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ITEM 3.13 Water Tower #2 reconditioning0tsTY F o MINNESOTA g DEPARTMENT INFORMATION Request for City Council Action ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE: Utilities Utility Manager Neidermeier June 10, 2019 PRESENTER(s) REVIEWED BY: ITEM #: Consent City Administrator/Finance Director Flaherty 3.13 STRATEGIC VISION MEETS: THE CITY OF OTSEGO: reconditioning design services. Is a strong organization that is committed to leading the community through innovative communication. X Has proactively expanded infrastructure to responsibly provide core services. No Is committed to delivery of quality emergency service responsive to community needs and expectations in a cost-effective manner. Water Tower 2 serves the West Public Water System providing 1,000,000 gallons of water storage and fire Is a social community with diverse housing, service options, and employment opportunities. expectancies for towers built during this timeframe. The past two inspections conducted in 2015 and 2019 Is a distinctive, connected community known for its beauty and natural surroundings. AGENDA ITEM DETAILS RECOMMENDATION: Staff is recommending approval of an agreement with KLM Engineering, Inc. for Water Tower 2 reconditioning design services. ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED? Yes No BACKGROUND/JUSTIFICATION: Water Tower 2 serves the West Public Water System providing 1,000,000 gallons of water storage and fire protection needs. The tower has been in service since 2003 meeting interior and exterior coating life expectancies for towers built during this timeframe. The past two inspections conducted in 2015 and 2019 forecasted recoating needs in 2020. The Utility budget includes $18,000.00 for KLM to complete tower inspections and specifications for the project this year to bid a spring 2020 construction project. The bid package will offer two options; a single 2020 construction of an estimated 14 weeks or as a 2020 exterior coating project and a 2021 interior coating project each 7 to 8 weeks. Pending bid amounts, the second option offers two shorter construction periods to minimize irrigation influence as the tower would need to be offline for any recoating work. KLM Engineering has provided inspection and recoating services in the past with staff recommendations to continue with Tower 2. The City Attorney has reviewed the contract with no additional comments. SUPPORTING DOCUMENTS ATTACHED: 0 Engineering Services Agreement — KLM Engineering, Inc. POSSIBLE MOTION PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THEM I NUTES: Motion to approve an agreement with KLM Engineering, Inc. in the amount of $12,000.00 for Water Tower #2 design services. BUDGET INFORMATION FUNDING: BUDGETED: 601— Water Utility Fund Yes Project Understanding KLM understands the City of Otsego will be rehabilitating the 1,000,000 -gallon water tower (Tower No. 2) in 2020 or beyond. KLM has met with City staff over the last several years in anticipation of reconditioning the water tower. Key project team members were brought together to review the 2019 KLM evaluation report and records maintained by KLM to prepare the outline of services required to bring the tower up to current AMA standards and Minnesota Department of Health and OSHA codes. Benefits to the City of Otsego ■ Today's protective coating systems are designed to last 20-25 years with only minor maintenance. Tight project specifications and full-time inspections give the coating systems the opportunity to realize their intended service life. ■ KLM proposes to prepare a specification package specifically designed for water tower reconditioning. Our experience has shown that the more comprehensive the specification is, the more likely it is that the project is completed on time, on budget, with quality workmanship. The KLM specifications will mitigate requests for change orders during reconditioning. Welding and full time NACE Coating Inspections during reconditioning assures that the work performed by the contractor is in conformance with the specifications, as to maximize its life expectancy. KLM's inspectors monitor workmanship during all phases of work to verify the contractor's work meets the specification. Utilizing this process, maintenance costs will be reduced by decreasing the number of reconditioning cycles over the life of the tank. ■ Our project administration and inspection services provide a buffer between the project specifications and the real-world challenges that can negatively affect project performance. To initiate the project correctly, KLM's project management assures that a qualified contractor is retained at an appropriate cost. KLM Work Plan Upon execution of a contract, KLM proposes the following schedule to perform the work: City of Otsego council approval: 1. Preliminary Specifications Completed by June 21, 2019 2. Design Services Completed July 22, 2019 3. Construction Management and Inspection Services Commencement Spring 2020 4. Warranty Inspection 2 Year ROV completed per contract City of Otsego AV Ex: Maple Grove, MN Design KLM will also perform at a minimum, the following related specification services: ■ Meet with the owner to review plans and specifications. ■ Produce (1) preliminary and (2) completed copies of the specifications for the owner. ■ Provide an updated cost estimate ■ Advertise specifications on Minneapolis Builders' Exchange or Quest CDN ■ Attend and facilitate a mandatory pre-bid meeting ■ Issue specification to bidders and respond (in writing) to bidder questions ■ Attend bid opening and tabulate results at Owner's facility ■ Evaluate contractors' bid proposals for conformance to the specification ■ Recommend (in writing) to Owner the low, qualified bidder(s) ■ Prepare Notice of Award and contract Agreement (forward to Owner) Specifications Prosect Requirements This section includes the City's requirements, complete description of the project, project schedule, execution of contract documents; notice to proceed, project meetings and quality assurance. Scope of Work: Project Specifications The project specifications will include: Section A Advertisements for Bids This section provides a detailed description of the project and meets the requirements for legal advertisements. Section B Instruction to Bidders This section provides precise instructions to bidders including the scope of work, insurance, payments, time of completion, bidder qualifications, taxes and permits, legal requirements, performance and payment bonds and other important project information. Section C Proposal This section contains the bid proposals; construction time frame alternate bid proposals, legal requirements, and the bidder and subcontractor qualification forms. Section D -Proiect Requirements This section includes a complete description of the project, project schedule(s), execution of contract documents; notice to proceed, project meetings, quality assurance, liquidated damages, and legal and technical requirements for executing the scope of work. City of Otsego Section E Technical Specifications This section details the technical specifications for structural modifications, surface repairs, interior and exterior surface preparation, exterior abrasive blast containment, disposal of spent abrasives, dehumidification, lettering and logo, submittals, workmanship, unfavorable weather conditions, surface coating and material, repair work, health and sanitary facilities, clean up, ventilation and safety requirements, superintendent, inspection of work, sterilization of tank interiors, and containment plan. Section F Supplemental Conditions This section supplements or amends the General Conditions and/or other provisions of the Contract Documents. Section G General Conditions This section includes all the General Conditions designed for water tank reconditioning, such as authority of the Engineer, engineering inspection, modifications, additions and subtractions of scope of work, extensions of time, insurance and other appropriate items. Section H Contract Documents This section provides the form of agreement to be used between the Owner and Contractor. Section I Payment and Performance Bond As of July 31, 1994, Minnesota State Law requires separate bonds for payment and performance. Section J Inspection Resort This section includes enclosure of past inspection reports with copies of color photographs. This provides the bidders with a clear perspective of the interior conditions of the tank(s) and the scope of work involved. Section K Drawings This section includes drawings, which define structural repairs or modifications and welding definitions. Section L Surface Preparation Requirements This section references excerpts from NACE Standard Practice SP0178-2007 Standard Practice: Design, Fabrication, and Surface Finish Practices for Tanks and Vessels to Be Lined for Immersion Services for defining welding and grinding requirements of the structural repair or modifications. Section M Existing Paint Test Results This section contains paint chip test results for lead and chromium used to calculate the risk factor and classification of containment required for conformance with Federal and State Environmental Regulations. City of Otsego Section N Letterinq and Logo (optional) If required, this section includes drawings of any required lettering and logo. Section O Additional Owner Specification Requirements (optional) This section is available for additional Owner Specification requirements. Construction Services Construction Administration The project manager and project supervisor work together on managing the project. The project supervisor does the initial review of the submittals and communicates with the inspector daily to help enforce the project specifications as necessary. The supervisor is the main contact between the contractor representative and the Owner. The manager does the final review of the submittals and will assist the supervisor as required. Construction management consists of the following: ■ Attend and facilitate ■ Scheduling of inspections preconstruction conference ■ Project close out administration ■ Removal of cellular equipment ■ Establishes warranty date ■ Periodically perform on-site ■ Review of inspector's daily review of project's work status documentation and report to the owner ® Process change orders ■ Coordinate progress meetings as m Prepare monthly payment necessary request forms ■ Review of meeting minutes ■ Review and approve of the contractors' submittals: 1. Drawing reviews 2. Welder Certifications 3. Welder Qualifications 4. Welding Procedures 5. Coating Materials Submittal 6. TLCP Sampling Plan Construction Observation The full-time inspector assigned to this project will be a NACE Coating Inspector and/or AWS Certified Welding Inspector. All our inspectors have extensive practical experience and knowledge of water storage tank reconditioning. They are experienced sandblasters, painters, climbers, riggers, coating inspectors, welders and welding inspectors which allow the inspector to perform inspections alongside the contractor to ensure conformance to the project