HomeMy WebLinkAboutRES 1991-27 - Board RESOLUTION NO. 9127
OF THE
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
MAKING FINDINGS AND APPROVING CONTRACT
CHANGE ORDER NO. 2 FOR EACH OF THE
TAHOE DONNER PIPELINE
REPLACEMENT PROJECT CONTRACTS
WHEREAS, the water distribution system in the Tahoe Donner Subdivision has
been the source of numerous leaks in the past, resulting in (1) loss of extensive quantities
of water, (2) extensive pumping costs of water which is ultimately lost through such leaks,
and (3) costly and time-consuming repairs; and
WHEREAS, during 1990 and 1991 the District resolved to replace the pipelines with
leaks which it could reasonably afford to; and
WHEREAS, the District engaged SEA, Inc., as consulting engineers, to advise it
with respect to which pipelines are in need of replacement, and to supervise the
replacement project; and
WHEREAS, SEA, Inc. provided the District with a map of the entire Tahoe Donner
Subdivision, delineating those lengths of pipeline that were seriously leaking and in need
of replacement, and estimating the replacement cost; and
WHEREAS, based on SEA, Inc.'s estimate of the cost of the pipeline replacement,
the District determined that it could not afford to replace all defective pipelines, but instead
could only replace approximately 71,640 feet of pipeline, which is only a portion of those
pipelines that were seriously leaking; and
WHEREAS, during 1991 the District issued Certificates of Participation in order to
raise necessary funds for the Tahoe Donner Pipeline Replacement, but had determined
that only approximately$6.5 million was available for actual construction work associated
with the Tahoe Donner Pipeline Replacement; and
WHEREAS, under federal,law,the money received from the issuance of Certificates
of Participation must be expended within two years, thereby requiring that all construction
projects financed by the Certificates of Participation be completed during either the
summer of 1991 or the summer of 1992; and
WHEREAS, in the spring of 1991 the District awarded three contracts, known as
Contracts A, B, and C, to two different contractors calling for the replacement of that
section of pipeline that the District determined that it could afford; and
WHEREAS, the bids received from the contractors were substantially lower than
had been anticipated by the District and by its engineers. Set forth below are the
engineers' estimate for each contract, the actual amount of the bids that were accepted,
and the difference, representing funds of approximately $1,900,000 still available for use
on the Tahoe Donner Pipeline Project:
Contract A Contract B Contract C
Engineers' Estimate $2,363,940 $3,390,125 $642,300
Actual Bid Price $1,601,000 $22238,143 $613,330
Remaining Funds $ 762,940 $1,151,982 $ 28,970
WHEREAS, realizing that there were excess funds available for additional pipeline
replacement, the District requested that SEA, Inc. advise the District with respect to
additional pipeline sections, in need of repair, that might be added to the existing
contracts; and
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WHEREAS, by the letter dated August 19, 1991, SEA, Inc. advised the District and
recommended that Contracts A, B, and C be changed to provide for the addition of a
total of approximately 11,045 feet of additional pipeline, the precise amounts of which and
cost of which are shown below for the three contracts:
Contract A Contract B Contract C
Pipeline Added 5,945 feet 4,700 feet 400 feet
Additional Cost $469,200 $398,900 $50,000
WHEREAS, District Counsel advised the District that California law does not contain
any explicit restrictions on the ability of the District to increase (1) the length of pipeline
covered by the contracts, or (2) the dollar amount added to the contracts; and
WHEREAS, both of the contractors employed by the District have indicated a
willingness to undertake the work, and both have indicated that they believe they could
accomplish the additional work during the 1991 building season; and
WHEREAS, the unit price used in arriving at the amount of the contract change
order is the same unit price contained in the contractors' original bids, increased only by
the cost of moving their equipment from one location to another, and by the cost of
overtime pay required to complete the work during the 1991 building season; and
WHEREAS, SEA, Inc. has advised the District that the unit prices contained in the
existing contracts are very favorable to the District, and that it is possible that if the new
work proposed to be done is put out for bid during the 1992 building season, the unit
prices could be considerably higher. In addition, SEA, Inc. has advised the District that
if the work were put out for bidding for the 1992 building season, contractors bidding on
such work would undoubtedly have considerable additional mobilization expenses for
which the District would ultimately be responsible; and
WHEREAS, it would be to the District's advantage to repair the existing leaks
during the 1991 building season, in order to limit the amount of water lost from the leaking
pipes; and
WHEREAS, as indicated above, because the water used in the Tahoe Donner
pipeline system must be pumped up to a high elevation, at considerable expense to the
District, any water lost through leaking pipes represents a serious financial loss to the
District; it would therefore be extremely advantageous to the District and to its ratepayers
to approve the change orders as described above, and the District would experience a
substantial savings in money as compared to completing the proposed work during the
1992 building season.
NOW, THEREFORE, BE IT RESOLVED by the Directors of the Truckee Donner
Public Utility District as follows:
1. All of the recitals set forth above are hereby adopted as findings by the
District.
2. SEA, Inc. and the District General Manager are directed to proceed to
accomplish the change orders set forth above, and are authorized and
directed to take all steps necessary to accomplish such change orders.
PASSED AND ADOPTED by the Board of Directors of the Truckee Donner Public
Utility District at a meeting thereof duly called and held within said District on the 19th day
of August, 1991, by the following roll call:
-a-
AYES: Aguera, Corbett, Curran, Maass
NOES: -Sutton
ABSENT: None
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
4=1h Aguera, esident
ATTEST:�
usan M. Craig, Deputy District Jerk
TDPUD\pipeline.res