City Council Agenda Report
TO: Mayor Clauzel and Members of the City Council
FROM: Fernando Ulloa, Interim City Manager
BY: Fernando Ulloa, City Engineer
MEETING DATE: November 19, 2024
ITEM NO: 6.6
SUBJECT: Accept all bids for the Well #8 Tank Recoating Project, award construction to Farr Construction dba Resource Development Company, authorize Staff to execute the Contract and authorize the Finance Department to make the necessary budget adjustment for an additional appropriation in the amount of $966,638.
RECOMMENDATION
Motion to Accept all bids for the Well #8 Tank Recoating Project, award construction to Farr Construction dba Resource Development Company, authorize Staff to execute the Contract and authorize the Finance Department to make the necessary budget adjustment for an additional appropriation in the amount of $966,638.
BACKGROUND
The Well #8 Tank Recoating Project consists of the preparation of surfaces, performance and completion of recoating all interior surfaces of a 1.3 MG water storage tank. This project is listed in the city’s water Capital Improvement Plan (CIP) and is considered a water system improvement.
ANALYSIS
The Well #8 Tank Recoating Project design was completed in Fall 2024 and was subsequently advertised for construction. However, the first iteration received only two bids with a cost difference of almost $900,000. City staff was able to restructure the bid documents and review the bidding options to ensure a more competitive process. City Staff also did research on projects of similar scope and feel confident moving forward with this bid.
FISCAL IMPACT
This project was advertised on the CIP List, the City’s website, and the Patterson Irrigator Newspaper. Bid opening was held on October 30, 2024 at 2:00 P.M. The City received three (3) bids for this project. The three bids received are listed below from lowest to highest:
Bids
Farr Construction dba. Resource
Development Company
$1,030,100.00
Euro Style Management $1,177,400.00
National Coating & Lining Co. $1,177,500.00
After reviewing the bid documents, Farr Construction was deemed the lowest responsible bidder.
However, a budget adjustment will be needed due to an increase in the cost for materials, supplies and labor.
Budget for this project is as follows:
$1,030,100 Base Bid
$103,010 10% Contingency
$ 90,000 NACE III Inspector
$ 1,223,110 Total Project Cost
Funds appropriated for this Project: $256,472 (O&M)
Total additional funds needed to complete construction: $966,638 Authorize the Finance Department to transfer funds from Fund 610 in the amount of $421,528 to Fund 611 and allocate funds already sitting in Fund 611 from 2019 Water Bond Funds in the amount of $545,110 to increase the budget in account 611-790-7642 from $256,472 to 1,223,110.