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HomeMy WebLinkAbout8 Consideration to Approve a Contract Amendment with Town v1 October 19, 2022 Town of TruckeeAmendment with the Contract Consideration of a ACTION ITEM #8 •BACKGROUNDBACKGROUND Town of TruckeeConsideration of a Contract Amendment with the Town of TruckeeConsideration of a Contract Amendment with the Church Street Extension/Trout Creek Rehabilitation Projectfeet of existing overhead electric facilities as part of the Town’s Agreement to share the cost of undergrounding approximately 1,000 On August 31, 2021, the District and Town of Truckee entered into an •communityefficiencies benefiting the District, the Town, and the entire on various capital infrastructure improvement projects to enhance The District and Town of Truckee have been working collaboratively •BACKGROUNDBACKGROUND Town of TruckeeConsideration of a Contract Amendment with the Town of TruckeeConsideration of a Contract Amendment with the existing overhead linesin those facilities as well as removal and decommissioning of the The District agreed to cover the cost of installing electric infrastructure •electric facilitiescommunications conduits, vaults, pads, etc.) for relocation of overhead underground civil infrastructure (primary, secondary, and The Town of Truckee agreed to pay its contractor to install •Terms of the Agreement •BACKGROUNDBACKGROUND Town of TruckeeConsideration of a Contract Amendment with the Town of TruckeeConsideration of a Contract Amendment with the Circuit tie is critical for distribution system operation•DriveGlenshireeast/northeast to Planned to be relocated underground once Church St. is extended •2017development project in RailyardInstalled as part of the Phase 1 •existing temporary overhead electric distribution system circuit tie Completion of this Project also enables the District to remove an •DriveGlenshiredevelopment area and along Railyardunderground existing overhead electric facilities within the The benefit for the District in this Project is the ability to Consideration of a Contract Amendment with the Project Area BACKGROUNDBACKGROUND Town of TruckeeConsideration of a Contract Amendment with the Town of Truckee •ANALYSISANALYSIS Town of TruckeeConsideration of a Contract Amendment with the Town of TruckeeConsideration of a Contract Amendment with the roundabout was also not includedDr. west of the future Church St. Glenshireinfrastructure along foot section of underground electric approximately 150 An additional •Dr. was not includedGlenshiretowards from the intersection of Flyer’s Knot Way and Church St. heading east An approximately 500 foot section of underground electric infrastructure •for the ProjectTown’s Project scope and the District’s electric undergrounding plans In early October 2022, staff identified a discrepancy between the •ANALYSISANALYSIS Town of TruckeeConsideration of a Contract Amendment with the Town of TruckeeConsideration of a Contract Amendment with the Dr. and Church St.Glenshiretemporary overhead line between electric infrastructure, the District is unable to decommission the Without installation of the two missing sections of underground •to entering into the AgreementThese two sections were missed by both District and Town staff prior •ANALYSISANALYSIS Town of TruckeeConsideration of a Contract Amendment with the Town of TruckeeConsideration of a Contract Amendment with the $175,338(T&M) quote from their contractor for a not to exceed amount of Materials and Time The Town of Truckee provided the District with a •foot section along Church St.the 500 install infrastructure in The District agreed to reimburse the Town of Truckee for the cost to •Dr.Glenshirethe 150 foot section along The Town of Truckee agreed to cover the cost to install infrastructure in •infrastructurethe existing Agreement to complete the two missing sections of Staff discussed with the Town a proposed Contract Amendment to •ANALYSISANALYSIS Town of TruckeeConsideration of a Contract Amendment with the Town of TruckeeConsideration of a Contract Amendment with the 50,000$30,000 to $approximately would cost which replacements pole survey and load analysis, likely requiring additional Replacement of overhead conductors will require staff resources for •to be replacedExisting overhead conductors have insufficient capacity and would need •$33,000Dr. costing approximately GlenshireA required pole replacement on •expenseseveral required upgrades have been identified at the District’s If the District were to keep the temporary overhead line in service, •ANALYSISANALYSIS Town of TruckeeConsideration of a Contract Amendment with the Town of TruckeeConsideration of a Contract Amendment with the operational capacityleaving the temporary overhead line in service without sufficient Development of that parcel will probably not occur for many years, •expenseline traverses would require undergrounding utilities at the developer's Any future development of the parcel in which the temporary overhead •Undergrounding Utility Districtas an RailyardThe Town of Truckee has identified the •ANALYSISANALYSIS Town of TruckeeConsideration of a Contract Amendment with the Town of TruckeeConsideration of a Contract Amendment with the and removing the temporary overhead lineupgrading, operating, maintaining, and eventually decommissioning initial intended scope is less than ongoing costs associated with It is estimated the upfront costs of fully completing this Project to the •has the advantage of a completed and fully underground systemgreater than funding the upgrade of the temporary overhead line, it Although the cost of completing the underground infrastructure is •ANALYSISANALYSIS Town of TruckeeConsideration of a Contract Amendment with the Town of TruckeeConsideration of a Contract Amendment with the Church St. Extension/Trout Creek Rehabilitation Projectfor installation of the missing underground infrastructure for the District and the Town of Truckee, to reimburse the Town of Truckee project, executing an Amendment to the Agreement between the Staff recommends the District proceed with the original intent of the •FISCAL IMPACTFISCAL IMPACT Town of TruckeeConsideration of a Contract Amendment with the Town of TruckeeConsideration of a Contract Amendment with the projects2031, averaging $235,000 per year for anticipated but unknown future The 10 year CIP includes similar amounts each year for 2023 through •Approximately $61,000 spent to date•joint underground projects with the Town of TruckeeFY22 for in $205,229 includes FY22 Capital Budget approved Board •$202,643Forecasted FY22 Capital Budget Overage$205,229FY22 Capital Budget for Joint Projects with the Town$407,872Total Cost of Project$215,000Existing Agreement$192,872AmendmentContract Proposed Project Cost Detail FISCAL IMPACTFISCAL IMPACT Town of TruckeeConsideration of a Contract Amendment with the Town of TruckeeConsideration of a Contract Amendment with the costTotal Project •FISCAL IMPACTFISCAL IMPACT Town of TruckeeConsideration of a Contract Amendment with the Town of TruckeeConsideration of a Contract Amendment with the as part of the FY24/25 budget cycleIn summer/fall of 2023, the CIP will be updated to reflect adjustments •sufficient funds to cover the overage in FY22With a current capital reserve balance of $11.3 million, the District has •underground project with the Town of Truckeelack of spending on the $211,386 FY23 budget in the CIP for joint Staff estimates the overage of $202,643 in FY22 will rebalance with a •RECOMMENDATIONRECOMMENDATION Town of TruckeeConsideration of a Contract Amendment with the Town of TruckeeConsideration of a Contract Amendment with the to exceed amount of $192,872amount of $175,338, plus a 10% change order authorization, for a not the Church Street Extension/Trout Creek Restoration Project in the underground civil infrastructure not included in the original scope of of Truckee to reimburse the Town for installation of additional review, to the Agreement between the District and the Town Counsel’s substantially the same form as presented and subject to District Authorize the General Manager to execute a Contract Amendment, in