HomeMy WebLinkAbout17 6170 Tank #2 -Bid Award TRUCKEE DONNE
- AGENDA ITEM #17
Public District
MEETING DATE: April 5, 2023
TO: Board of Directors
FROM: Neil Kaufman, Water System Engineer
Chad Reed, Water Utility Director
SUBJECT: Consideration of a Construction Contract for the 6170 Tank #2
Project
APPROVED BY
Brian C. Wright, General Manager
RECOMMENDATION:
Authorize the General Manager to execute a contract with Crosno Construction in an
amount of$2,686,720, plus a ten percent change order allowance of$268,680 for a total
authorization not to exceed $2,955,400 for the 6170 Tank #2 Project.
BACKGROUND:
The existing Bridge Street 6170 Tank is a 1.5 million gallon, welded steel tank that is
located on District-owned property. The tank site is north of Interstate 80 and east of
Bridge Street. The access driveway to the site is located on Pioneer Trail adjacent to the
TNT Materials concrete batch plant. The existing tank was constructed in 2002. The site
design for the project envisioned construction of a second storage tank at the site. The
site grading work in 2002 included sufficient space for this second tank and the site piping
included valves to serve as the points of connection for the second tank. The project
description included in the CEQA review for the project also included the second tank at
a capacity of 2.5 million gallons.
At the December 7, 2022, Board meeting, a contract was awarded to Sauers Engineering
to develop the design and prepare contract documents for the second storage tank. The
Sauers contract also included bid phase and construction phase services. This second
tank will also be a ground-level welded steel.
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As identified in the current Water System Master Plan, additional water storage capacity
is needed. Constructing additional storage at the 6170 Tank site will have a number of
benefits to the water system:
• The 6170 Tank site is a centralized location from which water can be moved
relatively easily to any location in the District. Additional storage capacity at this
location provides additional reliability system-wide during emergency conditions.
• The existing 6170 Tank is due for a thorough inspection and likely recoating of the
tank interior. Due to the critical nature of the existing tank, it has not been possible
to remove it from service. Construction of the second 6170 tank will allow for this
work to occur.
• When the Pioneer Trail pipeline and pump station are completed, it will allow for
water to be moved more efficiently into the Tahoe Donner area, reducing energy
consumption.
• The additional storage capacity will provide sufficient operational flexibility to allow
shifting of pump operations to accommodate potential time of use energy rates
and GHG reductions.
ANALYSIS:
The contract documents were completed and advertising for bids began in mid-February
of 2023. The bid opening was held at 2:00 PM on March 2, 2023. Three bids were
received:
SUMMARY OF BIDS
Bidder Location Bid Amount Responsive
Crosno Construction Arroyo Grande, CA $2,686,720 Yes
Paso Robles Tank Hemet, CA $2,944,000 Yes
Resource Development Sparks, NV $3,066,100 Yes
In addition to the construction contract, the District will retain outside consultants to
perform construction inspection and geotechnical testing and for this this project. The
costs for this work is:
• Construction Inspection — CME — Estimated at $40,000
• Geotechnical Testing — NV5 — Estimated at $5,000
The CME and NV5 contracts were approved by the Board of Directors on December 7,
2022, as part of the annual procurement process.
The original project schedule called for construction to start in early May 2023 with the
tank being placed into service in November 2023. However, there is still a significant
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amount of snow on the ground at the tank site. This may impact the project schedule
(and potentially cost) in two ways:
• Relatively dry conditions are needed for proper installation of the tank foundation.
Therefore, the start of work may be delayed, or it may be necessary to remove
snow by trucking it to a different location.
• One of the lasts tasks associated with constructing a steel water tank is the
application of the coating system. This work takes a significant amount of time
and is sensitive to both temperature and humidity. Additional delays due to
inclement weather this spring may require the final stages of the project be
completed in 2024.
Goals and Objectives:
This item is in support of the following goals and objectives:
District Code1.05.020 Objectives:
1. Responsibly serve the public.
3. Provide reliable and high quality water supply and distribution system to meet current
and future needs
5. Manage the District in an environmentally sound manner
6. Manage the District in an effective, efficient and fiscally responsible manner.
Strategic Goals:
1. Manage for Financial Stability and Resiliency
FISCAL IMPACT:
The FY 2023 budget includes $3,120,000 for construction of the second tank at the Bridge
Street 6170 site. Budget funding sources are $2,120,000 from 2022 Water COP Debt
project proceeds and $1,000,000 from Water Facility Fees, for a 68%/32% proportional
shares mix respectively. Accordingly, the recommendation total of $2,955,400 would be
funded as follows: $2,009,700 from COP Debt project funds, and $945,700 from Water
Facility Fees. Actual project cost, up to the not to exceed, will be funded at the 68% /
32% funding sources ratio. There are sufficient funds in each funding source for this
budgeted project.
ATTACHMENTS:
None.
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