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the project is $316,924 excluding the additive bid item. Staff is recommending the appropriation of an additional $31,049 from the Repair and Replacement Water Enterprise Fund balance, which has been verified by the Director of Finance to be available to fully fund the project excluding the additive bid item. This project is part of the City's on-going preventative maintenance efforts to improve water quality and prolong the service life of existing water storage tanks. These projects are expected to help control long-term maintenance costs. BACKGROUND The City conducts cyclic underwater inspection of interior coatings as well as cleaning and maintenance of all the tanks within the water distribution system. The latest underwater inspection showed the interior coatings of Moller Ranch Tank, Tank 770-1, and Dublin Canyon Tank have reached their life expectancy within the vapor zones due to the presence of widespread corrosion. The inspection also revealed paint blisters and coating issues within the various floor and wall areas. A letter dated May 28, 2010, from the California Department of Public Health reported that these tanks are identified with noticeable corrosion that can cause leaks, degrade water quality, and drastically reduce the service life of the reservoirs. The letter further stated that for these reasons the corrosion issue must be addressed. The subject project consists of recoating the entire vapor zone while performing selective spot repairs of the wall and floor areas for each of the three water storage tanks (Moller Ranch, Tank 770-1, and Dublin Canyon). The tanks will need to be drained and placed out of service while the coating operation takes place. The work will be performed during the winter months when water demand is low based on historical data. DISCUSSION Bids Sealed bids for the water storage tank corrosion repair project were opened on September 12, 2011. There were a total of six bids received and reviewed. One bid was determined to be non-responsive due to: incomplete bid documents, name discrepancies in the bid documents, and expired QP-1 certification. The five responsive bids ranged between the low base bid amount of $259,840, from Utility Service Co., Inc., and $517,562 (see attached Bid Summary). The low base bid amount is approximately 6% higher than the engineer's estimate of $245,000. Staff reviewed the proposal from the apparent low bidder, Utility Service Co., Inc., and determined that it conforms to the project specifications. Past work performed by Utility Service Co., Inc., was verified to be satisfactory. Therefore, staff recommends award of the construction contract to the lowest responsible bidder, Utility Service Co., Inc. The City, on average, performs tank coating work every 15 years and does not have in- house expertise to oversee field inspection during surface preparation and coating applications. Staff recognized this potential inspection issue and solicited proposals from qualified consultants in order to assist the City during surface preparation and coating application. A total of four (4) proposals were received. After review of the Page 2 of 3