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AWARD A PROFESSIONAL SERVICES AGREEMENT TO SUPERIOR TANK SOLUTIONS, INC. FOR REHAB OF THE WESTON RANCH WATER STORAGE RESERVOIRS AND AMEND THE FISCAL YEAR 2019-20 ANNUAL BUDGET
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Approve findings pursuant to Stockton Municipal Code section 3.68.070 in support of an exception to the competitive bidding process.
2. Award a Professional Services Agreement to Superior Tank Solutions, Inc. of Rancho Cucamonga, CA in the Not-to-Exceed amount of $1,172,601 for the rehab of the Weston Ranch water storage reservoirs.
3. Amend the Fiscal Year 2019-20 Annual Budget to appropriate funds in the amount of $1,172,601 from the Water Utility Fund Balance account (421-0000-287) to the Water Well Production Capital Outlay account (421-4235-606).
It is also recommended that the City Manager be authorized to take appropriate actions to carry out the purpose and intent of this resolution.
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Summary
Adoption of the proposed resolution would retain Superior Tank Solutions, Inc. for the rehabilitation of the Weston Ranch water storage reservoirs. Water storage reservoirs, or tanks, are an important part the of the City’s water distribution system. Regular maintenance of these reservoirs is important and occurs when various improvements are required. The work to be completed on this project will consist of repairs to tank coatings, structural maintenance and exterior painting of both Weston Ranch storage tanks. Drinking water supply to Weston Ranch residents and in other areas of south Stockton will not be impacted during any part of the project.
On January 24, 2020, the City advertised a Request for Proposal (RFP) for the rehab of the Weston Ranch water storage tanks. Four proposals were received and evaluated. Staff recommends that the City Council adopt a resolution awarding a Professional Services Agreement (PSA) to Superior Tank Solutions, Inc. of Rancho Cucamonga, CA in the Not-to-Exceed amount of $1,172,601 to rehab the Weston Ranch water storage tanks.
DISCUSSION
Background
The Municipal Utilities Department provides water service to Stockton residents through a water production and distribution system, which consists of the Delta Water Treatment Plant, groundwater wells, water storage reservoirs and miles of service pipelines.
Water storage tanks located throughout the City store supply to meet fire flows and peak demands. Their maintenance and rehabilitation ensure adequate water supply and pressure for the City’s customers. The Weston Ranch water storage reservoir site is in the southwest part of Stockton. Work to be completed at the site includes interior coating repair on the Northern tank (built in 1990), exterior paint on all tanks, and exterior structural upgrades on the Northern tank needed to comply with updated United States Department of Labor Occupational Safety and Health Administration (OSHA) standards. Drinking water supply to Weston Ranch residents and in other areas in south Stockton will not be impacted during any part of the project.
Present Situation
On January 24, 2020, the City advertised a RFP to rehab the Weston Ranch water storage reservoirs. On March 5, 2020, four proposals were received from the following firms:
• Farr Construction Corporation of Sparks, NV
• Certified Coatings Company of Fairfield, CA
• Superior Tank Solutions, Inc. of Rancho Cucamonga, CA
• Advanced Industrial Services, Inc. of Paramount, CA
The proposals were first reviewed by the City’s Administrative Services Department. That review found that Advanced Industrial Services did not meet the RFP Financial Statement requirements. The three remaining proposals were evaluated by a staff committee based on each firm’s understanding of work, project approach, specific experience with similar studies, qualifications of the proposed team and cost. Superior Tank Solutions, Inc. met or exceeded the requirements and was found to be the most qualified based on the RFP criteria. Superior Tank Solutions, Inc. is familiar with drinking water processes, procedures and regulations and has extensive experience with storage tank rehabilitation.
On July 26, 2016, the City Council adopted a Community Workforce and Training Agreement (CWTA). The CWTA became effective August 25, 2016 and was renewed in 2019. It applies to all Public Works projects over $1 million that are bid after that date. The adopted agreement specifies conditions that contractors and employers that are awarded City public works or improvement contracts valued at $1 million or more must follow. The CWTA was applied to this project because the estimated repair services cost is more than $1 million.
Staff recommends the City Council adopt a resolution to award a Professional Services Agreement to Superior Tank Solutions, Inc. in the Not-to-Exceed amount of $1,172,601 for the rehabilitation of the Weston Ranch water storage reservoirs (Exhibit 1 to the resolution).
Findings
Pursuant to Stockton Municipal Code section 3.68.070, Council may approve findings which support and justify an exception to the competitive bidding process. The following findings support such an exception:
1. Use of the RFP process is appropriate for this Professional Services Contract because it relies on the evaluation of professional qualifications and performance as the basis for selection of a vendor. Use of these criteria helps ensure selection of a vendor that will provide the highest quality professional service, which is in the public interest.
2. It is imperative that structural repairs on the water storage reservoirs meet American Water Works Association (AWWA) Section D.100 standards.
3. Coatings and paints used for storage tank linings must meet NSF 61 requirements in accordance with AWWA Section D. 102-11 standards.
4. It is in the public interest to have qualified vendors who possess the required “A” General Engineering License, an ISO 9001 certification and C-33 License.
The recommended resolution will award a PSA to Superior Tank Solutions, Inc., in the Not-to-Exceed amount of $1,172,601 to rehabilitate the Weston Ranch water storage reservoirs.
LOCAL EMPLOYMENT ORDINANCE
On September 1, 2009, the City Council adopted a Local Employment Ordinance establishing a goal that 50 percent of the workforce on public works projects of at least $100,000 be residents of the City of Stockton. The contract amount for this project is more than $100,000 and is subject to the Local Employment Ordinance.
FINANCIAL SUMMARY
An amendment to the Fiscal Year 2019-20 Annual Budget is recommended, to appropriate in the amount of $1,172,601, from the Water Utility Fund Balance account (421-0000-287) to the Water Well Production Capital Outlay account (421-4235-606). With this new appropriation, there will be sufficient funds available to award a Professional Service Agreement to Superior Tank Solutions, Inc.
There is no impact to the General Fund, or any other unrestricted funds, from this action.