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BACKGROUND The Utilities Division of the Operations Services Department is responsible for the operations and maintenance of 15 steel reservoirs with cathodic protection systems in its service area. Though the tanks have internal coatings, cathodic protection systems are used to protect the metal structure from corrosion that can lead to leaks on the walls of the tanks, costly structural repairs, and emergency shutdowns if not properly maintained. The inspection verifies that the cathodic system is operating properly. Throughout the years the cathodic systems have aged and require maintenance and repair. Routine maintenance of the systems is a priority to ensure proper operation and protection of the integrity of the City's steel reservoirs. This differs from the reservoir cleaning and inspection as the work on this contract pertains only to the cathodic protection equipment that is a part of the steel above ground water tanks, it does not include any tank diving for silt clean up or video inspection footage. It is not always practical or cost effective for City staff to perform certain functions. Contracting certain services allows for operations and maintenance tasks to be prioritized based on available staff, project work, regulatory requirements, and customer needs. Contracting the cathodic system inspection, design, and repair services with qualified and reputable contractors ensures the work is performed by certified individuals that have the experience and certifications necessary to complete the services competently. DISCUSSION Utilizing as-needed service agreements allows staff to authorize the work and to have it completed in a much timelier manner then formally bidding each small project. When utilizing the as-needed service contractors to perform a task, staff will contact the appropriate contractor(s), provide a scope of services, and request a quote for those services. Based on contractor availability and pricing for that task, staff will then authorize the selected contractor to proceed with the work and the costs will be applied against the not-to-exceed limit of the agreement. As part of the bid process, all as-needed contractors provided labor and equipment rates, mark-up percentages, and their Department of Industrial Relations (DIR) number prior to agreement execution. In addition, as a condition of the agreement, each contractor will provide the required certificates of insurance and a City of Pleasanton business license number. Staff recommends entering into three as-needed agreements with Corrosion Protection Solutions, Corrosion Integrity LLC, and Accurate Corrosion Control Inc. for cathodic system inspection, design, and repair for the City's steel tanks. Page 3 of 4