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HomeMy WebLinkAbout05(R) - Consider approval of a Resolution authorizing a Public Works Consultant Pool work order for the Tower Street water tower reconditioning project. ReportKLM Engineering, Inc. | 1976 Wooddale Drive, Suite 4 | Woodbury, MN 55125 Toll Free: 888-959-5111 | Phone: 651-773-5111 | Fax: 651-773-5222 | www.klmengineering.com June 4, 2020 Prior Lake, Minnesota 750,000-Gallon South Tower (Tower Street) Proposal for Reconditioning Services Copyright 2020 by KLM Engineering, Inc. Page 1 1976 Wooddale Drive, Suite 4 | Woodbury, MN 55125 Phone (651) 773-5111 | Fax (651) 773-5222 June 4, 2020 Mr. Andy Stephes Water Department Foreman Prior Lake Maintenance Center 17073 Adelmann Street Southeast Prior Lake, Minnesota 55372 Dear Mr. Stephes: Thank you for the opportunity to submit this proposal to provide engineering and inspection services during the rehabilitation of the 750,000-gallon Tower Street Legged Water Tower located in Prior Lake, Minnesota. KLM has a staff with the most credentials associated with AWS welding and NACE coating inspections of water storage tanks in the five-state area. When it comes to quality inspections on water towers, KLM sets the standard that other companies try to duplicate. Our dedication to quality inspections can be seen nationally as our projects are represented each year in Tnemec’s Tank of the Year calendar contest. Asbury, Iowa West Fargo, North Dakota Farmington, Minnesota Copyright 2020 by KLM Engineering, Inc. Page 2 KLM’s personnel have been working on water towers since the 1970s. We have tanks that were constructed and painted in the mid-1980s that are just coming up on their first reconditioning. KLM anticipates the tower’s coating systems will be in service 20-plus years. This is due to KLM professionals trained to perform proper inspections and holding contractors accountable for quality workmanship. Our inspections are performed by a professional staff with current and proper credentials. Our inspectors who, work directly under our Structural Engineer and Project Supervisor are certified as both NACE and AWS inspectors. Each employee takes ownership of their project. Our professional staff has a combined 150 years of experience and have successfully completed over 500 rehabilitations of water towers of various sizes. The KLM staff is fluent in the current codes and standards for new and reconditioned water tower projects. KLM inspectors climb the towers daily to accept or reject the workmanship of the day. The main reason owners hire a professional consultant is to protect the owner’s investment. The average tank without a professional inspection usually needs to be repaired after fifteen years compared to KLM projects, which are lasting 20 or more years. No firm receives respect from tank contractors and subcontractors like KLM. Our role is to provide quality assurance and enforce the specification. KLM is very thorough with our documentation of what and how the work is being performed each day. KLM’s reputation of quality is second to none. We stand behind every project we work on. KLM would like to assist you with our expertise on quality control which will make this a successful project for many years to come. By selecting KLM, you can be assured that the project will be completed to your satisfaction. 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 Copyright 2020 by KLM Engineering, Inc. TABLE OF CONTENTS Proposal ................................................................................................................................... 3 Project Understanding ............................................................................................... 3 Benefits to the City of Prior Lake ............................................................................... 3 KLM Work Plan .......................................................................................................... 4 Design ........................................................................................................................ 4 Specification ............................................................................................................... 4 Construction Services ................................................................................................ 6 Construction Observation .......................................................................................... 7 Antenna Inspection .................................................................................................... 7 Warranty Inspection ................................................................................................... 7 Deliverables ............................................................................................................... 8 Proposal Fee Summary ............................................................................................. 8 Why Use KLM ............................................................................................................ 8 Agreement .................................................................................................................. 