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Home My WebLink AboutRes2018-071Sponsored by: Athey CITY OF SEWARD, ALASKA RESOLUTION 2018-071 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO APPROVE CONTRACT CHANGE ORDER #1 WITH JAFFA CONSTRUCTION FOR LEAD PAINT ABATEMENT AND SEVERE MILL SCALE REMOVAL ON THE LOWELL CANYON WATER STORAGE TANK PROJECT IN AN AMOUNT NOT TO EXCEED $206,731.00 AND APPROPRIATING FUNDS WHEREAS, Resolution 2018-060 for the Lowell Canyon Water Tank Refurbishment authorized the City Manager to enter into a contract with Jaffa Construction, Inc. for a total sum not to exceed $548,376.00, for repair/construction services on materially the same terms as in the Contract Agreement; and WHEREAS, the contractor removal of the protective layer of metal sheeting and bands, and removal of the sprayed -on insulation from the outside of the tank, exposed unknown and unexpected conditions of the original paint and high levels of mill scale present; and WHEREAS, test samples of the paint were sent to the laboratory that showed lower but an actionable lead level of 1200 ppm in the paint on the outside of the tank only. A second set of paint samples sent to a different lab confirmed the results; and WHEREAS, these laboratory test results have subsequently changed the original scope of work bid in the contract to add abatement of Lead Containing Paint (LCP) from the outside of the tank and removal of severe mill scale on both the outside and inside of the tank; and WHEREAS, Jaffa Construction, Inc. and their subcontractor have worked diligently to provide the lowest cost for the change orders, but they are still very sizeable costs to the project. The LCP abatement change order total is $143,423.00, and the mill scale removal change order is $63,308.00, for a total of $206,731.00 in contract change orders; and WHEREAS, funding for these change orders is available in the City of Seward Water Enterprise Fund. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. It is in the public interest for the City of Seward to grant change order # 1 to Jaffa Construction, Inc. for the Lowell Canyon Water Tank Refurbishment Project to immediately start performing repair/construction services for these change orders. Section 2. The Acting City Manager is authorized to approve change order #1 with Jaffa CITY OF SEWARD, ALASKA RESOLUTION 2018-071 Construction, Inc. for lead paint abatement in the amount of $143,423.00, and mill scale removal in the amount of $63,308.00, for a total change order sum not to exceed $206,731.00. Section 3. Funding in the amount of $206,731.00 is hereby appropriated from the water enterprise fund reserves account no. 17000-0000-3400 to contract services account no. 17331-0000- 7009. Section 4. This resolution shall take effect immediately upon approval. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 20`h day of August, 2018. THE CITY/O,F SEWARD, ALASKA AYES: Seese, Towsley, McClure, Casagranda NOES: None ABSENT: None ABSTAIN: None ATTEST: 9-e4�- � %�� Brenda J. Ballou, MMC c � + y c 1 e rr K City Clerk (City Seal) OKA y A • s �CV5 Council Member & Agenda Statement Meeting Date: August 20, 2018 To: City Council Through: Acting City Manager Eddie Athey From: Doug Schoessler, Public Works Director Agenda Item: Resolution 2018-071 BACKGROUND & JUSTIFICATION: Seward's water supply system is dependent on water stored in the Lowell Canyon tanks. It is essential that the 400,000-gallon tank be maintained for long-term use. Resolution 2018-060 approved awarding Jaffa Construction, Inc. for the contract to refurbish the Lowell Canyon Water Tank. Unfortunately, during recent construction activities unexpected "lead containing paint" was found in the original coating on the outside of the tank and black mill scale was not removed by the original contractor. The lead paint is of a lower level but must still be treated and disposed of correctly. The abatement application will chemically treat the lead paint to create a nonhazardous waste, and dust