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HomeMy WebLinkAbout04-05-2016 Item 05 Terrace Hill and Wash Water Tanks Maintenance Specification No. 91425 Meeting Date: 4/5/2016 FROM: Daryl R. Grigsby, Public Works Director Prepared By: Manny Guzman, Senior Civil Engineer SUBJECT: TERRACE HILL AND WASH WATER TANKS MAINTENANCE; SPECIFICATION NO. 91425 RECOMMENDATION 1. Approve a transfer of $57,000 from the Water Storage Reservoirs Maintenance and Tank Master Account to the design phase of the Terrace Hill and Wash Water Tanks Maintenance project account. 2. Approve a transfer of $26,484 from the Water Completed Projects Account to the design phase of the Terrace Hill and Wash Water Tanks Maintenance project account. DISCUSSION Background The City has over 180 miles of pipeline providing potable water to its citizens and businesses. These pipelines are connected to water storage tanks around the City. Water storage is provided in eleven tanks and two reservoirs located throughout the City. The eleven tanks range in size from 40,000 to 7.5 million gallons. The two reservoirs are a combination of above grade steel tanks and underground concrete reservoirs with a total combined storage capacity of approximately 26 million gallons. Regular maintenance of water storage tanks is important for economic, environmental, and health reasons. The effects of corrosion on steel tanks can lead to structural failure, leak s, and water contamination, which can affect public health. The City hired Advantage Technical Services (ATS) in 2009, to inspect the interior and exterior of several of the City’s water storage tanks. Advantage Technical Services prepared a written assessment report that included observations, recommendations, and preliminary repair cost estimates. Staff worked with ATS to assign a priority ranking to each of the maintenance recommendations. The Water Treatment Facilities Wash Water and Terrace Hill tanks were determined to be high priorities because of coating deficiencies and localized foundation settlement. Staff utilized the On-Call Civil Engineering Services list to request proposals from two firms. Use of the on-call services list enables staff to quickly secure proposals for design services, since the firms are prequalified through a rigorous prequalification process. Staff requested proposals from Michael K Nunley & Associates (MKN) and Water Systems Consulting (WSC), both of which submitted proposals with a similar work scope. However, after evaluating and comparing 5 Packet Pg. 5 proposals, it is recommended to award this work to MKN because of the lower cost proposal (26% less). Both firms submitted proposals that are higher than the City staff estimated design costs. The increased design cost is related to additional work scope that was added to address water quality issues experienced in the southeastern part of the City. Staff has determined that these water quality issues can be addressed by piping changes at the Terrace Hill Tank. The piping changes at the Terrace Hill Tank will force water through the tank and eliminate the water quality problem. FISCAL IMPACT This project was approved as part of the 2015-17 Financial Plan pages 3-50 to 3-53. A total of $57,500 was budgeted for the Terrace Hill and Wash Water Tanks design work. However, after identification of the additional work scope, there is insufficient funding to complete the project design as originally budgeted. The table below indicates a design funding shortfall of $26,484. Staff is proposing to cover this shortfall by using available funding from the Water Fund’s Completed Projects Account. The Account has an available balance of $46,969. If approved, a budget amendment request will be processed to make the appropriate transfers and a purchase order will be executed. ALTERNATIVE Deny the additional funding. This is not recommended because completion of the additional project scope will address water quality issues in the southeastern area of the City. Attachments: a - Project Location Map Current Budget For Project Design $57,500 Cost of Proposed Design Work $83,984 Budget Short Fall ($26,484) Water Fund Completed Projects Account Current Balance:$46,969 Water Fund Completed Projects Account Balance After Transfer:$20,485 Terrace Hill and Wash Water Tanks Maintenance (91426) 5 Packet Pg. 6 5.a Packet Pg. 7 At t a c h m e n t : a - P r o j e c t L o c a t i o n M a p ( 1 2 9 2 : T e r r a c e H i l l a n d W a s h W a t e r T a n k s M a i n t e n a n c e S p e c . N o . 9 1 4 2 5 ) Page intentionally left blank.