Discussion and possible action on any and all matters regarding approval of additional scope of work on the three-hundred thousand (300,000) gallon tank at Well Site #3 and the five-hundred thousand (500,000) gallon tank at Well Site #4 Maintenance/Rehabilitation Project regarding the contract to Revolution Industrial and waiver of the purchasing code.  (Manuel Rojas, Assistant Public Works Director) (Item has changed)

Following the Inspection report by Marine Diving Solutions of Well Site #3 and Well Site #4 water storage tanks, staff recommended the rehabilitation of subject storage tanks.Rehabilitation consists of sand blasting, primer application and a new coat of paint application on the inside of the tank. After sand blasting procedure and an in depth inspection, additional epoxy coatings as well as structural repairs to the infrastructure will be needed. Maintaining our water storage tanks properly will extend the infrastructure life and minimize future costly repairs.

On June 8, 2016, City Council accepted the bid of Revolution Industrial (which came in at $120,212.86) and approved a contract with them not to exceed $215,000.00, the total budget for the project. The extra amount was to cover uncertainties about the the repairs
that might be needed once the surface was uncovered after the sandblasting.

Revolution Industrial has sand blasted Well Site #3 and  Well Site #4 water storage tanks and has recommended some structural repairs. The work to do the repairs cannot be performed as a separate contract. Staff is returning to Council regarding this new added scope of work discovered after the sandblasting, which could not be included in the original bid. Some of the new scope includes the installation of 12 rafters, welding repairs and additional Reactamine epoxy coating to the water storage tank floor. If approved, these repairs will extend the infrastructure lifespan and will expedite placing the water storage tank back on line. Prolonging the repairs is a concern as recently our Water Division staff had to perform an emergency motor installation at Well Site #6 due to electrical failure and getting our Well Sites #3 and #4 on-line will get our water system's reliability back to normal.  Another concern is if the repairs are not done quickly, it exposes the metal to more corrosion incurring more costs for the City.

Because staff determined that it was in the best interest of the San Luis residences and businesses to get the tank at Well Site #3 and Well Site #4 back on line as soon as possible, and City Council was made aware additional work was a real possibility and budgeted for it at the June 8, 2016 Council Meeting, staff allowed work to start while Revolution Industrial was still in place in San Luis working on the project. This is why the extra work cannot be a separate contract.

Council budgeted for the possibility of the extra work in the June 8, 2016 approval of a total of $215,000.00 for the project. Revolution Industrial is on site and the bidding process would cause unnecessary delays and costs in the bidding process, costs of mobilizing again any contractor, and risking additional costs from corrosion to restart the repairs. The amount is reasonable for the work and of value to get the work done in a timely manner.  The amount of money needed now exceeds the approved amount of $215,000 when Well Site #4 is included with Well Site #3.

The original bid was for $120,212.85.  The change orders are expected to be about $165,000.00 for a total of $285,212.85 for the project.  Exact numbers are not yet in for the additional repairs.

The total combined amount for the project for both well sites, including additional repairs  will  exceed the approved $215,000.00 for Fiscal Year 2016 by an estimated $70,212.86. The $70,212.86 above $215,000.00 will come from the fiscal year 2016-2017 Budget.