9 Project Team .......................................................................................................................... 10 References and Project Profiles .......................................................................................... 15 Reference List .......................................................................................................... 15 Profiles ..................................................................................................................... 16 KLM Support Documents ..................................................................................................... 18 KLM Fee Schedule .................................................................................................. 18 KLM Terms and Conditions ..................................................................................... 19 DISCLAIMER: The information in this proposal is confidential, may be legally privileged, and is intended for the sole use of the City of Prior Lake. Access to this proposal by another company is not permitted. If you are not the intended recipient, any disclosure, copying, distribution or any action taken or committed in reliance on it is prohibited. Proposal Copyright 2020 by KLM Engineering, Inc. Page 3 Project Understanding KLM understands the City of Prior Lake is planning on reconditioning the 750,000-gallon legged water tower (Tower Street Tower) in 2021. KLM met with utility staff multiple times over the last several years to gain a full understanding of the issues and the expectations of the city. Current records indicate the time has come to recondition the tank to protect the substrate for continued service. Key project team members were brought together to review the 2015 evaluation report and records maintained by KLM to prepare the outline of services required to bring the tower up to current AWWA standards and Minnesota Department of Health and OSHA codes. Benefits to the City of Prior Lake  Today’s protective coating systems are designed to last 20-30 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. Copyright 2020 by KLM Engineering, Inc. Page 4 KLM Work Plan Upon execution of an agreement, KLM proposes the following schedule to perform the work: Prior Lake approval: 1. Design Services Completed by September 2020 2. Construction Management and Inspection Services Spring Construction 2021 3. Warranty Inspection 2023 ROV completed per agreement Design KLM will also perform at a minimum, the following related specification services:  Meet with the owner to review plans and specifications.  Produce preliminary and completed copies of the specifications for the owner.  Provide an updated cost estimate.  Advertise specifications on Quest CDN.  Attend and facilitate a mandatory pre-bid meeting.  Issue specification to bidders and respond (in writing) to bidder questions.  Tabulate results for Owner’s.  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 Project 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: Advertisements for Bids This section provides a detailed description of the project and meets the requirements for legal advertisements. 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. Copyright 2020 by KLM Engineering, Inc. Page 5 Bid Forms This section contains the bid proposals; construction time frame alternate bid proposals, legal requirements, and the bidder and subcontractor qualification forms. Project 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. 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. Supplemental Conditions This section supplements or amends the General Conditions and/or other provisions of the Contract Documents. 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. Contract Documents This section provides the form of agreement to be used between the Owner and Contractor. Payment and Performance Bond Bonds for payment and performance are required for this project, as specified by state law. Appendix A: Photos This section includes copies of color photographs. This provides the contractor with a clear perspective of the interior/exterior conditions of the tank, and the scope of work involved. Appendix B: Drawings This section includes drawings, which define structural repairs or modifications and welding definitions. Copyright 2020 by KLM Engineering, Inc. Page 6 Appendix C: 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. Appendix D: Paint Chip Lead 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. Appendix E: Lettering and Logo (optional) If required, this section includes drawings of any required lettering and logo. 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 preconstruction conference.  Removal of cellular equipment.  Periodically perform on-site review of project’s work status and report to the owner.  Coordinate progress meetings as necessary.  Review of meeting minutes.  Scheduling of inspections.  Project close out administration.  Establishes warranty date.  Review of inspector’s daily documentation.  Process change orders.  Prepare monthly payment request forms.  