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HomeMy WebLinkAbout15 Airport Tank Rehab AwardAM TRUCKEE DONNERAGENDA Public Utility District MEETING DATE: October 6, 2021 TO: Board of Directors FROM: Neil Kaufman, Water System Engineer SUBJECT: Consideration Award of a Contract to Perform Rehabilitation of the Airport Storage Tank APPROVED BY RECOMMENDATION: ( - _: - C _/_ � /-/- �/ Brian C. Wright, General Manager Authorize the General Manager to execute a contract to DN Tanks to perform rehabilitation of the Airport Tank in an amount of $349,700, plus a ten percent change order allowance for a total authorization not to exceed $385,000. BACKGROUND: The Airport Tank is a 500,000 gallon partially buried pre -stressed concrete tank that was constructed in 1980. During the summer of 2010, DN Tanks performed repairs to the dome ring of the Airport Tank under an emergency declaration. The dome ring is located where the vertical walls and roof join together and is critical to supporting the roof structure. The work was completed on -time and with no change orders. In 2010, it was noted that the tank was experiencing concrete spalling from the roof on both the interior and exterior surfaces. However, this issue was not considered critical to the structural integrity of the tank at that time and was not included in the scope of work under the emergency. Over the last ten years, Water Department staff have periodically conducted concrete patch work to the roof in order to extend the life of the coatings. Based on recent inspections performed in the fall of 2020 and summer of 2021, the Airport Tank requires substantive repairs to the roof system along with replacement of many of the interior steel components such as the access ladder and overflow structure. Page 1 of 2 It is staff's understanding that there are only a few contractors nationwide with the experience and capability to perform work of this nature. Most of these companies are located in the eastern and southern areas of the country with DN Tanks as the only firm that has a strong west coast presence. Based on DN Tank's specific expertise in this field of work and their strong familiarity with the specific structural details of the Airport Tank (having conducted the previous emergency rehabilitation work), staff has determined the rehabilitation of Airport Tank to be a sole source procurement and there to be no material benefit for the District to seek competitive bids. DN Tanks has provided a price proposal of $349,700 to perform the necessary work. It is expected that the rehabilitation work will require about six weeks to complete. While the work is being performed, the Airport Well will be unavailable to serve customer demands. The concrete work also requires that temperatures do not go below freezing for a relatively lengthy period of time, period beginning with the start of construction and extending through the curing phase of the concrete work. Considering both of these operational and construction restrictions, this rehabilitation work can only be performed during the period of April -May or late September -October. DN Tanks has tentatively placed the Airport Tank work onto their schedule for the April -May 2022 period. Approval of the rehabilitation contract at this time will ensure that the project can be scheduled and performed at the time most advantageous to the District's water utility operations. 1.05.020 Objectives: 1. Responsibly serve the public. 6. Manage the District in an effective, efficient, and fiscally responsible manner. 1.05.030 Goals: 3.4. Conduct effective and efficient operations, maintenance, and replacement programs. FISCAL IMPACT: The price proposal from DN tanks is $349,700. It is recommended that a ten percent change order allowance of $35,300 be established for a total authorization of $385,000. Tank rehabilitations are a component of the 10-year water capital improvement plan and the draft FY2022 Budget for Water Utility includes this capital expenditure of $385,000. ATTACHMENTS: None Page 2 of 2