Item 4D MemorSr,
C[TY OF
OUTHLAKE
MEMORANDUM
(October 7, 2014)
To: Shana Yelverton, City Manager
From: Robert H. Price, P.E., Director of Public Works
Item 4D
Subject: Award contract to M.K. Painting, Inc. to repaint the Pearson
Ground Storage Tanks - Interior GST#1 and Exterior GST#2 in
the amount of $830,650.00
Action
Requested: Award contract to M.K. Painting, Inc. to repaint the Pearson
Ground Storage Tanks - Interior GST#1 and Exterior GST#2 in the
amount of $830,650.00.
Background
Information: The Pearson Ground Storage Tanks (GST) site is located at Pump
Station No. 1 near the northeast corner of Pearson Lane and
Southlake Boulevard (FM1709). The site encompasses two 5
Million Gallon (MG) steel tanks built in 1996. Tanks are painted
periodically to prevent corrosion of the steel (rusting) and oxidation
of the paint (discoloration). In 2008, the exterior of GST #1 (west
tank) and the interior of GST #2 (east tank) were painted and
limited repairs were performed. This contract award involves the
inverse of the previous work. As they stand today, the two tanks
look slightly different in color because they were painted at two
different periods (1996 and 2008).
A base bid and an alternate bid were proposed. Base bid included
the paint coating system similar to the previous work in 2008
including minor tank repairs. An alternate bid was proposed to
evaluate the cost of painting both tank exteriors including minor
repairs. The alternate bid differed from the base bid in two aspects:
• The exterior surface of both tanks will be prepared using a
power -wash cleaning technique as opposed to commercial
sand blasting; and,
• A two (2) paint coating system will be applied to the exterior
of both tanks in lieu of a three (3) paint coating system.
Staff recommends the alternate bid option because repainting both
tanks will allow the paint to oxidize (discolor) at the same rate and
thereby attaining a more appealing product as time progresses.
Additionally, the issues of repainting the exteriors at different dates
with different contracts and potentially different paint manufacturers
and different coating systems are averted by accepting the
alternate bid option.
Five (5) bids were received on September 17, 2014. The bids have
been reviewed by Neel -Schaffer and the City Staff and are
tabulated as follows:
BIDDER BASE BID ALTERNATE BID
Corrosion Eliminators $834,470.00 $734,899.
M.K. Painting, Inc. $842,650.00 $830,650.00
N.G Painting $754,150.00 $904,150.00
Classic Protective Coatings $940,950.00 $1,011,375.00
A&M Construction & Utilities $902,840.00 $1,160,840.00
* Bid error and withdrawal by the contractor
At the bid opening, N.G painting was the apparent low bidder for
the base bid while Corrosion Eliminators was the apparent low
bidder for the alternate bid. After the bid opening, Corrosion
Eliminators realized an error in their bid proposal and requested a
bid unit price modification or withdrawal of their alternate bid. Local
Government Code (LGC) states that a bid that has been opened
cannot be changed to correct an error in the bid price. However, a
bidder has a common law right to withdraw a bid that has a material
mistake. In compliance with the LGC, the staff did not allow
Corrosion Eliminators to correct the bid price and therefore they
submitted a formal request not to consider their alternate bid. With
Corrosion Eliminators bid withdrawal, the staff recommends to
award the contract to the next responsible low bidder, M.K Painting,
Inc. for the alternate bid in the amount of $830,650.00.
The repairs and repainting of the Pearson Ground Storage Tanks
are anticipated to begin early November 2014. The repairs and
repainting are anticipated to be completed by end of March 2015.
This construction time frame is typically the period when water
consumption is the lowest in the City of Southlake. Therefore,
distribution of water to the customer base is not anticipated to be
adversely impacted.
Financial
Considerations: The funding for this project is within the budget amount allocated
from the fiscal year 2014 Capital Improvements Projects Utility
Fund.
Strategic Link: The award of this service contract links to the city's strategy map
relative to the focus areas of Infrastructure. The specific corporate
objective that is met by this contract is to provide and maintain high
quality public assets.
Citizen Input/
Board Review: N/A
Legal Review: This standard construction contract has been previously reviewed
by the City Attorney.
Alternatives: The City Council may approve or deny the contract to M.K.
