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Home My WebLink About8 Donner Lake Feeder Project Agenda Item # 8 DONNER �il Public Utility District ACTION To: Board of Directors From: Joe Horvath Date: August 05, 2009 Subject: Authorize Payments to NV Energy for the Construction of the Donner Lake Circuit No. 3 Feeder Project 1. WHY THIS MATTER IS BEFORE THE BOARD Board authorization is required for expenditures in excess of$15,000. 2. HISTORY The new Donner Lake Circuit 3 feeder is a new 12.47kV distribution feeder that will originate at the District's Donner Lake Substation and connect to the Tahoe Donner area. This new circuit is needed to increase capacity, improve system performance and reliability. It will be approximately 2 miles long and will be built under existing 60kV transmission lines owned by the District and NV Energy. Major milestones in the history of this project to date include: • January, 2007 - Initial Discussions with NV Energy • August 15, 2007 - Board Approval of a Task Order to prepare the CEQA Initial Study • December 5, 2007 - Board Approval of CEQA Initial Study • December 19, 2007 - Public Hearing on CEQA Initial Study • January 16, 2008 - Adoption of Final CEQA Document • October 15, 2008 - Board Approval of Design and Pole Contact Agreements with NV Energy • July 15, 2009 - Board Approval of Letter of Intent to Purchase Materials from NV Energy 3. NEW INFORMATION NV Energy has completed the design for the portion of the transmission line they own, and they have informed us that they will construct this portion of the project for the District (see attached letter dated July 9, 2009). NV Energy has estimated construction costs to be: $1,200,000 for the rebuild of the existing 60kV transmission line to accommodate the District's new feeder; $350,000 for the construction of the District's new feeder; and $200,000 for the tax liability payment to cover NV Energy's federal tax increase due to the upgrading of their transmission facilities. The total not- to-exceed construction cost for NV Energy's portion of the new underbuild circuit is $1,550,000. The exact amount of the tax liability payment will be known only after construction is complete and actual costs are identified. In addition, the approved CEQA and Storm Water Pollution Prevention Plan (SWPPP) documents require certain environmental mitigations to be performed during construction. We have received a Task Order proposal from Inland Ecosystems in the amount of $13,810 to perform the required mitigation work. The anticipated project schedule is shown below: • August 5, 2009 - Consideration of Payment Authorization to NV Energy for the construction of the Donner Lake Circuit 3 Feeder and associated improvements on NV Energy's transmission line (this action) • August 5, 2009 - Consideration of Approval of a Task Order from Inland Ecosystems to perform environmental mitigations during construction of the Donner Lake Circuit 3 Feeder(this action) • August 17, 2009 - Start of NV Energy Construction • November 1, 2009 - Completion of NV Energy Construction • November, 2009 - Consideration of Approval of a Tax Liability Payment to NV Energy 4. FISCAL IMPACT The source of funding for the new Donner Lake Circuit No. 3 feeder is Facilities Fees as this project provides increased electrical capacity and improves reliability. Sufficient funds exist in the Electric Facilities Fees account to cover the monies due NV Energy for construction of the new underbuild circuit. Authorization to make payment to NV Energy for the tax liability issue will be brought to the Board for action in November 2009, or when actual construction costs are known. 5. RECOMMENDATION Authorize the General Manager to approve payments to NV Energy for an amount not to exceed $1,550,000 for the construction of the Donner Lake Circuit 3, to be funded from Facility Fees. Approve a Task Order in the amount of $13,810 for Inland Ecosystems to perform the environmental mitigations during construction as required by the approved CEQA and SWPPP documents, to be funded from Facility Fees. Stephen Hollabaugh Michael D. Holley Assistant General Manager General Manager A NVE n e Ir o by- July 9,2009 Stephen I follabaugh Electric Utility Manager Truckee Donner Public Utility District P.O. Box 309 Truckee, CA 96160 Dear Steve: Subject: 607 Underbuild Project Please find the following estimate and request for a letter of intent pursuant to the Pole Contact Agreement between Sierra Pacific Power Company, dba NVEnergy, (Sierra) and Truckee Donner Public Utility District (TDPUD). This Agreement grants TDPUD a license to own and operate a 12.47kV distribution feeder along Sierra's#607 60kV transmission line as specified in the referenced contract Agreement. The#607 transmission line is part of the defined Path 24,the"Sierra Summit Path", which tics our system to the California Independent System Operator(ISO)Corporation. It has been determined to be an operationally significant connection between Sierra and PG&E by Western Electricity Coordinating Council (WECC). Sierra will commence rebuilding this line to accommodate TDPUD's distribution circuit this fall with the understanding that a May 1, 2010 date is requested for project completion. Sierra must order long lead materials now to