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Item No: 7D Meeting Date: February 14, 2011 Type of Business: Council Business Administrator Review: ____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Nick DeBar, Public Works Director Item Title/Subject: Resolution 7742, Authorizing KLM Engineering, Inc. to Prepare Technical Specifications for the Elevated Water Tower Reconditioning Project Background: The City’s 500,000-gallon elevated, fluted-column water tower was constructed in 1992. At that time, Mounds View had two water towers and dismantled both after constructing the current one. The water tower paint coating was inspected and had spot repairs done in 2003. Properly installed paint coatings should provide 15 to 20 years of service life. The tower is now 19 years old and in need of a refurbishing. Discussion: In 2009, the City hired KLM Engineering, Inc. of Lake Elmo, Minnesota, to inspect the entire water tower and prepare an inspection report. The interior and exterior of the tank was examined and evaluated by KLM, including a “float-down” inspection performed inside the tank, on August 18, 2009. In addition to determining the interior and exterior coating replacement, the report identified some miscellaneous structural modifications and repairs required to bring the tower into compliance with OSHA regulations, AWWA standards, and better/safer access in and on the tank. Based on the inspection data, the structural repairs and coating replacement were recommended to be completed within one to three years (2010-2012). The estimated project cost was $523,500 at that time. Additional costs may be incurred with antenna work. Public Works staff has discussed the scope of work with KLM for the design, bid, and construction phases for the water tower reconditioning. Typically, KLM would team with the City’s engineering consultant to perform this work, with KLM specifically performing the technical specifications during design, assistance during bid, and inspection during construction. City staff is proposing to provide the services typically done by the City’s consulting engineer. This includes preparing bidding documents, bid phase work (advertising, plan distribution, bid opening, award), and construction administration (meetings, pay applications, etc.). A scope of work for the design phase is attached to this report. Based upon the above arrangement, KLM has provided the City with a fixed fee estimate of $2,800 for design/bid phases and $45,255 for construction management/inspection (total $48,055). Additional costs may be incurred associated with the antenna leases. A neighboring city spent over $100,000 in consulting fees two years ago for the traditional consulting engineer- coatings engineer when they reconditioned their water tower. Authorization to prepare technical specifications is only being sought at this point ($2,800) and the KLM construction management/inspection fee would be considered by Council after contractor bids are received. Since the project costs will exceed $100,000, a public bid is required. The adopted 2011 Budget includes $800,000 under the Water Enterprise Fund (700-4823-7050) for water tower reconditioning. Since recoating the inside of the water tower requires draining all water from the tower, it is proposed to complete this work before or after the peak water consumption. The schedule will be known once bids are received and a successful contractor is identified.