Review and approve of the contractor’s submittals: 1. Drawing reviews 2. Welder Certifications 3. Welder Qualifications 4. Welding Procedures 5. Coating Materials Submittal 6. TLCP Sampling Plan Copyright 2020 by KLM Engineering, Inc. Page 7 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. 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, 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 establish an escrow account from the tenant(s) (telecom carrier(s)) for any engineering and inspection 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 two (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. Copyright 2020 by KLM Engineering, Inc. Page 8 Deliverables The city 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  State Regulatory documentation including permitting, State Agency or 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 (Owner & Contractor) Proposal Summary KLM Engineering estimates this to be a 12-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. Cost Summary 1. Design Services Fixed $15,000.00 Total Estimated KLM Cost in 2020 $15,000.00 2. Construction Management Fixed $14,597.00 3. Construction Observation Fixed $73,500.00 Total Estimated KLM Cost in 2031 $88,097.00 4. Warranty Inspection 2023 Fixed $3,200.00 5. Antenna Inspections Per Carrier $9,500.00 6. City/Sheriff Antenna Inspections Per Carrier $3,000.00 Why Use KLM KLM is the leader in water tower reconditioning of towers in Minnesota. KLM Engineering, Inc. has been evaluating and reconditioning water towers for over 20 years. 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. Copyright 2020 by KLM Engineering, Inc. Page 9 Agreement This proposal is valid for sixty days from June 4, 2020. If the City of Prior Lake finds this proposal acceptable, please sign and return by mail, fax, or email or send over the city’s agreement. We can begin work immediately once an agreement has been executed based on the project work schedule. This agreement, between the City of Prior Lake and KLM Engineering, Inc. of Woodbury, Minnesota is accepted by: , City of Prior Lake (Name) (Title) Prior Lake, Minnesota (Date) , KLM Engineering, Inc. (Name) (Title) Woodbury, Minnesota June 4, 2020 (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 Project Team Copyright 2020 by KLM Engineering, Inc. Page 10 Project Team To provide a combination of client satisfaction and industry expertise, KLM has assembled a staff specific to the needs of our clients. The Project Team, listed in the organizational chart on the previous page, work year-round, with current projects booked into 2020 and beyond. In addition, KLM’s staff have an extensive knowledge base, specializing in water storage systems, whether it be inspection, recondition, coatings, new tanks, or telecommunications. To ensure each project is held to the highest of standards, our team consists of Professional Engineers and certified inspectors by the National Association of Corrosion Engineers (NACE) and American Welding Society (AWS). Further details on the expertise of KLM’s project team can be found in the preceding pages. SHAWN MULHERN - PRESIDENT/ CEO/ PRINCIPAL OWNER Mr. Mulhern has been inspecting, testing, and evaluating water towers for over 36 years. He has been involved in the inspection of over 300 elevated water towers, ground storage reservoirs, and industrial tanks of sizes ranging from 50,000 gallons to 120 million gallons. Shawn is a NACE Level III Certified Coatings Inspector and an American Welding Society (AWS) Associate Welding Inspector. He is also an avid volunteer and educational presenter nation-wide. EXPERIENCE & EDUCATION  American Water Works Association  American Welding Society  National Association for Corrosion Engineers  Society for Protective Coatings  Water Industry Professionals  2018 AWWA Benjamin G. Mason Award of Excellence  AEC Engineering, Inc. | Coating Systems Supervisor  Neumann Company Contractors, Inc. | Journeyman Painter  NACE Successful Coating & Lining of Concrete  Supervisory Leadership | Wilson Learning  3M Safety Training Program  Tnemec Protective Services Seminar  Industrial Technology | UW-Stout  NACE III Inspector | No. 1293  AWS- Welding Inspector No. 89040022  OSHA Lead Abatement  NDE Level II TU, PT, MT and vacuum box RODNEY ELLIS - VICE PRESIDENT/ COO/ PRINCIPAL OWNER Mr. Ellis has extensive experience working with a wide range of municipalities, military, and industrial facilities. He has worked on hundreds of water storage reservoirs, lead abatement projects, industrial tank reconditioning projects, water treatment plants, and bridges over the past 29 years. Rodney is a NACE Level III Certified Coatings Inspector, and an AWS Certified Welding Inspector. Rodney offers significant benefits to clients because of his work with all types of contractors on many types of complex projects. EXPERIENCE & EDUCATION  American Welding Society  National Association for Corrosion Engineers  Society for Protective Coatings  Water Industry Professionals  AEC Engineering, Inc. | NACE Coatings Inspector  Neumann Company Contractors, Inc. | Industrial Sandblaster & Painter  Mount Scenario