HomeMy WebLinkAbout12 Roundhill Tank AwardTRUCKEE DONNER 'ITEM #12
Public Utility District
MEETING DATE: May 4, 2022
TO: Board of Directors
FROM: Neil Kaufman, Water System Engineer
Chad Reed, Water Utility Director
SUBJECT: Consideration of a Contract to Perform Rehabilitation of the Roundhill
Storage Tank
APPROVED BY
Brian C. Wright, General Manager
RECOMMENDATIONS:
a) Allow Unified Field Services to withdraw its bid due to an administrative error.
b) Waive the minor irregularity associated with the failure of Resource Development
Company to acknowledge Addendum No. 2 on its bid forms.
c) Award a contract to perform rehabilitation of the Roundhill Storage Tank to
Resource Development Company in an amount of $585,160, plus a ten percent
change order allowance for a total authorization not to exceed $643,700.
BACKGROUND:
The District currently operates 33 water storage tanks located throughout the water
distribution system:
• 30 ground level welded steel tanks
• Two ground level bolted steel tanks
• One partially buried pre -stressed concrete tank
The tanks range in volume from 100,000 gallons to 1.5 million gallons with the oldest tank
constructed in 1963 and the newest tank constructed in 2005.
Historically, the District has devoted much of its maintenance and replacement resources
to higher priority projects including our extensive water main replacement and repair
projects in the efforts to reduce water loss. The maintenance and upgrade of storage
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tanks has been allocated very modest funding in the past, but the District has recently
included significantly higher funding allocations for these efforts in the current water
operating budgets. Many of these tanks are still utilizing their original interior coating
systems, which are approaching 50 years old. The design standards and seismic
engineering requirements have also changed significantly and many of the tanks do to
not meet current standards.
The issue of storage tank maintenance was identified during preparation of the 2020
Water System Capital Improvement Plan and a significant increase in funds for this
activity was planned. In order to efficiently spend these maintenance funds, the need for
an outside engineering consultant was identified. The consultant would assist the District
with the following:
• Seismic Evaluation - Conduct a seismic evaluation of all of the ground level steel
water tanks; identify potential solutions to minimize seismic risk for each tank; and
prepare budget level cost estimates for these potential solutions.
• Rehabilitation of Roundhill Tank — The Roundhill Tank was constructed in 1974.
Based on the most recent inspections and maintenance history, it is judged to be
the tank most in need of rehabilitation. The consultant would perform more
detailed evaluations of the Roundhill Tank and then prepare a set of bid documents
to rehabilitate the tank and upgrade it to current standards.
In June 2021, the Water Department issued a Request for Proposals (RFP) to select a
consultant to perform the engineering work. After review of the proposals, a contract was
awarded to Carollo Engineers in August 2021.
Bid documents for the rehabilitation of Roundhill Tank were completed in March 2022.
The bidding documents were structured as a base bid with five bid alternates. The base
bid covered replacement of the inlet and outlet piping, welding repairs, and recoating of
both the tank interior and exterior. The five bid alternates covered items that would
upgrade certain features to current standards. These items are:
• Replacement of the interior ladder
• Replacement of the roof access hatch and safety handrail
• Installation of two new roof vents
• Replacement of the roof eave vent cover plates
• Installation of a sample tap assembly
The District began advertising for bids and the bid opening was held on April 20, 2022.
Two bids were received.
AMOUNT OF BASE BID
Bidder
Location
Amount
Responsive
LUn:if:ie::d:::F:ield Services Corporation
Bakersfield, CA
$425,950.05
Yes
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Resource Development Company Sparks, NV $552,660.00 Yes
As shown above, Unified Field Services (UFS) was the apparent low bidder. On April 21,
the District received a letter from UFS stating that an administrative error occurred in
preparing its bid documents. UFS requested that its bid be withdrawn. This letter was
reviewed by the District's legal counsel and it was determined that the letter meets the
requirements of the Public Contract Code. Therefore, it is recommended that the District
allow UFS to withdraw its bid and proceed with awarding the contract to Resource
Development Company (RDC).
The bid prices for the bid alternates from RDC are:
BID ALTERNATE PRICING
Item
Amount
Interior Ladder
$7,900
Roof access hatch and handrail
$8,700
Roof vents
$7,600
Eave vent cover plates
$6,200
Sample tap assembly
$2,100
Total
$32,500
District staff has reviewed the pricing for the bid alternates and it is recommended that
the District proceed with all of the bid alternates.
It should be noted that RDC failed to acknowledge Addendum No. 2 on its bid forms.
District staff has discussed this issue with RDC. Addendum No. 2 is relatively minor in
nature and RDC has provided a letter stating that the items addressed in Addendum No.
2 do not result in a change to its Bid Price. The District has encountered this issue in the
past and the failure to acknowledge the addendum can be considered a minor irregularity
that can be waived.
In addition to the construction contract, the District will utilize existing contracts with CME
and NV5 to perform construction inspection and geotechnical testing for this project. The
CME and NV5 contracts were approved by the Board of Directors on December 1, 2021,
as part of the annual procurement process.
OBJECTIVES & GOALS:
1.05.020 Objectives:
3. Provide reliable and high quality water supply and distribution system to meet
current and future needs.
6. Manage the District in an effective, efficient and fiscally responsible manner.
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1.05.030 Goals:
1. Manage for Financial Stability and Resiliency.
FISCAL IMPACT:
The FY2022 budget includes $949,000 for water storage tank rehabilitation and repair.
The Board previously awarded a contract to DN Tanks for rehabilitation of the Airport
Tank. The bid price from DN Tanks was $349,700. For that project, a ten percent change
order allowance of $35,300 was established for a total authorization of $385,000.
The overall Bid Price from RDC is $585,160. A ten percent change order allowance is
recommended for a total authorization not to exceed $643,700.
The bid prices for the two storage tank projects total $934,860, which is slightly below the
budgeted amount of $949,000. The associated inspection costs for the two projects will
likely total between $15,000 and $20,000. Bringing the overall costs slightly above the
budget.
In the event that change orders are necessary for either project, those costs would be
covered from Water Department Capital Reserve Fund. The year-end 2021 balance of
this fund was $ 1,015,747, budget year-end 2022 balance is $920,000, and current
forecast year-end 2022 balance (excluding this subject item) is $920,000.
ATTACHMENTS:
None
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