I. RECOMMENDATION:
It is recommended that the Coalinga City Council accept the project as complete, authorize the City Engineer to file the Notice of Completion for the project with the County Recorder and notify surety to exonerate contract bonds and authorize the Finance Department to release the 5% construction retention payment to Unified Field Services Corporation 35 days after recordation of the Notice of Completion by the Fresno County Registrar-Recorder’s Office, contingent upon no claims being filed on the project.
II. BACKGROUND:
On September 19, 2024, the City Council awarded a construction contract to Unified Field Services Corporation in an amount of $3,776,720.00, with an additional contingency of $377,672.00 set aside for any unforeseen incidentals for a total authorization amount of $4,154,392.00.
On September 16, 2021, Council proceeded with MKN to develop a preliminary engineers report related to the rehabilitation of the 7.5 million gallon water storage tank. Staff in conjunction with MKN will be presenting the findings to the City Council at the meeting in order to receive feedback and direction on the next steps to rehabilitate the Derrick tank. The presentation consisted of addressing the critical components of the rehabilitation from coatings (exterior/interior), structural and appurtenances, alternatives and recommended next steps including implementation and schedule.
A notice to Proceed was issued to Unified Field Services Corporation providing 115 working days to complete construction.
III. DISCUSSION:
The project which was scheduled for completion on April 10, 2025 and was ultimately completed on March 25, 2026. The Coalinga Derrick Reservoir construction was extended due to additional tank rehabilitation work that was determined to be necessary once the tank coatings were removed. The contract was extended by 88 working days. The tank was returned to service on October 30, 2025 to achieve beneficial use for substantial completion, but the final contract closeout was further extended due to additional weather delays and PG&E service delays that pushed final electrical and cathodic protection commissioning into March 2026.
The project saw an increase to of $1,202,868.16. In February 2025 an approval of $508,070 was received from Council for additional Time & Costs for lead abatement, inspection blast of the interior shell, and the tank top ring demo & install. Additional time and costs were also incurred in October 2025 to repair the shell. The final contract amount is $4,979,588.16.
A final inspection of the project was performed March 25, 2026, which included preparation of a final punch list of items. The punch list items were completed on March 25, 2026. The notice of completion, when filed, begins a time period for which mechanics liens, liens against the contractor, and stop payment notices can be filed against a public construction project. It is a protection for the City during a construction project. Staff is not aware of any issues related to this project.
IV. ALTERNATIVES:
None.
V. FISCAL IMPACT:
The project was funded by Water Bond Proceeds and Water Fund Balance. There is no fiscal impact to the General Fund. |