HomeMy WebLinkAbout8 Change Order Pipeline Replacement Agenda Item # 8
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Pubi c Utility District
ACTION
To: Board of Directors
From: Neil Kaufman
Date: September 02, 2009
Subject: Approval of an Increase in the Change Order Allowance for District
Pipeline Replacement— 2009 — Contract B
1. WHY THIS MATTER IS BEFORE THE BOARD
Board approval is required for expenditures in excess of $15,000.
2. HISTORY
The pipeline replacement project for 2009 entails about 18,000 feet of pipeline and
has been broken into three separate construction contracts.
• Contract A - Hillside Drive, Solvang Way, Staghorn Road & St. Croix Way
• Contract B - Oslo Drive, Sierra Glen Way, Skiview Loop, Snowpeak Way &
Tyrol Road
• Contract C - Chamonix Road, Donner View Tank site, Innsbruck Tank site,
Rhineland Avenue, Skislope Way, & West Reed Avenue
On March 4, 2009, the Board awarded the District Pipeline Replacement - 2009 -
Contract B to Hunt's Excavating in the amount of $1,037,157.00. The Board also
established a change order allowance of$104,000 at that time.
3. NEW INFORMATION
Hunt's Excavating began work on Contract B in May of 2009. To date, Hunt's
Excavating has installed about 4,250 feet of pipeline on Contract B. The Water
Department has paid $485,786.90 for work performed under the original bid and has
processed change orders totaling about $60,000 associated with this contract.
It has been necessary for Hunt's Excavating to perform significantly more rock
excavation than was originally anticipated. As of August 19, Hunt's Excavating has
performed 115 hours of rock as compared to a bid quantity of 20 hours. This
additional rock excavation is based upon the bid price of $390 per hour and is
included in the $485,786.90 noted above.
The $60,000 in change order work can be summarized into three major categories.
1) Repair of leaks on the existing pipeline.
2) Additional backfill associated with larger excavations due to rock removal and
leak repair.
3) Additional pavement thickness and curb replacement beyond what was
included in the base bid.
It is estimated that an additional $109,000 in change order costs will be incurred for
Contract B. Therefore, an increase in the change order allowance from $104,000 to
$213,000 is recommended.
4. FISCAL IMPACT
It is estimated that a total cost of $213,000 in change orders will be incurred for Contract
B. The funding source for this cost is the 2006 COP.
5. RECOMMENDATION
Increase the change order allowance for the District Pipeline Replacement - 2009 -
Contract B from $104,000 to $213,000.
0/ yid
Ed Taylor Michael D. Holley
Water Utility Manager General Manager