Item 5.2 Water Tower #4 Construction Management and Inspection Services KLM Engineering Inc0
OtSezT
F o
MINNESOTA V
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT
REQUESTOR:
MEETING DATE:
Utilities
Utility Manager Neidermeier
March 8, 2021
PRESENTER(s)
REVIEWED BY:
ITEM #:
Consent
City Administrator/Finance Director Flaherty
5.2 Water Tower #4
Construction Management &
Inspection Services
STRATEGIC VISION
MEETS:
THE CITY OF OTSEGO:
Management and Inspection 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.
X
Is committed to delivery of quality emergency service responsive to community needs and
expectations in a cost-effective manner.
The 2021 Utility budget includes the construction of a 1.5 -million -gallon composite water tower. The City
Is a social community with diverse housing, service options, and employment opportunities.
To complement the construction contractor and civil engineer, City staff obtained a proposal for
Is a distinctive, connected community known for its beauty and natural surroundings.
AGENDA ITEM DETAILS
RECOMMENDATION:
City staff is recommending the City Council to accept the proposal for Water Tower Construction
Management and Inspection Services.
ARE YOU SEEKING APPROVAL OF A CONTRACT?
IS A PUBLIC HEARING REQUIRED?
Yes
No
BACKGROUND/JUSTIFICATION:
The 2021 Utility budget includes the construction of a 1.5 -million -gallon composite water tower. The City
Council will be considering the award for the construction contract of the water tower on March 8.
To complement the construction contractor and civil engineer, City staff obtained a proposal for
Construction Management and Inspection Services. The proposal from KLM Engineering, Inc. (KLM)
includes a not to exceed total of $95,490.00. KLM has provided construction management and inspection
services for past water tower reconditioning projects.
Water tower construction will initiate in 2021 and be complete in 2023. City Attorney Kendall has
reviewed the agreement and provided his approval for City Council consideration.
SUPPORTING DOCUMENTS ATTACHED:
0 Proposal — KLM Engineering, Inc.
PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES:
Motion to accept the proposal from KLM Engineering, Inc. for Water Tower #4 Construction Management
and Inspection Services in the amount of $95,490.00.
BUDGET INFORMATION
FUNDING: BUDGETED:
Fund 601— Water Utility Yes
Proposal for Construction Management and
Inspection Services during the Construction of a
New 1,500,000 Gallon Elevated Water Tower
Proiect Understandin
KLM understands the City of Otsego is building a new water tower. During the
construction of the tower, KLM will perform the following Scope of Work:
Construction management of the steel components of the tower, including:
• Submittal reviews
• Shop welding and coating inspection
• Filed welding inspection
• Field surface preparation and coating application inspections
Potential Benefits to the City of Otsego
■ Engineering review will be performed to check that the contractor has submitted
documents per the project manual. KLM will review the construction drawings in
reference to OSHA regulations, telecom routing if applicable and future maintenance
concerns. Foundation and pedestal inspections will be performed by others.
■ Part-time inspection by KLM Certified Welding Inspectors during the construction
phase and full-time inspection by a NACE Coating Inspector during the coating
phase assures that the work performed by the contractor is in conformance with the
specifications and will realize its intended operating life. KLM inspectors monitor
workmanship during all phases of work and approve the contractor's work. Utilizing
this process, maintenance costs will be reduced by the decrease in the number of
reconditioning cycles over the life of the tank.
■ Today's protective coating systems are designed to last 20 plus years with only
minor maintenance. Tight project specifications and full-time inspection gives the
coating systems the opportunity to realize their intended service life.
Engineering Submittal Review
The construction drawing submittals from the tank fabricator will be reviewed for
conformance to the project manual, OSHA, AWWA D100-11, and general construction
practices. The coatings material submitted will be reviewed for conformance to the
specifications and AWWA. KLM will respond in writing regarding the acceptance of the
submittals.
Copyright 2020 by KLM Engineering, Inc.
Page 3
Shop Sub -Assembly Welding and Coating Inspection
Our experience providing surface preparation and coating inspections at the fabricator's
shop demonstrates conclusively that inspections of the shop blasting and primer
application are extremely beneficial in terms of project cost-effectiveness, overall quality
of workmanship, as well as assuring the maximum possible operating life of the tank.
This phase of the work will require site visits to the fabricator's facilities. KLM provides
these services on a time and materials basis in conformance with the attached Fee
Schedule. This requires the use of one (1) inspector monitoring the surface preparation
and primer application on the sub -assembled plates. KLM estimates two (2) visits to the
contractor facility. The inspector assigned to this project will be a NACE Coating
Inspector and an AWS Welding Inspector. All our inspectors have extensive practical
experience and knowledge of water storage tank fabrication, erection, and coatings.