College  NACE III Inspector | No. 1686  AWS- Welding Inspector No. 95040714  API 653 | Above ground storage tank inspection  NDE Level II TU, PT, MT, and vacuum box  OSHA 10 Copyright 2020 by KLM Engineering, Inc. Page 11 JERRY TELL, P.E. - STRUCTURAL ENGINEER Mr. Tell is a registered Professional Structural Engineer who has held licenses in multiple states. Jerry has a strong background in structural design of plate structures including heavy lift cranes, water filtration tanks, bulk material silos/ bins and elevated structures. Jerry brings to KLM experience in engineering management with an emphasis on multi-million-dollar projects. Jerry offers KLM clients a dedication to quality workmanship and extensive skill sets in structural analysis and designs. EXPERIENCE & EDUCATION  AmClyde Engineered Products | Structural Engineer  University of Minnesota | Bachelor of Science- Civil Engineering  Minnesota License | No. 15524  South Dakota License | No. 13466  Wisconsin License | No. 25409-6 BEN FELDMAN, P.E. - CIVIL ENGINEER Mr. Feldman has worked in both the private and public sector starting out his career as an engineer and project manager with the Midwest leader in design of state-of-the-art municipal facilities and other complexes. Ben’s project experience ranges from treatment plants, pump stations to distribution studies and maintenance plans. He is also an active member of Minnesota section AWWA as Board Security-Treasurer for over four years. Ben provides KLM’s clients with creative, cost-effective solutions, exceptional service, and a level of quality as if it were his own. EXPERIENCE & EDUCATION  American Water Works Association  MN-AWWA Young Professionals  St. Paul Regional Water Services | Civil III  SRF Consulting Group, Inc. | Field Engineer  Anderson-Johnson Associates, Inc. | Project Manager  University of Minnesota | Bachelor of Science- Civil Engineering  Minnesota License | No. 49598  Colorado License | No. 0057334  OSHA 10 SCOTT KRIESE - PROJECT FIELD SUPERVISOR Mr. Kriese is a NACE Level III Certified Coatings Inspector with fourteen years of experience on projects including surface preparation, coating application, and inspection services during reconditioning, new tank construction, and structural repairs on water storage tanks and towers. Scott is currently a Project Field Supervisor overseeing NACE inspectors who are performing daily inspections of new and reconditioned water storage tanks. Scott has provided resident inspection services or oversite on hundreds of potable water and fire protection tanks during his tenure at KLM. EXPERIENCE & EDUCATION  National Association for Corrosion Engineers  Society for Protective Coatings  KLM Engineering, Inc. | Project Field Supervisor  NACE III Inspector | No. 11236  OSHA 10 Copyright 2020 by KLM Engineering, Inc. Page 12 DEWEY PRINZING - VP OF BUSINESS DEVELOPMENT Mr. Prinzing has been in the construction, inspection, testing, and evaluation industry for more than twenty years. He has been involved in the inspection of elevated water towers, ground storage reservoirs, and industrial tanks of sizes ranging from 50,000 gallons to 3 million. Dewey transitioned his knowledge as a NACE Inspector to his current role in sales. In sales, Dewey successfully assists clients with their various needs whether it be on rehabilitation, new tank construction, structural repairs, evaluations, tank cleaning, or mixing. EXPERIENCE & EDUCATION  National Association for Corrosion Engineers  Society for Protective Coatings  Water Industry Professionals  Southwest Manufacturing, Inc. | Regional Sales Manager  Otte Log Homes | Carpenter  NACE I Inspector | No. 44811 MICHAEL NOVITZKI - DIRECTOR OF BUSINESS DEVELOPMENT Mr. Novitzki has been in the sales and marketing industry for over four years. Since joining KLM, Michael has been able to utilize his skills in sales to excel in the water storage industry with a desire to assist communities of all different sizes. Michael has been involved in projects ranging from 50,000 to over one million gallons. Michael’s goal to make sure every community has a positive experience regarding their water storage tank is evident in his superior workmanship and making sure the needs of his clients are taken care. He is also a valued member of the AWWA Young Professionals and a MAC Committee liaison. EXPERIENCE & EDUCATION  American Water Works Association  MN-AWWA Young Professionals  Water Industry Professionals  First Financial | Director of Sales & Business Development  New York Life | Financial Advisor  Target Corporate | Merchandise Analyst  Holy Cross College | Bachelor of Arts & Science-Finance, Marketing & Spanish  Series 6  MRWA Operator Training JAMES CREED - GREAT LAKES REGIONAL SALES MANAGER Mr. Creed is the Regional Manager located in our New Lennox, Illinois office. He has a combined 30+ years in the coatings industry primarily in General Industrial, OEM, Marine, Protective Coatings and Linings. The knowledge and understanding of protective coatings, surface preparation, and local, federal, and industry regulations Jim brings to KLM, confirms clients are receiving the most reliable