HomeMy WebLinkAbout14 Design of Ski Run Water Storage Tank Replacement Project AGENDA ITEM #14
Public Utility District m
MEETING DATE: August 2, 2023
TO: Board of Directors
FROM: Neil Kaufman, System Engineer
Chad Reed, Water Utility Director
SUBJECT: Consideration of an Engineering Services Contract for Design of the
Ski Run Water Storage Tank Replacement Project
APPROVED BY:
Brian C. Wright, General Manager
RECOMMENDATION:
Authorize the General Manager to execute an engineering services contract with
Sauers Engineering for the engineering design and development of construction
documents for the Ski Run Water Storage Tank Water Storage Tank Replacement
Project in the amount of $199,040, plus a ten percent change order allowance for a
total contract authorization not to exceed $218,944.
BACKGROUND:
The District currently operates 34 water storage tanks located throughout the water
distribution system:
• Thirty ground-level welded steel tanks
• Two ground-level bolted steel tanks
• One partially buried pre-stressed concrete tank
• One elevated welded steel 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 2021.
The District evaluated adjustments in capital maintenance required to extend the useful
life of the inventory of water utility storage tanks during the preparation of the 2020
Water System Capital Improvement Plan update. Through this process, staff
determined the need to increase the funding allocated to a more comprehensive tank
maintenance program and subsequently adjusted budgets to fund this
maintenance. 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 over the years, and while all
of the District's 34 storage tanks are in compliance with state operating permits, many
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of them do not meet current engineering standards.
In order to complete the many capital maintenance projects in an efficient and timely
manner, staff have identified the need to establish third party engineering contract
services for the development of design specifications and construction documents. In
June 2021, the Water Department issued a Request for Proposals (RFP) to select a
consultant to perform engineering services for the Roundhill Tank Rehabilitation
Project. After a review of the proposals, a contract was awarded to Carollo Engineers
in August 2021.
During the first round of their evaluations, Roundhill Tank exhibited areas of metal
degradation on the walls and floor at a significantly more advanced stage than originally
anticipated. On August 3, 2022, a change order was approved to cover additional
repairs to the wall and floor of the tank.
In September 2022, the Board of Directors approved an additional contract with Carollo
to conduct engineering evaluations and prepare bid documents for the rehabilitation of
the Ski Run and Prosser Lakeview Tanks. During the course of this work, it was
determined that the District should not proceed with the rehabilitation of the Prosser
Lakeview Tank. The metal on the interior walls showed signs of pitting, to the point that
in some areas more than 25%-50% of the parent metal had been lost. An overall
review of water system operations and water storage capacities determined that the
water system will meet peak demands without the Prosser Lakeview Tank in
service. Abandonment and demolition of the tank within the 5-7 year time frame is
currently planned.
Based upon the field inspections, it is believed that the Ski Run tank also has significant
pitting and degradation on the walls of the tank. However, a comprehensive
examination cannot be performed unless the tank is drained and taken out of service. It
should also be noted that the configuration of the water system prevents the tank from
being removed from service and completely drained to perform a thorough interior
inspection. Staff has observed precursory signs that the degradation of the metal on
the floor of the tank is in advanced stages of degradation and will require significant
repairs. The costs of these repairs, in addition to the updates required for upgrading to
current seismic standards, would be very costly due to limited accessibility.
A set of bid documents for the rehabilitation of the Ski Run tank was prepared and
bidding began in early February 2023. The bid opening was held on March 2,
2023. Five bids were received. The low bid for this work was $395,000 which did not
account for any additional repairs needed once the work actually starts and we can
actually fully evaluate what needs to be done. Additional costs would be incurred for
the inspection and administration of the contract. It was determined that an expenditure
of$450,000 - $600,000 for rehabilitation of the existing tank is not advisable since this
cost is rapidly approaching the cost of replacing the tank. Recognizing that Ski Run
Storage Tank was designed and constructed by the same firm in approximately the
same time frame, staff determined there may be greater overall benefit in replacing the
tank under updated design specifications rather than rehabilitating an aging
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infrastructure. With staff's recommendation, the Board of Directors rejected all bids at
the April 5, 2023 meeting.
ANALYSIS AND BODY:
In May 2023, an RFP was issued to secure an engineering consultant to design a new
storage tank to replace the existing Ski Run Tank and design the replacement of the
existing Ski Run pump station, which has been in operation for about 50 years and is at
the end of its useful life. Four proposals were received in response to the RFP:
• Carollo Engineers — Reno, NV
• Lumos & Associates — Carson City, NV
• Sauers Engineering — Nevada City, CA
• Schaaf & Wheeler— Truckee, CA
A staff review committee was selected and the proposals were evaluated based on the
following criteria:
• The proposed scope of work and project methodology (35%)
• Experience of the firm with similar pump station design projects (15%)
• Experience of the project team with similar pump station design projects (15%)
• The firm's procedures, methodology, and quality assurance/quality control (5%)
• References (10%)
• Cost (20%)
After completion of the technical review, the proposals from Carollo were judged to be
the most favorable, followed by Sauers Engineering, Lumos and Associates, and
Schaaf & Wheeler as shown in the table below.