operations will be in containment. The severe mill scale caused excess surface rust and immensely increases the sandblasting effort needed to prep the metal to repaint the outside and inside of the tank. Jaffa Construction, Inc has put together the necessary change orders to correct the defects and get this project completed and the tank back in service. The cost of the change orders is: $143,423.00 for the lead paint abatement, and $63,308.00 for mill scale removal. The total for both change orders is $206,731.00. With these change orders the total project cost is $830,127.00. The City was awarded State of Alaska grant funds of $575,000.00 for this project. This refurbishment will extend the life of this tank 30-40 years. The cost for a new tank to replace this one is about $1.6 million. INTENT: The intent of this resolution is to approve and award the construction change orders for lead paint abatement ($143,423.00), and excessive mill scale removal ($63,308.00), for the Lowell Canyon Water Tank Project in a timely manner to Jaffa Construction, Inc. in the total amount of $206,731.00 CONSISTENCY CHECKLIST: Yes No NIA 1. Comprehensive Plan (document source here): X 2. Strategic Plan (document source here): X I Other (list): X FISCAL NOTE: Funding for these project change orders are from the Water Enterprise Fund. Approved by Finance Department: ATTORNEY REVIEW: Yes No Not Applicable RECOMMENDATION: City Council authorize these change orders to the contract with Jaffa Construction for the Lowell Canyon Water Tank Refurbishment project. Resolution 2018-071 KA E, INC. GENERAL CONTRACTOR- INDUSTRIAL COATING & LINING P.O. Box 200907 OFFICE: (907) 258-9449 ANCHORAGE, ALASKA 99520-0907 FAX: (907) 258-9448 Tuesday, July 31, 2018 Attn; Bruce Jaffa Jaffa Construction PO Box 107 Moose Pass, AK 99631 Project: Lowell Canyon Water Tank Subject: Mill Scale and Excessive Corrosion Bruce, During our most recent site visit on July 30, 2018, Mill Scale was discovered under the interior and exterior coating system. Because Mill Scale is present, along with the age of the tank, severe corrosion has occurred. In addition to removing old coatings and applying new (as bid) Kane is now tasked with removing the mill scale (which should have been done originally), and removing the severe corrosion which is a direct result of mill scale being present. We view this as a "Differing Site Condition". This letter is to serve as notification of our position. Below are the facts as I see them. 1. Mill scale, the age of the tank, and or coating system was unknown at the time of the bid. There were no indicators offered to the bidders that would indicate how severely corroded the tank actually is. The 2011 inspection report would have provided critical information to bidders to make logical assumptions and therefore ask the necessary questions. 2. Bidders were not afforded the opportunity to visually inspect the interior or exterior surface of the tank prior to the bid. If the interior or exterior surface would have been made available for inspection, the mill scale and severe corrosion would have been discovered and the work priced accordingly. 3. If one were to argue that the specifications call for the Contractor to perform all necessary surface preparation required for coating applications, and that the Contractor should have anticipated mill scale, that would be inaccurate. In some situations, the removal of mill scale and the severe corrosion that goes with it, can take up to 4 times the effort over what it takes to remove a spent coating system. If a Contractor were to assume mill scale is present under every coating system, he/she would never win a bid. Further more, industry standards of the time (AWWA D102-78, 1978 Revision) required the removal of all mill scale prior to painting new water tanks. So as a Contractor bidding on a project, and not afforded the opportunity to visually inspect the work, along with no reference to mill scale or severe corrosion in the specifications, it would be assumed there is no mill scale or severe corrosion present. 