guidance for their assets. Jim is also a NACE Level III Certified Coatings Inspector and SSPC Certified Concrete Coating Inspector. EXPERIENCE & EDUCATION  American Water Works Association  Society for Protective Coatings  Water Industry Professionals  National Association for Corrosion Engineers  The Society for Protective Coatings | Midwest Chapter Board Member  Carboline Company | Senior Engineer Sales Manager  Sherwin Williams | Senior Protective Coating Specialist  NACE III Certified | No. 8970  SSPC Certified Concrete Coating Inspector | No. 29820  Engineering Sales Presidents Award | 2017, 2018 Copyright 2020 by KLM Engineering, Inc. Page 13 TOM QUAMMEN - WEST CENTRAL REGIONAL MANAGER Mr. Quammen is the Regional Manager located in our Prairie Village, Kansas office. He has a combined 30+ years of water tank/ tower experience, first as a NACE and UT inspector for a small structural engineering firm in Minneapolis, then as a Principal Tnemec Company Representative, first in MN, then CO, ID, MT, NM, NV, UT, and WY. In addition, he has knowledge of structural engineering, extensive protective coatings experience, and ACI/ ICRI training. His skills and experience are an asset to KLM and our clients. EXPERIENCE & EDUCATION  American Water Works Association  KS/MO/CO Rural Water Association  Water Industry Professionals  Tnemec Corporate Award (Retired)  Tnemec Company | Principal, Agency Owner  AEC Engineers & Designers | Technician  Twin City Testing | Technician  Anoka Technical College  Mankato State University  CSI CDT  ICRI Slab Certified DANIEL FULLER - TELECOM MANAGER / NACE INSPECTOR Mr. Fuller is a NACE Certified Coatings Inspector with an extensive background in construction, equipment operations and customer service. Daniel’s experience with construction inspections and contractor management has transitioned well into the water storage industry, with his ability to meet client goals and solve issues with a full understanding of project specifications. Daniel also handles the antenna projects on water towers, monopoles, and buildings. His dedication is visible from a project start to finish. EXPERIENCE & EDUCATION  NACE I Inspector | No. 69380  Dodge Center, MN | 250,000-Gallon Tower No. 1  Princeton, MN | 250,000-Gallon Middle Tower LAURIE SYLTE - FINANCE MANAGER Mrs. Sylte has been in the finance management industry for over 20 years. Of these years, 15 are specific to water storage systems. Laurie excels in project support and budget management for tanks ranging from 25,000 to over a million gallons. She works directly with clients to ensure accounting and budget timelines are met and executed to city and/or council requirements. EXPERIENCE & EDUCATION  Somerset Telephone | Finance  St. Croix Telephone | Finance  Wisconsin Indian Technical College KLM Project Team Chart ** All inspectors work directly under a Professional Engineer and a NACE Certified Project Supervisor ** Ben Feldman, P.E. Civil Engineer VP of Business Development NACE I Shawn Mulhern President / CEO NACE III & AWS Rodney Ellis VP / COO NACE III & AWS Jerry Tell, P.E. Structural Engineer Laurie Sylte Finance Manager Scott Kriese Project Field Supv. NACE III Lead Evaluation Inspector NACE I Michelle Nelson Operations Coordinator Ashley Kopp Marketing Assistant Perry Seidel On-site Resident Inspector Dewey Prinzing Telecom Manager / NACE Inspector NACE I Dan Fuller Devin Severson Central Regional Manager NACE I Tom Quammen Michael Novitzki Dir. of Business Development Curtis Parison On-site Resident Inspector Randy Gustin Evaluation Inspector Tim Lindsay Lead Evaluation Inspector On-site Resident Inspector NACE III & ASME Scott Flatt On-site Resident Inspector NACE III & MPI Edward Doyle James Creed Regional Manager Olivia Harrington Administrative Assistant Aaron Hageman Evaluation Inspector Keliana Thompson Administrative Assistant On-site Resident Inspector NACE II Ethan Hutar On-site Resident Inspector NACE I Cory Anderson References And Project Profiles Copyright 2020 by KLM Engineering, Inc. Page 15 References The following list contains a hand full of projects completed by KLM in the past five years. In all, KLM averages 15-20 reconditioning projects per year. A more complete list of references can be provided upon request. Reconditioning Projects:  Woodlawn Tower 500,000 Gallon Single Pedestal Owner/ Client: Moorhead Public Service, MN Contact: Kristofer Knutson, 218-299-5475 *2018 Tnemec Tank of the Year Runner-Up  Market Center/ Clock Tower 2,000,000 Gallon Composite Owner/ Client: City of Eden Prairie, MN Contact: Rick Wahlen, 952-949-8530 *2017 Tnemec Tank of the Year 2nd Runner-Up  Skyline & Ella Ave Water Tower 750,000 Gallon Elevated Water Tower Owner: City of Great Falls, MT Client: AE2S Contact: Nathan Weisenburger, 406-217-3711  Tower No. 5 & Tower No. 10 500,000 Gallon Single Pedestal 1 Million Gallon Composite Owner: City of Fargo, ND Contact: Troy Hall, 701-541-4180  East Side Tower 500,000 Gallon Elevated Water Tower Owner/ Client: City of Rosemount, MN Contact: Dick Howe, 651-322-2041  Flag Avenue Reservoir 1,500,000 Gallon Underground Reservoir Owner/ Client: City of