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AGENDA ITEM REVIEW FORM
6.B.
Regular City Council Meeting
Meeting Date:
05/08/2024
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 acceptance of change order No. 2 from Viking Industrial Painting, LLC, for the Well Site #6 tank rehabilitation project. (Jorge Perez, Assistant Director of Public Works)

SUMMARY:

In October 2023, Viking Industrial Painting, LLC was awarded the rehabilitation of the interior and exterior of two (2) steel groundwater storage tanks at well sites 5 & 6. The project was initiated at well site #6, and upon a thorough structural inspection, it was determined that aside from the blasting and coating maintenance needs, this tank is in need of a complete roof replacement due to the deteriorated conditions of its rafters. Since then, Viking was tasked to provide repair options for the tank on well site #6 and transitioned to continuing rehabilitation work on well site #5. At this point, work on well site #5 is complete, and the tank is fully operational. Viking has also presented the City of San Luis with three options for the roof replacement needs at the well site #6 tank. These options are as follows: 
  1. Roof In-kind replacement at $270,689.00
  2. Steel replacement with exterior structure at $273,246.00
  3.  Replacement with a self-supporting aluminum geodesic dome at $119,779.00
The Department of Public Works recommends moving forward with option No. 3, Self-supporting Aluminum Geodesic Dome. The benefits of the geodesic aluminum dome are the elimination of coating the interior and exterior surfaces during each painting cycle (less maintenance and more cost-effective in the short and long term). These cost savings make the geodesic dome a clear economic winner. From an environmental impact, the geodesic dome is also a clear winner, as the reduction of paint and abrasive use will have a positive impact on the environment. 

Due to the substantial repairs needed at well site #6 tank, the project was halted, and hence, a time extension is also included in this change order No. 2. Contract time is modified to resume construction work at well site #6 on November 1, 2024, with a new substantial completion date of March 31, 2025. During the interim time, Viking would still be working on the design, drawing submittals, and ordering the dome and wind girder materials. Change order No. 2 also includes the installation/application of a City of San Luis Logo on one area of the well site #6 storage tank.

RECOMMENDATION / SUGGESTED MOTION:

I MOVE TO ACCEPT CHANGE ORDER REQUEST NO. 2 FROM VIKING INDUSTRIAL PAINTING, LLC, FOR WELL SITE #6 TANK ROOF REPLACEMENT IN AN AMOUNT NOT TO EXCEED $136,904.00 AS PRESENTED. 

Fiscal Impact

IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
Yes
CITY/STATE/FEDERAL FUNDS:
City
TOTAL:
$136,904.00
BUDGETED AMOUNT:
$2,000,000.00
AVAILABLE AMOUNT TO TRANSFER:
N/A
ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
Capital Outlay-CIP / 300-302-90015 / $233,182.60 (See fiscal impact statement)

FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):

The original contract sum for this project (two tanks) was $1,263,575.00
This change order adds $136,904.00 to the contract sum.
Work at well site #5 tank is complete. Pending work for well site #6 tank (including this change order) is scheduled to occur during fiscal year 2025, and it has been budgeted accordingly.

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