4. I've attached photo's of the three most recent water storage tanks in which Kane removed the insulation to perform painting operations. Examples 1 and 2 are typical of tanks that are on a 20-25 year painting schedule (20-25 years is the expected life of a coating system applied correctly). Example 3 is a tank that was known (pre -bid) to be 35 years old and had never been re -painted. I have taken the time to "Grade" the degree of rusting in all three examples to demonstrate the level of corrosion that has occurred on the Lowell Canyon Water tank as a result of the original improper Page 1 of 2 KA E, INC. GENERAL CONTRACTOR- INDUSTRIAL COATING & LINING P.O. Box 200907 OFFICE: (907) 258-9449 ANCHORAGE, ALASKA 99520-0907 FAX: (907) 258-9448 5. surface preparation and the mill scale being present. The test method used for evaluating the degree of rust on a painted surface is SSPC-VIS 2 / ASTM 610. • Example 1 - NSB Barrow BUCI Tank - In these image's, the dark red is the existing coating system, the light tank color is remaining insulation that was being scraped off. All three photo's would be a - Grade 10, <0.01 % Rusted. • Example 2 - City of Wainwright Tank - In these images, the light green color is the existing coating system and the reddish brown is the remaining insulation that was being scraped off. Both photo's would be a - Grade 10, <0.01 % Rusted. • Example 3 - City of Kotzbue Tank - This tank (pre -bid) was known to be 35 years old and was bid accordingly. I've included this example to demonstrate the level of corrosion, that occurred over the 35 years. This tank was prepared and painted in accordance with the AWWA D102 Standard (no mill scale). In these images, the orange color is the existing primer, the white color is the finish coat, and the tan color is the finish coat that has insulation remnants adhered to it. Both photo's would be a - Grade 5, 3% Rusted. • Lowell Tank - I've included several photo's of the Lowell Tank for comparison. The Lowell tank would be a - Grade 1, 50% Rust, and arguably >50% Rust. When evaluating the degree of rust, the standard states, "The rust grade is determined by the percentage of visible rust on the surface. If rust buildup is evident under the coating, as in a rust blister or as rust undercutting, then that rusted area shall be included in the determination of the rust grade." I point this out because at a distance, the overall degree of rusting may appear to be less than 50% but upon closer examination, the coating that remains has extensive rust buildup under the coating in the form of rust undercutting, rust blisters and rust nodules, which is considered in the evaluation. Please note that SSPC-VIS 2 / ASTM 610 Evaluation method does not include a scale and description of rust grades greater than 50%. In other words, Grade 1, 50% Rust would be the worst condition expected to be encountered. Given that the Standard of the time (AWWA D102-78) specifically called for the removal of all mill scale, it would be illogical for the Contractor to build in costs for the removal of mill scale and severe corrosion that typically occurs because of mill scale. We are in the process of working up the total cost impacts associated with the "Differing Site Condition" and will forward these costs as soon as calculations are complete. If you have any questions in the meantime, please don't hesitate to call. Sincerely, Tim Kane Project Manager Kane, Inc., Certified NACE Coating Inspector #1661 SSPC QP1 Certified Contractor Page 2 of 2 Jaffa Construction, Inc. P.O. Box 107 Moose Pass, Alaska 99631 Bruce@JaffaConstruction.com Seward office Tel. 907-224-8002 Fax 907-224-8033 Fairbanks Tel. 907-479-5241 Date 8-13-2018 Subject: Seward Lowell Canyon Tank Change Condition for Exterior Lead Containing Paint This spreadsheet includes costs for extra effort to remove discovered Lead Paint from the tank exterior. After removal of the sprayed on insulation the remaining paint was tested and found to have 