| AGENDA ITEM #: 3. DATE: 04/26/2021 |
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CITY COUNCIL ACTION REPORT
| SUBJECT: | APPROVE EXPENDITURE OF $929,000 FOR REPAIRS TO PROJECT #60011 SITE 21 POTABLE WATER RESERVOIR REHABILITATION PROJECT AND RELATED BUDGET TRANSFERS |
| STAFF PRESENTER(S): | Leonard Scheid, Water and Wastewater Superintendent; Barbara Chappell, Deputy Public Works Director |
SUMMARY:
Request City Council approval of the expenditure of FY2021 funds for Project #60011 Site 21 Potable Water Reservoir Rehabilitation and related budget transfers.
Recommendation:
Approve additional expenditure of funds of $141,000 for a total authorized amount of $929,000 for Project #60011 Site 21 Potable Water Reservoir Rehabilitation and related budget transfers. (Leonard Scheid, Water and Wastewater Superintendent; Barbara Chappell, Deputy Public Works Director)
FISCAL IMPACT:
The total project cost of $929,000 exceeds the current budget and expenditure authorization of $788,000 by $141,000. This additional expenditure is due to the necessary repairs to the floor of Project #60011 Site 21 Potable Water Reservoir Rehabilitation which were not foreseen upon award of the original contract. A budget transfer from Project #60004 Adaman Well 3 is being requested to cover the unbudgeted amount. Project #60004 Adaman Well 3 has been completed and has a remaining project budget of $751,691.
BACKGROUND AND PREVIOUS ACTIONS:
Per City of Goodyear Resolution 08-1255, all expenditures of budgeted funds in excess of $500,000 must obtain Council approval. The city owns and operates a 2.0 million gallon storage tank at Booster Station #21 to supply potable water for domestic and fire protection needs to residents. The tank construction is made of welded carbon steel material and was built in 2004. Basic maintenance to the tank has been performed on a regular basis, but full tank coating rehabilitation has not. Previous maintenance includes interior cleaning and visual inspection utilizing divers to assess the overall condition and determine maintenance needs. The tank has the original coating from construction and upon inspection, the coating is now due for replacement. Normal life cycle of interior tank coating systems is 10-15 years.
On October 28, 2019, Council approved the expenditure for the budgeted amount of $788,000. The project start was delayed in order to allow the Site 12 project to be completed and put into service in order to meet customer demands. Work on this project started October 12, 2020.
On October 28, 2019, Council approved the expenditure for the budgeted amount of $788,000. The project start was delayed in order to allow the Site 12 project to be completed and put into service in order to meet customer demands. Work on this project started October 12, 2020.
STAFF ANALYSIS
During the rehabilitation process, it was discovered that several areas of the tank floor have failed. The normal procedure to prepare a tank for coating is to remove the old coating via sandblasting. The steel needs to be blasted to bare metal to accept the new coating. Due to the age and condition of the steel floor, holes were discovered when the old coating was removed. The size of these areas range from small (less than an inch in diameter) to large (4-6 inches in diameter). An engineering assessment has been made with recommendations for repairs. The current JOC contractor has submitted a cost estimate and proposed schedule to repair the sections identified and complete the tank rehabilitation.
The additional $141,000 requested is required to properly repair the floor and extend the serviceable use of the tank for a total project cost of $929,000. Without these needed repairs, the tank cannot be placed back into service for use. This will effectively shut down all Site 21 facilities and three of Goodyear's potable wells. This will place an undue strain on the city's water production and could severely impact the city's ability to properly supply water to its citizens.
The additional $141,000 requested is required to properly repair the floor and extend the serviceable use of the tank for a total project cost of $929,000. Without these needed repairs, the tank cannot be placed back into service for use. This will effectively shut down all Site 21 facilities and three of Goodyear's potable wells. This will place an undue strain on the city's water production and could severely impact the city's ability to properly supply water to its citizens.