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Item # 6.
         
Council Meeting
Meeting Date: 02/09/2021  
Department: Public Works  
Pillars: Excellence in Asset Management
Milestones: Effectively utilize and promote the Silver Line development with a first mile/last mile solution

AGENDA CAPTION:
Consider Action on a Resolution Approving a Contract Between the Town of Addison and DN Tanks, LLC. for the Rehabilitation of the 6 Million Gallon Celestial Ground Storage Tank and Authorizing the City Manager to Execute a Contract in an Amount Not to Exceed $1,239,510.
BACKGROUND:
The purpose of this item is to award a contract with DN Tanks, LLC, for the Celestial Ground Storage Tank Improvements Project.  The project scope consists of the structural rehabilitation of the existing ground storage tank, a new storm drainage swale for erosion control, new sidewalks for accessibility, a section of a new security perimeter fence, and other miscellaneous improvements.

The Celestial ground storage tank (GST) has been operating since 1988.  In 2014, a comprehensive evaluation and assessment of the Celestial GST was conducted by Kleinfelder, Inc..  This project's scope is based on the Klienfelder assessment.

On June 11, 2019, a Professional Services Agreement with Kleinfelder, Inc. was executed for design services associated with the Celestial GST improvements.  This design was completed in December 2020.  The project was posted to CIVCAST for bidding on December 15, 2020, and it was closed on January 14, 2021.  The Town received one bid from DN Tanks for $1,239,510.00.  The Engineer's Opinion of Probable Construction Cost for this project was $1,250,000.

Kleinfelder, Inc. has checked DN Tanks' references and recommends they be awarded the contract. DN Tanks successfully completed a similar scope of work for the Town with the rehabilitation of the 2 million gallon Surveyor GST in 2018.  Additionally, DN Tanks has extensive experience in the construction and rehabilitation of pre-stressed concrete ground storage tanks.

Due to the size and highly specialized nature of this project, there are very few contractors that are qualified to perform this type of work.  The tight construction schedule, size and construction (pre-stressed concrete) of the tank and the type of coating all contributed to the limited pool.  Only two prospective bidders, DN Tanks and Pre-Load Construction, were known to meet the rigorous experience requirements outlined in the specifications.  To allow for any prospective bidders that did meet the requirements, there was the opportunity to submit references of comparable sized projects utilizing similar coating types and structural repairs.

If approved, the work is anticipated to commence in mid-February 2021.  This project is expected to take a total of four months to complete with the tank being out of service for a total of 45 days. During this 45 day period, all water service will be provided through the Surveyor GST.  The timing of this project is critical and must be performed before the arrival of higher water demands in the late spring.

Town staff has performed field tests to verify that the Surveyor site will be adequate to serve the Town and will have an emergency back-up system on standby in case of any unforeseen failures.

If the Town chooses to rebid this project, the project will need to be done next winter and a reduction in the warranty period may need to be investigated to increase the pool of potential bidders.

Funding of this project is budgeted in the Fiscal Year 2021 Capital Improvements Program.  The budget for the construction of the project is $1,375,000.
RECOMMENDATION:
Administration recommends approval.
Attachments
Resolution - DN Tanks, LLC for Celestial Ground Storage Tank Project
DN Tank Submittal
Recommendation Letter
Contractor Qualifications and Experience Requirements
2014 5 Year CIP Report
2104 Celestial Assessment

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