HomeMy WebLinkAboutIX-01 Receive Bids and Award Contract - Industrial Park Water Tower Reconditioning City Council Memorandum
To: Mayor Fasbender & City Council Members
From: Ryan Stempski – Public Works Director
Date: December 2, 2024
Item: Contract Award for Industrial Park Water Tower Reconditioning
COUNCIL ACTION REQUESTED
Council is requested to adopt the attached resolution to award a contract for the Industrial Park Water Tower
Reconditioning.
BACKGROUND INFORMATION
The City received seven bids for this project on November 20th. A summary of the bids is listed below.
Bidder Total Base Bid Alternate Bid
TanksCo, Inc. – Decatur, TX $1,153,500.00 $55,000.00
JR Stelzer Co. – Lincoln, NE $1,298,200.00 $40,000.00
Tankez Coatings, Inc. – Ft. Worth, TX $1,355,000.00 $110,000.00
O&J Coatings, Inc. – Hurst, TX $1,437,000.00 $40,000.00
Classic Protective Coatings, Inc. – Menomonie, WI $1,488,900.00 $139,950.00
Viking Industrial Painting, LLC – La Vista, NE $1,678,600.00 $68,000.00
TMI Coatings, Inc. – St. Paul, MN $2,500,000.00 $127,000.00
The low bid from TanksCo, Inc. came in 11% under the engineer’s estimate, which was $1,300,000. This
construction bid positions the project to come in within the 2025 total project budget of $1,600,000. KLM
Engineering (City’s Water Tower Consultant) stated the bid amounts were competitive due to bidding the
project early, as contractors are just beginning to secure work for 2025. The City’s prevailing wage policy also
did not apply to this unique project; therefore, labor and overhead were left to the competitive market.
STAFF RECOMMENDATION
Staff is recommending that the City Council move forward in adopting the attached resolution awarding the
contract to TanksCo, Inc., in the base bid amount of $1,153,500.00. Please refer to the attached award
recommendation letter from KLM Engineering.
ATTACHMENTS
Resolution Receiving Bids and Awarding Contract
Award Recommendation Letter from KLM Engineering
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CITY OF HASTINGS
DAKOTA COUNTY, MINNESOTA
RESOLUTION NO.
RESOLUTION RECEIVING BIDS AND AWARDING CONTRACT FOR INDUSTRIAL PARK WATER TOWER
RECONDITIONING
WHEREAS, pursuant to an advertisement for bids for the Industrial Park Water Tower Reconditioning project, bids
were opened on November 20, 2024, and tabulated according to law, and the following bids were received:
Bidder Total Base Bid Alternate Bid
TanksCo, Inc. – Decatur, TX $1,153,500.00 $55,000.00
JR Stelzer Co. – Lincoln, NE $1,298,200.00 $40,000.00
Tankez Coatings, Inc. – Ft. Worth, TX $1,355,000.00 $110,000.00
O&J Coatings, Inc. – Hurst, TX $1,437,000.00 $40,000.00
Classic Protective Coatings, Inc. – Menomonie, WI $1,488,900.00 $139,950.00
Viking Industrial Painting, LLC – La Vista, NE $1,678,600.00 $68,000.00
TMI Coatings, Inc. – St. Paul, MN $2,500,000.00 $127,000.00
and
WHEREAS, the Alternate Bid was a value engineering item that reduced work on the interior dry repairs if Base
Bid numbers were higher than expected, and
WHEREAS, the Alternate Bid is not recommended to be awarded due to competitive pricing, and
WHEREAS, it is recommended that the contract be awarded the Base Bid, and
WHEREAS, it appears that TanksCo, Inc. is the lowest responsible bidder.
NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HASTINGS AS FOLLOWS:
1. The Mayor and Clerk are hereby authorized and directed to enter a contract with TanksCo, Inc.
2. The total amount of the contract is hereby declared to be $1,153,500.00.
ADOPTED BY THE CITY COUNCIL OF HASTINGS, MINNESOTA, THIS 2nd DAY OF DECEMBER 2024.
Ayes:
Nays:
Mary D. Fasbender, Mayor
ATTEST:
Kelly Murtaugh, City Clerk
SEAL
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Corporate Office 1976 Wooddale Drive, Suite 4 Woodbury, MN 55125
“Protecting America’s Water, One Tank at a Time.”
November 25, 2024 Ryan Stempski, P.E. by Email Public Works Director City of Hastings 101 East 4th Street Hastings, MN 55033 RE: Bid evaluation for the Industrial Park Tower Rehabilitation Project for the City of Hastings, Minnesota. City Project No. 2025-2. KLM Project No. 3173-24. Mr. Stempski,
The project bid opening was held on Wednesday, November 20, 2024, at 2:00 PM CST. A total of seven competitive bids were received. Bids were received through QuestCDN’s online
bidding platform and opened publicly via webcast. Bids received were as follows: Bidders Base Bid Alternate #1 Engineer’s Estimate $1,300,000.00 $60,000.00
Tanksco Inc. $1,153,500.00 $55,000.00
J.R. Stelzer Co. $1,298,200.00 $40,000.00
Tankez Coatings, Inc. $1,355,000.00 $110,000.00 O&J Coatings, Inc. $1,437,000.00 $40,000.00 Classic Protective Coatings, Inc. $1,488,900.00 $139,950.00 Viking Industrial Painting $1,678,600.00 $68,000.00
TMI Coatings, Inc. $2,500,000.00 $127,000.00
The work to be performed in Alternate #1, spot repair of only the sweating areas of the interior dry area, was to take the place of the full abrasive blast and paint identified as Bid Item No. 5 of the Base Bid. Alternate #1 was requested as a value engineering option should the Base Bid numbers have been higher than originally anticipated. Given the favorable bid results, it is our understanding the project is anticipated to progress as originally planned with the Base Bid scope of work. The low bidder, Tanksco, Inc., provided documentation that meets or exceeds the specified qualifications requirements. They are a newer company that has been the general contractor on two projects with KLM Engineering in the last year. On both occasions, they met the standards and obligations of those projects, performed quality work, and were very responsive
and accommodating to changes encountered. While newer to the role as a general, their owners and laborers have many years of experience in the industry as subcontractors and employees for some of the other bidders. KLM Engineering also has had positive experience
working with them in those roles, prior to working as Tanksco, Inc.
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Corporate Office 1976 Wooddale Drive, Suite 4 Woodbury, MN 55125
“Protecting America’s Water, One Tank at a Time.”
Tanksco, Inc. has confirmed they are comfortable honoring their proposed amount above and expressed an understanding of the Project Requirements. Considering their favorable bid and positive work history, KLM recommends awarding the contract to Tanksco, Inc. for their Base Bid amount of $1,153,500.00. Please feel free to contact me with any questions. Sincerely,
KLM Engineering Inc.
Benjamin Feldman, PE
Manager of Engineering
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