HomeMy WebLinkAbout8 Pipeline Skislope Way Agenda Item # a
Public Utility District
ACTION
To: Board of Directors
From: Neil Kaufman
Date: September 16, 2009
Subject: Consideration of an Award of a Contract for the Construction of
Water Pipeline and Electrical Pipeline on Skislope Way
1. WHY THIS MATTER IS BEFORE THE BOARD
Board approval is required to issue a contract 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 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.
Contract C included construction at six separate locations: Chamonix Road, Donner View
Tank Site, Innsbruck Tank Site, Rhineland Avenue, Skislope Way and West Reed
Avenue.
During the Summer of 2009, Cruz Excavating experienced significant cash flow issues
and has been unable to complete the work of Contract C. On September 10, 2009, the
Board of Directors approved a change order deleting the construction work on Skislope
Way and West Reed Avenue from Contract C.
In July 2009, the District awarded a contract to Par Electrical Contractors for construction
of the Tahoe Donner Station Rebuild project. Progress on this project is proceeding
according to schedule.
3. NEW INFORMATION
The construction work on Skislope Way involves the installation of about 585 feet of water
pipe. About 200 feet of this water pipe involved construction of a joint trench containing
electric and communications conduits in addition to the water pipe. The construction also
calls for other appurtenances such as service laterals, meter boxes, valves, pull boxes and
pole risers.
Construction of the Tahoe Donner Substation Rebuild project requires that the substation
be taken out of service during the Summer of 2010. In order to provide service to
customers while the substation is off-line, the electrical loads normally served by the
Tahoe Donner Substation will be split between the Donner Lake, Martis and Truckee
substations. Completion of the work on Skislope Way is essential to allow electrical
service in the Tahoe Donner subdivision to be served from the Donner Lake Substation.
The bid specifications for Contract C called for the work on Skislope Way to be performed
in late May and early June of 2009. However, the project site experiences high levels of
groundwater and surface runoff in the Spring due to snowmelt. Consequently, the
construction was postponed to the Fall of 2009. It is expected that similarly high
groundwater levels would be encountered in May of 2010, making the construction at that
time extremely expensive, if not impossible. Therefore, construction of the work on
Skislope Way this Fall is necessary to allow the Tahoe Donner Substation Rebuild project
to move forward without delays. Due to the regulatory restrictions imposed by the
Lahontan Regional Water Quality Control Board, it is critical that the construction begin as
soon as possible to ensure that it is completed by the October 15 deadline. At this point,
sufficient time does not exist to utilize the normal construction bidding process and it is
recommended that the District dispense with competitive bidding for this work. A draft
Resolution (2009-XX) is included as attachment 1 for Board review.
As noted above, nineteen bids were received for the District Pipeline Replacement -
2009 - Contract C project. After rejection of the bid from Wunschel & Sons, the low bidder
was found to be Cruz Excavating. The next lowest bidder was AM-X Construction and
Excavation (AMX)of Truckee.
After the approval of Change Order No. 3 on September 10, District staff approached
AMX regarding any interest in performing the construction work on Skislope Way. The
original bid price submitted by AMX was for Contract C was $662,080.50. The portion of
the bid price for the work on Skislope Way was $110,914.80. AMX is willing to honor the
bid prices submitted with its original bid. However, AMX has requested a sum of$18,300
to cover mobilization and other project startup costs. This results in a total bid price of
$129,214.80.
4. FISCAL IMPACT
The work on Skislope Way is funded from three sources, 2006 COP funds, Water
Department Facility Fees and Electric Department Facility Fees. The proposed funding
breakdown is:
Funding Source Amount
2006 COP Funds $71,919.90
Water Department Facility Fees $10,372.70
Electric Department Facility Fees $46,922.20
Total $129,214.80
Sufficient funds exist in all of these sources to cover the cost of the project.
5. RECOMMENDATION
1) Approve Resolution 2009-XX, directing that competitive bidding be dispensed with
in connection with the construction work on Skislope Way.
2) Award a contract for construction of the work on Skislope Way to AM-X
Construction and Excavation in the base amount of$129,214.80, plus a 10 percent
change order allowance of $12,921.48 for a total amount not to exceed of
$142,136.28.
3) Authorize the transfer of up to $79,111.89 from COP funds to the Water
Department General Fund, up to $11,409.97 from Water Department Facility Fees
to the Water Department General Fund and up to $51,614.42 from the Electric
Department General Fund to the Water Department General Fund to cover the
cost of the contract.
Ed Taylor Michael D. Holley
Water Utility Manager General Manager
POF J
Resolution No. 2009 - XXX
Directing that Competitive Bidding be Dispensed
with in Connection with the District Pipeline
Replacement Project on the Skislope Way
WHEREAS, pipeline construction projects have been undertaken during 2006, 2007, 2008
and 2009; and
WHEREAS, on February 24, 2009, a bid opening was held and nineteen bids were
received; and
WHEREAS, on March 4, 2009, the Board awarded District Pipeline Replacement—2009—
contract C to Cruz Excavating; and
WHEREAS, the District has recently taken action to authorize a change order No. 3 to the
District Pipeline Replacement— 2009 — Contract C; and
WHEREAS, Pipeline Replacement Project on Skislope Way and West Reed Avenue was
deleted from the contract; and
WHEREAS, the District needs to complete the scope of work planned for Skislope during
this construction season to better serve its electric and water customers; and
WHEREAS, failure to complete the work on Skislope will expose the District to additional
costs, and project delays of up to one year, and expose the District's Electric Customers to
unnecessary potential disruptions in electric service; and
WHEREAS, the second responsive bidder was AM-X Construction and Excavation; and
WHEREAS, the District wishes to award the Pipeline Replacement work on Skislope to
AM-X Construction and Excavation in the amount of$129,214.80; and
WHEREAS, Public Contract Code Section 22050 provides that in the case of an
emergency, a public agency, pursuant to a four-fifths vote of the governing body, may
repair or replace a public facility, take any directly related and immediate action required by
that emergency, and procure the necessary equipment, services, and supplies for those
purposes, without giving notice for bids to let contracts; and
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NOW, THEREFORE, BE IT RESOLVED that the Board of Directors adopts the above
recitals as its findings; and
BE IT FURTHER RESOLVED that the District shall therefore dispense with competitive
bidding for the Pipeline Replacement Project on Skislope Way.
PASSED AND ADOPTED by the Board of Directors at a meeting duly called and held with
the District on the 16th day of September, 2009 by the following roll call vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
By
j. Ron Hemig, President
ATTEST:
Michael D. Holley, Clerk of the Board
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