Item Coversheet
  Agreements and Contracts - Action
3.

M E M O R A N D U M

TO: 

Board of Directors 
FROM:

Daryl Hensler, Director of Field Services

Lance Hartung, Deputy Director of Field Services

 
DATE:

July   12, 2021
RE:

Freeman Canal Pipeline Rehabilitation Project

RECOMMENDATION:
 

Approve a General Services Agreement with NorCal Pipeline Services to perform cure-in-place pipe (CIPP) lining for the Freemen Canal Pipeline Rehabilitation project in an amount not to exceed $95,000.

BACKGROUND:
 

The Field Services Department is preparing to rehabilitate a section of the Freeman Canal Pipeline at Alta Mesa Drive in Auburn. The 460-foot long section of pipeline has been the source of many slow leaks over the years.  This particular section of pipeline is almost exclusively located in customers’ back yards with very limited access, making it a good candidate for a CIPP solution.

 

Pipeline rehabilitation using a CIPP solution involves cleaning and clearing a section of pipe between two access points and then pulling in a flexible liner infused with resin epoxy.  After the liner is in place, a bladder is then inserted, pressurized, and run the length of the pipe to form the liner to the inside of the host pipe.  The liner then hardens to form a structural pipe within the host pipe.

 

In accordance with the Agency's Procurement Policy, Field Services solicited for and received three quotes for rehabbing the pipe with CIPP technology.  NorCal Pipeline Services was the lowest of the three quotes at $74,300. Because the overall condition of the entire pipe will not be known until the work commences, there is a contingency fund in the amount of $20,700 included in the not-to-exceed total to ensure the work is completed without delay.  This contingency is for unforeseen conditions only and is not a guarantee of work.

FISCAL IMPACT:
 
    Project-to-Date Budget $ 117,000  
Additional Funding Request   0  
Subtotal Budget   117,000  
  Less Project-to-Date Expenses and Encumbrances   16,758  
  Available in Project Budget (current)   100,242  
  Less Proposed Action   95,000  
  Total Available in Project Budget (proposed) $ 5,242  

 

Funding for this project comes from Water Division, Rates Projects - Raw Water Transmission & Distribution.  There are sufficient funds within the project budget to cover the not-to-exceed amount of $95,000.