Title
Consider/Discuss/Act on a Resolution Authorizing the City Manager to Execute a Contract and All Necessary Change Orders with Blastco Texas Inc. for the Chestnut 0.5 MG Elevated Storage Tank Rehabilitation Project
Summary
COUNCIL GOAL: Operational Excellence
(2B: Balance available resources to accommodate the growth and maintenance needs of the city)
MEETING DATE: June 3, 2025
DEPARTMENT: Development Services / Engineering
CONTACT: Blake Sills, PE, Engineering CIP Manager
Paul Tucker, PE, Senior Utility Engineer
RECOMMENDED CITY COUNCIL ACTION:
• Approval of Resolution
ITEM SUMMARY:
• This Resolution authorizes the City Manager to execute a contract and all necessary change orders with Blastco Texas Inc. for the Chestnut 0.5 MG Elevated Storage Tank Rehabilitation Project (CIP Project WA2240) for a total contract amount up to a not to exceed amount of $4,500,000.
BACKGROUND INFORMATION:
• The existing 0.5 Million Gallons (MG) Chestnut Tank located near the general area of the Northwest corner of South Chestnut Street and East Davis Street formerly served the 794 pressure plane of the City’s water distribution system from 1952 until the tank was taken out of service by the Public Works Department on March 5, 2003.
• Since the elevated storage tank was taken out of service in 2003, it has remained in use for various cellular providers (per existing leases) as well as an iconic structure in the Historic Downtown McKinney area.
• An inspection of the existing tank structure was performed on September 18, 2020 and included recommendations to preserve and further utilize the structure including:
o Repaint the interior and exterior of the elevated steel tank. The existing paint coatings will be removed prior to repainting.
o Wind stability analysis for long-term empty tank condition and mounting of equipment;
o Various structural repairs expected for the age of the structure to preserve integrity and function;
o Improved mounting hardware for use by cellular providers.
• In addition, staff recommends using this major rehabilitation opportunity to improve/replace the lighting system, perform beautification of the site with landscaping and irrigation, including installation of an ornamental fence, tank logo placement, concealment of cable routing and other aesthetic improvements for continued use by cellular providers, and paving improvements to the adjacent parking lot.
• Electrical and lighting design is envisioned to provide full perimeter dynamic color lighting coverage of the tank replacing current lighting system which only illuminates a portion of the tank.
• Freese and Nichols, Inc. prepared the construction plans and specifications for this project.
• The City issued a request for proposals (25-35CSP) to solicit responses from qualified contractors for the construction of Chestnut 0.5 MG Elevated Storage Tank Rehabilitation Project (WA2240)
o Advertised in the McKinney Courier Gazette and Celina Record
o Posted on McKinney TV
o 9,434 matching Supplier Notifications which included 19 historically underutilized businesses (HUB) suppliers.
• Out of 9,434 supplier notifications, one (1) competitive sealed proposal was received and opened by Procurement Services on Thursday, May 1, 2025.
• The CSP evaluation process was selected to offer the City the opportunity to evaluate the potential contractors due to the complexity of the project.
• An evaluation team comprised of two City employees and one employee from Freese and Nichols, Inc. reviewed and discussed the proposal based on the following criteria:
o 30 Points: Offeror’s Narrative Approach to Construction
o 20 Points: Contractor and Subcontractor Qualifications
o 50 Points: Proposal Price
• Blastco Texas Inc. submitted the sole proposal.
• The following is a summary of the bid cost:
|
Bidder |
Bid Proposal |
|
Blastco Texas Inc. |
$3,949,789.00 |
• Blastco Texas Inc. has submitted references and qualifications that were evaluated in accordance with the bid specifications as shown in the attached Letter of Recommendation dated May 6, 2025.
• Blastco Texas Inc. has successfully completed similar construction projects in various Texas Cities.
• The contract documents require that this project be substantially completed within 220 calendar days and after issuance of the Notice to Proceed, which is expected in June 2025. Construction is expected to be substantially complete by February 2026. An additional 30 calendar days are allowed to reach final completion. Final completion is expected in March 2026.
• Staff recommends awarding Blastco Texas Inc. the construction contract for the Chestnut 0.5 MG Elevated Storage Tank Rehabilitation Project.
• There is an accompanying ordinance on the Council Agenda to amend the 2024-2025 Annual Budget and Amend the 2025-2029 Capital Improvements Program to provide funds for the project.
• The ordinance will provide the additional funds needed depending on the option selected.
o Option 1 - Full Contract
o Option 2 - Removal of Leg Column RBGW Lighting ($210,000 reduction)
o Option 3 - Removal of Leg Column RBGW Lighting, Site work, landscaping, and irrigation ($613,165 reduction)
• A table depicting the funding for each option is summarized in the table below.
|
Funding Sources |
Option 1 - Bid Total plus NTE $4,500,000 |
Option 2 - Reduced Bid Total plus NTE $4,275,000 |
Option 3- Reduced Bid Total plus NTE $3,689,000 |
|
Fund 20 |
$3,265,000 |
$3,265,000 |
$3,265,000 |
|
MCDC Grant |
$500,000 |
$500,000 |
$500,000 |
|
TIRZ Funding |
$725,000 |
$500,000 |
$0 |
|
Hotel/Motel Fund |
$500,000 |
$500,000 |
$415,000 |
|
Expense - Freese & Nichols |
($465,000) |
($465,000) |
($465,000) |
|
Expense - Materials Testing |
($25,000) |
($25,000) |
($25,000) |
|
Total Available Project Funding |
$4,500,000 |
4,275,000 |
3,690,000 |
FINANCIAL SUMMARY:
• This Resolution authorizes a contract and all necessary change orders with Blastco Texas Inc. for an amount up to a not to exceed amount of $4,500,000.
• Funds are available in the Capital Improvements Program in WA2240.
BOARD OR COMMISSION RECOMMENDATION:
• N/A