HomeMy WebLinkAbout16 Evaluation of Martiswoods Elevated TankAGENDA ITEM #16
Page 1 of 3
MEETING DATE: April 6, 2022
TO:Board of Directors
FROM:Neil Kaufman, Water System Engineer
Chad Reed, Water Utility Director
SUBJECT:Consideration a Contract Amendment with Carollo Engineers to
Perform an Engineering Evaluation of the Martiswoods Elevated
Tank
APPROVED BY______________________________
Brian C. Wright, General Manager
RECOMMENDATION:
Authorize the General Manager to execute a contract amendment with Carollo Engineers
to perform an engineering evaluation of the Martiswoods elevated Tank in an additional
amount of $43,458, for new total contract amount of $234, 458, plus a 10% change order
authorization, for a total contract not to exceed amount of $258,000.
BACKGROUND:
The Martiswoods Tank site is located at 11725 Rocky Ridge Court in the Martiswoods
subdivision. There is currently one ground level storage tank, one elevated storage tank
and one pump station at the site. The existing pump station consists of two pumps (one
duty, one standby) that take water from the ground level tank and pump it to the elevated
tank. Pump operations are based off level control in the elevated tank. The pressure zone
served by the elevated tank contains 45 single family homes, with an additional three
homes expected at buildout conditions.
The elevated tank was constructed in 1982. Structural evaluation of the tank determined
that significant effort would be required to perform repairs on the tank and upgrade the
tank to meet current seismic codes. An informal economic evaluation performed by the
District in 2018 determined that it would be more cost effective to replace the elevated tank
Page 2 of 3
with a ground level hydropneumatic pump station. The existing elevated tank and pump
station would be demolished once the new hydropneumatic pump station is completed and
placed into service.
In December 2020, the Board awarded a contract to Farr West Engineering to design the
pump station project. Advertising for bids began in August 2021, and the bid opening was
held on September 22, 2021. Two bids were received. The apparent low bid of $2.1M
was significantly higher than the engineers estimate (approximately $750K) included in the
District’s 10-year Capital Improvement Planning report and 2020 Water Rate Study. The
10-year CIP and the 2020 Water Rate Study were utilized in formulating the Board
approved water rates for FY2021-2025 as well as the FY2022-23 Water Capital Budget.
On October 20, 2021, the Board of Directors rejected both of the bids and directed Water
Department staff to evaluate best alternatives for updating the Martiswoods site.
In June 2021, the District issued a Request for Proposals (RFP) to select a consultant to
perform the engineering evaluations of the District’s potable water tanks. Also included
was the development of contract documents for the rehabilitation of the Roundhill Tank.
After review of the proposals, Carollo Engineers was awarded a contract to perform the
work at the August 4, 2021 Board meeting. An evaluation of the Martiswoods elevated
tank was not included in Carollo’s scope of work because a project to replace the tank was
actively under consideration.
The District recently requested that Carollo provide a price proposal for additional scope of
work to perform an evaluation of the Martiswoods elevated tank. The scope of work
includes:
Perform a site inspection of the tank including ultrasonic thickness testing of the
steel components and dry film thickness testing of the coatings.
Perform a seismic evaluation of the tank
Prepare a report documenting the findings, providing recommendations and
presenting budgetary cost estimates.
The price proposal from Carollo was $43,458.
Analysis
The District’s strategic plan and 10-year CIP includes a long term Water Storage Tank
Maintenance and Rehabilitation Project. As indicated earlier in this report, staff’s original
assessments of the Martiswoods facility, based upon best available information at the time,
was to pursue the replacement of the aging elevated storage tank with a new
hydropneumatic pump station. Taking into the consideration the recent volatility in labor
and materials costs, and supply chain, staff is recommending the District reconsider the
option of rehabilitating the existing water storage tank structure. It is common for water
storage tank rehabilitation efforts to extend the useful life of critical assets for fifteen to
twenty years. Based upon the size and delivery of service for the Martiswoods facility,
rehabilitation has the potential to be a much more economical and beneficial option.
Page 3 of 3
GOALS AND OBJECTIVES:
Staff recommendation supports the following goals and objectives:
Strategic Goals
1. Manage for financial stability and resiliency, Project #5
Objectives
1. Responsibly serve the public
3. Provide reliable and high quality water supply and distribution system to meet
current and future needs
FISCAL IMPACT:
The price proposal from Carollo for the additional engineering work is $43,458. The
original approved contract for engineering services was approximately $191,000, plus a
10% change order authorization for a total not to exceed amount of $210,000. The
approved change order allowance was not sufficient to account for the additional
engineering services needed for Martiswoods Tank evaluation. If approved, the proposed
additional work in the amount of $43,458 will bring the new contract total to $234,458 plus
a 10% change order allowance, for a total not to exceed amount of $258,000. The
approved FY2022 budget includes $949,000 for water storage tank maintenance.
ATTACHMENTS:
None