specification. City of Otsego At a minimum, the field inspections will include the followin ■ A preconstruction meeting with the client and contractor to clearly define the role of the Engineer and Inspector, to discuss the intent of the specifications, and to ensure all parties agree to the scope of work and expectations regarding the quality of work. ® Monitor and approval of the structural repairs and modifications for conformance to the specifications. ■ Inspection of the abrasive blasting media and equipment for conformance to the specifications and to prevent contamination of surfaces during surface preparation with moisture and oil or other contaminants. ■ Monitor the paint removal and disposal process for conformance to the specifications and environmental regulations. ■ Monitor the contractors mixing and application of the coatings for conformance to the specifications and the coating manufacturer's recommendations. ■ Approve surface preparation samples. ■ Record the contractor's progress for adherence to the construction schedule. ■ Submit daily and weekly inspection reports. Prepare and file copies of the reports on construction activities. ■ Coordinate and review testing of materials for conformance to the specification and environmental regulations. ■ Monitor punch list items and subsequent corrective action by the contractor. ■ Final inspection, substantial completion, and project acceptance. Antenna Inspection KLM recommends the owner to set up an escrow account from the antenna providers for any antenna related work on this project. KLM recommends $9,500.00 per carrier and $3,000.00 for any city antennas. Warranty Inspection KLM proposes to perform an ROV warranty inspection on the referenced tank prior to the expiration of the performance bonded (2) year warranty. The warranty inspection will include an inspection report. Prior to the warranty expiration, KLM will request verification to proceed with the warranty inspection under the terms of this contract. The fixed fee does not include any necessary warranty repair work required. City of Otsego _ Deliverables The City of Otsego owns and retains this documentation. KLM also retains these records for future reference. Deliverables submitted electronically unless indicated hard copy. ■ Professional Engineering Certified plans and specifications (2 hard) ■ State Regulatory documentation including permitting, SWPPP, MN Department of Health, TCLP Testing and Waste Tracking ■ As -Built drawings • Contractor Submittals ■ Daily Logs & Weather Logs ■ Surface Preparation ® Daily Digital Photos ® Weekly Summary & Progress Meeting ® Project Acceptance Certificate © Warranty Inspection Report Proposal Fee Summary Option 1 KLM Engineering estimates this to be a 14 -week project, with an anticipated 48-hour work week. KLM will manage the water tower rehabilitation with comprehensive specifications, engineering, project management, welding inspection, coating inspection, antenna inspection and an ROV warranty inspection as detailed below. Fee Summary 1. Design Services 2019 2. Construction Management 2020 3. Construction Observation 2020 Total KLM Fee Summary 4. Warranty Inspection 2022 5. Antenna Inspections Fixed $12,000.00 Not to Exceed $ 9,520.00 Not to Exceed $94,620.00 Observation Exterior 2020 $116,140.00 Fixed $3,200.00 Per Carrier $9,500.00 Option 2 KLM Engineering estimates this to be a 14-16 week project, with an anticipated 48-hour work week. KLM will manage the water tower rehabilitation with comprehensive specifications, engineering, project management, welding inspection, coating inspection, antenna inspection and an ROV warranty inspection as detailed below. Fee Summa 1. Design Services 2019 Fixed $12,000.00 2. Construction Management & Estimated $54,100.00 Observation Exterior 2020 3. Construction Management & Estimated $54,100.00 Observation Interior Wet 2021 Total Estimated KLM Fee Summary $120,200.00 4. Warranty Inspection Fixed $4,600.00 5. Antenna Inspections Per Carrier $9,500.00 City of Otsego • KLM will bill according to Option 1 or 2 selected by the City after the project is awarded. The fees in Option 2 are estimated at 14 weeks to complete the project. If additional weeks are required above the 7 weeks each year for the contractor to perform his work, KLM will bill according to our fee schedule. Why Use KLM KLM is the leader in water tower reconditioning of towers of 1,000,000 gallons or greater in Minnesota. KLM Engineering, Inc. has been evaluating and reconditioning water towers for over 20 years and has intimate knowledge of the City of Otsego's water towers. Our reference list has customers including the US Military, US Steel, Indian Health Services, State of Minnesota and municipalities ranging from coast to coast and beyond- including Hawaii, Canada, and Europe. City of Otsego _Agreement If the City of Otsego finds this proposal acceptable, please sign and return this page by mail, fax, or email. We can begin work immediately once a contract has been executed based on the project work schedule. This agreement, between the City of Otsego and KLM Engineering, Inc. of Woodbury, Minnesota is accepted by: (Name) (Date) Ll{ /11,1 �VPofE (Na e) May 30, 2019 (Date) We look forward to working with you. Sincerely, KLM ENGINEERING, INC. Dewey Prinzing VP of Business Development Phone: 651-773-5111 Fax: 651-773-5222 Email: dprinzing(.klmengineering.com (Title) (Title) City of Otsego, Minnesota KLM Engineering, Inc. Woodbury, Minnesota UAProposa1s\2019 Proposals\Otsego, MN 1.0MG Hydropillar Tower No. 2 Reconl4. Proposal.docx City of Otsego