HomeMy WebLinkAbout7 District Pipeline Replacement Change order Agenda Item # 7
TRUCKEE R
JPF Public Utility District
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ACTION
To: Board of Directors
From: Neil Kaufman
Date: September 10, 2009
Subject: Consideration of the Approval of Change Order No. 3 to the District
Pipeline Replacement— 2009 — Contract C
1. WHY THIS MATTER IS BEFORE THE BOARD
Change orders in excess of the change order allowance require Board authorization.
2. HISTORY
In 2005 and 2006, the Water Department made Board presentations regarding the
condition of existing water pipelines and the need to pursue a pipeline replacement
program. The District subsequently issued a COP in 2006 and dedicated a portion of
those funds for the pipeline replacement program. Pipeline construction projects have
been undertaken during 2006, 2007 and 2008 as part of this program.
The construction 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
The Bid opening for Contract C was held on February 24, 2009. Nineteen bids were
received. The apparent low bidder for the project was Wunschel & Sons. The Board
found Wunschel & Sons bid to be non-responsive due to omissions on the bid bond.
The Board subsequently awarded the contract to Cruz Excavating on March 4, 2009 in
an amount not to exceed $656,993.00 plus a 10% change order allowance of
$65,000.
3. NEW INFORMATION
Contract C includes construction at six separate locations:
• Chamonix Road
• Donner View Tank Site
• Innsbruck Tank Site
• Rhineland Avenue
• Skislope Way
• West Reed Avenue
The construction work at the Innsbruck Tank site and Rhineland Avenue has been
completed. The construction work at the Donner View Tank Site is complete with the
exception of pavement restoration, which is partially finished. The worts on Skislope Way
and West Reed Avenue has not been started.
Cruz Excavating has been completely paid for the work performed at the Donner View
Tank site, Innsbruck Tank site and Rhineland Avenue. No payments have been made for
on Skislope Way and West Reed Avenue. Overall, Cruz has performed $309,913.97 of
the original contract work and an additional $23,275.75 in change order work. The District
is holding 10% retention in the amount of$33,318.97 and has made payments to Cruz for
$299,870.75.
The work on Chamonix Road is partially complete. The main line pipe has been installed
and Cruz is working on installation of the service laterals and meter boxes. The pipe has
not been pressure tested and pavement restoration has not been performed. The total bid
price for the work on Chamonix Road was $245,357. To date Cruz has earned $107,075
for work on Chamonix Road. Cruz has earned about 44% of the bid price for the work on
Chamonix Road and the worts can be considered about 50% complete.
Cruz has been experiencing significant cash flow issues and has been unable to purchase
the materials necessary to complete the work on Chamonix Road. The District has held a
number of discussions with Cruz regarding this issue. At this point, it has been
determined that the best course of action would be to have Cruz complete the work on
Chamonix Road and delete the work on Skislope Way and West Reed Avenue from the
contract. This amount of worts totals $203,280 ($124,130 for Skislope Way and $79,150
for West Reed Avenue).
In addition, in order to complete the work on Chamonix Road, it will be necessary for the
District to directly purchase the needed materials from the supplier. The estimated cost of
this material is $23,000, including sales tax. There will be a corresponding reduction in the
amount of money paid to Cruz. The Change Order No. 3 is included as Attachment 1.
4. FISCAL IMPACT
The original contract award for Contract C was $656,993.00. It is recommended that a
deductive change order be issued, deleting Skislope Way, West Reed Avenue and
District-furnished materials from the contract. This results in a revised contract price
of$453,988.75.
Original Contract Price $656,993.00
Change Orders to Date $23,275.75
Skislope Way - $124,130.00
West Reed Avenue - $79,150.00
District-Furnished Materials - $23 000.00
Revised Contract Price $453,988.75
5. RECOMMENDATION
Authorize Change Order No. 3 to the District Pipeline Replacement- 2009- Contract C
in a deductive amount of $226,280 subject to the terms and conditions of the Change
Order.
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Ed Taylor Michael D. Holley
Water Utility Manager General Manager
Attachment 1
Change Order
Public
Contract Name: District Pipeline Replacement—2009—Contract C
Contract Change Order No: 3 Orig. Contract Amt. $ 656,993.00 Days NA
Date: September 10, 2009 Prev. Apprd Changes $ 23,275.75 Days NA
Contractor: Cruz Excavating, Inc. This Change $ -226,280.00 Days NA
Revised Contract Amt. $ 453,988.75 Days NA
This Change Order covers changes to the subject Contract as described herein. The Contractor shall construct,
furnish equipment and materials, and perform all work as necessary or required to complete the Change Order
Items for a lump sum price agreed upon between the Contractor and District.
Increase in (Decrease) Contract Time
Contract in Contract Extension
Description of Changes Amount $ Amount $ (days)
1 —Deletion of Work on Skislope Way $124,130.00
2—Deletion of Work on West Reed Avenue $79,150.00
3—Deletion for District Supplied Materials for Chamonix Rd. $23,000.00
Totals $226,280.00
Net change in contract amount(increase or decrease) $226,280.00
The amount of the Contract will be decreased by the sum of $226,280.00 and the Contract Times shall not be
extended. The undersigned Contractor approves the foregoing Change Order as to the changes, if any, in the
contract price specified for each item including any and all supervision costs and other miscellaneous costs
relating to the change in work, and as to the extension of time allowed, if any, for completion of the entire work on
account of said Change Order. The Contractor agrees to furnish all labor and materials and perform all other
necessary work, inclusive of the directly or indirectly related to the approved time extension, required to complete
the Change order items. This document will become a supplement of the contract and all provisions will apply
hereto. It is understood that the Change Order shall be effective when approved by the District.
Accepted: /Contractor Date:
(Signature)
Approved: /District Date:
(Signature)
Pagel