HomeMy WebLinkAbout2014-04-02 PACKET 08.A.REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA
MEETING ITEM #� o
DATE 4/2/2014 �� `
PREPARED BY Administration Ryan Schroeder
ORIGINATING DEPARTMENT DEPARTMENT HEAD
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COUNCIL ACTION REQUEST
Consider adopting a resolution approving the 3.0 MG Innsdale Standpipe Water Tower
Professional Service Agreement by SEH Design Build.
STAFF RECOMMENDATION
Adopt the resolution.
BUDGET IMPLICATION
UPPORTING DOCUMENTS:
BUDGETED AMOUNT ACTUAL AMOUNT
� MEMO/LETTER: Memo from Ryan Schroeder.
� RESOLUTION: Draft.
❑ ORDINANCE:
❑ ENGINEERING RECOMMENDATION:
❑ LEGAL RECOMMENDATION:
� OTHER: Attachments.
ADMINISTRATORS COMMENTS
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City Administrator Date
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Cottage
� Grove
� Pride and PrOSPerity Meet
To: Mayor and City Council
From: Ryan R. Schroeder, City Administrator
Date: March 10, 2014
Subject: Consideration of a professional services contract with SEH/Classic Protective
Coatings for blast and re-coat of the 3.0 MG Standpipe (ground storage tank)
during 2015 in the amount of $936,000
Historically, cities in Minnesota have followed a Design-Bid-Build method for maintenance
coating projects for water tanks and towers. In 2002 revisions to state statute allowed for a
second approach to tower coating which is a Design-Build approach. Essentially, the Design-
Build approach provides for an opportunity for a city to negotiate, through a professional
services contract, rather than follow a sealed bid process for tank coating projects.
On November 6, 2013 Council authorized a services contract with SEH/Classic protective
Coatings to blast and re-coat the 1.OMG West Draw Water Tower in the amount of $793,500
for a 2014 project ($605,000 +$7,500 annual inspections +$68,000 spot repairs in years five
and ten). This Design-Build contract is the first instance in which the City of Cottage Grove
has not followed a Design-Bid-Build Tank Coating process. At that meeting Council deferred
action on a 2015 blast and re-coat project of the 3.0 MG Standpipe. Deferral of the 2015
project provided staff the opportunity to further evaluate, and gain comfort with, the Design-
Build approach.
The City currently has six water storage facilities as follows:
Tank Year Constructed Most Recent Coatinq Ranqe of Next Coating
Thompson Grove (0.15) 1959 2007 2022-2027
Inwood (1.5) 1960 2003 2018-2023
81 S Street (3.0) 1981 1997 2012-2017 (2015)
Innsdale (1.0) 1981 2012 2027-2032
Pine Hill (0.5) 1986 2001 2016-2021
West Draw (1.0) 2002 NA 2017-2022 (2014)
The 81 S Street Tank has been experiencing corrosion underneath the coating. It has reached
the point where an entire blast and recoat procedure is required. In November it was
presented that following a traditional Design-Bid-Build process with engineering and inspection
would be estimated to cost $985,000. Additionally, the A1NWA recommendation is that a
thorough inspection be completed of storage tanks every five years. That inspection in a
traditional life cycle is estimated to cost $11,000 in each of year six, eleven and sixteen after a
blast and recoat. The five year inspections have not been part of our program to this point in
time. The total project estimate with five year inspections within a traditional life cycle for a 3.0
MG ground storage tank would be$1,007,000 after 11 years, increasing to $1,018,000 after 16
years.
Within the Design-Build proposal SEH/Classic is proposing a blast and re-coat (with
engineering and inspections) at a cost of $730,000. Further, the contractor would be providing
for annual inspections at $8,000 per inspection plus a Wash/Touch-up Repair at a cost of
$75,000 in each of years five, ten and fifteen. The total project proposal with these inspections
and spot repairs is $944,000 after 11 years, increasing to $1,051,000 after 16 years.
SEH/Classic includes within the proposed professional services model the assumption that,
due to increased inspection and periodic maintenance, in year 20 the City could successfully
re-coat this tank at a construction cost of $530,000 (in 2013 dollars). This is opposed to a total
blast and re-coat of $850,000 in that same year (in 2013 dollars). Hence, SEH/Classic is
suggesting a savings due to the Design-Build process at 20 years from $1,869,000 (Design-
Bid-Build) to $1,613,000 (Design-Build) plus engineering and inspections for the 20 year
project (for either method) should their projections prove to be accurate.
