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AWARD A PROFESSIONAL SERVICES AGREEMENT TO SUPERIOR TANK SOLUTIONS, INC. FOR WATER STORAGE TANK COATING AND REPAIR AT 14 MILE RESERVOIR SITE AND AMEND THE FISCAL YEAR 2021-22 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 $1,854,065 for water storage tank coating and repair at the 14 Mile Reservoir Site.
3. Amend the Fiscal Year 2021-22 Annual Budget to appropriate funds in the amount of $354,065 from the Water Utility Fund Balance account to the Water Well Production Capital Outlay account.
It is also recommended that the City Manager be authorized to take appropriate and necessary 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 14 Mile water storage reservoirs. Water storage reservoirs, or tanks, are an important part 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 14 Mile storage tanks. Drinking water supply will not be impacted during any part of the project.
On April 2, 2021, the City advertised a Request for Proposal (RFP) for the tank coating and repair of the 14 Mile water storage tanks. Five proposals were received and evaluated. Staff recommends that the City Council adopt a resolution awarding a Professional Services Agreement to Superior Tank Solutions, Inc. of Rancho Cucamonga, CA, in the Not-to-Exceed amount of $1,854,065 for water storage tank coating and repair at the 14 Mile Reservoir Site.
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 14 Mile Reservoir Site is located to the west of Interstate 5 between March Lane and Ben Holt Drive. Work to be completed at the site includes interior and exterior coating of both tanks, and structural upgrades to both tanks needed to comply with updated United States Department of Labor Occupational Safety and Health Administration (OSHA) standards. Both tanks at 14 Mile Reservoir Site have their original interior coatings from their construction in 1975 and 1981. In December 2020, an inspection by West Coast Coating Consultant recommended the complete replacement of the interior coating in both tanks. Drinking water supply will not be impacted during any part of the project.
Present Situation
On April 2, 2022, the City advertised an RFP for the water storage tank coating and repair at the 14 Mile Reservoir Site. On May 6, 2021, five proposals were received from the following firms:
• Advanced Industrial Services, Inc. of Paramount, CA
• Associated Tank Constructors of Laguna Hills, CA
• Champion Specialty Services Corp of Fort Lauderdale, FL
• Farr Construction Corporation of Sparks, NV
• Superior Tank Solutions, Inc. of Rancho Cucamonga, CA
A Selection Committee comprised of Municipal Utilities staff evaluated and ranked all proposals based on each firm’s understanding of the work, experience with similar work, qualifications of proposed team, project approach, 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 rehabilitating potable water storage tanks.
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 to be followed by contractors and employers that are awarded City public works or improvement contracts valued at $1 million or more. 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 $1,854,065 for the tank coating and repair of the 14 Mile 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 Professional Services Contract to Superior Tank Solutions, Inc., in the Not-to-Exceed amount of $1,854,065 for the tank coating and repair of the 14 Mile 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 2021-22 Annual Budget is recommended, to appropriate the amount of $354,065 from the Water Utility Fund Balance account to the Water Well Production Capital Outlay account. 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.