St. Louis Park, MN Contact: Aaron Wiesen, 952-924-2673  Tower No. 1 500,000 Gallon Single Pedestal Owner: City of Pelican Rapids, MN Contact: Robert Schlieman, PE (Apex), 218-844-2585  North Tower 750,000 Gallon Hydropillar Owner/ Client: City of Baxter, MN Contact: Kevin Cassady, 218-454-511  South Tower 750,000 Gallon Single Pedestal Owner/ Client: City of Menomonie, WI Client: Cedar Corp Contact: Jeremy Hoyt, 715-232-2395  Randall Road Tower 1 Million Gallon Single Pedestal Owner: City of Elgin, IL Contact: Nora Bertram, 847-931-6744  Mayhew Tower 500,000 Gallon Single Pedestal Owner/ Client: City of Sauk Rapids, MN Contact: Craig Nelson, 320-258-5300  Tower No. 1 250,000 Gallon Single Pedestal Owner/ Client: City of Dodge Center, MN Contact: Mark Barwald, 507-374-2840  Lexington/ Diffley Reservoir 4,000,000 Gallon Ground Storage Reservoir Owner/ Client: City of Eagan, MN Contact: Jon Eaton, 651-675-5215  Tower No. 1 400,000 Gallon Single Pedestal Owner/ Client: City of Wheaton, MN Contact: Kris Krenz, 320-563-4110  West Tower- Keuhn Park Tower 1,500,000 Gallon Composite Owner/ Client: City of Sioux Falls, SD Contact: Darin Freese, 605-373-6971  Tower No. 1 400,000 Gallon Single Pedestal Owner/ Client: City of Otsego, MN Contact: Brad Belair, 763-441-9163  Zachary Tower 2,000,000 Gallon Toro Spheroid Tower Owner/ Client: City of Plymouth, MN Contact: Kevin Mastey, 763-509-5998  Tower No. 1 50,000 Gallon Legged Tower Owner/ Client: USG Interiors, LLC- Red Wing, MN Contact: Larry Dettmer, 651-309-8020  Tower No. 1 50,000 Gallon Hydrocone Owner/ Client: City of Vermillion, MN Contact: Marke Peine, 651-248-3108  North Tower 500,000 Gallon Double Ellipsoidal Owner/ Client: City of Crookston, MN Contact: Brandon Carlson, 218-289-0273 Copyright 2020 by KLM Engineering, Inc. Page 16 City of Eden Prairie, MN Market Center Tower Reconditioning of: 2,000,000 Gallon Composite Dates of Service: 2016 Reconditioning Conditions & Services:The Market Center Tower is an iconic structure for the City, with working clocks on the main column. Given the high profile, size, and challenging location of this tower, the City Manager (Rick Wahlen) performed detailed interviews with each bidding consultant and their staff, to select the best qualified firm to provide the engineering and inspection services required by the City. As the awarded consultant, KLM provided design services, construction management, full time AWS welding and NACE coating inspections throughout the duration of the project. Rick was instrumental in the project from the beginning of pre-construction to the final walk through and close out, including personally climbing the tower regularly to confirm the project had met his standards. Given the tight confines of the jobsite, KLM conducted weekly meetings locally to update the neighboring businesses and residents as the project commenced. The project was successful, being completed on time and within budget. *2017 Tnemec Tank of the Year 2nd Runner Up City of Elgin, IL Randall Road Tower Reconditioning of: 1,000,000 Gallon Single Pedestal Dates of Service: 2016 Evaluation, 2017 Reconditioning Conditions & Services:A project of this size combined with a short schedule may intimidate some contractors and inspection firms. With the combined efforts of a local contractor and KLM, this successful project was completed on time and within budget. Antenna relocation also played a large part of the project. The efficiency of all parties involved allowed telecommunications to operate without disruption. Project Profiles KLM has an unparalleled record of consistently delivering successful projects like yours. KLM has planned, designed, and refurbished water towers for the past twenty years. The longevity of our projects is what we are most proud of. What owners most appreciate is the return in investment KLM brings to each rehabilitation project. The following pages list projects KLM has completed, like the proposed tower for the City of Prior Lake. Reconditioning Project Profiles: Copyright 2020 by KLM Engineering, Inc. Page 17 City of Lino Lakes, MN Tower No. 1 Reconditioning of: 1,000,000 Gallon Hydropillar Dates of Service:2013 Evaluation, 2016 Reconditioning Conditions & Services:KLM performed a floatdown evaluation of Tower Number 1. KLM worked with the Utilities Supervisor on the project to provide plans and specifications. A qualified contractor was selected to perform the reconditioning of the tower. A full containment system was utilized during the project. KLM provided construction management, full time AWS, NACE inspectors, and antenna management throughout the project. A new logo was painted on two sides of the tower; choosing Tnemec Hydroflon for the topcoat on the exterior of the tower. The tower can be seen from Hwy 35W & 23. City of Maple Grove, MN Fish Lake Tower Reconditioning of: 1,500,000 Gallon Hydropillar Dates of Service: 2011 Mixer, 2014 Evaluation, 2015 Reconditioning Conditions & Services: This water tower project included a pre-assessment of the conditions, including an updated engineer cost estimate. Plans and specifications were approved as well as a qualified