To: Board of Directors, Sonoma County Water Agency
Department or Agency Name(s): Sonoma County Water Agency
Staff Name and Phone Number: Aaron Fulton 547-1974
Vote Requirement: Majority
Supervisorial District(s): Countywide
Title:
Title
Cotati Tank No. 3 Recoating - Contract Award and Consulting Agreement for Coating Inspection Services
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Recommended Action:
Recommended action
A) Adopt and approve the Project Manual and Drawings (“plans and specifications”) entitled "Cotati Tank No. 3 Recoating.”
B) Award the contract to Viking Industrial for $6,962,100 for construction of Cotati Tank No. 3 Recoating and authorize the Chair to execute the contract.
C) Authorize Sonoma County Water Agency’s General Manager to sign Section 00 65 23 (Agreement and Release of Any and All Claims), with County Counsel review, if any unresolved claims are listed by the contractor.
D) Authorize Sonoma County Water Agency’s General Manager to execute an agreement with Gaya Coating Consulting Inc., in substantially the form as the draft presented to this Board, for coating inspection services through June 30, 2026, in the not-to-exceed amount of $340,000.
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Executive Summary:
This item requests approval of a contract with Viking Industrial for $6,962,100 for construction of Cotati Tank No. 3 Recoating (Project) to remove and replace interior and exterior coatings and paint, and to install health, safety, seismic structural, and cathodic protection system improvements to maintain the functional lifespan of Cotati Tank No. 3. The item also requests approval of an agreement with Gaya Coating Consulting Inc. to perform highly specialized coating and painting inspections for the Project.
Discussion:
HISTORY OF ITEM/BACKGROUND
Sonoma Water’s Capital Improvement Plan (Plan) identifies key infrastructure projects to meet the needs of wastewater, flood management, and water transmission facilities within its jurisdiction. The Plan includes a Tank Recoating Program (Program) with a goal to maintain and protect the original lifespan of Sonoma Water’s 18 above-grade welded steel water storage tanks through targeted proactive maintenance actions, structural repairs, and cathodic protection systems. The Plan also includes the seismic retrofit of storage tanks to mitigate seismic-related vulnerabilities at water storage tanks.
Water storage tanks are an integral component of the water transmission system that provide a source of water when demand exceeds production rates and require periodic recoating and painting to maintain the original lifespan of the structure. The periodic actions seek to prevent corrosion, minimize infrastructure replacement costs, and help ensure water storage and transmission reliability.
COTATI TANK NO. 3 RECOATING PROJECT (PROJECT)
On June 21, 2023, Sonoma Water contracted with Harper and Associates Engineering, a specialty water tank coating consultant, to inspect Cotati Tank No. 3 for corrosion and health and safety deficiencies and to develop recoating plans and specifications for the Project. Localized corrosion in the rafters and various surficial coating failures were identified during dive inspections, condition assessments, and staff observations. Furthermore, at approximately 30-years old, the coating system at Cotati Tank No. 3 has exceeded its anticipated useful life and requires removal and replacement.
Structural analyses performed during design indicate the Cotati Tank No. 3 foundation is vulnerable to failure during a seismic event. With a capacity of 18 million gallons, it is the largest storage tank on the Cotati Intertie and is critically important for balancing demand and supporting water transfers to the City of Petaluma and North Marin and Marin Municipal water districts. The Project also includes the retrofit of the Cotati Tank No. 3 foundation to mitigate the known seismic vulnerability and increase reliability in the water transmission system. The plans and specifications for the Project were completed in October of 2024.
The Project is located at 1380 West Sierra Avenue, in unincorporated Sonoma County near the City of Cotati, and includes, but is not limited to, repairing corroded structural steel features within the tank, installing lateral bracing, applying protective coating to tank interior, painting tank exterior, installing new cathodic protection system for long term corrosion prevention, expanding a concrete foundation, and other miscellaneous improvements.
CONSULTING AGREEMENT
Specialized coating inspection services, beyond the capabilities of Sonoma Water staff, will be required for construction of the Project. Under the agreement, Gaya Coating Consultants, Inc. (Consultant) will complete the following:
• Coordinate and schedule on-site inspections.
• Provide testing equipment and perform compliance tests.
• Prepare and submit daily inspection reports during construction.
• Take digital photographs of significant features and damaged or defective areas.
The cost of services will not exceed $340,000, and the term end date is June 30, 2026.
Under the agreement, the General Manager shall have the ability to extend the term of the agreement for up to two additional years by providing written notice to the other party thirty days in advance of the expiration date. The extension shall be formalized in an amended agreement or amendment signed by the parties.
Consultant was selected from a list of qualified consultants developed from a competitive selection process. Attached is a memo that explains the competitive selection process. Consultant was selected for the subject work because of Consultant’s outstanding level of qualifications and experience. Consultant specializes in tank coating processes and materials, is registered with professional standards associations, and has over 25 years of experience working with many municipalities around the Bay Area.
