HomeMy WebLinkAboutRes2005-090
Sponsored by: Corbridge
CITY OF SEWARD, ALASKA
RESOLUTION 2005-90
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CITY MANAGER TO AMEND THE
CONTRACT WITH PENINSULA CONSTRUCTION FROM FOUR
HUNDRED FIFTY THOUSAND DOLLARS ($450,000.00) TO FIVE
HUNDRED THOUSAND DOLLARS ($500,000.00) AND APPROPRIATE
ADDITIONAL FUNDS IN THE AMOUNT OF FIFTY THOUSAND
DOLLARS ($50,000.00) TO COMPLETE THE SPRING CREEK WATER
TANK REPAIRS AT SMIC
WHEREAS, on June 13,2005 council approved Resolution 2005-49 and appropriated funds
for the Spring Creek Water Tank in the amount of Four Hundred Fifty Thousand Dollars
($450,000.00), Three Hundred Fifty Thousand Dollars ($350,000.00) base repair cost with One
Hundred Thousand Dollars ($100,000.00) allocated for anticipated repairs; and
WHEREAS, after draining the water tank, an internal inspection of the tank revealed
additional repairs necessary, outside of the original scope of work, requiring additional funding in the
amount of Fifty Thousand Dollars ($50,000.00) resulting in an overall project contract amount of
Five Hundred Thousand Dollars ($500,000.00); and
WHEREAS, the initial scope of work included repair ofthe internal tank coating where the
coating had blistered, including sand blasting and coating where necessary; and
.....
WHEREAS, after careful inspection ofthe tank, it was determined that the existing coating
inside the tank was beyond its useful life and was too brittle for additional years of service, requiring
a complete internal sandblast and 20 year coating system, adding Eighty Eight Thousand Dollars
($88,000.00) to the base cost of the project; and
WHEREAS, the current pumping system was upgraded with Variable Frequency Drives
(VFD) to enable the existing well pumps to auto-fluctuate their pumping capacity depending on the
required demand, and have worked flawlessly during this three month outage; and
WHEREAS, although the VFD system added Sixty Two Thousand Dollars ($62,000.00) to
the base cost of the project, these drives will remain with the City after the project is completed,
providing the City with a redundant water supply system; and
WHEREAS, upon completion ofthe proposed additional scope of work the City will have a
water supply system with built-in redundancies for water supply, structurally doubled live load
capabilities, new roof insulation and a new internal 20 year coating system.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA that:
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CITY OF SEWARD, ALASKA
RESOLUTION 2005-90
Section 1. The Seward City Council hereby approves the proposed additional scope of work
to install Variable Frequency Drives and perform a complete internal sandblast and application of a ......
new 20 year coating system at an additional cost of Fifty Thousand Dollars ($50,000.00).
Section 2. The Seward City Council hereby authorizes the City Manager to amend the
contract with Peninsula Construction from Four Hundred Fifty Thousand Dollars ($450,000.00) to
Five Hundred Thousand Dollars ($500,000.00) to cover the cost for the additional scope of work as
addressed in the above recitals.
Section 3. Additional funding in the amount of Fifty Thousand Dollars ($50,000.00) is
hereby appropriated from the Water Enterprise Fund retained earnings account no. 701-0000-3070-
0707 to the Spring Creek Water Tank Fund no. 707-7071-5930.
Section 4. This resolution shall take affect immediately upon its adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 26th day of
September, 2005.
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
THE CITY OF SEWARD, ALASKA
/
~~~~
Vanta Shafer, Mayo
J
Branson, Dunham, VaIdatta, Amberg, Clark, Lorenz, Shafer
None
None
None
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VJohanna Dollerhide
Assistant City Clerk
(City Seal)
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Council Agenda Statement
Meeting Date: September 26, 2005
To: Clark Corbridge, City Manager
From: Tom Shepard, Project Manager
Agenda Item: Additional Funds Required for Spring Creek
Water Tank Repairs
BACKGROUND & JUSTIFICATION
:
The Council approved and appropriated funding for the Spring Creek Water Tank in the amount
of Four Hundred Fifty Thousand Dollars ($450,000.00) on June 13, 2005, per Resolution 2005-
49.
The original budget for the project called for Three Hundred Fifty Thousand Dollars
($350,000.00) for base repair cost with an additional One Hundred Thousand Dollars
($100,000.00) allocated to capture the estimated repairs that were anticipated during inspections
once the tank was out of service, bringing the total to Four Hundred Fifty Thousand Dollars
($450,000.00).
Staff is requesting additional funds of Fifty Thousand Dollars ($50,000.00) to complete the
overall project. The project exceeded the approved budget amount due to the following
discoveries:
?
The current pumping system was upgraded with Variable Frequency Drives (VFD).
The original temporary operating plan to provide water to customers while the tank was
out of service, called for the well pumps to run at a constant gallons-per-minute while
discharging excess pressure through a pressure relief valve on a hydrant. After careful
consideration, staff elected to install a VFD system to our existing pumps enabling them to
auto- fluctuate their pumping capacity depending on the required demand. These drives
have worked flawlessly during this three month outage. The true benefit to the City is the
fact that the drives will remain in place after the completion of the project and will provide
the City with a redundant water supply system for future tank outages. The VFD system
added Sixty Two Thousand Dollars ($62,000.00) to the base cost of the project of Three
Hundred Fifty Thousand Dollars ($350,000.00).
?
Sandblasted and re-coated the entire inside of the tank.
The original scope was to recoat the tank where necessary. There was blistering in the
tank that was discovered before the tank was taken out of service. After the tank was
taken out of service, a more thorough examination revealed that the existing coating was
beyond its useful life and was too brittle for additional years of service. A complete
internal sandblast and coating application added Eighty Eight Thousand Dollars
($88,000.00) to the base cost of the project.
The total project cost, given these two additional items, will be Five Hundred Thousand Dollars
($500,000.00).
The administration submitted an insurance claim to our insurers, AML-JIA. We currently expect
insurance to cover more than 50% of the entire cost of the project.
At this point, the tank repair project is 98% complete, with the contractor on target with the
budget and three weeks ahead of schedule.
This project has resulted in significant improvements to the City’s water supply system in the
SMIC area, including: built-in redundancies for water supply, a tank that has structurally doubled
its life load capabilities, new roof insulation, an additional man-way, and a new internal 20 year
coating system.
CONSISTENCY CHECKLIST:
Where applicable, this agenda statement is consistent with the Seward City Code, Charter,
Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures.
FISCAL NOTE:
The additional Fifty Thousand Dollars ($50,000.00) will come from the Water Enterprise Fund
retained earnings account no. 701-0000-3070-0707, to the Spring Creek Water Tank Capital Project
account no. 707-7071-5390, and a portion of the overall project cost will be recovered through
insurance reimbursement. Insurance proceeds will be used to reimburse the Capital Acquisition Fund
which provided Four Hundred Thirty Thousand Dollars ($430,000.00) of the initial funding for this
project.
Approved by Finance Department: ________________________
RECOMMENDATION
:
Council approve Resolution 2005- ___ authorizing the city manager to increase the contract with
Peninsula Construction by Fifty Thousand Dollars ($50,000.00), bringing the total contract
amount to Five Hundred Thousand Dollars ($500,000.00), and appropriating an additional Fifty
Thousand Dollars ($50,000,00) for the Spring Creek Water Tank Capital Project.