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AGENDA ITEM REVIEW FORM |
7.C.
Regular City Council Meeting
- Meeting Date:
- 04/10/2024
- Department Head:
- Eulogio Vera
- Submitted By:
- Jorge Perez, Assistant Director of Public Works, Public Works Department
Action Requested:
Motion
ITEM:
Discussion and possible action on any and all matters regarding the acceptance and award of a construction contract to Yuma Valley Contractors, Inc. for the construction of a new concrete two million gallon water storage tank at well site seven. (Jorge Perez, Assistant Director of Public Works)
SUMMARY:
The Department of Public Works is seeking Council approval for accepting and awarding a construction contract to Yuma Valley Contractors, Inc., 1334 S. 5th Avenue, Yuma, Arizona 85364, for the construction of a new concrete two million gallon water storage tank at well site seven. Yuma Valley Contractors was the lowest responsible bidder for this project under the tank alternative #2 (Concrete Tank) at $4,145,983.78. Under alternative #1 (Steel Tank), the lowest bidder was Taylor Engineering at $4,090,234.05. Public Works and its Water Department evaluated both alternatives, and with the bid tabulation of our engineering consultant, staff is recommending to move forward with the alternative #2 of a concrete tank.
Constructing a concrete tank was more expensive in the past than building a steel tank. By comparing both alternatives (concrete and steel), there is a difference of $55,749.70. The concrete is slightly higher, but the savings will come from the long-term maintenance. From very recent experience, the Department of Public Works had to rehabilitate two steel tanks, one of them costing around $600,000.00 and the second one being estimated at close to $1,000,000.00 due to major roof repairs needed. On the other hand, concrete tanks and structures, in general, will require much less maintenance. Maintenance will be limited to power washing, structural and/or appurtenances upgrades, and periodic engineering testing and inspections (upgrades and inspections are also applicable to steel tanks). Otay Mesa Water District did a comparison/evaluation of periodic maintenance every 15 years for a 2 million gallon on steel and concrete reservoirs/tanks on a 50-year life cycle cost. As a result of that evaluation, the concrete tank maintenance takes only 15% of what it will cost to maintain a steel tank over the 50-year period.
Public Works is seeking Council approval to accept Construction Services from Yuma Valley Contractors, Inc. for this project in the amount of $4,145,983.78. This purchase falls under the provisions of City Code 3.05.030 Bidding. A 5% contingency is included in the bid.
Constructing a concrete tank was more expensive in the past than building a steel tank. By comparing both alternatives (concrete and steel), there is a difference of $55,749.70. The concrete is slightly higher, but the savings will come from the long-term maintenance. From very recent experience, the Department of Public Works had to rehabilitate two steel tanks, one of them costing around $600,000.00 and the second one being estimated at close to $1,000,000.00 due to major roof repairs needed. On the other hand, concrete tanks and structures, in general, will require much less maintenance. Maintenance will be limited to power washing, structural and/or appurtenances upgrades, and periodic engineering testing and inspections (upgrades and inspections are also applicable to steel tanks). Otay Mesa Water District did a comparison/evaluation of periodic maintenance every 15 years for a 2 million gallon on steel and concrete reservoirs/tanks on a 50-year life cycle cost. As a result of that evaluation, the concrete tank maintenance takes only 15% of what it will cost to maintain a steel tank over the 50-year period.
Public Works is seeking Council approval to accept Construction Services from Yuma Valley Contractors, Inc. for this project in the amount of $4,145,983.78. This purchase falls under the provisions of City Code 3.05.030 Bidding. A 5% contingency is included in the bid.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO ACCEPT AND AWARD THE SUCCESSFUL BID TO YUMA VALLEY CONTRACTORS, INC. FOR THE CONCRETE TWO MILLION GALLON WATER STORAGE TANK CONSTRUCTION PROJECT AT WELL SITE #7 NOT TO EXCEED $4,145,983.78 AND DIRECT STAFF TO FINALIZE THE CONTRACT.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- Yes
- CITY/STATE/FEDERAL FUNDS:
- City
- TOTAL:
- $4,145,983.78
- BUDGETED AMOUNT:
- See Fiscal Impact
- AVAILABLE AMOUNT TO TRANSFER:
- N/A
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- See Fiscal Impact
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
The department of Public Works has a FY24 budget for this project of $1,500,000.00. Out of this amount, the full project design and bidding services have been expensed, and the department plans to use about $300,000.00 before the end of the fiscal year. The remaining balance budgeted for fiscal year 2024 has been reallocated to other projects and purchases with council approval. Public Works is requesting the remaining project balance to be funded for fiscal year 2025.