HomeMy WebLinkAbout10 Natural Gas Conversion Agenda Item # 10
Public Willity District
ER
ACTION
To: Board of Directors
From: Kathleen Neus
Date: September 16, 2009
Subject: Consideration of Awarding a Contract for Propane to Natural Gas
Conversion
1. WHY THIS MATTER IS BEFORE THE BOARD
Board approval is required for expenditures in excess of $15,000.
2. HISTORY
Over the past year District staff has been looking for opportunities for operational cost
savings. Transitioning from propane to natural gas for heating the District offices has
been identified as a means of significant cost savings.
3. NEW INFORMATION
In order to implement this conversion, the District must
1) Establish service with Southwest Gas Corporation;
2) Modify the internal piping within the building; and
3) Modify each gas appliance within the main building
On August 25, 2009 the District issued request for bids for propane to natural gas
conversion for the District office complex. Bids were opened on September 9, 2009.
Two bids were received and both were found to be complete and responsive. Bids
received were from B&B Plumbing in the amount of $24,769.00, and Craig Price Inc.,
in the amount of$60,875.00.
4. FISCAL IMPACT
There is sufficient funds in the approved fiscal year 2009 budget to pay for the
conversion.
5. RECOMMENDATION
Award the contract for the natural gas conversion to B&B Plumbing of Truckee in the
amount of $24,769.00 plus a 10% change order authority for a total amount not to
exceed $27,245.90.
Michael D. Holley
General Manager