Additional Observations:
An advantage of this professional services model for SEH/Classic is avoidance of
marketing and other overhead expenses incurred through the traditional Design-Bid-
Build method. Another advantage is that if they are able to secure work through the
professional services Design-Build process they acquire certainty in management of
their work flow. Their current team has three primary crews that can work within the
Twin Cities metro area and within the Midwest they currently have the capacity to coat
16-20 tanks per summer. Should SEH/Classic be able to efficiently schedule through
this or any other means the resulting operational efficiencies allow for more efficient
pricing than would otherwise be the case.
2. The traditional tank painting method includes, generally, a two or five year warranty.
This contract provides for either a five or ten year warranty. Within the industry, experts
are seeing the need for re-coats beginning in years 12 to 14. Some premature failures
have been experienced as early as year 7(the West Draw Tower coating failed by year
12).
3. According to SEH the following metro area cities are moving forward with Design-Build
professional services contracts:
Orono
Roseville
Little Canada
Hopkins (@2)
Lakeland
Cottage Grove
Greater Minnesota cities under contract include:
Barnum
Rush City (@2)
Brainerd (@2)
4. A concern has been the possibility of unbudgeted change orders. SEH has presented
that for the 2012 and 2013 projects completed under this process they have not
experienced contractor change orders. Given that this tank will be blasted to bare metal
and therefore the likelihood of change orders is further reduced. Telco impacts could be
a potential wild card under either project approach.
5. Public Works and Engineering staff is currently working through the Design-Build
process on the West Draw tank (2014 project). While there have been a number of
items needing correction in the design/pre-con phase none of these items have been
fatal flaws to this point in time. It is currently anticipated that a notice to proceed on the
West Draw Tower will be granted to Classic in March. The West Draw Tower will be
Classic's first project in the area this year with the project commencing as soon as
weather permits in April. Project duration is 8 to 10 weeks. Therefore, we anticipate
completion of the 2014 tank by mid June. We do not yet have a projected schedule for
the 2015 project but would anticipate something similar.
Conclusion:
The projected results and outcomes of the Design-Build professional services contract are only
that; projections. However, with increased attention to storage tank coatings going forward, it
is a reasonable premise that additional coating life could be experienced beyond that currently
being realized. Further, we most likely have beyond ten years of evaluation of this premise
before reaching additional decision-points and cost items beyond what would be experienced
through the standard Design-Bid-Build process. At this point SEH/Classic has addressed or is
in the process of addressing the concerns/questions that had been raised by staff last
November.
SEH/Classic has continued to propose the same professional services contract and costs as
was presented in November.
Options:
1. Do nothing or continue to defer action; any deferrals should be of limited duration given
that in any case we would need to begin preparation for a 2015 coating project.
2. Enter the proposed professional services contract for the 3.0 MG 81 Street Tank for
2015 in the amount of $936,000 (as presented in November)
3. Provide direction to proceed toward a traditional Design-Bid-Build coating project for the
3.0 MG 81 Street Tank for 2015
Recommendation: Option two
Council Action: By motion adopt Resolution No. 14- XX which is a resolution approving the
proposed 3.0 MG 81 Street Standpipe professional services coating agreement with SEH
Design Build
Cottage Grove City Council ( �
November 6, 2013 Regular Meeting
MOTION CARRIED. 4-0-1 WITH COUNCIL MEMBER LEHRKE ABSTAINING.
E. 1. Consider A�proval of the Proposed Water Tank Professional Service
Contract from SEH and Classic Protective Coatings for the 1.0 MG Fluted
Column in 2014 in the amount of $793,500. 2. Consider Deferring Action
on the Proposed Water Tank Professional Service Contract from SEH and
Classic Protective Coatinas for the 3.0 MG Standpipe in 2015 in the
amount of �936,000
Public Works Director Burshten reviewed the recommendation to enter into
a contract with SEH and Classic Protective Coatings to paint the 1.0 Fluted
Column in 2014 and the recommendation to defer action on the proposed
contract to paint the 3.0 MG Standpipe in 2015.
MOTION BY COUNCIL MEMBER THIEDE, SECONDED BY COUNCIL MEMBER
LEHRKE, TO ADOPT RESOLUTION NO. 2013-118, A RESOLUTION
APPROVING THE PROPOSED 1.0 MG WEST DRAW WATER TOWER
PROFESSIONAL SERVICES AGREEMENT BY SEH DESIGN BUILD. MOTION
CARRIED. 5-0.
MOTION BY COUNCIL MEMBER THIEDE, SECONDED BY COUNCIL MEMBER
LEHRKE, TO DEFER ACTION ON THE SERVICE CONTRACT WITH SEH AND
CLASSIC PROTECTIVE COATINGS FOR THE 3.0 MG TANK.
