CC 2015-08-25_08h Award Contract_Reservoir No 5 RecoatingMEMORANDUM
TO: CITY COUNCIL
FROM:
BY:
GEOFF ENGLISH, PUBLIC WORKS DIRECTOR
MIKE LINN, CAPITAL PROJECTS ENGINEER
SUBJECT: CONSIDERATION OF AN AWARD OF CONTRACT TO PASO ROBLES
TANK, INC. FOR THE RESERVOIR NO. 5 EXTERIOR RECOATING
PROJECT, PW 2015-11
DATE: AUGUST 25, 2015
RECOMMENDATION:
It is recommended the City Council:
1. Award a contract for the subject project to Paso Robles Tank, Inc. in the amount
of $41,400;
2. Authorize the City Manager to approve change orders for 10% of the contract
amount, $4, 114 for unanticipated costs during the construction phase of the
project (total construction costs = $41,400 + $4, 140 = $45,540); and
3. Direct the City Clerk to file a Notice of Exemption.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The current 2015/2016 Capital Improvement Program Budget includes $125,000 for the
subject project. The engineer's estimate for the project is $100,000.
BACKGROUND:
The project involves all preparation, minor surface repairs and painting of the existing
1,200,000 gallon above ground steel water Reservoir No. 5, accessed from a driveway
off Puesta Del Sol. Verizon, a cellular telephone service provider, is negotiating with the
City to place an antenna on Reservoir No. 5. The Water Master Plan recommended
recoating the interior and exterior of the reservoir in 2018. However, staff believes that
performing the recoating of the exterior portion of the tank is a prudent expenditure at
this time given the potential revenue source.
Staff required a mandatory on-site pre-bid meeting to ensure that all potential bidders
witnessed the current condition of the Reservoir No. 5 exterior coating, the potential
conditions and obstacles that may be present, and have an opportunity to ask questions
and/or provide suggestions for improvements to the plans and specifications. The
design had assumed that given the age of the reservoir, that the original coating
Item 8.h. - Page 1
CITY COUNCIL
CONSIDERATION OF AN AWARD OF CONTRACT TO PASO ROBLES TANK, INC. FOR
THE RESERVOIR NO. 5 EXTERIOR RECOATING PROJECT, PW 2015-11
AUGUST 25, 2015
PAGE2
contained lead paint. At the urging of a pre-bid meeting attendee, staff commissioned
testing of paint chips for the presence of lead paint, which proved to be negative. Staff
informed all the plan holders of the change via the issuance of an addendum.
ANALYSIS OF ISSUES:
On August 11, 2015, two bids were opened for the Reservoir No. 5 Exterior Recoating
Project. The lowest bid, $41,400 from Paso Robles Tank, Inc. was deemed responsive
and staff recommends award of a construction contract to Paso Robles Tank, Inc.
accordingly.
The contract time is 30 calendar days. Work is expected to begin in September and
complete in October.
ALTERNATIVES:
The following alternatives are provided for the Council's consideration:
1. Approve staff's recommendations to award a construction contract to Paso
Robles Tank, Inc. for the Reservoir No. 5 Exterior Recoating Project;
2. Do not award a construction contract for the project; or
3. Provide direction to staff.
ADVANTAGES:
Recoating of steel above ground reservoirs is a critical maintenance operation to ensure
the structural integrity and continuing operation of expensive City infrastructure.
DISADVANTAGES:
There are no disadvantages identified at this time.
ENVIRONMENTAL REVIEW:
The project is categorically exempt from CEQA pursuant to Section 15301(b).
PUBLIC NOTIFICATION AND COMMENTS:
The agenda was posted at City Hall on Thursday, August 20, 2015. The agenda and
staff report was posted on the City's website on Friday, August 21, 2015. No public
comments were received as of the time of preparation of this report.
Attachment:
1. Bid Tabulations
2. Notice of Exemption
Item 8.h. - Page 2
CiTY OF ARROYO GRANDE
IBID OPENiNG LOG SHEET
Attachment No. 1
DEADUNE: TUESDAY, AUGUST 11, 2015 -2:00 PM
PROJECT NAME: RESERVOIR NO. 5 EXTERIOR RECOA TING PROJECT
PROJECT NO. PW 2015a11
ENGINEER'S EST/MA TE: $100,000.00
SUBMITTED BY:
Crosno Construction, Inc.
Arroyo Grande, CA
Paso Robles Tank, Inc
Laguna Hills, CA
eputy City Clerk
c: Director of Public Works
Capital Projects Engineer
City Manager
TOTAL
$61,500.00
$41,400.00
Item 8.h. - Page 3
Attachment No. 2
Notice of Exemption
To: Office of Planning and Research
1440 Tenth Street, Room 121
Sacramento, CA 95814
From: (Public Agency) City of Arroyo Grande
[!] County Clerk
County of San Luis Obispo
County Government Center
San Luis Obispo, CA 93408
Project Title: Reservoir No. 5 Extenor Recoating Project, PW 2015-11
Project Location -Specific: access driveway directly off Puesta Del So/
300 East Branch Street
Arroyo Grande, CA 93420
Project Location -City: Arroyo Grande Project Location -County: San Luis Obispo
Description of Project: Preparation. minor surface repairs. and exterior painting of an existing
1, 200, 000 gallon above-ground steel water reservoir.
Name of Public Agency Approving Project: City of Arroyo Grande -Public Works Department
Name of Person or Agency Carrying Out Project: --=G=e=o=ff-=E=n=g=lis=h_,__ ________ _
Exempt Status: (check one)
D Ministerial (Section 12080(b)(1); 15268);
D Declared Emergency (Sec. 21080(b)(3), 15269(a));
D Emergency Project (Sec. 21080(b)(4); 15269(b)(c));
[!] Categorical Exemption. State type and section number: ~Se~c~t=io~n~1~5~3~0"""'1 (=b.._) ___________ _
D Statutory Exemptions. State code number: ----------------------
Reasons Why Project Is Exempt: Maintenance painting of an existing facility
Lead Agency
Contact Person: Michael Linn, P.E. Area Code/Telephone/Extension: (805) 473-5444
If filed by Applicant:
1. Attach a certified document of exemption finding.
2. Has a Notice of Exemption been filed by the public agency approving the project? [!] Yes D No
Signature. ____________ _ Date:
Teresa McC/ish
Director of Community Development
[!] Signed by Lead Agency D Date received for filing at OPR:
D Signed by Applicant
Stagecoach Road, south of Paloma Place, across from Via El Cielo, in the City of Arroyo Grande.
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Item 8.h. - Page 4