Painting, Inc. for the repair and repainting of the Pearson Ground
Storage Tanks.
Supporting
Documents: Engineers Recommendation Letter
Bid Tabulation
Location Map
Corrosion Eliminators withdrawal Letter for alternate bid
Staff
Recommendation: Award contract to M.K. Painting, Inc. to repaint the Pearson
Ground Storage Tanks - Interior GST#1 and Exterior GST#2 in the
amount of $830,650.00.
Staff Contact: Robert H. Price, P.E., Director of Public Works
Cheryl Taylor, P.E., Deputy Director of Public Works/City Engineer
Chuck Kendrick, Deputy Director of Public Works -- Operations
Om Gharty-Chhetri, P.E., Civil Engineer
11L NEED—SCHAFFER + Cheatham & Associates
September 30, 2014
N-S Account No. 12146
Mr. Om Chhetri, P.E., C.F.M.
Civil Engineer
City of Southlake
1400 Main St., Suite 320
Southlake, TX 76092
REFERENCE: CITY OF SOUTHLAKE
REPAINTING PEARSON GROUND STORAGE TANKS
INTERIOR GST 41 AND EXTERIOR GST #2
Dear Mr. Chhetri:
Sealed bids were received by the City of Southlake on September 16, 2014, for the referenced project.
Five (5) contractors submitted bids for this project. Enclosed is a copy of the Bid Tabulation for the five
(5) qualified bids submitted. The bid proposal included a base bid option, which was interior of GST#1
and exterior of GST42 and an alternate bid, which was the interior of GST#1 and the exterior of GST#1
and #2. Below are a summary of the bids of the qualified bidders on this project:
Bidder
Corrosion Eliminators, Inc.
M.K. Painting, Inc.
N.G. Painting
A&M Construction & Utilities
Classic Protective Coatings, Inc.
Base Bid Alternate Bid
$834,470.00
$734,809.00*
$842,650.00
$830,650.00
$754,150.00
$904,150.00
$902,480.00
$1,160,840.00
$940,950,00
$1,011,375.00
Corrosion Eliminators, Inc. has provided a written request to withdraw their alternate bid due to a bid
error.
Our understanding is the City has selected the alternate bid for award in lieu of the base bid. With the
withdrawal of Corrosion Eliminators, Inc., the lowest bid was submitted by M.K. Painting, Inc. of
Wyandotte, Michigan in the amount of $830,650.00. We have reviewed and tabulated all bids received,
and found no discrepancies with the exception of Corrosion Eliminators, Inc.
We have previously worked with M.K. Painting, Inc. and have had a positive experience regarding their
overall performance including their construction quality and timeliness. This contractor provided the
T.W. King ground storage tank repainting project in 2012.
We appreciate the opportunity to work with you on this important project. Please call if you need
additional information.
Sincerely,
7ek
FFE INC.
eatham, P.E.
Vice President
ARLINGTON • DALLAS • FORT WORTH - HOUSTON
engineers - planners - surveyors - environmental scientists - emergency management
2501 Avenue J, Suite 120 • Arlington, TX 76006 - phone 817-548-0696 • fax 817-265-8532 • www.neel-schaffer.com
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corros`alf leCixtlfators, AC.
A W W A SPECIALISTS
P.O. BOX 1546
MINERAL WELLS, TEXAS 76068
Ph: (940) 325-8450 Fax: (940) 325-0502
i cei 0corrosioneiim inators.com
Commercial
September 22, 2014
City of Southlake
Attn: City Secretary
1400 Main St.
Southlake, TX 76092
Reference: Sid for Repainting of Pearson Ground Storage Tanks
Derek Cheatham / Om Chhetri,
Corrosion Eliminators cannot do the alternate bid for the price quoted.
Alternate bid item no. 3A pricing was put in for only one tank not two tanks.
The outside of two tanks cannot be completed for the price of $193,339.00.
The paint materials alone for two tanks will cost approximately S175,000.00.
We formally request that our bid not be considered for the alternate bid portion
of this bid package.
Org: City Secretary; CC: Derek Cheathem and Om Chhetri
Sincerely,
Corrosion Eliminators, Inc.
fey o
Presi ent / CEO
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