02-26-2014 Council Agenda - Laserfiche WebLink

Home Browse Search

SEH submitted a quote of $635,250 for the five -year option. The City would pay $540,000 in year one, which would cover the cost of the refurbishing. The City would then pay $6,750 per year in years 2, 3, and 4 for annual inspections and then would pay $75,000 in year five for a full inspection, pressure washing, and power tool cleaning and touch up of any areas that need it. After the five -year plan is completed the City can elect to sign up for another five -year plan but pricing would be determined at that time. The City could also lock into a ten -year agreement at a total cost of $752,250. This would include annual inspections in years 6 -9 at $6,750 and another full pressure washing and spot repair in year 10 for $87,000. The City of Roseville Finance Director did a cost - benefit analysis and determined that the five -year plan is the hest use of the City's money at this time. USG submitted a quote of $564,350 for a five -year option. The City could choose to pay the entire cost up front or in five annual installments of $112,870. USG would inspect the tower annually and pressure wash and spot repair the tank in year five as well. Staff did not request a ten -year contract quote since it had already been determined that the five -year plan was the preferred option. An independent inspector would add $38,200 to the total cost of the project and staff feels this would be a necessary addition to the project to ensure a quality job. That would bring USG's total quote to $602,550. In evaluating the quotes staff considered the fact that SEH is a local company that would like to have a great looking water tower right near its headquarters that it could show off to potential clients. SEH has a good reputation and the City has worked with them in the past on numerous projects. They already do most of the telecom inspection work on the water tower so they are very familiar with it. They also have partnered with an extremely qualified contractor in Classic Protective Coatings that has completed numerous successful jobs in the metro area including Arden Hills, Vadnais Heights, and Cottage Grove. USG is a large company but hasn't done much work in the Twin Cities area and uses many different contractors on all of the different jobs they do. Arndt Enterprises didn't have the best reference checks and has some safety concerns in its past. Another factor to consider is that the quote offered by SEH appears to be in line with what a design -bid -build quote would have been. Staff believes that the SEH quote is in line with the local market. One last factor is that the City of Roseville is also selecting SEH to refurbish its tower on the same five -year plan. This will allow the two cities to easily coordinate the work so that each can rely on the other if water is needed while the tower is out of service. Based on all of the factors discussed staff recommends that the City Council approve the quote from SEI-I for the five -year plan at a total cost of $635,250. Staff would like to thank the City of Roseville, particularly Duane Schwartz, for helping on this project. 4