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HomeMy WebLinkAbout9B - Change Order Water Tower MEETING DATE: AGENDA # PREPARED BY: REVIEWED BY: AGENDA ITEM: DISCUSSION: CITY COUNCIL AGENDA REPORT OCTOBER 6, 2003 9B MAKENZIE MCCORMICK, PUBLIC WORKS COORDINATOR BUD OSMUNDSON, DIRECTOR OF PUBLIC WORKS CONSIDER APPROVAL OF A RESOLUTION APPROVING CHANGE ORDER NO. 2 FOR A MATERIAL CHANGE AND ADDITIONAL WORK IF NEEDED FOR RECONDITIONING OF THE CREST AVENUE WATER TOWER, CITY PROJECT NO. 03-01 History On January 6, 2003, the Council accepted bids and awarded contracts for water tower reconditioning to Classic Protective Coatings for the Tower Street water tower and Champion Coatings for the Crest A venue water tower. The final payment for the Tower Street tower reconditioning is being proposed under another agenda item at this meeting. The purpose of this agenda item is to approve a change order for approving a different paint material for the exterior coat and additional work if necessary due to time constraints in the fall. Issues Due to the unusual and unforeseen drought-like conditions the City faced this summer, the Crest Avenue water tower project was delayed. The original start date was August 18, 2003, but due to high water demand, the City decided it was not in our best interest to drain one of the two water towers to begin the scheduled reconditioning project. We were not able to begin construction until September 16th, 2003, almost 30 days later than scheduled. The paint specified for the water tower reconditioning is very sensitive to humidity and temperature, The original contract issued 70 calendar days to complete the work. That would put us into November, where we could possibly find very cold temperatures, not conducive to the contract paint. The contractor, Champion Coatings, Inc. has suggested using a different kind of paint that can cure in lower temperatures. This paint is at an additional cost of $3,280,00. This change in paint has been approved by KLM, the City's engineer. If work cannot be completed this fall, the contractor has requested additional compensation for remobilization in the spring, The tower's primer coat will also need to be pressure washed before the final coat can be applied per our engineer, which also results in an additional cost. The estimated costs for possible spring work total $19,980,00. These costs were submitted by Champion Coatings and 101~ Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER FISCAL IMPACT: ALTERNATIVES: RECOMMENDED MOTION: REVIEWED BY: 10/1/2003 have been approved by the City's engineer as appropriate. These additional costs will only occur if necessary. Depending on weather conditions the additional change order costs could be minimal or at the most $19,980. Sufficient funds are set-aside in the City's Capital Improvement program for the engineering and reconditioning of the two water towers plus the additional cost for the paint change and spring work if necessary. The original awarded bid for the Crest project was $469,000.00. If needed, the total estimated additional cost is $19,980.00, bringing the total construction cost to $488,980. When combined with the actual cost of the Crest Tower of $537,202 and the engineering costs of the project ($99,025), the total cost is expected to be $1,125,207, The CIP estimate was $1,140,000. There are sufficient funds allocated to pay all project costs. The Water and Sewer Utility (Operating) Fund is the source of the funding for the towers since this is a maintenance item of existing capital equipment. The alternatives are as follows: 1. Approve a Resolution approving change order no. 2 for a paint material change and for spring work if necessary for the Crest Avenue water tower in the amount not to exceed $19,980.00. 2. Table this agenda item for a specific reason. 3. Deny this agenda item for a specific reason. Staff recommends alternative number 1, RESOLUTION 03-XX CONSIDER APPROVAL OF A RESOLUTION "t ,\AP ROVING CHANGE ORDER NO.2 FOR A MATERIAL CHANGE 'NNESO AND ADDITIONAL WORK IF NEEDED FOR RECONDITIONING OF THE CREST AVENUE WATER TOWER, CITY PROJECT NO. 03-01 MOTION BY: SECOND BY: WHEREAS, Due to the drought-like conditions Prior Lake faced this summer, the Crest Avenue water tower reconditioning project was delayed to meet the City's water demands. This delay may result in a spring completion date; and WHEREAS, Due to this delay, Champion Coatings, Inc. submitted a change order bid of $19,980.00 for additional cost if spring work is necessary for the Crest Avenue Tower; and WHEREAS, According to the CIP, there are sufficient funds in the Water and Sewer Fund for the additional work requested, NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, I. The recitals set forth above are incorporated as if fully set forth herein. 2. The City Council authorizes the expenditures from the Water and Sewer Utility Fund for additional costs for the Crest Avenue water tower in an amount not to exceed $19,980.00. Passed and adopted this 6th day of October 2003. YES NO Haugen Haugen Blomberg Blomberg LeMair LeMair Petersen Petersen Zieska Zieska {Seal} Frank Boyles, City Manager lO/1I2~g~00 Eagle Creek Ave. S.E., Prior Lake. Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER