CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Bid 24-153, Central Elevated Tank, to Phoenix Fabricators and Erectors LLC for an amount not to exceed $5,368,759, plus a 3% contingency
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DEPARTMENT: Water Utilities
SUBMITTED BY: Darrell Blenniss, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The existing Central Elevated Tank, located at 418 E 5th Avenue, was constructed in 1937. In 2021, Dixon Engineering performed a comprehensive inspection of the existing elevated water tank. The inspection report indicated that the existing tank is reaching the end of its useful life. Current estimated repair costs are over $1 million. In addition, the current location of the tank creates difficulties for future site development
After extensive evaluation, staff conducted a concept study for water tank relocations and recommended constructing a new elevated water tower adjacent to the existing one and subsequently decommissioning the existing structure.
In July 2024, the Water Utilities issued Bid 24-153, Central Elevated Tank. The work will include the construction of a new 0.5-million-gallon elevated water tank, installation of new watermain, sanitary drainage pipe, and stormwater sewer associated with the new elevated tank. In addition, work will include the installation of electrical controls, conduits, cables, a new fence around the proposed site, and installation of a retaining wall.
DISCUSSION:
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Advertisement Date: |
7/2/2024 |
Notices Sent: |
30 |
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Opening Date: |
08/15/2024 |
Planholders: |
20 |
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Proposals Received: |
4 |
Bids were received from the following vendors:
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Vendor Name |
Proposed Cost |
|
Engineer’s Estimate |
$6,188,000.00 |
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Phoenix Fabricators LLC |
$5,368,759.00 |
|
CB&I Storage Solutions |
$5,376,000.00 |
|
Maguire, Inc |
$5,787,000.00 |
|
Caldwell Tanks, Inc |
$6,779,000.00 |
Phoenix Fabricators submitted the lowest bid for the project at $5,368,759. Staff believes the low bid submitted is reasonable for performing work as specified. Phoenix Fabricators has an extensive history of elevated water storage tank construction and has performed work of similar scope and magnitude to the current project. Staff is confident in their ability to perform the work as specified.
The substantial completion date for this project is February 27, 2026.
FISCAL IMPACT:
CIP #: WU043 - Central Elevated Tank Rehabilitation
Replacement of the Central Elevated Tank is budgeted as part of the Water Capital program. The 5-year CIP includes a total of $6.03 million. Of that amount, $500,000 is approved as part of the 2024 CIP. It is anticipated that the majority of the work will be completed in 2025 and as such, the Water Department has included $5.18 million as part of the 2025 budget, which is currently undergoing review. An additional $350,000 to cover any remaining work in Phase II of the project is included in 2026.
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Account Number |
Fund Description |
Total Budget Amount |
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41252000-551502 |
Water Capital Fund |
$40,264,902 |
*Per Council directive, contingency on construction projects is set at 3% on projects over $500,000 and 5% on projects under $500,000.