CC MEETING: August 6, 2024
DATE: July 25, 2024
TO: Erin Rinehart, City Manager
FROM: Jonathan Wheat, P.E., Director of Engineering
Ravi Shah, Executive Director of Development
Title
Consider Authorizing The City Manager To Approve A Construction Contract With J.R. Stelzer Co. For The Hebron Water Tower, Columbian Club Pump Station 5M & 6M Ground Storage Reservoirs & Downtown Silos Painting Projects In An Amount Not To Exceed $3,126,958.00.
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BACKGROUND:
On March 5, 2024, City Council approved a design contract for the painting of the Hebron Water Tower and the Downtown Silos. During design, it was determined that the 5M gallon and 6M gallon Ground Storage Reservoirs (GSR) at the Columbian Club Pump Station also required exterior repainting. As there was a significant economy of scale of having all facilities repainted under one contract, the Columbian Club Pump Station GSRs were incorporated into the construction documents.
In development of the plans for the Downtown Silo, it was observed that the east face (opposite of the Downtown Square and towards the railroad track) contained dozens of obstacles related to the former rock-climbing venture that will require removal and repair prior to repainting, and after presenting to the Transit Oriented Development (TOD) Committee on this discovery, the Committee requested the east face of the project be bid as alternate items for the full Council to consider.
A bid item alternate for painting the underside of the Hebron Water Tower was also included. The tank belly cannot be inspected until a condensate bladder is removed. While it is highly likely that the tank belly will need to be painted, pricing was requested as an additive if painting is not required and can be removed from the project scope.
All proposal discussion below reflects inclusion of the tank belly additive but NOT the painting of the downtown silo eastern face.
The Water Tower and GSRs are part of Carrollton’s critical infrastructure and require a high level of expertise in not only painting but containment, execution of work 200’ above ground, and in a manner that does not impact critical communication equipment mounted on the roof. Additionally, the Hebron Water Tower is adjacent to residential while the Downtown Silos are adjacent to the Downtown Square area, DART line, and nearby mixed-use development. Therefore, construction services for this project were solicited through competitive sealed proposals in accordance with Chapter 2269, Subchapter D of the Texas Government Code in which the City evaluated both proposed price and contractor qualifications in the selection.
The City selects the contractor that offers the best value as determined by the selection criteria and ranking evaluation.
FINANCIAL IMPLICATIONS:
Three (3) proposals were received on July 17, 2024, ranging from $2,523,185 to $5,294,300 (excluding Silo alternative bid items). Although the lowest numerical proposal was submitted by TanksCo, Inc., the firm failed to demonstrate sufficient experience in painting water towers in excess of 2,000,000 gallons. The firm of J.R. Stelzer Co. submitted the next lowest proposal of $2,976,958. J.R. Stelzer not only has ample experience with all three types of structures, but were the painting contractor for Hutton Water Tower, Marsh Water Tower, and the 2003 coating of the Hebron Water Tower. In evaluation of qualifications, they appear capable of completing this project within the allotted time and budget and considered to offer the best value to the City.
The overall cost to paint the north, west, and south facing portion of the downtown silos is $400,268. Inclusion of all work required to contain, repair and paint the east face of the downtown silo would add an additional $218,500 to the project for a total expenditure of $618,768 for the silos alone (55% increase in cost).
As this is a renovation project, staff recommends the inclusion of a construction contingency. The construction contingency provides an expedient manner to accommodate unforeseen costs and minor additions in work common in all construction projects. Examples include unexpected conditions discovered during demolition, field refinements in design that were not possible during plan generation, minor scope enhancement opportunities that improve the facility’s function, efficiency or aesthetics at a reasonably minor cost. All charges against contingency must be supported by detailed pricing information and approved by the City through a formal change order. However, having advanced Council authorization ensures that work progress is not impeded. Typical construction contingencies for a project of this magnitude range from 5%-15% of the total contract amount. As a cost control measure, the construction contingency for this project is recommended at approximately 5% of the original contract amount or $150,000.00.
Funding for the Hebron Water Tower and Columbian Club PS GSRs is available in Account Unit 855160 (Utility Consolidated).
After completing the downtown murals, $58,000 remains in the budget for the downtown silos repaint. Funding is available in the TOD contingency account. If approved, the remaining amount required to complete the silos will be transferred from the contingency account to the murals account.
IMPACT ON COMMUNITY SUSTAINABILITY:
This project will support the City Council’s strategic objectives and vision of building a community that families and businesses want to call home by:
- Sustaining quality of life - Repairing and painting the water tower will ensure that potable water is available for the citizens of Carrollton.
- Sustaining day-to-day operations - Repainting the water tower will reduce the need for non-scheduled repairs as is required on improperly maintained tanks.
STAFF RECOMMENDATION/ACTION DESIRED:
Staff recommends award of the construction contract for the Hebron Water Tower, Columbian Club Pump Station 5M & 6M Ground Storage Reservoirs & Downtown Silos Painting Projects to J.R. Stelzer Co. in the amount of $3,126,958 ($2,976,958 base proposal plus $150,000 contingency).
Staff requests the Council’s direction on inclusion of an additional $218,500 for work associated with painting the east face of the downtown silos for a total contract amount of $3,345,458.