contactor during the bid process. KLM worked with the contractor on submittals including coating selection, drawing reviews, scheduling and more. KLM’s Antenna Division worked with multiple cellular carriers to coordinate efforts of relocating cellular equipment to temporary locations during the reconditioning of the tower. KLM conducted weekly meetings on site to synchronize the efforts of the city, engineer, and contractor(s) as the project commenced. The project was successful being completed on time and within budget. KLM Support Documents Copyright 2020 by KLM Engineering, Inc. Page 18 2020 KLM Fee Schedule Principal Associate $160.00 per hour Engineering $185.00 per hour Project Manager/Supervisor $130.00 per hour Field Inspectors – CWI/NACE $120.00 per hour Field Inspectors – NACE I & II $120.00 per hour Drafting $85.00 per hour Clerical $80.00 per hour * Per Client needs, customized pricing is provided based on the total project requirements and time frame. Reimbursable Expenses The following expenses are reimbursable to KLM Engineering Inc.: 1. Travel time billed at the labor rates listed above or as contracted. 2. Vehicle mileage billed at $0.85 per mile. KLM onsite vehicle/trailer will be charged at $35.00 per day. 3. Daily Per Diem billed at $175.00 per calendar day or as contracted. 4. Projected related expenses such as onsite rental equipment and sub-contractor or sub-consultants billed at actual cost plus 5%. 5. Production supplies, duplicating, and delivery expenses will be billed at the actual costs incurred, no mark-up. 6. Cell Phone charges will be billed at $20.00 per week. *Reimbursable expenses are included in construction observation not to exceed cost. KLM ENGINEERING, INC. TERMS AND CONDITIONS 1. BASIC SERVICES. The scope of KLM's work is described in the attached proposal or contract agreement and may not be expanded or reduced except by mutual agreement in writing. 2. ADDITIONAL SERVICES. Additional work or services shall not be performed without a duly executed change order or purchase order outlining the scope of additional work on services. 3. OWNER'S RESPONSIBILITIES. OWNER shall fully disclose to KLM its knowledge of the condition of the structure and its past and present contents and shall provide KLM with full information regarding the requirements for the project; shall designate an individual to act on OWNER'S behalf regarding the project. If necessary, shall clean and make the structure safe for entry; shall furnish the service of other consultants (including engineers, insurance consultants, accountants, attorneys, etc.) when those services are reasonable required or are reasonably requested by KLM; shall test for pollution and hazardous materials when required by law or requested by KLM; and shall provide all necessary permits and other authorization. 4. SAFETY. KLM shall only be responsible for safety of KLM personnel at the work site. The Owner or other persons shall be responsible for the safety of all other persons at the site. Owner shall inform KLM of any known or suspected hazardous materials or unsafe conditions at the work site. If, during the course of the work, such materials, or conditions are discovered, KLM reserves the right to take measures to protect KLM personnel and equipment or to immediately terminate services. Owner agrees to be responsible for payment of such additional protection costs. Upon such discovery, KLM agrees to immediately notify the Owner in writing, of t he hazardous materials or unsafe conditions. 5. HAZARDOUS MATERIALS. Unless agreed in the scope of work KLM has no responsibility for the discovery, presence, handling, removal or disposal of or exposure of persons to hazardous materials at the project sit e. To the full extent permitted by the law, OWNER shall defend and indemnify KLM and its employees from all claims, including costs and attorney fees, arising out of the presence of hazardous materials on the job site. 6. SITE ACCESS AND RESTORATION. Owner will furnish KLM safe and legal site access. It is understood by Owner that in the normal course of work, some damage to the site or materials may occur. KLM will take reasonable precautions to minimize such damage. Restoration of the site is the responsibility of the Owner, unless agreed to in the scope of work. 7. STANDARD OF CARE. KLM will perform services consistent with the level of care and skill normally performed by other firms in the profession at the time of this service and in the geographic area, and under similar budgetary constraints. No other warranty is implied or intended. 8. SCHEDULING. Prior to scheduling the OWNER shall furnish a written purchase order or request for the services required and shall give as much notice as possible in advance of the time when the services are desired. Our ability to respond to such an order will depend upon the amount of advance notice provided. If an inspection is canceled or delayed after KLM personnel and/or equipment are in transit to the work site, then the OWNER shall be billed, according to the TERMS AND CONDITIONS, for costs incurred by KLM. 9. INSURANCE. KLM will maintain worker's compensation insurance and comprehensive general liability insurance and will provide OWNER with a certificate of insurance upon owner's request. 