July 15, 2025, Item #3AG EN DA REPORT City of Poway DATE: TO: FROM: CONTACT: July 15, 2025 Honorable Mayor and Members of the City Council Julie Procopio, Director of Development Serviceq· Douglas Nguyen, Assistant Engineer (858) 668-4605 or [email protected] CITY COUNCIL SUBJECT: Acceptance of the Reservoir R-4 and R-7 Rehabilitation Project with Unified Field Services Corporation, as Complete Summary: On February 20, 2024, the City Council awarded the contract for the Reservoir R-4 and R-7 Rehabilitation project; Bid No. 24-002, to Unified Field Services Corporation, in the amount of $1,228,073.00. This action will accept the project as complete. Recommended Action: It is recommended the City Council: 1) Accept the Reservoir R-4 and R-7 Rehabilitation project as complete; 2) Authorize the City Clerk to file and record the Notice of Completion; 3) Authorize the release of the retention in the amount of $64,981.60, if unencumbered, 45 days after City Council acceptance; 4) Release the Nationwide Mutual Insurance Co. Bond for Material and Labor in the amount of $1,256,245.00 after the release of retention; and 5) Retain the Nationwide Mutual Insurance Co. Bond for Faithful Performance for a period of one (1) year. Discussion: This project involved the rehabilitation of Reservoirs R-4 and R-7, both existing potable water steel storage tanks. Reservoir R-4, located at Butterfield Trail, has a capacity of 500,000 gallons, while Reservoir R-7, located at Boulder Mountain Road, holds 1,000,000 gallons. The improvements to Reservoir R-4 included interior and exterior recoating, structural repairs to the roof and vents, upgrades to the fall restraint system and installation of a new liquid level indicator. Reservoir R-7 improvements included a new interior coating, an additional vent, roof rafter repairs and replacements, upgraded fall restraint systems, an integrated overflow air gap, a new liquid level indicator and a new cathodic protection system. A total of seven change orders were issued throughout the project, which increased the contract 1 of 2
July 15, 2025, Item #3amount by $71,558.93. Change Orders 1 and 2 addressed unforeseen repairs at Reservoir R-4 discovered during construction, including rafter end repairs, restoration of interior floor pits and welding at various locations along the tank shell, resulting in an added cost of $43,609.74. Change Order 3 related to Reservoir R-7 and involved replacement of the interior halo to address more severe rafter end deterioration than initially observed; several original bid items related to rafter repair were removed, leading to a net cost savings of $10,559.89. Change Orders 4, 5 and 6 included interior weld repairs identified during construction, replacement of the roof hatch, exterior roof coating due to greater-than-anticipated deterioration, installation of a new liquid level indicator that was not part of the original R-7 scope and additional dehumidification measures required due to the unforeseen structural issues. The final change order reflected adjustments to the bid item quantities based on actual field conditions, resulting in the removal of three items and a contract savings of $70,380.00. The total of seven change orders resulted in a net increase of $71,558.93 and the final contract amount is $1,299,631.93. Environmental Review: The action of acceptance of public improvements that have been completed, which was the subject of a prior environmental determination, is not considered a Project as defined under Section 15301 of the California Environmental Quality Act (CEQA) State Guidelines; therefore, pursuant to the CEQA State Guidelines Section 15378(b)(5) no environmental review is required. Fiscal Impact: This rehabilitation project is funded from the Water Enterprise Fund (F5100). Sufficient funds are available in the project account (WT036) for the release of retention. After the retention payment of $64,981.60, the project account (WT036) will have an available balance of $70,380.00. The City proactively plans for water system repair and replacement as part of the budget development process. Public Notification: None. Attachments: None. Reviewed/Approved By: qrJ~L--_---We~aserman Assistant City Manager 2 of2 Reviewed By: Alan Fenstermacher City Attorney A~) Chris City Manager