HomeMy WebLinkAbout8 District Pipeline Replacement Materials Agenda Item # 8
RUCKEE DONNER
Public Utility District
ACTION
To: Board of Directors
From: Ed Taylor
Date: September 10, 2009
Subject: Consideration of the Purchase of Materials for the District Pipeline
Replacement— 2009 — Contract C
1. WHY THIS MATTER IS BEFORE THE BOARD
Board approval is required for purchases in excess of$15,000.
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 Board awarded Contract C 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
Cruz Excavating 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.
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. Cruz has been purchasing piping materials for the
project from Western Nevada Supply. Western Nevada Supply can supply the necessary
piping materials and they are available for delivery to the project site once the financial
considerations have been addressed. It should also be noted that of the $23,000 total,
about $19,000 accounts for the purchase of meter boxes. The meter box specified by the
District is manufactured by the Mueller Company and Western Nevada Supply holds
exclusive distribution rights for Mueller meter boxes in the Truckee area. Therefore, this is
a sole source purchase of materials from Western Nevada Supply.
4. FISCAL IMPACT
The estimated cost of the materials necessary to complete the work on Chamonix Road is
$23,000, including sales tax.
5. RECOMMENDATION
1) Authorize the purchase of piping materials as needed to complete the work on
Chamonix Road from Western Nevada Supply in an amount not to exceed $23,000.
2) Authorize the transfer of funds from the 2006 COP to the Water Department General
Fund to cover the cost of the materials.
01 "
Ed Taylor Michael D. Holley
Water Utility Manager General Manager