10.PAYMENT, INTEREST AND BREACH. KLM will submit itemized monthly or other periodic invoices for work previously performed. Invoices are due upon receipt. OWNER will inform KLM of invoice questions or disagreements within 15 days of invoice date, unless so informed, invoices are deemed correct. OWNER shall make payment within 30 days after receiving each statement, and overdue payments will bear interest at 1.5 percent per month if OWNER is a business entity and at the legal rate of interest of the state in which the project is located if OWNER is a consumer. If any invoice remains unpaid for 60 days, such non- payment shall be a material breach of this agreement. As a result of such material breach, KLM may, at its sole option, suspend all duties to the Owner or other persons, without liability. Owner will pay all KLM collection expenses and attorney fees relating to past due fees, which the Owner owes under this agreement. 11.MUTUAL INDEMNIFICATION. Except as to matters actually covered by insurance purchased by KLM. KLM agrees to hold harmless and indemnify OWNER from and against liability arising out of KLM's negligent performance of the work, subject to any limitations, other indemnification’s or other provisions OWNER and KLM have agreed to in writing. Except as to matters actually covered by insurance purchased by OWNER, OWNER agrees to hold harmless and indemnify KLM from and against liability arising out of OWNER’S negligent conduct, subject to any limitations, other indemnification’s or other provisions OWNER and KLM have agreed to. 12.LIMITATION OF LIABILITY. OWNER agrees to limit KLM's liability to OWNER arising from professional acts, errors or omissions, such that the total aggregate liability of KLM does not exceed KLM's project fees except as to matters actually covered by insurance purchased by KLM. 13.DELAYS. If KLM work delays are caused by Owner, work of others, strikes, natural causes, weather, or other items beyond KLM's control, a reasonable time extension for performance of work shall be granted, and KLM shall receive an equitable fee adjustment. 14.TERMINATION. After 7 days written notice, either party may elect to terminate work for justifiable reasons. In this event, the OWNER shall pay for all work performed, including demobilization and reporting costs to complete the file project and reports to OWNER. 15.SEVERABILITY. Any provisions of this agreement later held to violate a law or regulation shall be deemed void, and all remaining provisions shall continue in force. However, OWNER and KLM will in good faith attempt to replace an invalid or unenforceable provision with one that is valid and enforceable, and which comes as close as possible to expressing the intent of the original provision. 16.KLM'S DOCUMENTS. All reports, specifications, drawings and other documents furnished by KLM are part of KLM's services to OWNER for use only for the project, and KLM retains all ownership of said documents regardless of whether the project is completed. OWNER may retain copies for reference in connection with the use and occupancy of the project; but KLM does not represent that the documents are suitable for reuse on extension of the project or on other projects. OWNER and others shall not use the documents on other projects or extensions of this project except by KLM's written agreement. OWNER will defend and indemnify KLM from all claims or losses arising out of the unauthorized use of the documents. 17.ARBITRATION. Any controversy or claim for money damages arising out of or relating to the making or performance or interpretation of this AGREEMENT, or the breach of this AGREEMENT, shall be settled by arbitration in accordance with the Construction Industry Arbitration Rules of the American Arbitration Association. The arbitration panel shall consist of three arbitrators, at least one of who is a structural engineer; and the panel may award only money damages and shall not award equitable relief. Judgment upon the arbitration award may be entered in any court having jurisdiction of the parties. The enforceability of these arbitration provision and arbitration awards will be governed by the Federal Arbitration Act. 18. ARBITRATION FEES. The prevailing party to any dispute arising out of this AGREEMENT shall be entitled to recover its reasonable fees and costs from the other party. 19. JOB SITE IMAGES, PHOTOGRAPHY AND VIDEO. During the term of this contract and thereafter, KLM has permission to take still photographs or video of the site for training, documenta tion, education or promotional purposes. A signed agreement constitutes the Owner’s written permission to use the photographic image or video in the manner described herein. The only identifiable information to be used by KLM will be the Owner’s name as displayed on the image. Acceptance of these terms and conditions is considered a legal release by the Owner allowing KLM to use of photographic images as described herein. C:\winword\Terms & Cond., proposal. 11/1997