The Seminary Hill, 2 Million Gallon (2 MG) Elevated Storage Tank, located at 2700 W. Gambrell Street, was built in 1947 and last rehabilitated in 1999. The Willow Springs Composite 2 MG Elevated Tank, located at 2200 Avondale Haslet Road, was built in 2010. Both tanks provide potable water storage and fire protection for areas in South and far North West Fort Worth respectively. The existing coating system for both tanks is in need of replacement as required to protect the structural steel from erosion. In February 2017, a Request for Qualifications (RFQ) was issued for several Water Department Projects including the potable water Storage Tank Rehabilitation Project. In March 2017, a total of six proposals were received from engineering consultants for the tank rehabilitation project. A Staff selection committee recommended Dunham Engineering, Inc., to provide the necessary design services for the Seminary Hill Elevated Storage Tank – Repair and Repainting. When a partial coating system failure occurred on the interior of the Willow Springs Composite Elevated Storage Tank, this work was added to the project. The project was advertised on December 7, 2017 and December 14, 2017, in the Fort Worth Star-Telegram. On January 11, 2018, the following bids were received:
| BIDDER | BID AMOUNT | CONTRACT | | A & M Construction Utilities, Inc. | $1,495,200.00 | 240 calendar days | | American Suncraft Co. | $1,526,190.00 | | | J. R. Stelzer Co. | $1,558,600.00 | | | N & G Painting | $1,831,000.00 | | | Horizon Brother Painting | $2,064,300.00 | | | Classic Protective Coatings | $2,136,950.00 | | | TMI Coating | $2,250,000.00 | | | Blastco Texas | $2,352,000.00 | |
In addition to the contract cost, $67,798.00 is required for staff project management and $74,760.00 is provided for project contingencies.
Construction for repair and repainting of the Seminary Hill Elevated Storage Tank and interior coating replacement of the Willow Springs Elevated Storage Tank project is one component of the overall project that includes design, project management, material and contingencies. The overall project budget is $1,917,758.00. Construction is expected to start in April 2018 and be completed by December 2018. This project is anticipated to be included in a future revenue bond issue for the Water and Sewer Fund. Available cash within the Water and Sewer portfolio and the City's portfolio along with the appropriation authority authorized under the Callable Commercial Paper Program (CP) will be used to provide interim financing for this project until debt is issued. To the extent resources other than the Water and Sewer portfolio are used to provide interim financing, the Water and Sewer Fund will be charged interest that is equivalent to the overall rate of return being earned by the City portfolio (currently approximately one-percent annually). Should the City's portfolio not support the liquidity needed to provide an interim short-term financing source, another funding source will be required, which could mean issuance of securities under the CP Program or earlier issuance of Water and Sewer revenue bonds than is currently planned. Once debt associated with this project is sold, bond proceeds will be used to reimburse the Water and Sewer portfolio and the City's portfolio in accordance with the attached Reimbursement Resolution. The City Council adopted the Water Department's Fiscal Year 2018-2022 Five Year Capital Improvement Plan on December 12, 2017, Mayor and Council Communication (M&C-19187). This City Council adopted plan includes this specific project, with funding identified through the CP program to be reimbursed with future revenue bonds. In accordance with the provisions of the Financial Management Policy Statement, Staff anticipates presenting revenue-supported debt issuances to the City Council for consideration within the next three years. This debt must be issued within approximately three years to provide reimbursement for these expenses. If that does not occur, the costs will no longer be reimbursable by issuing tax-exempt debt and the funding source will have to be made whole through budgetary methods. Adoption of this resolution does not obligate the City to sell bonds, but preserves the ability to reimburse the City from tax-exempt bond proceeds. This project will have no impact on the Water Department's operating budget.
M/WBE OFFICE - A&M Construction Utilities, Inc., is in compliance with the City's BDE Ordinance by committing to five percent MBE participation. The City's MBE goal on this project is five percent. Additionally, A&M Construction & Utilities, Inc., is a certified M/WBE firm. The project is located within the City limits COUNCIL DISTICTS 4 and 7.
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