REPORT TO COUNCIL
SUBJECT
Title
Authorize an Amendment to an Existing Purchase Order for Tank Coating Inspection (F19-010)
Report
REPORT IN BRIEF
Approval is requested to modify an existing purchase order with West Coast Coating Consultants LLC of Albany for tank coating inspection services, increasing the not-to-exceed by $65,000, from $80,000 to $145,000.
EXISTING POLICY
Pursuant to Section 2.08.040 of the Sunnyvale Municipal Code, City Council approval is required for the procurement of goods and/or services exceeding $100,000 in any one transaction.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
BACKGROUND AND DISCUSSION
The Mary-Carson Water Plant is located at 155 South Mary Avenue. The facility consists of two 5,000,000-gallon (5.0 MG) steel tanks that were constructed in 1966, and are an important component of the City’s potable water supply. A seismic vulnerability assessment and interior inspection were completed in 2004 and 2013, respectively. The assessment concluded that, in the event of a major earthquake, the water tanks would be vulnerable to structural damage and anchorage failure. The inspections reported severe corrosion, cracking, and coating failures on the tank interiors. As part of the Capital Improvement Program, a project was created to replace the interior coating of the tank shells, floor and ceiling. In addition to providing seismic upgrades to the flex coupling adapters at the water line interface, installation of new valves, repair of manways and repair/upgrade of tank hardware is necessary. The seismic upgrade work requires a third-party coating inspector, specialized and certified in the field. The first tank, Tank No.1 (RTC No. 16-0550), was recently completed and the work on the second tank, Tank No. 2 (RTC No. 18-0548), is anticipated to begin late summer 2018.
West Coast Coating Consultants (WCCC) was hired by the City to perform the required third-party coating inspections for Tank No. 1 under a blanket purchase order with an amount not-to-exceed $80,000.00. It has been determined that the refurbishment work for Tank No. 2 will also require third-party coating inspections. WCCC has the experience and familiarity with working inside Tank No. 1, is knowledgeable of the characteristics for both tanks, and has the appropriate license and certification for this type of work. Therefore, Staff is requesting that WCCC provide the required inspections for Tank No. 2, and is requesting an amendment to the existing purchase order with WCCC to complete these services.
FISCAL IMPACT
The existing purchase amount will be increased by $65,000.00, from $80,000.00 to a new total $145,000.00.
Funding Source
Budgeted funds are available in Capital Project 830170 (Refurbishment of Water Tanks), funded by the Water Fund.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, at the Sunnyvale Senior Center, Community Center and Department of Public Safety; and by making the agenda and report available at the Sunnyvale Public Library, the Office of the City Clerk and on the City's website.
RECOMMENDATION
Recommendation
Authorize the City Manager to amend the existing purchase order with West Coast Coating Consultants LLC for tank coating services increasing the not-to-exceed amount by $65,000, for a new not-to-exceed total of $145,000.
Staff
Prepared by: Gregory S. Card, Purchasing Officer
Reviewed by: Timothy J. Kirby, Director of Finance
Reviewed by: Chip Taylor, Director of Public Works
Reviewed by: Teri Silva, Assistant City Manager
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. Draft Amended Blanket Purchase Order