Discussion and possible action on any and all matters regarding the City of San Luis accepting and ratifying the proposed Change Order No. 3 from Viking Industrial Painting pertaining to the well site No. 6 water storage tank rehabilitation.  (Jorge Perez, Assistant Director of Public Works)

The City of San Luis contracted with Viking Industrial Painting in October 2023 to perform the water storage tank rehabilitation of two, 1,000,000-gallon steel storage tanks. These tanks are located at Well Site No. 4 (1311 N. 4th Avenue) and at Well Site No. 6 (490 10th Avenue). Viking completed the rehabilitation of Well Site No. 5 by April 2024, but by then, the project had to be placed on hold due to high water demands during the summer. The water department must maintain operational water production and storage sites to keep up with demand; thus, the project was scheduled to resume during the winter of 2024, with substantial completion by the end of March 2025. While the contractor started to work on the storage tank, it was noted that further damage to the roof had occurred in the interim. Such structural components are in extremely poor conditions with obvious levels of corrosion, which compromise the integrity of such components. At such a time, the contractor had to step back and provide a different approach for the repair of the tank, which now has a different level of complexity and will require a whole new roof removal approach, which may entail additional equipment and manpower.  

Viking Industrial Painting reached out to other subcontracting fabrication companies and received positive responses of interest in taking on this challenging repair project while teaming up with them. At the same time, Public Works did the same with other tank contractors and received a proposal for the same work. Such work includes the removal of the existing roof plate, the installation of the new wind girder, and the top 12 inches of the shell wall. Viking Industrial Painting change order proposal came under the other proposal that the City of San Luis obtained. It also makes more sense to keep the work under the same general contractor for ease of workflow, coordination, and constructability and to streamline the project, as it is important that the work gets completed before the end of June 2025. Viking Industrial Painting change order proposal also includes a 90-day time extension, which aligns with the end of the fiscal year. 

Given the nature of the project, the time when the proposal was received, and the urgency to meet the project completion time, staff asked City Administration for approval of the change order ahead of time for the council presentation on March 12, 2025. Therefore, staff is seeking council ratification of Viking's change order No. 3 in the amount of $157,155.44 and to approve a transfer of budget and capacity from project No. 2025050 "West Wastewater Treatment Plant Expansion" to project No. 2025041 "Water Storage Tank #6 Rehabilitation Project" for said amount.