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. Bid Tabulation Form
REVIEWED BY CITY MANAGE.~,~
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3
AGENDA ITEM #8A
MARCH 10, 2003
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