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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. ' Item 8.h. - Page 4