07-28-15 Regular Meeting of La Porte City Council

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REQUEST FOR CITY COUNCIL AGENDA ITEMREQUEST FOR CITY COUNCIL AGENDA ITEM July 28, 2014July 28, 2014AppropriationAppropriation Agenda Date Requested:Agenda Date Requested: Utility Fund Utility Fund David Mick David Mick Source of Funds:Source of Funds: Requested By: Account Number:Account Number: Public Works Public Works Department: 105,000 105,000 Amount Budgeted:Amount Budgeted: Report:Resolution:Resolution:Ordinance:Ordinance: 100,000 100,000 Amount Requested:Amount Requested: Other: Budgeted Item:Budgeted Item:YESYESNONO Attachments :Attachments : 1. Bid Tabulation1. Bid Tabulation 2. Engineer's Recommendation2. Engineer's Recommendation SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS thth The FY 14 budget includes a Utility Fund Capital Improvement line item for painting the interior of the 4The FY 14 budget includes a Utility Fund Capital Improvement line item for painting the interior of the 4 Street Street elevated water tank. Sealed bids for this project (City Bid #14022) were opened on June 23, 2014, and nine (9) elevated water tank. Sealed bids for this project (City Bid #14022) were opened on June 23, 2014, and nine (9) bids were received ranging in price from $90,000 to $200,000. Utility Service Company out of Perry, Georgia bids were received ranging in price from $90,000 to $200,000. Utility Service Company out of Perry, Georgia submitted the lowest responsive bid at $90,000. The contractor provided project experience and references with submitted the lowest responsive bid at $90,000. The contractor provided project experience and references with their bid proposal and is also known to Dunham Engineering, the citytheir bid proposal and is also known to Dunham Engineering, the citys design engineer for this project. Dunham s design engineer for this project. Dunham Engineering Inc.Engineering Inc.s recommendation is attached. s recommendation is attached. Staff recommends award of the contract to Utility Service Company in the amount of $90,000 with a project Staff recommends award of the contract to Utility Service Company in the amount of $90,000 with a project contingency of $10,000 for a total authorization equal to $100,000. Additive #1 and #2 are both likely to be utilized contingency of $10,000 for a total authorization equal to $100,000. Additive #1 and #2 are both likely to be utilized during construction. The cost of these items is included in the $90,000 total bid price. during construction. The cost of these items is included in the $90,000 total bid price. The existing tank is 52 The existing tank is 52--years old and is in good condition overall. The new interior coating to be years old and is in good condition overall. The new interior coating to be Benefits: applied will protect the welded steel tank interior from corrosion. applied will protect the welded steel tank interior from corrosion. The existing interior epoxy coating is 20 The existing interior epoxy coating is 20--years old and is no longer providing adequate protection for years old and is no longer providing adequate protection for Liabilities: the entire interior. the entire interior. No change. No change. Operating Costs:Operating Costs: The tank was overThe tank was over--coated with acrylic paint 8coated with acrylic paint 8--years ago. The next exterior coating, years ago. The next exterior coating, Other Considerations: Other Considerations: recommended 2 recommended 2 4 years from now will require shrouding the tank and sandblasting the prior coatings down to 4 years from now will require shrouding the tank and sandblasting the prior coatings down to the metal structure. The estimated future cost of recoating the exterior is $300,000 the metal structure. The estimated future cost of recoating the exterior is $300,000 -- $350,000. Nearly half of the $350,000. Nearly half of the expense of the exterior painting is in the cost of the shrouding the tanks. Staff considered the potential benefit of expense of the exterior painting is in the cost of the shrouding the tanks. Staff considered the potential benefit of the economy of scale of recoating the exterior and interior with one project with the design engineer and the economy of scale of recoating the exterior and interior with one project with the design engineer and concluded that the savings of performing both operations is in the range of $5,000. The cost of overconcluded that the savings of performing both operations is in the range of $5,000. The cost of over--coating the coating the exterior is $15,000 exterior is $15,000 -- $17,500/year assuming a 20 $17,500/year assuming a 20--year service life. Deferring the application of the exterior coat 2 year service life. Deferring the application of the exterior coat 2 (+) years provides the greater economic benefit. (+) years provides the greater economic benefit.