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Following a protest by a competing bidder, councilmembers approved a contract Tuesday that will allow for replacement of a deficient water storage tank built more than 50 years ago.

The resolution was for “$2.12 million for the total project cost that will include not only the construction as well as the construction management and inspection services as well as contingencies for the project,” said Derek Rayner, deputy public works director. “City staff successfully applied for a FEMA Hazard Mitigation Grant after the Napa earthquake and the funding will pay for 75 percent of the total project cost.”

The city will pay for the remainder.

The million-gallon storage tank was constructed in 1966 and was found to be “structurally and seismically deficient, and its replacement has been identified as critical for public health and safety,” a report by Public Works Director Mike Kirn said.

The city received two letters of protest, one which was not followed up on, and one from MDS Construction in Redding, which protested bid-winner Granite’s bid for an unsigned non-collusion affidavit, Rayner said.

Mike Stierli, president of MDS, the second-lowest bidder, argued at Tuesday’s council meeting that the improperly signed paperwork submitted to the city by Granite, which was the lowest bidder, was enough reason to deny Granite and award the bid to MDS.

City Attorney David Rosenthal, who was at the meeting, said the error in paperwork was not significant enough to change the winning bid of $1.9 million by Granite for construction of the storage tank.

Construction management and special inspection services are expected to cost about $150,000.

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The Weekly Calistogan Editor