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Home My WebLink About2026-01-13; Municipal Water District; 04; Accept Bids and Award a Contract to Simpson Sandblasting and Special Coatings, Inc. for Construction of the Elm and Skyline Steel Reservoir Coating Project, and AdditionaCA Review TL Meeting Date: Jan. 13, 2026 To: President and Board Members From: Geoff Patnoe, Executive Manager Staff Contacts: Daniel Zimny, Utilities Senior Engineer daniel.zimny@carlsbadca.gov, 442-359-2233 Keri Martinez, District Engineer keri.martinez@carlsbadca.gov, 442-339-2354 Subject: Accept Bids and Award a Contract to Simpson Sandblasting and Special Coatings, Inc. for Construction of the Elm and Skyline Steel Reservoir Coating Project, and Additional Appropriation of Funds for the Project District: 1 Recommended Action Adopt a resolution accepting bids and awarding a contract to Simpson Sandblasting and Special Coatings, Inc. for the Elm and Skyline Steel Reservoir Coating Project, Capital Improvement Program, or CIP, Project No. 5024-3A, in an amount not to exceed $2,569,819 and authorizing an additional appropriation of $295,000 from the Water Replacement Fund, CIP Project No. 5024. Executive Summary The project will replace the existing internal and external coating systems and construct minor safety and sanitary improvements at the Carlsbad Municipal Water District’s, or CMWD’s, Elm and Skyline potable water reservoirs located at 2237 Janis Way and 4285 Skyline Road. Staff have reviewed the bids received and recommend accepting the bids and awarding a contract to Simpson Sandblasting and Special Coatings, Inc. in an amount not to exceed $2,569,819. An additional appropriation of $295,000 from the Water Replacement Fund is needed to fully fund the project through construction. The total expected construction cost exceeds $220,000 and the CMWD Board’s approval to award the contract is required under Carlsbad Municipal Code Section 3.28.080(I)(6). Explanation & Analysis The CMWD owns and operates 11 potable water reservoirs that supply water to the CMWD service area. Elm and Skyline Reservoirs are two of five welded steel tanks with protective coating systems on the interior and exterior surfaces to inhibit corrosion. Regular inspection, repair and replacement of the coatings is required to preserve each tank’s structure and water quality within the reservoir. The maintenance is part of the Reservoir Repair and Maintenance Jan. 13, 2026 Item #4 Page 1 of 7 Docusign Envelope ID: 949861E4-C5DE-45F5-8BC1-42BEE215A965 Program, Capital Improvement Program Project No. 5024, which maintains compliance with safety and sanitary standards. The project will remove and reapply protective coatings at the Elm Reservoir, at 2237 Janis Way, and the Skyline Reservoir, at 4285 Skyline Road, as shown in Exhibit 2. Originally constructed in 1972, the reservoirs each hold 1.5 million gallons of potable water and were last coated in 2014. The 2019 Utilities Asset Management Plan, adopted by the CMWD Board with Resolution No. 1620, forecasted the need to replace the coating systems in fiscal year 2024-25. Recent inspections and assessments verified the need to recoat the tanks. The project also includes other minor sanitary and safety maintenance items, such as replacing roof vent screens and handrail extensions. The work will be sequenced to avoid interruptions to customer water service. • The CMWD Board of Directors approved the plans, specifications and contract documents and authorized the Secretary to the Board to advertise for construction bids on Sept. 30, 2025. • A pre-bid meeting was held on Oct. 22, 2025, providing prospective contractors an opportunity to assess the conditions at both reservoirs. A representative of the contracting firm was required to attend for the firm to submit a bid as a prime contractor. Representatives from 10 contracting firms attended the meeting. • Two bids were received on Nov. 19, 2025. • Simpson Sandblasting and Special Coatings, Inc. submitted the lowest bid in an amount not to exceed $2,569,819. • Staff found Simpson Sandblasting’s bid to be responsive, meaning it satisfied the bidding requirements, and the company to be responsible, because it has successfully performed similar