The City owns, operates, and maintains 25 ground storage tanks throughout the water system. These tanks are used to store drinking water at each treatment facility prior to being pumped to our residents. The tanks range in size from 25,000 gallons up to 1,500,000 gallons. Each winter, Public Works staff drains 13 of these storage tanks, pressure washes the interior, performs any required preventative maintenance, and documents any signs of rust or corrosion. The information collected during this inspection is used to help prioritize ground storage tank rehabilitation, which is completed each year through the CIP process.

During routine inspection of the Lakeview galvanized ground water storage tanks No. 3 and 4, staff observed elevated levels of corrosion within the interior of each tank. The City contacted a ground storage tank investigation firm, IDS Engineering, to perform a full interior and exterior assessment of both galvanized tanks. The assessment was completed in December 2017 and identified the need to rehabilitate the interior of the existing tanks. The exterior does not need rehabilitation work at this time. In addition, the foundations of the tanks were observed to be in good working condition.

The scope for this rehabilitation project is based on the assessment report, including the rehabilitation of the interior coating system, repairs to the interior shell plates, rafters and appurtenances. This rehabilitation work will help minimize the corrosion and rust and should extend the useful life of the tank for an additional 15 years. This scope of work is in line with the rehabilitation projects completed annually at ground storage tanks throughout the system.

IDS Engineering completed the design and contract documentation in April 2018 and an Invitation to Bid (ITB) was advertised on April 25 and May 2, 2018. Eight (8) bids were received and opened on Thursday, May 17, 2018 with total bid prices ranging from $125,030 to $482,400. The Engineer’s opinion of probable construction cost is $145,530. The summary of the bids is listed below:

The lowest responsible bidder is CFG Industries, LLC with a total bid price of $125,030. The available budget for CIP WA1803 is $371,000. Funds needed to complete this project include the construction contract, contingency, and construction phase services for a total of $181,000. Therefore, $190,000 is recommended to be returned to the Utility CIP Fund Balance.

IDS Engineering completed a reference review and evaluation and provided a letter of recommendation, indicating that CFG Industries, LLC is capable of completing a project of this nature. The substantial completion contract time is 90 Calendar days after Notice to Proceed is provided.

Staff recommends that the City Council authorize the execution of a construction contract with CFG Industries, LLC for the rehabilitation of Lakeview galvanized water storage tanks No. 3 and 4, CIP WA1803 in the amount of $125,030 and authorize a budget reduction in the amount of $190,000.