meet the required construction window beginning in September, 2009. A letter of intent to construct and acknowledgement that payment will be required upon delivery of materials is requested as assurances for ordering the non-stock materials. This includes light duty steel poles that have a ten week lead time for$91,379 and non-stock wood poles that have a 4 week lead time for$166,529, Once construction begins, TDPUD will be invoiced for the remaining materials and progress payments for the labor. The estimate for construction of the#607 60kV line is from $1,045,455 to $1,444,013. Construction time ranges from six to ten weeks. This estimate includes the cost component to cover Sierra's estimated liability for Federal Income Tax in accordance with California Public Utilities Decision No. 87-09-026 issued in Investigation No. 86-11-019. Costs have been estimated for this project by the least expensive method which is also in accordance with Sierra's engineering and construction practices. The estimate also assumes: • Worst case scenario for a ten week construction period • A small amount of road construction for construction access • A moderate amount of blasting will be required • Traffic control on 1-80 P.O.BOX 98910, LAS VEGAS,NEVADA 89151-0001 6226 WEST SAMARA AVENUE,LAS VEGAS,NEVADA 89146 P.O.BOX 10100,RENO,NEVADA 89520-0024 6100 NEIL ROAD,RENO,NEVADA 89511 NVEnergy.com o TDPUD will obtain and meet all mitigation measures outlined in the Federal, State and Local permits. This includes obtaining required biological surveys prior to construction and securing a contractor who will implement storm,water pollution prevention measures as required by your permits. o An on-site fire crew o Other items as detailed in the Agreement Sierra welcomes the opportunity to accommodatc'FDPUD's request to utilize Our facilities for this project. Please contact me if you have any questions or concerns, Sincerely, Shauna K. Adams Manager Major Projects Cc: Sanna Schlosser, TDPUD Joe Florvath, 'FDPUD Mike Braithwaite, NVE Greg Lambert,NVE Gary Porter,NVE Colin Harlow, NVE Kelly Toulouse, NVE Ellen Costanza,NVE INLAND ECOSYSTEMS, Inc. WMI 3239 Reno Vista Drive Reno,NV 89512 IN LAN E) Phone: (775) 786-3223 e-mail: gmerron(a,inlandecosystems.com ECOSYSTEMS www.inland ecosystems Mr. Joe Horvath, P.E. July 29, 2009 Electric System Engineer Truckee Donner Public Utility District P.O. Box 309 Truckee, CA 96160 Subject: Proposal to Assist the Truckee Donner Public Utility District with Implementation of California Environmental Quality Act Mitigation Measures for the Electric System Distribution Project Dear Mr. Horvath: Inland Ecosystems (IE) is pleased to submit this Proposal to the Truckee Donner Public Utility District (District) to assist with the implementation of California Environmental Quality Act (CEQA) Mitigation Measures for the Electric System Distribution Project. Capital improvements to the District's electric system are required to provide for load growth, increase system capacity, and to maintain the operational flexibility of the system. 1.0 SCOPE OF WORK The following project includes: 1) Installation of 12,000 feet of new distribution feeder to be underbuilt on an existing transmission line that connects Donner Lake and Tahoe Donner Substations. A CEQA Initial Study for this project was undertaken and prepared in accordance with State Guidelines. The Initial Study concluded that with implementation of Mitigation Measures outlined below the project would not have a significant effect upon the environment. TASK 1: Biological Resources Mitigation Measure BIO-2: Implement Avoidance Measures on Sensitive Habitats Prior to beginning construction, Inland Ecosystems will delineate Environmentally Sensitive Areas (ESAs) for limiting work areas near sensitive habitats to the minimum possible area. 1 These areas include wetland habitat at the crest of the hill and near Interstate-80. The ESAs will be delineated with orange safety fencing. Fencing shall remain in place until all work is complete. The three (3) drainages areas also at the crest of the hill will need to be covered with steel plates by contractors where these cross the existing access road to avoid temporary and permanent impacts. Inland Ecosystems will install the orange safety fencing and provide an environmental monitor during work near sensitive habitats to prevent impacts. Inland Ecosystems estimates this task to cover approximately 24-working hours. TASK 2: Cultural Resources Mitigation Measure CULT-1: Provide an Environmental Monitor to Minimize Construction Impacts on Cultural Resources and Retain a Registered Professional Archeologist and During project activities, Inland Ecosystems will have a Registered Professional Archeologist on-call. In the event that evidence of cultural resources is encountered during project activities, the archeologist would be notified to record such resources and gather available information. An environmental monitor would be on-site to cover the section of the underbuilt from the crest of the hill south to 1-80 and areas where new poles may be required to ensure no cultural resources are impacted. If any potentially undiscovered cultural resources are identified appropriate measures will be taken to avoid impacts. Inland Ecosystems