9.D.
City Council Meeting - DRAFT
- Meeting Date:
- 06/02/2015
- From:
- Thomas Bolyen, Water Production Manager
Information
TITLE:
Consideration and Approval of Contract: Contract with Southwest Tank and Steel, Inc. in the amount of $249,178.00 (Cheshire Water Tank Rehabilitation).
RECOMMENDED ACTION:
1) Approve construction contract with Southwest Tank and Steel, Inc. in the amount of $249,178 (includes a $10,000 contingency allowance) and a contract time of 90 calendar days.
2) Approve Contract Change Authority to the City Manager in the amount of $24,917.80 (10% of the contract amount, less allowance).
3) Authorize the City Manager to execute the necessary documents
Executive Summary:
In 2012, Utilities Division hired HDR Engineering, Inc. to conduct a condition assessment of the 1.3 million gallon above ground Cheshire Reservoir Water Tank. The assessment revealed the steel tank was deteriorating and in need of restoration. The water tank was built in 1981 the original interior cold tar coating which is designed to protect the steel structural material has failed and is need of removal and replacement. The exterior is also warn from weathering and the paint is peeling. This contract will extend the useful life of this critical piece of Utilities infrastructure.
Financial Impact:
This project has been funded through the Utilities Fund’s Capital Improvement Program. Funds are budgeted at $289,500 in account 202-08-370-3185-0-4435.
Connection to Council Goal and/or Regional Plan:
Council Goals
2) Ensure Flagstaff has a long-term water supply for current and future needs;
3) Provide sustainable and equitable public facilities, services, and infrastructure systems in an efficient and effective manner to serve all population areas and demographics;
Regional Plan
Chapter VI, WR.2.1, Develop and adopt an integrated water master plan that addresses water resources, water production and its distribution, wastewater collection and its treatment, and reclaimed water treatment and its distribution.
Chapter VI, Policy WR.2.2, maintain and develop facilities to provide reliable, safe, and cost-effective water, wastewater and reclaimed water services.
2) Ensure Flagstaff has a long-term water supply for current and future needs;
3) Provide sustainable and equitable public facilities, services, and infrastructure systems in an efficient and effective manner to serve all population areas and demographics;
Regional Plan
Chapter VI, WR.2.1, Develop and adopt an integrated water master plan that addresses water resources, water production and its distribution, wastewater collection and its treatment, and reclaimed water treatment and its distribution.
Chapter VI, Policy WR.2.2, maintain and develop facilities to provide reliable, safe, and cost-effective water, wastewater and reclaimed water services.
Has There Been Previous Council Decision on This:
None
Options and Alternatives:
Option 1. Award the contract to Southwest Tank and Steel, Inc. as the lowest responsive, responsible bidder.
Option 2. Reject the award of this contract and request staff to re-bid the project.
Option 3. Reject the award of this contract and do not provide this maintenance recommended by the condition assessment (this may lead to premature and possible catastrophic failure of the reservoir water tank).
Option 2. Reject the award of this contract and request staff to re-bid the project.
Option 3. Reject the award of this contract and do not provide this maintenance recommended by the condition assessment (this may lead to premature and possible catastrophic failure of the reservoir water tank).
Background/History:
Cheshire Reservoir Water Tank is located in the Cheshire neighborhood in the northwest part of Flagstaff. This reservoir is essential to our current reservoir storage capacity of 22.9 million gallons of potable water. A dry inspection and condition assessment was conducted in February 2012 by HDR Engineering, Inc. They determined long term remaining service life of this water tank is possible with timely and consistent rehabilitation. One key finding was that the coatings are at the end of their useful life and are in need of restoration.
Staff issued a solicitation for construction bids, and was advertised on March 22 and 29, 2015. Five bids were received by the opening date of April 6, 2015, and Southwest Tank and Steel, Inc. was determined to be the lowest responsive responsible bidder. Bid award is determined by base bid $199,394.00 plus Additive Alternate #1 in the amount of $49,784.00, for a total recommended award of $249,178.00 (included in all bids). A tabulation of base bids plus the additive alternate received is summarized below in the Expanded Financial Considerations.
Staff issued a solicitation for construction bids, and was advertised on March 22 and 29, 2015. Five bids were received by the opening date of April 6, 2015, and Southwest Tank and Steel, Inc. was determined to be the lowest responsive responsible bidder. Bid award is determined by base bid $199,394.00 plus Additive Alternate #1 in the amount of $49,784.00, for a total recommended award of $249,178.00 (included in all bids). A tabulation of base bids plus the additive alternate received is summarized below in the Expanded Financial Considerations.
Key Considerations:
If rehabilitation is delayed, Cheshire Reservoir Tank will experience significant steel section losses in critical areas, which will shorten its service life and significantly increase future costs.
Expanded Financial Considerations:
| Contractor | Bid | Additive Alt 1 | Total |
| Southwest Tank | $ 199,394.00 | $ 49,784.00 | $ 249,178.00 |
| Blasco, Inc | $ 172,133.00 | $ 115,532.00 | $ 287,665.00 |
| AZ Coating | $ 224,475.00 | $ 70,000.00 | $ 294,475.00 |
| MMI Tank & Ind. | $ 261,071.00 | $ 101,000.00 | $ 362,071.00 |
| DeLeon Painting | $ 264,405.00 | $ 112,272.00 | $ 376,677.00 |
Attachments
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Purchasing Manager | Patrick Brown | 05/18/2015 03:47 PM |
| Purchasing Director | rcompau | 05/19/2015 10:55 AM |
| Purchasing Manager | Patrick Brown | 05/19/2015 11:01 AM |
| Legal Assistant | Vicki Baker | 05/22/2015 09:23 AM |
- Form Started By:
- tbolyen
- Started On:
- 05/01/2015 03:02 PM
- Final Approval Date:
- 05/22/2015