projects for other public agencies. An engineer’s estimate valued the work at $2.1 million. Recent bidding results in the last five years for similar tank coating projects by the CMWD and other neighboring agencies were used to determine the probable construction cost. Engineer’s estimates, used to obtain an estimate as close to the actual costs as possible, are forecasts based on historical data, while the actual bid prices submitted by contractors vary based on current market conditions, such as labor availability, contractor overhead cost, contractor profit margin and material inflation. Fiscal Analysis The estimated construction cost including contingency, construction management and inspection, public outreach and engineering and administration is $3,597,819. The project, Capital Improvement Program Project No. 5024-3A, is a component of the Potable Reservoir Repair and Maintenance Program, Project No. 5024, which is funded by the Water Replacement Fund. An additional appropriation of $295,000 from the water replacement fund is needed to fully fund the project through construction. Jan. 13, 2026 Item #4 Page 2 of 7 Docusign Envelope ID: 949861E4-C5DE-45F5-8BC1-42BEE215A965 The available funding and estimated construction costs to complete the project are provided in the table below: Reservoir Repair and Maintenance Program Capital Improvement Program Project No. 5024 Total appropriation to date $7,890,000 Total expenditures and encumbrances to date -$4,586,993 Total available program balance $3,303,007 Elm and Skyline Steel Reservoir Coating Project Capital Improvement Program Project No. 5024-3A Construction contract – Simpson Sandblasting and Special Coatings, Inc. -$2,569,819 Construction contingency (20%) -$514,000 Construction management, inspection and testing (estimated) -$514,000 Total estimated construction costs -$3,597,819 Remaining program balance -$294,812 Additional appropriation needed (rounded) $295,000 Carlsbad Municipal Code Section 3.28.040(C)(5) authorizes the Executive Manager or designee to approve change orders in an amount equal to the contingency set at the time of project award, which for this project is $514,000. Next Steps Once the CMWD Board accepts the bids and awards the construction contract to Simpson Sandblasting and Special Coatings, Inc., staff will issue a purchase order, schedule a pre- construction meeting with the contractor and issue a notice to proceed to construct the project. The duration of the construction contract is approximately 160 working days, not including rainy days. Construction is expected to start in early spring 2026 and be completed in fall 2026. A notice of completion to release bonds issued for the project will be recorded once the project is complete. Environmental Evaluation The proposed action for construction of the Elm and Skyline Steel Water Reservoir Coating Project is categorically exempt from environmental review under the California Environmental Quality Act, or CEQA, Guidelines Section 15301 because it involves the maintenance, repair or minor alteration of existing facilities with negligible or no expansion of the existing or former use. No exceptions to the categorical exemption as set forth in CEQA Guidelines Section 15300.2 or CMC Section 19.04.070(C) apply. Exhibits 1. CMWD Board resolution 2. Location map Jan. 13, 2026 Item #4 Page 3 of 7 Docusign Envelope ID: 949861E4-C5DE-45F5-8BC1-42BEE215A965 Exhibit 1 RESOLUTION NO. 1790 . A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD MUNICIPAL WATER DISTRICT OF THE CITY OF CARLSBAD, CALIFORNIA, ACCEPTING BIDS AND AWARDING A CONTRACT TO SIMPSON SANDBLASTING AND SPECIAL COATINGS, INC. FOR THE ELM AND SKYLINE STEEL RESERVOIR COATING PROJECT IN AN AMOUNT NOT TO EXCEED $2,569,819 AND AUTHORIZING AN ADDITIONAL APPROPRIATION OF $295,000 FROM THE WATER REPLACEMENT FUND WHEREAS, the Carlsbad Municipal Water District, or CMWD, Board of Directors has determined it necessary, desirable and in the public interest to complete the Elm and Skyline Steel Reservoir Coating Project, Capital Improvement Program, or CIP, Project No. 5024-3A; and WHEREAS, on Sept. 30, 2025, the CMWD Board of Directors adopted Resolution No. 1784, adopting the plans, specifications and contract documents and authorizing the Secretary to the Board to advertise to receive bids for construction of the project; and WHEREAS, on Nov. 19, 2025, staff received two bids in response to the bid advertisement; and WHEREAS, staff found the lowest bid submitted by Simpson Sandblasting and Special Coatings, Inc. in an amount not to exceed $2,569,819 to be responsive; and WHEREAS, staff determined that Simpson Sandblasting and Special Coatings, Inc. is a responsible bidder because it has successfully performed similar projects for other public agencies; and WHEREAS, additional appropriation in the amount of $295,000 is required to complete the project; and WHEREAS, Carlsbad Municipal Code Section 3.28.040(C)(5) authorizes the Executive Manager or designee to approve change orders in an amount equal to the contingency set at the time of project award, which is $514,000. NOW, THEREFORE, BE IT RESOLVED by the Carlsbad Municipal Water District Board of Directors of the City of Carlsbad, California, as follows: 1.That the above recitations are true and correct. 2.That the Board of Directors of the Carlsbad Municipal Water District has determined that the proposed action for construction of the Elm and Skyline Steel Water Reservoir Coating Project is categorically exempt from environmental review under the California Environmental Quality Act, or CEQA, Guidelines Section 15301 because it involves the maintenance, repair or minor alteration of existing facilities with negligible or no Jan. 13, 2026 Item #4 Page 4 of 7 Docusign Envelope ID: 949861E4-C5DE-45F5-8BC1-42BEE215A965 expansion of the existing or former use. No exceptions to the categorical exemption as set forth in CEQA Guidelines Section 15300.2 or CMC Section 19.04.070(C) apply. 3.That the bid in an amount not to exceed $2,569,819 submitted by Simpson Sandblasting and Special Coatings, Inc. for construction of the Elm and Skyline Steel Reservoir Coating Project, CIP Project No. 5024-3A, is accepted, and the CMWD Board President is hereby authorized to execute a contract. 4.That the Executive Manager or designee is authorized to appropriate funds from the Water Replacement Fund in an amount not to exceed $295,000 to CIP Project No. 5024. 5.That the Executive Manager or designee is authorized to approve construction change orders for the Elm and Skyline Steel Reservoir Coating Project in an amount not to exceed $514,000. 6.That the Executive Manager or designee is authorized to sign all other documents necessary for regulatory compliance, to extend funding opportunities, or to otherwise implement and finalize the project, subject to the review and approval as to form by the Office of the General Counsel. 7.That the award of this contract is contingent upon Simpson Sandblasting and Special Coatings, Inc. executing the required contract and submitting the required bonds and insurance policies, as described in the contract, within 20 calendar days after adoption of this Resolution. The Executive Manager may grant reasonable extensions of time to execute the contract and assemble the required bonds and insurance policies. Jan. 13, 2026 Item #4 Page 5 of 7 Docusign Envelope ID: 949861E4-C5DE-45F5-8BC1-42BEE215A965 PASSED, APPROVED AND ADOPTED at a Special Meeting of the Board of Directors of the Carlsbad Municipal Water District of the City of Carlsbad on the 13th day of January, 2026, by the following vote, to wit: AYES: Blackburn, Bhat-Patel, Acosta, Burkholder, Shin. NAYS: None. ABSTAIN: None. ABSENT: None. ______________________________________ KEITH BLACKBURN, President ______________________________________ SHERRY FREISINGER, Secretary (SEAL) Jan. 13, 2026 Item #4 Page 6 of 7 Docusign Envelope ID: 949861E4-C5DE-45F5-8BC1-42BEE215A965 LOCATION MAP NOT TO SCALE PACIFIC: PROJECT NAME ELLERY, ELM AND SKYLINE STEEL WATER TANKS INTERIOR AND EXTERIOR GOA TINGS & STRUCTURAL REPAIRS PLOTTED B't SCOTT fVNIS Pl.OT OA1f:1O/l/12 PATH:C: \U71UTIES OEPARTIIENT\OEStCN O/',fS/ON\AHI.ES\502+-£Ul-£U.£RY-SKYI..JN£.Dll'G PROJECT NUMBER 5024 EXHIBIT 1 Exhibit 2 Jan. 13, 2026 Item #4 Page 7 of 7 ELM RESERVOIR SKYLINE RESERVOIR SKYLINE RESERVOIR ELM RESERVOIR 5024-3A ELM AND SKYLINE STEEL WATER RESERVOIR COATING PROJECT 2 Docusign Envelope ID: 949861E4-C5DE-45F5-8BC1-42BEE215A965