The Water Services Department's Capital Improvements Program includes funding related to the rehabilitation of three potable water glass-lined steel storage tanks. The three tanks are the only three remaining tanks made of the glass-lined steel construction used predominantly in smaller storage tanks (under a million gallons of storage) constructed in or around the late 1980s. For the City’s larger tanks ranging in size from 2 to 3 million gallons, pre-stressed concrete is the method of construction.
Rehabilitation was considered as an alternate to total teardown and replacement of the water tanks because of the cost benefit of rehabilitation. The estimated construction cost to replace a tank in the 100,000 to 200,000 gallon size class is $375,000. New construction would provide about a 30-year service life. Rehabilitation cost was estimated to be in the neighborhood of $60,000 and provide an estimated average 25-year service life. Therefore, staff along with its consulting engineer, felt comfortable that rehabilitation was the best option for the City.
For the current fiscal year, one tank (Willowick) rehab was planned and budgeted to take place. With the two other water tanks, Raintree and Robert E. Lee, to be funded in FY2024. However, after much discussion with several contractors, it was determined that there could be some cost savings realized by including all three tanks in one project and awarding a contract with this larger scope. Based on this, staff authorized the project engineer to move forward in preparing the construction documents to include rehabilitation of the three tanks in the project scope.
On January 24, 2023, bids were received by the City and publicly opened for this work. The contractor’s work generally includes draining each tank and installing temporary system pumping to maintain system hydraulics; cleaning and repairing any/all interior and exterior panel corrosion or other tank wall and identified structure damage; and providing interior wall coatings as needed to restore the integrity of tank wall structure. Two responsive bids were received by the City with the low bidder, Southeastern Tank, Inc. submitting the low bid of $339,640. The high bid submitted for $665,000 was turned in by KY Glass Lined Tank Systems.
In evaluating the two bids, the required temporary bypass pumping item included in each submitted bid appeared significantly higher than anticipated. The project engineer reached out to the two bidders and determined each prepared their bid misinterpreting the specified setup required for the project. Both contractors based their bid with the understanding three separate pumping installations were required, one at each of the three tank sites but installed simultaneously. However, the required installation specification is for each site to be provided temporary pumping successively, not simultaneously. Therefore, staff believes there is an opportunity to further reduce the final contract amount via a change order to reduce the temporary pumping cost.
At this time, we are recommending an award to the low bidder or Southeastern Tank, Inc. in the amount of $339,640 as bid. However, as referenced above, we anticipate initiating a change order to significantly reduce the final cost of the project based on the clarification for pumping installation.
Should you have any questions, please contact Chris Milton. |