HomeMy WebLinkAbout12 Donner Lake Circuit No 3 Agenda Item # 12
DONNER
Pitublic Utility District
ACTION
To: Board of Directors
From: Joe Horvath
Date: September 16, 2009
Subject: Reject all Bids Pertaining to the Donner Lake Circuit No. 3
Underground Feeder Project
1. WHY THIS MATTER IS BEFORE THE BOARD
Board authorization is required to reject bids.
2. HISTORY
The Donner Lake Circuit No. 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 feeder circuit is an approved Electric System Master Plan Project for
providing increased electrical capacity and improved reliability. It will be approximately
2 miles long and will be built under existing 60kV transmission lines owned by the
District and NV Energy. Most recently, the Board authorized payment to NV Energy
for the construction of the portion of the circuit to be placed on NV Energy's
transmission line.
As originally designed, the new 12.47kV distribution feeder was planned to be
underbuilt on the District's 60kV transmission line at a cost of approximately $110,000.
Based upon conversations with local contractors who indicated that undergrounding
the circuit would be less expensive than overhead construction, a bid package was
prepared for the installation of conduit and vaults. The bid period was from August 21
to August 28, 2009 and was advertised in the local newspaper.
3. NEW INFORMATION
The District received three bids by the August 28 deadline. The bid results ranged
from $159,000 to about $178,000. Although preliminary quotes indicated that
underground construction would be less expensive compared to overhead
construction costs, the bid results clearly do not favor proceeding with the
underground option. We therefore recommend that the Board exercise the option,
clearly explained in the bid documents, to reject all bids as not being in the best
interests of the District.
4. FISCAL IMPACT
There is no fiscal impact associated with rejecting all bids.
5. RECOMMENDATION
Reject all bids for the Donner Lake Circuit No. 3 Underground Feeder Project as not
being in the best interests of the District.
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Stephen Hollabaugh Michael D. Holley
Assistant General Manager General Manager