Council Member Olsen stated that he would like to approve the service
contract for the 3.0 MG tank tonight and would be voting no on the
motion.
MOTION CARRIED. 3-2 WITH COUNCIL MEMBER OLSEN AND COUNCIL
MEMBER PETERSON VOTING NAY.
RESPONSE TO PREVIOUSLY RAISED COUNCIL COMMENTS AND REOUESTS -
�Vone.
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MOTION BY COU L MEMBER OLSEN, SECONDED BY MAYOR BAILEY, TO
DISCUSS COMMERCI AINTENANCE AND STANDARDS AT THE STRATEGIC
PLANNING SESSION IN JA RY 2014. MOTION CARRIED. 5-0.
Council Member Peterson stated tha e next Fare for All is November 7 and the
next Beyond the Yellow Ribbon meeting i ovember 19.
MOTION BY MAYOR BAILEY, SECONDED BY COUN MEMBER OLSEN, TO
DISCUSS THE CITY'S SIGN ORDINANCE REGULATIONS THE STRATEGIC
PLANNING SESSION IN JANUARY 2014. MOTION CARRIED. ��������
MAYOR BAILEY AMENDED HIS MOTION TO HAVE THE PLANNING COM�SION
4.
5
Engineering ��vaIuation:
• Inspection of the exterioa•, weti interioi�, dry uiterior ancl pit piping coatings.
• Wet interioi'will be drauzed aud couzcide with the wet interior pressure wash �und coating repairs:
+ Tatlk accessorles inspectian,
e Repox�t wath i•ecoi�mendatioris.
_
_
Yearly Visual Surveys;
�• + Full tank ins�ectior� (wet interxor does not liaye to be drauied),
• Sruiiniaiy Repoz't.
'Yeak: 2023
�xteriot':
. I'ressm•e wasli stufaces to re�nove contaniinants and mildew;
1 o Power tool clean i�zstied areas on extea�ior surfaces to equivalent af SSPC-SP 3 Power''Z'ool Cleaning
Conclition.
• Apply two coats af epoxy and one coat of urethane witliUV pa'otection (AWWA Outside':Paint Systeln
No. 5) Co prepaz�ed areas, -
'Wef Interior:
.. Pz•essure wasI� surfaces to reznove contaxninaa�ts and stainrrig.
2 • Power too� `cleaiz rusted areas on wet intez•iorsurfaces to eguivalent of SSPGSP 11 Powa�•'lool Gleanuig to
l3are Metal Condition.
. Apply two coats of epo�ry coating (AWWA Iliside'1'1u�t System No. 1) to pi•epared areas.
o Disinfect the t�►�1� ititerioi• pe� AWWA C652.
Diy Iafterioi :
3 + Powei• tool cXeau rusted areas o�l c�iy interior sui•�aces to equivalexrt af S�PC-SP3 Power Tool Cleax7ing
Coiidition.
e App1y two caats of epoxy coating (AWWA Insicle Paint SysteinNo, 1) to preparecl areas,
�axgiiaeering Evaluation:
• Ii�spection of the extet'ior, wet interioi; ctiy interior andpit pzpiz�g caatiugs.
�}, . Wet iuterior will be drau�ecl and coincicie witt� the wet interior presstire vvasli and coating re�aus.
. '�'ank aceessox'ies iuspectian.
• Repo�•t Witli recoz7�nie�ici�tions.
� Gity of Coltqge Grove, Minnesotcr
S�HDesign��uiltl; Inc. (YYestl�rcn�� Terr�k)
��
1,0OO,OC?O:Gallon HydropiilarTanlc
20-Year Total Cost af'Dwnership Comparison
Nlodel Assumptibns:
Blast and Re-coat cost
Con3tructiori pocumenYS fP1o�s&scPa}:
Irrspections:
Bidding Administratian:
5-year Inspecfion tost:
5;0!