They are experienced sandblasters, painters, climbers, riggers, coating inspectors,
welders, and welding inspectors, which enables them to perform inspections alongside
the contractor to ensure conformance to the project specifications.
At a minimum, the shop inspections will include the following:
■ A preconstruction meeting with the contractor to clearly define the role of the
contractor and inspector and to discuss the intent of 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, oil, and/or other contaminants.
■ Monitoring the contractor's mixing and application of the primer for conformance to
the specifications and the coating manufacturer's recommendations.
■ Approving surface preparation samples.
■ Recording the contractor's progress for adherence to the construction schedule.
■ Submittal of daily and weekly inspection reports.
Shop Welding and Coatings Inspection Fees
KLM fees include an estimated two (2) trips of 6 -day duration to the fabrication facility.
The visits will consist of shop welding and coatings inspection. Based on the two trips, a
21-22 construction and coating schedule. Shop inspection services will be charged on a
time and material basis for our inspector. KLM fees for shop inspection is $21,490.00.
KLM will attend a preconstruction meeting at the site with the shop foreman. Additional
meetings or inspection requested by the owner will be charged according to our fee
schedule.
wr,�rr�
�.�i► Copyright 2020 by KLM Engineering, Inc. Page 4
Intermittent Construction Inspection
The primary purpose of this type of inspection is to ensure that any fabrication defects
that could adversely affect the life of the coating system such as fit ups, erection scab
marks, weld spatter, or rough welds are removed prior to coating application. The KLM
inspector will also monitor construction for conformance to the AWWA D100-11
Standard, AWS D1.1, and the project specifications.
To monitor tank construction effectively, an inspector will be required to make one (1)
trip per week to the project site. The inspector assigned to this project will be an AWS
Certified Welding Inspector. All our inspectors have extensive practical experience and
knowledge of water storage tank erection per AWWA D100-11 Standards. The cost
includes travel, labor, subsistence, and the attendance of a qualified and assigned
inspector at the preconstruction conference at the project location. The inspection of the
foundation or the concrete pedestal will be performed by others.
At a minimum, the field construction inspections will include the following:
■ A preconstruction meeting with the client and contractor to clearly define the role
of the inspector and to discuss the intent of the specifications.
■ Monitoring and approval of the tower construction for conformance to the
specifications.
■ Recording the contractor's progress for adherence to the construction schedule.
■ Submittal of daily and weekly inspection reports.
■ Monitor punch list items and subsequent corrective action by the contractor.
■ Final inspection, substantial completion, and project acceptance.
Intermittent Construction Inspection Fees
KLM's inspection fees are based on estimated project duration of seven (7) weeks for
the erection phase during a 2021-22 construction schedule. With an estimated schedule
of three (7) weeks for the erection and an anticipated one trip to the project site per
week. KLM construction inspection services will be charged on a time and material
basis for an AWS Certified welding inspector. KLM estimates the costs for the
construction inspection to be $8,695.00. KLM will attend one preconstruction meeting at
the site with the erection foreman. Additional meetings or inspection requested by the
owner will be charged according to our fee schedule.
Construction Services
Construction Administration
The project manager (HAA) and project supervisor (KLM) work together on managing
the project. The project supervisor does the review of the submittals from the contractor.
The supervisor communicates with the inspector daily. The supervisor will 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 pay requests.
Construction management will include:
■ Send notices for, attend, and facilitate preconstruction conference (HAA)
Copyright 2020 by KLM Engineering, Inc.
Page 5
■ Periodically perform on-site review of project's work status and report to the city
(HAA) (KLM)
■ Coordinate progress meetings as necessary (HAA)
■ Review meeting minutes (HAA)
■ Scheduling of inspections (KLM)
■ Prepare monthly payment request forms (HAA)
■ Processing change orders (HAA)
■ Project close out administration (HAA)
■ Establishes warranty date (HAA) (KLM)
■ Review of inspector's daily documentation on a weekly basis (KLM)
■ Review of the contractor's submittals (KLM)
1. Drawing reviews 5. Coating Materials Submittal
2. Welder Certifications 6. Spent material collection and disposal
3. Welder Qualifications 7. Lettering and logo
4. Welding Procedures
Field Coatinq Inspection
The frequency of inspection is more critical during field coating than during construction.