120OPPM of lead. This requires very different containment and disposal of the removed paint and blast media. This spreadsheet shows those costs. The disposal fees use the facility at Hiland near Anchorage. Prior to removal and testing, we cannot be confident that that the removed material can be disposed at KPB Soldotna landfill therefore, we have used costs associated to the Hiland facility in both CCO request worksheets. Craft Labor Labor Cost I Direct Cost I Total Including OH & P ActivityCode Cost JM Hrs MH Total Rate Burdened Cost Misc. DIRECT Labor Cost Tot. Mt'I- Freight - Subcontract Direct Cost Tot. Line Cost Labor<Markup>Direct see below MU at 10% Line total Char out Mob/Demob-Direct Support I Hr 0 1 1 0 $0.00 $o $0 $0 $0 $0 $0 $0 $0 Safety/ Orientation 0 $0 $0 $0 $0 $0 $0 $o $0 Sub Contractor Kane/ Brand 0 $0 $0 $0 $119,023 $119,023 $119,023 $0 $11,902 $130,925 Forklift 4 Day Rental 0 $0 $0 $0 $2,000 $2,000 $2,000 $0 $200 $2,200 Hauling & Disposal 0 $0 $0 $0 87 $3,648 $7,435 $7,435 $0 $743 $8,178 Supervisor/ Prej. Mgr. I 1 0.0 $0 $0 $0 $0 $0 $0 $128,457 $0 $12,846 $141,303 Extra Bond 1.5% & Building Permit 0 $2,120 use 32 tons /3000#= 20 supersacks: end dump 6 (9 ton) at 125/hr x 7.5 hr : side dump supersacks (15 ton) at $142/hrh DUMP Fees KPB $85/ton Hiland $114/ton $143,423 supersacks 10 $0 $0 $0 $0 $0 $0 $o $0 $0 $0 $0 $0 $0 $0 Bruce Jaffa Quality Control Manager Jaffa Construction, Inc. 907-240-0362 mobile 907-224-8002 office bruce@jaffaconstruction.com Kane, Inc. Lowell Water Tank Project Industrial Coating and Lining "Lead Paint Costs" Additional Labor, Equipment and Material Costs Associated With Lead Additional Freight Associated With Li # of # of Description Costs Unit Units Total Freight Unit Units Total Freight Public Safety Area Air Monitoring - Equipment $ 1,500.00 Total 0.1 $ 150.00 Area Air Monitoring - Cassettes $ 3.00 ea. 50 $ 150.00 Area Air Monitoring - Cassette Analysis $ 59.00 ea. 25 $ 1,475.00 Signage, barricades, preventing public from entry $ 250.00 Total 1 $ 250.00 Employee Safety Decon Trailer & Sundries $ 2,200.00 1 mo. 1 $ 2,200.00 $ 900 40' Flat 1 $ 900 Hepa Cartridges $ 7.50 ea. 120 $ 900.00 Tyvek Suits $ 6.45 ea. 120 $ 774.00 Medical monitoring $ 88.00 ea. 12 $ 1,056.00 Environment Protection Containment Scaffold Rental $ 3,430.00 1 mo. 1 $ 3,430.00 $ 900 40' Flat 3 $ 2,700 Scafflite - Wall Covering $ 202.00 ea. 10 $ 2,020.00 Bonnet - Roof Covering $ 4,272.00 ea. 1 $ 4,272.00 Ratchet Straps, Connectors, Fasteners, Bunge, Rope $ 500.00 L.S. 1 $ 500.00 Containment Labor Scaffold Erection & Install Covering $ 812.44 manday 30 $ 24,373.20 Scaffold Competent Person (3rd Party) $ 812.44 manday 8 $ 6,499.52 Dismanteling Scaffold and Covering $ 812.44 manday 15 $ 12,186.60 Labor Subsistence $ 200.00 manday 43 $ 8,600.00 Dust Collector $ 4,800.00 1 Mo 1 $ 4,800.00 $ 1,100 ea. 2 $ 2,200 Dust Collector Fuel $ 3.25 gal. 750 $ 2,437.50 Recapture, Package and Disposal of Spent Abrasive Labor Install Ground Cover & Plywood base $ 812.44 manday 1.5 $ 1,218.66 Place spent abrasive into Super Sacks $ 812.44 manday 6 $ 4,874.64 Remove ground cover & Clean spilled abrasive $ 812.44 manday 2 $ 1,624.88 Kane, Inc. Industrial Coating and Lining Plywood Ground Cover - 40 x 100' Super Sacks TCLP Testing per ATC - 24 hr. Turnaround VOC Testing Per Becca @ ATC Disposal Cost - Trucking Disposal Cost - Landfill fee per ton Lead Stabilizing Materials Enviroprep Application Labor Equipment Dust collector cost Dust collector fuel Forklift Forklift Fuel Manlift 1 - Includes delivery cost Manlift 2 - Includes delivery cost Manlift Fuel CIH Oversight - per Becca with ATC Add'I NACE NO TAXES INCLUDED $ 17.68 sheet $ 239.00 Roll $ 28.00 ea. $ 220.00 ea. $ 260.00 ea. JAFFA JAFFA 65 $ 1,149.30 3 $ 717.00 35 $ 980.00 4 $ 880.00 4 $ 1,040.00 $ 53.71 gal. 100 $ 5,370.60 $ 812.44 manday 2 $ 1,624.88 See Environmental Protection See Environmental Protection JAFFA wk. 1 $ - $ 3.25 gal 140 $ 455.00 $ 850.00 day 2 $ 1,700.00 $ 850.00 day 2 $ 1,700.00 $ 3.25 gal. 35 $ 113.75 $ 