ao:o�
1.{3l
$783,250
$34,163'
578;325
$7;833
$10;000
SEH D � B Refialiilitation �osti
FUtUC8��V8fCOdt�C95t (urlylnaf�rehabifltationcosefersblastingandsaneaibm¢ntj
Rnnua( inspectiori cost:
WasFidown antl'TOUCh-up co5t::
Maintenance Cantractterm (years}:
$605,ODf1
$445,OOU
$7,504
$68,U0�
1p
:ostfor
YO yeaF
:nntract
793,5C10
Fature:
ieration
second
�
P�AN YEAR
3.O CVIG fNNSDALE STANDPIPE 1 2 3 4 5 6 7 8, 9 1U `
GOTTAGE GF20VE, MINNE50TA 2015 2076 2017 2018 2019 2020 2021 2022 2023 2024
�iEHARILITATION` - - _ '- - _ — -_
New Coating System (E�iterior) X
{Wet interiarj )(
(Pit Piping) X
Accessary Modifications and Repairs X
Qual(ry Assurance Inspections X
VISUAL SURVEY_=., — _ a -
; _ - —._ --
Coa,ting Observafion {Exferior) X x X � X X �''
(WeClnterior) � � X � � � �
{Pit Piping) � X X. X � � X
Aocessory Obseroation X X x � X X X
Summary Statement X X x � X X X
GENERAL MAINTENANC� = -_ = _ =
� : _;- - —, . -
- __
P�esSUre Wash (Exterior) X X
(Wet Inte�ior) X X
Spot GoaEing Repairs (Exterior) X X
(Wet Interior) X �
(I'it Piping) X X
t�inor Accessory Repairs X X
QualityAssutance tnspection"s X X'
ENGINE�R�NG EV1�LU,ATION = _ =
Coating Tesfing (Exterior) X �
antlAnalysis (Wetlnterior) X �
(Pit (?iping) X �
�ive-yearAWWA lnspection X X
TankAccessories Inspection X ' x
Reportwi(h Recommendations X X
O O o O O. O O O O a
0 0 o a o o c o 0 0
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**1NCl.UDES PLANS, SPECS, AND INSPEGTiON ' ' ' ' ' '
1�
EXHIB�T �i.
SC�JPE QF �ER�VI�ES
Taial� 3.� M[� Innsdale S#andpipe Taulc
Name:; Gottage Grove, MN
Yeai: 201.a
�, I►�sta11'a ne��v conciete splash plcl at the cizscharge end of the ovetflow pipe:
2, rhe concrete fo�tndations and g�'o��t wili �e coatecl to I�elp pz'event detericiratian,
3. Install a new,scz�eened fl�p gate at ttxe cliseha��ge end of the overflow pipe.
Iteplace the boltecl/stud welded loafhandt�ail with an OSHA coz�ipliant ��oof handrail. The dianietex� of the
�, exisCi�ig ha��drail is Sb ft. T7te new haildrail will be iustalled to match tl�e existing size, Tlie e�sting liandrazls
around the two roof hatclies are OSHA com�liant and they tiYOUlcI be huilt into the nevv handrail syste�n.
5. Ren�ave tlae small painter's rail aiaund tlre ceTater vent.
&. � Install a�lew fi'ost-free t�oofvent. The new vent will be balted to Che sxisting vent flange.
7 Install another roafhatch to t� e w�t interior inside the i oof handrail. TJ�is hatch will be 30 in. cliameter. Tlus
liatch ca�i be use for exti•a ventilatio�i dtuing blasting anel coating Ap����ions.
g, ��'�opeily seai t]ie tlu eadeci cou�lu�g on the rooftl�aC currezitly is eausuig issttes.
�xteriot'�
• Erect a full �lexible containment systetn witli roof bontiet.
+ Camplete �emoval of existing coating; systeni on the exteriax� surft�ces to aqttivalent of SSPC-SP6
9, Gommercial Blast Cleataiug Gondition.
• Apply one coat of ziilc, o�ie caat of e�oxy, ai�ci one �oat of tn�ethane with I7V protectio� (Ia.W WA Outside
Paint Systeni No. 6).
• p��e� and finish �aint t7�e antenna caU1e cavers.
I�'it Piping:� ' g � b�' P�1� g q
1 n.
� Cointnerc�al�Blast G eanin� ����� � stem on i m and valve sui�faces to � uavalent o�SSPC-SP6
• A�iply twa coats af epoxy coatu�g (AWWA Inszde Paint Systezii No, 1).
City of Cottctge G7�aue, �llinl�eso�a
SEHDesign� Build, lnc.
�
Wet.Ii��eriot': -
. Calnplete relnoval of exis�ing coatuig system onthe wet interior surfaces to ec�uivaleii�t of SSpC-SI'�fl Near
White BlastCl�aning Condition:
. P��ovxde special hazardous waste coi�siderations if required.
� 1 ` 0 1�pply two caats of apo�cy coating that is appraved for use in potable dt`iulcing i�vater #anlcs (A:W WA Inside
Paint :System No. 1),
. Caallcthe roofbeams and seams:
p Disinfect tlie tanlc intei•ior pez AW WA CG52.
Xeai�ly Vis�al Surve�s:
1• . �'u11 tank inspection {wet i7�te�•iar does riot have to be drained).
• Suinmaiy Report.
' year.;z01� �
EJCtez'ior:
. Pressure was� stufaces to z'emove coutaminan�ts and mildew.
