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REQUEST FOR CITY COUNCIL AGENDA ITEMREQUEST FOR CITY COUNCIL AGENDA ITEM <br />April 28, 2014April 28, 2014AppropriationAppropriation <br />Agenda Date Requested:Agenda Date Requested: <br />003 (Utility Fund) 003 (Utility Fund) <br />D. Mick D. Mick Source of Funds:Source of Funds: <br />Requested By: <br />Account Number:Account Number: <br />Public Works Public Works <br />Department: <br />$425,000.00 $425,000.00 <br />Amount Budgeted:Amount Budgeted: <br />Report:Resolution:Resolution:Ordinance:Ordinance: <br />$225,000 $225,000 <br />Amount Requested:Amount Requested: <br />Other: <br />Budgeted Item:Budgeted Item:YESYESNONO <br />Attachments :Attachments : <br />1. Bid Tabulation and Vendor Access Report1. Bid Tabulation and Vendor Access Report <br />2. Cost Comparison of Alternates at 30, 90, 912. Cost Comparison of Alternates at 30, 90, 91-- <br />Years <br />3. Engineer's Recommendation Letter for 3. Engineer's Recommendation Letter for <br />Award <br />SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS <br />The approved FY 14 budget includes a line item for replacement of the water tank at Water Plant #5 (southwest The approved FY 14 budget includes a line item for replacement of the water <br />tank at Water Plant #5 (southwest <br />corner Spencer Hwy/Bay Area Blvd).  The construction budget for this item is $425,000.  Staff recommends corner Spencer Hwy/Bay Area Blvd).  The construction budget for this item is <br />$425,000.  Staff recommends <br />awarding the contract to Schier Construction Co. from Houston, Texas in the amount of $204,500 with an awarding the contract to Schier Construction Co. from Houston, Texas in the amount <br />of $204,500 with an <br />additional authorization of $20,500 for contingency. additional authorization of $20,500 for contingency.  <br />  <br />The project bid included the consideration of two alternates:  Alternate 1) a bolted steel tank similar to the existing The project bid included the consideration of two alternates:  <br />Alternate 1) a bolted steel tank similar to the existing <br />tank (the existing tank is galvanized, the new bolted tank would have an interior epoxy coating), or Alternate 2) an tank (the existing tank is galvanized, the new bolted tank would <br />have an interior epoxy coating), or Alternate 2) an <br />epoxy coated (interior/exterior) welded steel tank. epoxy coated (interior/exterior) welded steel tank. epoxy coated (interior/exterior) welded steel tank. epoxy coated (interior/exterior) <br />welded steel tank.  <br />  <br />The apparent low bids for the bolted and welded steel tank alternates were $204,500 and $355,500 respectively.  The apparent low bids for the bolted and welded steel tank alternates <br />were $204,500 and $355,500 respectively.  <br />A cost comparison of the two alternates at 30A cost comparison of the two alternates at 30--years, 90years, 90--years and 91years and 91--years is attached.  The bolted steel tank years <br />is attached.  The bolted steel tank <br />option remains the most economical alternative when comparing the cost of both options at 0, 30, and 91 years.   option remains the most economical alternative when comparing the cost <br />of both options at 0, 30, and 91 years.   <br />The theoretical service life for the epoxy coated bolted tank is 30The theoretical service life for the epoxy coated bolted tank is 30--years.  However, considering that the existing <br />years.  However, considering that the existing <br />galvanized tank remains in service after 35galvanized tank remains in service after 35--years, staff anticipates that the actual service life of the epoxy coated years, staff anticipates <br />that the actual service life of the epoxy coated <br />bolted tank will be more than 35bolted tank will be more than 35--years. years.  <br />  <br />Benefits:  <br />  <br />The current water tank is at least 35The current water tank is at least 35--years old and 5years old and 5--years beyond its service life.  Staff and Dunham Engineering years beyond <br />its service life.  Staff and Dunham Engineering <br />inspected the existing tank and confirmed that the tank is a good candidate for replacement.    inspected the existing tank and confirmed that the tank is a good candidate for replacement.  <br />   <br />  <br /> <br />