We propose to provide a KLM inspector on-site full time. This will ensure that the
contractor's equipment and procedures are proper and efficient, that all surface
preparation, both interior and exterior, has been inspected and approved prior to
coating, and that all coating is mixed and applied properly. The inspector assigned to
this project will be a NACE Coating Inspector. All our inspectors have extensive
practical experience and knowledge of water storage tank painting. They are
experienced sandblasters, painters, climbers, riggers, and coating inspectors, which
enables them to perform inspections alongside the contractor to ensure conformance to
the project specifications.
At a minimum, the field inspections will include the following:
■ A preconstruction meeting with the client and contractor to clearly define the role of
the engineer and inspector and to discuss the intent of 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 and/or other contaminants.
■ Monitoring the surface preparation and painting for conformance to the
specifications and environmental regulations.
■ Monitoring the contractor's mixing and application of the coatings for conformance to
the specifications and the coating manufacturer's recommendations.
■ Approving surface preparation samples.
■ Recording the contractor's progress for adherence to the construction schedule.
■ Submittal of daily and weekly inspection reports.
■ Prepare punch lists.
■ Monitor punch list items and subsequent corrective action by the contractor.
�*
Copyright 2020 by KLM Engineering, Inc. Page 6
■ Final inspection, substantial completion, and project acceptance.
Field Coating Inspection Fees
KLM's inspection fees are based on an estimated project duration of eight (8) weeks, a
2021-22 construction and coating schedule, and KLM's current Fee Schedule and
Terms and Conditions, and an anticipated 48 hours of field inspection per week. Our
field inspection services will be charged on a Time and Material basis per our current
Fee Schedule and Terms and Conditions. KLM anticipates a 48-hour workweek, with a
budget estimate of $65,035.00. The duration of the field inspection depends upon the
construction schedule and on the time it takes the contractor to perform the field coating
work.
This cost estimate includes the attendance of a qualified and assigned inspector at the
preconstruction conference. Additional meetings or inspection requested by the owner
will be charged according to our fee schedule.
KLM's fee is based on a project duration of eight (8) weeks. If the contractor goes over
the estimated eight (8) weeks KLM will charge a weekly fee of $8,129.00.
This estimate is for 8 hours per day for six days a week. Additional hours per day or
Sunday work are not included in these hours. This would be an extra charge above the
existing contract.
Warranty Inspection
KLM proposes to perform a ROV warranty inspection on the referenced tank prior to the
expiration of the performance bonded one (1) or two- (2) year warranty for an estimated
fee of $3,000.00. This fee includes two (2) copies of the warranty inspection report for
the Owner and Engineer and one (1) copy of the report for the contractor. This fee does
not include any necessary inspection(s) should warranty repair work be required.
This phase of the project will be billed upon submittal of the warranty inspection reports.
Fee Summary
1. Shop Inspection (2 weeks) Not to Exceed $21,490.00
2. Erection Inspection (7 weeks) Not to Exceed $8,965.00
3. Inspection Services (8 weeks) Not to Exceed $65,035.00
Total $95,490.00
Warranty Inspection (per contract) Not to Exceed $3,000.00
This cost estimate includes travel, labor, subsistence, and the attendance of a qualified
and assigned inspector at the preconstruction conference at the project locations.
=+Y`' Copyright 2020 by KLM Engineering, Inc. Page 7
Terms and Conditions
KLM has attached our standard Terms and Conditions. The attached Terms and
Conditions are part of this agreement between the City of Otsego and KLM Engineering,
Inc. unless otherwise agreed to in writing by both parties.
Additional Information
Additional information can be found at KLM's website at: www.kimenciineering.com
Aareement
This proposal is valid for sixty (60) days from January 15, 2021. If the City of Otsego
finds this proposal acceptable, please sign and return. We can begin work immediately
once a contract has been executed.
If you have any questions regarding this proposal, please call me at 651-773-5111 or
fax this proposal back at 651-773-5222.
This agreement, between the City of Otsego and KLM Engineering, Inc. of Woodbury,
Minnesota is accepted by:
(Name)
(Date)
(Title)
ame) ✓ (Title)
January 15, 2021
(Date)
We look forward to working with you on this project.
Sincerely,
KLM ENGINEERING, INC.
Dewey Prinzing
VP of Business Development
Phone: 651-773-5111
Fax: 651-773-5222
Email: dprinzinq(a-klmengineerinq.com
Copyright 2020 by KLM Engineering, Inc.
Otsego,
Minnesota
KLM Engineering, Inc.
Woodbury, Minnesota
Page 8