�. • Power tool clean rusted areas on extei•zor sui�£aces tb eqiiivalent of SSPC-SP 3 Power' Tool Cleanitlg
Con�litio�i,
! A�ply two coats of epoxy aiid one coat of tiietkane w3th UV protection (AWWA Oititside Paint Syste�n
�To. 5) to pre�ared areas,
W�t I►iterior:
. Pz•essure wash surfaces to z�eniove contamivants ancl staining.
2 . Power taol clean rusted areas oii wet inferior surfaces ta ec�uivalent of SSPC-SP 1 I Power Taol CJeaning to
l3are Metal Conditzon.
. Apl�ly two coats of epoay eoatiing (AW WA I��side Paiiit' System No. 1} to prepared areas.
• Disiufect t7ie tank interior pei• AW WA CG52.
Pit Pi�iatg:
3 . Powez• tool clean all failecl and rusted �z'eas oripipuig ancl valve stu�aces to equiv�ient of SSPC-SP3 1'ower
Tool Cleaniug Condition.
• Ap'ply two coats of epoxy caat'v�g {AWWA Tusicle l'aint Systein Na, 1) to alI pz'epared areas.
� Ctty �f Cattage Gr�ove,lVlrrri�eso�a
SEHbesign�Build, Inc.
1 �
�.
9
Engineeriaag Evaluatian:
r Ii�spection of the exterior, wet i�tteriar, and pit piping coatings.
s Wet interior will �ae draiued and coincide with the wet i�zterior p��essm-e vrash a�id coating i
• Tai�l< accessqi�ies inspectiou.
d Repox�t with recoxnniendations,
a'rs:2020 to 2023. `
Yearly Visual Sui`Yeys:
�• • I'ull tanlc inspection (vs�et i�aterior does i�at liave to be drainerl).
• Suinn�ary Report:
Yea r: 2024
Extarior;
• Pressi�re wash surfaces tp relnave cantaauivants anci inildew.
1 • Power tool clea�l rusted ateas on exterio�.� surfaces to equivale�7C of SSPGSP 31?otver Tool Cleanuig
� �A� i�io���.
. A iy two'coats of epoxy an,d one coat of utetltat�e vritil LTV protacfioi� (AWWA O�itside I'aint System
No. 5) to pi'e�ared areas,
yVet Xnterioi :
• Presstir'e wash stufaces ta remove contatt�inanfs and staining:
2, s Power #ooI c1ea1� rusCed are�s an i�vet iuterior surfaces ta eqc�ivalent of SSl'C-Sl' 11 Po�ve��'Tool Clea�7ing to
Bare Metal Condition,
+ A�ply tv,ro coats of epqay caating (AWWA Inside Paint System No. 1) to pre�arecl areas.
� Disinfect the tanlc �nte�?ior per AWWA C652.
Dry ���tez`ior°
� � Pot?ver tiool cleaila'usted areas aza dly interior st�rfaces to ec�uivalent of SSP�-SP3 Power ToQl Cl€anuzg
o Apgly coats of epo�y coati�ig (AWWA Inside Pauit Systein Na. 1) ta pre�ared ai�eas.
Engineet•ing Evaltrntioai:
o �ispectioi� oft]le exteriQr, wet iutez'ior, tiiy interio�� and pit giping coaeings.
r}_ . Wet inte��iar �vill be diai�ied and caincida witli the wet interioz� �ressure r�vash and coating i•e��aus:
. Tanlc accessories inspection.
. Repo��t with reco��iendations;
SE1 {nc.
City of Gbtfc�ge G��ove,l�2in�zesot�r
�
RESOLUTION NO. 2014-XX
RESOLUTION APPROVING THE PROPOSED 3.0 MG INNSDALE
STANDPIPE WATER TOWER PROFESSIONAL SERVICE AGREEMENT BY
SEH DESIGN BUILD
WHEREAS, the 3 Million Gallon Innsdale Standpipe Water Tower in the
City of Cottage Grove is aging and increased maintenance is required; and
WHEREAS, a long-term maintenance contract allows the City of Cottage
Grove to benefit from an experienced contractor familiar with the City; and
WHEREAS, this type of contract also affords the City a long-term warranty
on all work completed under this contract; and
WHEREAS, it is the recommendation of the Public Works Director that the
contract be awarded to SEH Design Build;
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of
Cottage Grove, County of Washington, State of Minnesota, that the proposed 3.0
MG Innsdale Standpipe Professional Service Agreement be awarded to SEH
Design Build in an amount not to exceed $936,000.
Passed this 2� day of April 2014.
Myron Bailey, Mayor
Attest:
Caron M. Stransky, City Clerk