150.00 hr $ 1,140.00 day 4 $ 600.00 2 $ 2,280.00 Total Labor, Equip. Mat. Costs $102,402.53 Total Freight Cost $ 5,800.00 SUB TOTAL $108,202.53 10% $ 10.820.25 Lowell Water Tank Project "Lead Paint Costs" Total Freight Cost $ 5,800 Jaffa Construction, Inc. P.O. Box 107 Moose Pass, Alaska 99631 Bruce@JaffaConstruction.com Date 8-13-2018 Subject: Seward Lowell Canyon Tank Change Condition for Mill Scale Seward office Tel. 907-224-8002 Fax 907-224-8033 Fairbanks Tel. 907-479-5241 This spreadsheet includes costs for extra effort to remove discovered Mill Scale from the tank exterior. Please find the attached letter from Kane regarding the mill scale. The original coating should have removed mill scale, provided a surface appropriate for priming and remained in that condition. Recoating should have required the removal of the original coating and primer, restoring the surface profile and re coating. As found the work will require more time and sand. Coupled with the LCP this Change request captures the cost to remove the Mill Scale and dispose of the blast media. We have used the contract Markup, added bond and City permit Fees. The disposal fees use the facility at Hiland near Anchorage. Prior to removal and testing, we cannot be confident that that the removed material can be disposed at KPB Soldotna landfill therefore, we have used costs associated to the Hiland facility in both CCO request worksheets. Craft Labor Active Labor Cost Direct Cost Total Including OH & P Cost Code JM Hrs MR Total Rae Burdened Cost Misc. DIRECT Labor Cos[ Tot. M['I-Freigh[-Subcontract Direct Cost Tot Line Cost Labor<Markup> Direct see below MU at 10% Line total Chargeout Sub Contractor Kane 0 $0 $0 $0 $52,003 $52,003 $52,003 $0 $5,200 $57,203 Forklift 2 Day Rental 0 $0 $0 $0 $1,000 $1,000 $1,000 $0 $10 $1,100 Hauling &Disposal 0 $0 $0 $0 40 $1,71 $4,550 $4,550 $0 $45 $5,005 $57,553 $0 $5,75 $63,308 Extra Bond 1.5% & Building Permit 0 % $0 Hauling use 15 tons /3000#=10 supersacks: end dump 6 supersacks (9 ton) at 125/hr x 7.5 hr : side dum 10 su rsacks 15 ton at 142 hrh DUMP Fees KPB $85/ton Hland $114/ton $63,308 Bruce Jaffa Quality Control Manager Jaffa Construction, Inc. 907-240-0362 mobile 907-224-8002 office bruce@jaffaconstruction.com Kane, Inc. Industrial Coating and Lining Additional Labor, Equipment and Material Cost Associated with Mill Scale # of Description Costs Unit Units Total BLASTING Abrasive Additional abrasive Cost Labor Additional Labor Additional Cleaning Labor Additional Blasting PPE Additional Room & Board Disposal Additional Trucking Cost Additional Dump Fee Equipment 600 CFM 600 CFM Fuel 375 CFM 375 CFM Fuel Blast Pot - Complete Setup Blast Pot - Complete Setup Add'I NACE Lowell Water Tank Project "Mill Scale Costs" Additional Freight Cost Associated with Mill Scale # of Freight Cost Unit Units Total Freight $ 0.1730 lb. 51,000 $ 8,825.14 $ 0.0214 lb. 51,000 $ 1,091.40 $ 812.44 manday 22 $ 17,873.68 $ 812.44 manday 0 $ - $ 45.00 manday 22 $ 990.00 $ 200.00 manday 22 $ 4,400.00 JAFFA JAFFA $ 3,200.00 Mo. $ 3.25 gal. $ 1,475.00 Mo. $ 3.25 gal. $ 1,800.00 Mo. $ 1,800.00 Mo. $0.00 1 $ 3,200.00 600 $ 1,950.00 1 $ 1,475.00 360 $ 1,170.00 1 $ 1,800.00 1 $ 1,800.00 0 $0.00 $ 900.00 40ft. Flat 1 $ 900.00 $ 900.00 40ft. Flat 1 $ 900.00 $ 900.00 0.5 $ 450.00 $ 900.00 0.5 $ 450.00 Kane, Inc. Lowell Water Tank Project Industrial Coating and Lining "Mill Scale Costs" NO TAXES INCLUDED Total Labor, Equip. Mat. Costs $ 43,483.82 Total Freight Cost $ 3,791.40 Total Freight Cost $ 3,791.40 SUB TOTAL $ 47,275.22 10% $ 4,727.52 TOTAL $ 52.002.74 A� W, r.` P Example 1 s...........°� _..Fe � _ �� e -�,t ,�. ,� w Ila ell R� Pig • • ` `�� Ago_ ( ® ' y 1 Exam le 3 p i A f IF w �m x N , s • 1f + Y fff 1«/ + �At� L I1y► � *,��,« �r�,yy ,� � r 77 ��aa",/� 7A 1�►w .,*' og!'o. 5 Im in N N Ir �� a � '�.' ¢y� "Por or � �y � � •� a a ti.. F " .+._ r a ' � I'.. 'T'°T ,'@ gw �.,p p•� ffi'.. IM W - y Y � .�°`. . ar. .ram SIR, p«'`�it +� k� r ,. >•' �tf '� ". 6' AyT s 7 pp M. i r r • N. ,y r r* a L a Lowell Tank