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Exh 8AAGENDA ITEM #8A MARCH 10, 2003 CITY OF ATLANTIC BEACH CITY COMMISSION MEETING STAFF REPORT AGENDA ITEM: Relocation, Installation and Coating of Elevated Storage Tank at Water Plant 2 Bid No. 0203-2 (Re-Bid) SUBMITTED BY: Donna Kaluzniak, CEP, Utility Director DATE: March 4, 2003 BACKGROUND: Camp, Dresser & McKee's (CDM) Water Master Plan recommended the addition of an elevated storage tank at Water Plant No. 2 (2301 Mayport-Road) as part of the Capital Improvement Program. The purpose of the tank would be to provide additional storage capacity and improve system reliability. Late in the budget process, the City received an offer from Mr. Wendell McKinnon, Vice-Mayor of City of Kissimmee, to donate a 300,000-gallon elevated tank located on his private property to the City of Atlantic Beach. The tank was originally owned by the City of Kissimmee, but had been replaced with a newer tank at a different location. Mr. McKinnon stated he would give the tank to the City of Atlantic Beach provided the City pay for the cost of removing the tank from his property and complete the removal as soon as possible. Mr. McKinnon's willingness to give us the tank was due to the fact that, in his opinion, Florida taxpayers had already paid for the tank once, so he wanted to donate it to another municipality in Florida. The premise was that the City could save a significant amount of money over the cost of installing a new tank at Water Plant No. 2. The City Commission expressed interest in the project, so City staff and their tank consultant, HGTI, inspected the tank and found it to be in excellent condition. In order to expedite the project, staff originally advertised the tank relocation as adesign/build project. Four proposals were received on October 23, 2002, and were evaluated and scored by staff. Bids were received on October 30, 2002 from three contractors with various alternates as follows: AGENDA ITEM #8A MARCH 10, 2003 Contractor Classic Gruhn Gruhn May, WPC WPC WPC Protective May, Inc. Inc. Industrial Industrial Industrial Coatings, Contractors Contractors Contractors Inc. Description Relocate Relocate Provide alternate Relocate Relocate Provide a existing existing 500,000-gallon existing tank existing tank new 300,000 tank tank used tank (encapsulate gallon tank coating) Base Bid $491,650 $593,273 $647,023 $508,000 $648,000 $676,000 Because the bids received were much higher than estimated costs, the City Commission requested staff complete design specifications for the project, and re- bid the tank relocation. Specifications were prepared by staff and HGTI, and the re-bid was advertised. A mandatory Pre-Bid Meeting was held on February 12, 2003. Three bids were received on February 26, 2003, with contract award recommendation to be on lowest base bid. All bidders submitted required documents. Contractor Gruhn Ma ,Inc. Worth Contractin WPC Industrial Base Bid $337,700.00 $514,777.00 $461,988.00 The lowest base bid was from Gruhn May, Inc. for $337,700. The base bid did not include the yard piping and electrical work, as we were targeting tank contractors specifically. We requested prices for this work to be completed by our annual electrical and point repair contractors, who were low bidders for the City's contract based on hourly rates for personnel and equipment. The cost for yard piping will be $26,830 and for electrical work will be $10,000, bringing the total construction cost to $374,530. We also asked our tank consultant, HGTI, to provide us with a cost for construction engineering and inspection (CE&I). The cost proposal for this work is 5% of the tank relocation, construction and coating, or $16,850. HGTI has performed all of our tank inspection work for many years, and is a registered state contract vendor. BUDGET: Because Mr. McKinnon's offer was received so late in the budget process, no funds were included in the FY 03 budget for this project. The estimated cost from our tank consultant for the base bid work was under $350,000, which is consistent with the low bid. Funds for the $16,850 CE&I work can come from the Water Treatment Fund, Account No. 400-5502-533-3100 where there is $20,000 budgeted for miscellaneous engineering. Funds for the tank relocation, contingency, yard piping and electrical work, totaling $374,530 would have to be transferred from the Water Fund as a mid- 2 AGENDA ITEM #8A MARCH 10, 2003 yeaz budget modification. After reviewing the budget figures with the Finance Director and City Manager, it appears we will not have enough funds to maintain the 25% required contingency without eliminating or postponing other scheduled capital improvements in the system. We advised the low bidder, Gruhn May, Inc. of the budget shortfall, and the contractor stated that if the City preferred to acquire the tank now, they would complete the disassembly and transportation portion of the project to store the tank on the City's property for $55,000. RECOMMENDATION: Using the previous bids for compazison, which include options for both a new tank and relocation of a different tank that the City would have to purchase, it appears that the City could save at least $250,000 by relocating the tank offered by Mr. McKinnon. However, due to the budget deficit, the recommendation is to either reject all bids, or awazd only the deconstruction and transport portion of the contract in the amount of $55,000. ATTACHMENTS: 1. 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