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AGENDA ITEM REVIEW FORM |
7.F.
Regular City Council Meeting
- Meeting Date:
- 07/08/2026
- Department Head:
- Eulogio Vera
- Submitted By:
- Jorge Perez, Assistant Director of Public Works, Public Works Department
Action Requested:
Motion
ITEM:
Discussion and possible action on any and all matters regarding the approval of Contract Change Order No. 2-A on the Well Site #3 Water Storage Tank Rehabilitation Project. (Jorge Perez, Assistant Director of Public Works)
SUMMARY:
The City of San Luis contracted with Pittsburg Tank and Tower in May 2026 to rehabilitate the water storage tank and associated appurtenances at Well Site #3. During the design and project scoping phase, the City's design engineer, Kimley-Horn, anticipated replacing approximately one-third of the roof rafters based on the findings of the previously completed condition assessment. However, once demolition began, Pittsburg Tank and Tower determined that the majority of the roof rafters had deteriorated beyond expectations. The contractor also identified significant deterioration of the rim angle that supports the roof rafters, as well as the upper six to eight inches of the tank shell where the new rim angle is attached.
In June 2026, staff approved Change Order No. 1 to address the replacement of the additional roof rafters and rim angle. The change order, in the amount of $18,042.05, was funded using the project's approved contingency, leaving a remaining contingency balance of $40,143.95.
As demolition progressed, Pittsburg Tank and Tower determined that the deteriorated upper section of the tank shell must also be removed and replaced to provide adequate structural support for the new rim angle. Because the existing roof plates must be removed to complete this work, the contractor has recommended replacing the roof plates in their entirety as the most practical and cost-effective solution. The revised scope of work includes replacing the upper six to eight inches of the tank shell, installing the new rim angle and roof rafters, and constructing a new roof using new roof plates. In addition, staff is taking this opportunity to incorporate the City's logo on one side of the water storage tank, consistent with other city-owned water storage facilities.
The total cost of Change Order No. 2-A is $116,250.00. After applying the remaining project contingency of $40,143.95, the additional amount requiring Council approval is $76,106.05, bringing the total project cost to $716,152.05.
Staff recommends approval of Change Order No. 2-A in the amount of $116,250.00 for the reasons presented.
In June 2026, staff approved Change Order No. 1 to address the replacement of the additional roof rafters and rim angle. The change order, in the amount of $18,042.05, was funded using the project's approved contingency, leaving a remaining contingency balance of $40,143.95.
As demolition progressed, Pittsburg Tank and Tower determined that the deteriorated upper section of the tank shell must also be removed and replaced to provide adequate structural support for the new rim angle. Because the existing roof plates must be removed to complete this work, the contractor has recommended replacing the roof plates in their entirety as the most practical and cost-effective solution. The revised scope of work includes replacing the upper six to eight inches of the tank shell, installing the new rim angle and roof rafters, and constructing a new roof using new roof plates. In addition, staff is taking this opportunity to incorporate the City's logo on one side of the water storage tank, consistent with other city-owned water storage facilities.
The total cost of Change Order No. 2-A is $116,250.00. After applying the remaining project contingency of $40,143.95, the additional amount requiring Council approval is $76,106.05, bringing the total project cost to $716,152.05.
Staff recommends approval of Change Order No. 2-A in the amount of $116,250.00 for the reasons presented.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO CHANGE ORDER NO. 2-A FROM PITTSBURG TANK AND TOWER IN THE AMOUNT OF $116,250.00 AS PRESENTED.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- Yes
- CITY/STATE/FEDERAL FUNDS:
- City
- TOTAL:
- $76,106.05
- BUDGETED AMOUNT:
- $1,000,000.00
- AVAILABLE AMOUNT TO TRANSFER:
- See fiscal impact statement
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- See fiscal impact statement
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
This is a budgeted project for FY27. Staff budgeted this project as a continuation on Well Site No. 4 for the rehabilitation of the storage tank and appurtenances as well. Approved funds for FY27 are $1,000,000.00, under Account No: 300-302-90015, Project No. 2026053.
Original Project Contract Amount: .................................................. $640,046.00
Contingency included in the Original Contract Amount: ................. $58,186.00
Contingency funds Used in Change Order No. 1: .......................... $18,042.05
Remaining Contingency Fund after Change Order No. 1: ............. $40,143.95
Proposed Change Order No. 2: ...................................................... $116,250.00
New Contract Sum (Change Order No. 2 minus Contingency): ..... $716,152.05
Original Project Contract Amount: .................................................. $640,046.00
Contingency included in the Original Contract Amount: ................. $58,186.00
Contingency funds Used in Change Order No. 1: .......................... $18,042.05
Remaining Contingency Fund after Change Order No. 1: ............. $40,143.95
Proposed Change Order No. 2: ...................................................... $116,250.00
New Contract Sum (Change Order No. 2 minus Contingency): ..... $716,152.05