will coordinate any findings with the appropriate state, federal, and tribal entities according to standard reporting procedures to avoid disruption of any archaeological and historical resources. Based on discussion with Joe Horvath, it is estimated to take approximately 9 working days to complete that section of the work. In addition, Inland has estimated an additional 3 days time to monitor any sites where excavation may be required for the underbuilt installation at other locations along the entire transmission corridor. A total of 120 hours has been allocated to this task. TASK 3: Hydrology and Water Quality Mitigation Measure HWQ-1: Implement Best Management Practices (BMPs) and Erosion Control Measures to Prevent Discharge of Construction Related Pollutants to Surface Waters Inland Ecosystems will ensure the project is conducted in accordance with the State Water Resources Control Board (SWRCB) statewide National Pollutant Discharge Elimination System (NPDES) General Permit for Discharges of Storm Water Associated with Construction Activity and includes compliance with a Storm Water Pollution Prevention Plan (SWPPP) for the protection of water quality. The District's SWPPP meets the requirements of the SWRCB for this project. Inland Ecosystems will assist the District with implementation of the SWPPP. Inland Ecosystems will carry out an on-site training workshop to identify where Best Management Practices (BMPs) and erosion control measures must be in place. Inland Ecosystems estimates this task to cover approximately 24 working hours. 2 TASK 4: Mitigation Measure HWQ-2: Implement a Hazardous Spill Prevention and Control Program Inland Ecosystems shall develop a spill prevention and control program to minimize the potential for spills of hazardous substances during construction activities. The plan will be completed before any construction activities begin, and shall include provisions for preventing, containing, and reporting spills of hazardous materials. Inland Ecosystems will carry out an on-site training workshop to identify the spill prevention program concurrent with identification of where Best Management Practices and erosion control measures must be in place. Inland Ecosystems estimates this task to cover approximately 16 man hours. 2.0 INLAND ECOSYSTEMS TEAM The IE team members have worked together on numerous projects and are highly trained biologists and cultural resource specialists. Dr. Glenn Merron will supervise all aspects of the proposed scope of work. He has over 25 years of experience and has served as Project Manager for numerous District projects. We have a proven track record of delivering quality products. Our costs to carry out this work will be on a "Time and Materials"basis, not-to-exceed $13,810. Thank you for this opportunity to respond to your Request for this Proposal. Should you have any questions pertaining to this proposal please contact me at (775) 786-3223. Sincerely, Glenn Merron, Ph.D. 3 WORK AUTHORIZATION ORDER 2009 ELECTRIC SYSTEM MITIGATION MONITORING July 29, 2009 This Work Authorization Order confirms the agreement between the Truckee Donner Public Utility District (District) and Inland Ecosystems (Contractor) to provide certain services pursuant to and in accordance with the Scope of Work as defined above. (i) Schedule, Completion Date TASK 1: Mitigation Measure BI0-2: Implement Avoidance Measures on Sensitive Habitats TASK 2: Mitigation Measure CULT-1: Provide an Environmental Monitor to Minimize Construction Impacts on Cultural Resources and Retain a Registered Professional Archeologist TASK 3: Mitigation Measure HWQ-1: Implement Best Management Practices and Erosion Control Measures to Prevent Discharge of Construction Related Pollutants to Surface Waters TASK 4: Mitigation Measure HWQ-2: Implement a Hazardous Spill Prevention and Control Program (ii) Compensation, Invoicing and Payment: a. Fee. The fee for Work performed by Contractor pursuant to this Work Authorization Order will be on a "Time and Materials" basis, not-to-exceed $13,810. The fee is based on the following breakdown: TASK 1 = $2,045 TASK 2 = 8,165 TASK 3 = 2,140 TASK 4 = 1,585 b. Invoicing and Payment. Consultant will submit an invoice to the District within seven (7) days after the end of each month on which Work is performed. Payment is due within fourteen (14) days of receipt of each invoice. ACCEPTED: Truckee Donner Public Utility District Inland Ecosystems, Inc. By: By: Title: Title: Date: Date: 4 TABLE 1: Estimated Costs: CEQA Compliance for the Electric System Distribution Project. Estimate of hours by task TASK 1 TASK 2 TASK 3 TASK 4 TOTAL Personnel: G. Merron 12 16 16 44 A. Bell 12 120 8 140 f TOTAL HOURS 24 120 24 16 184 184 RATE G. Merron $95 $1,140 $0 $1,520 $1,520 $4,180 A. Bell $65 $780 $7,800 $520 $0 $9,100 LABOR COST $1,920 $7,800 $2,040 $1,520 $13,280 OTHER DIRECT COSTS TASK 1 TASK 2 TASK 3 TASK 4 TOTAL PERS MILE $0.51 $50 $350 $50 $50 $501 MISC SUPPLIES $75 $15 $50 $15 $155 TOTAL $125 $365 $100 $65 $530 TOTAL COSTS $2,045 $8,165 $2,140 $1,585 $13,810 Tasks: 1 Implement Avoidance Measures on Sensitive Habitats 2 Provide Environmental Monitor and Retain on-call Archeologist. 3 Implement BMP and Erosion Control Measues 4 Implement a Hazardous Spill Prevention and Control Program