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Item No: 7C Meeting Date: February 24 2014 Type of Business: Council Business — Administrator Review: - Qty of Mounds Vlew Staff Report To: Honorable Mayor and City Council From: Nick DeBar, Director of Public Works Item Title/Subject: Resolution 8218, Approving Bidding Documents and Authorizing Advertisement for Bids for 2014 Ground Reservoir Rehabilitation Project Background: The 2,000,000 gallon (2MG) reinforced -concrete ground reservoir was constructed in 1968 and works in conjunction with the booster station. The reservoir has performed well but has been showing signs of deterioration the past several years, most notably the masonry and roof conditions. The reservoir was inspected by KLM Engineering when emptied for routine maintenance last year, and it was discovered that the structure is in need of significant rehabilitation to keep it serviceable and in compliance with regulatory and industry standards. The reservoir interior wall coating is in poor condition with approximately 75% overall failure. There is some evidence that leaks are occurring through the wall, but it is not excessive and well below that of industry standards (AWWA). The overall interior of the reservoir is in fair to good condition. The inspection noted several hundred feet of cracking, spalling on the interior concrete walls, and many defects such as popouts and exposed reinforcement bars. In addition, the concrete roof is infiltrating ponded rainwater into the reservoir through cracks and construction joints. Structural improvements are also needed to meet current OSHA requirements. A copy of KLM's inspection report was previously provided to the Council for your information. Discussion: The City Council authorized KLM to perform engineering design and prepare bidding documents (plans and specifications) for the reservoir rehabilitation at their January 27, 2014 meeting. Rehabilitation includes interior structural repairs, interior steel coatings, exterior structural repairs, and coating of the exterior roof and flashing. The estimated cost estimate to perform the repairs and rehabilitation is $407,100 and will extend the service life of the reservoir by 30 to 40 years. A new tank of similar construction is estimated at $3 to $4 million. KLM has completed bidding documents for the project and it is ready for a public bid solicitation. If approved, the project will be advertised on February 27, 2014 and bids due on March 10, 2014. Work is expected to take six to eight weeks to complete. To make matters more pressing, Public Works needs to have the reservoir back on-line prior to the irrigation season (June 1). While the drinking water system could meet the typical summer demand, it would require increased wear and tear on the well pumps and motors and may require a ban on lawn sprinkling. Recommendation: Staff recommends that the City Council adopt the attached resolution approving bidding documents and authorizing advertisement for bids for rehabilitating the ground reservoir. Monies have been budgeted under the water enterprise fund (700-4823-7050) for $350,000. Depending upon actual bids received, a future recommendation will be made regarding the reroofing and masonry renovation of the booster station and municipal well no. 2. Although important, these improvements are not as urgent as the reservoir rehabilitation. Respectfully submitted, Nick DeBar — Director of Public Works