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October 19, 2009 - Council approved Resolution R2009-203 awarding the contract for the 1,000,000 <br /> Gallon Composite Water Tank and Booster Pumping Station Project, City Project 2006-17, to <br /> Landmark Structures I, LP., as the lowest, responsible bidder in the amount of$2,588,000. <br /> March 15, 2010 - Council approved Resolution R2010-46 which authorized $77,640 in contingency <br /> for the construction of the South Elevated Water Storage Tank. The contingency was included as <br /> part of the I-EPA loan for this project. <br /> BACKGROUND: <br /> Water Storage Tank Maintenance Program <br /> Since late 2008,the City has been under contract with Utility Service Company(USC) for the <br /> maintenance of the coating systems, annual structural inspections and tri-annual interior cleanings for <br /> the Garfield Avenue and Division Street water tanks. When the South Elevated Water Storage Tank <br /> one year construction warranty expires in mid 2012, the Water Management Department intends to <br /> recommend that the City enter into a contract with USC for long term maintenance services for the <br /> South Tank. <br /> USC is the nation's largest water tank service provider. Steel water tanks require periodic <br /> maintenance to keep rust to a minimum and ensure a long service life. The coating system both <br /> inside and outside the tank plays a critical role in rust and corrosion prevention. Allowing USC to <br /> provide the quality control inspection of the initial sandblasting and coating of the new South <br /> Elevated Storage Tank will enable them to provide the City with a more accurate long term <br /> maintenance cost. The expected costs should be lower due to their early involvement with the initial <br /> coating application. <br /> Construction Inspection and the I-EPA Loan Program <br /> The City is paying all consultant inspection costs related to the construction of the South Elevated <br /> Water Storage Tank with funds secured by a loan through the Public Water Supply Loan Program <br /> which is administered by the I-EPA. BGM contacted the I-EPA regarding the City's desire to use <br /> USC to inspect the sandblasting and coating application for the new tank. The I-EPA indicated that <br /> in order to use USC,the City would need to contract with them directly and provide a comparable <br /> decrease in the tank inspection scope and fees requested by BGM until a change order is approved, if <br /> needed. <br /> Approximately$41,000 currently remains on BGM's construction inspection contract for the South <br /> Elevated Water Storage Tank and the tank coating process has begun with two to three weeks <br /> remaining on the work. Staff proposes to issue an administrative change order to BGM that would <br /> remove the remaining tank coating inspection work from their scope of services. The cost savings <br /> should offset the cost for having USC perform the coating inspection, which has a higher level of <br /> coating inspection expertise than BGM. However,the total fees required for BGM to complete the <br /> overall inspection work for the south pressure zone work will not be fully known until near the <br /> completion of the project in June. If necessary, staff can request that the I-EPA increase the <br /> inspection reimbursement allocation in the loan to make up any additional costs. <br /> POTENTIAL OBJECTION: There are no known objections. <br /> INPUT FROM OTHER SOURCES: None <br /> Page 12 <br />