CALIFORNIA ENVIRONMENTAL QUALITY ACT
Sonoma Water’s General Manager has determined that the Project is exempt from the California Environmental Quality Act (CEQA) under State CEQA Guidelines Sections 15301(b)(d)(e) and 15304(f). The maintenance project consists of minor alterations of an existing water storage tank and minor alterations to land that will not result in expansion of existing uses or removal of healthy, mature, scenic trees. The additional foundation to mitigate seismic vulnerabilities will not result in an increase of more than 50 percent of the floor area of the structure before the addition, or 2,500 square feet.
The Project was advertised for bids: 9/26/24
Bids were opened: 10/29/2024
Bids for construction of said Project were received on October 29, 2024, as follows:
AMP United, LLC, Dover, NH $6,474,000
Viking Industrial, La Vista, NE $6,962,100
Farr Construction Corp, dba Resource Development Company, Sparks, NV $7,108,100
Euro Style Management, Sacramento, CA $7,774,200
Paso Robles Tank, Hemet, CA $8,322,688
Capital Industrial Coating, Huntington Beach, CA $8,462,300
The Engineer’s Estimate was $8,184,200.
The lowest responsive and responsible bid is from Viking Industrial and is $1,222,100 below the Engineer’s Estimate. The difference between the Engineer’s estimate and the lowest responsive and responsible bid may be attributed to the use of escalated historic tank recoating costs when developing the Engineer’s Estimate. The assumed recoating costs were based on smaller dimension tanks and may not account for potential economies of scale when recoating a tank as large as Cotati Tank No. 3. Overall, the Engineer’s Estimate aligned with the range of bids received. Viking Industrial is experienced in this type of construction and met the experience requirements.
A contractor must execute a release of claims (Section 00 65 23) before final payment but may except any unresolved claims from the release. The requested action authorizes the General Manager to approve the release unless the contractor lists unresolved claims. In that case, County Counsel must review Section 00 65 23 prior to General Manager approval.
Section 00 67 00 (Escrow Bid Documents) of the Project Manual requires that the contractor submit bid preparation documents into an escrow account at a mutually agreeable institution. The documents would be available later for review by Sonoma Water and contractor in case of a dispute.
Construction on the Project is scheduled to begin approximately February 17, 2025, with an estimated completion date of January 16, 2026.
County of Sonoma Strategic Plan Alignment:
N/A
Sonoma Water Strategic Plan Alignment:
This item directly supports Sonoma Water’s Strategic Plan and is aligned with the following goal, strategy, and action item.
Goal: 2. Planning and Infrastructure - Implement comprehensive, integrated, and innovative infrastructure planning to strengthen existing services, minimize life cycle costs, and prepare for the future.
Strategy: 2.3 Fund and implement the planned capital and manintenance projects on schedule to ensure reliable services.
Action Item: 2.3.2 Fund Capital Improvement Program budgets to meet infrastructure needs.
Approval of the item will result in recoating of Cotati Tank No. 3 which will minimize infrastructure life cycle costs by mitigating corrosion and ensuring reliable services.
Racial Equity:
Was this item identified as an opportunity to apply the Racial Equity Toolkit?
No
Prior Board Actions:
06/06/23 Board Action authorizing Sonoma County Water Agency’s General Manager to execute an agreement with Harper & Associates Engineering, Inc., for engineering and design services through December 31, 2025, in the not-to-exceed amount of $150,000.
Fiscal Summary
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Expenditures |
FY24-25 Adopted |
FY25-26 Projected |
FY26-27 Projected |
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Budgeted Expenses |
$7,302,100 |
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Additional Appropriation Requested |
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Total Expenditures |
$7,302,100 |
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Funding Sources |
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General Fund/WA GF |
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State/Federal |
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Fees/Other |
$7,302,100 |
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Use of Fund Balance |
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General Fund Contingencies |
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Total Sources |
$7,302,100 |
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Narrative Explanation of Fiscal Impacts:
Total Budgeted amount of $7,302,100 is available from FY 2024/2025 appropriations for the Water Transmission Operations & Maintenance Fund ($6,983,600) for Tank Recoating Program and the Water Storage Fund ($318,500) for Seismic Retrofit of Storage Tanks. No additional appropriations are required to process this expense.
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Staffing Impacts: |
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Position Title (Payroll Classification) |
Monthly Salary Range (A-I Step) |
Additions (Number) |
Deletions (Number) |
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Narrative Explanation of Staffing Impacts (If Required):
N/A
Attachments:
1. Draft Agreement with Gaya Coating Consultants, Inc.
2. Consultant Selection Memo
Related Items “On File” with the Clerk of the Board:
Project Manual and Drawings