a total of $38,170 in change order requests on this project. These change orders do not cover any issues associated with Segment 3. The Water Department is still reviewing the details of these requests, but expects to agree on a total of around $33,000. Given the issues that occurred on Segment 3, it is likely that total change orders on this project will exceed the original change order allowance of about $49,000. Therefore, the Water Department is requesting that the change order allowance be revised to $75,000. CNa6'i97_1>!1►yi1:7_TOI Sufficient funds exist in the Water Department Capital Replacement Fund to cover the cost of these likely change orders. 5. RECOMMENDATION a) Authorize an increase in the change order allowance for the District Pipeline Replacement - 2013 project from $48,986 to $75,000. b) Authorize the transfer of up to $26,014 from the Water Department Capital Replacement Fund to the Water Department General Fund to cover the increase in the change order allowance. Michael D. Holley General Manager / Water Utility Manager