Technical Scoring
Firm Rank
Carollo Engineers 1
Sauers Engineering 2
Lumos and Associates 3
Schaaf & Wheeler 4
The proposed costs were then reviewed. The overall cost proposals from the three
firms ranged from about $199,040 to $481,346. These costs included the design of the
storage tank and pump station, along with the bid phase and construction phase
services.
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The Sauers proposal had the lowest overall cost. Further review of the proposals
identified the following:
• Sauers also had the lowest cost when considering just the engineering and
design phases of the project, followed by Schaaf & Wheeler and then Lumos and
Associates, and finally Carollo.
• Carollo had significantly more effort devoted to the bidding and construction
phases of the project than any of the other three firms. The actual level of
engineering work during the bidding and construction phases is dependent on
the final specifications and the quality of the contractor. In reality, the proposed
effort defined by Carollo is absolutely an upper limit with the other three firms at
the lower end of the scale.
Cost Scoring
Firm Rank
Sauers Engineering 1
Lumos and Associates 2
Schaaf & Wheeler 3
Carollo Engineers 4
The District has a Local Preference Procurement Policy that is described in Section
3.08.005.3 of the District code. This section reads:
"In order to qualify for the above local preference, a vendor or business must either 1)
be a District ratepayer in good standing for the past six months, or 2) receive District
power or water at their business location for the past six months; paid by a third party."
This Local Preference Procurement Policy is limited to consulting services up to
$100,000 and the value of this contract will exceed $100,000. Schaaf & Wheeler has a
local office in the Brickelltown area of Truckee and would qualify for consideration
under the Local Preference Procurement Policy. However, as noted above, the cost of
the contract will exceed the $100,000 limit.
Finally, an aggregated ranking (technical & cost) of the proposers was developed:
Overall Scoring
Firm Rank
Sauers Engineering 1
Lumos and Associates 2
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Schaaf& Wheeler 3
Carollo Engineers 4
Therefore, it is recommended that the contract be awarded to Sauers Engineering.
The planned project schedule is summarized below:
August 4, 2023 —Award Engineering Contract to Consultant
August & September 2023 — Prepare Conceptual Design
October & November 2023 — Develop 60% Design
December 2023 — Develop 95% Design
February 2024 — Bid Opening for Ski Run Tank Replacement
March 2024 — Award Contract for Ski Run Tank Replacement
May 2024 — Begin Construction
As the capital improvement plan for the water department calls for several pump
stations and tanks to be rehabilitated or replaced over the next several years, an
ancillary benefit of this RFP was to qualify a specific firm to expedite staff time and be
fiscally responsible. A specific example of additional costs associated with new
engineering firms each year is the time spent on becoming familiar with the District's
specifications and distribution system. These costs could be avoided when a specific
engineering firm is identified to perform these services for the next three years. District
code provides a method for qualifying a specific firm as detailed in section 3.08.070
(Process and Procedure for Retention of Consulting Services). In the RFP prepared by
the Water Department, all potential firms were notified of the potential for future work as
detailed below:
ADDITIONAL FUTURE WORK
Should the work performed by the consultant in response to the proposal be
acceptable to the District, the District reserves the right to retain the selected
consultant to perform similar design services for the period of 2024-2027. The
The district currently anticipates that replacement and/or construction of the
following
facilities may occur during this time period.
1. Innsbruck Storage Tank and Pump Station — 11069 Innsbruck Avenue
2. Alder Creek Pump Station —14686 Slalom Way
3. Ski Lodge Storage Tank and Pump Station — 16322 Skislope Way
4. Herringbone Storage Tank— 13820 Herringbone Way
This work would be performed subject to a mutually agreeable scope, fee and
schedule to be negotiated in the future.
It is anticipated that the replacement of both the storage tank and the pump station will
be declared categorically exempt under CEQA.
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GOALS AND OBJECTIVES:
District Code 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.
District Code 1.05.030 Goals:
1. Manage for Financial Stability and Resiliency
FISCAL IMPACT:
The price proposal from Sauers Engineering is $199,040. The staff is recommending a
ten percent change order allowance for a total not to exceed the amount of $218,944.
The FY 2023 water utility capital project budget includes $879,990 for storage tank
rehabilitation and $629,621 for pump station rehabilitation. It is expected that these
amounts will be sufficient to cover the engineering and construction of the project.
ATTACHMENTS:
None
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