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HomeMy WebLinkAboutRes2005-090 Sponsored by: Corbridge CITY OF SEWARD, ALASKA RESOLUTION 2005-90 ..... 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: ..... 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 ~dc VJohanna Dollerhide Assistant City Clerk (City Seal) "\\n.II",, "",~ OF S,~I...~"" ..... ~ ........ ~l:~" .. r:o. .' ".0 '. .. v .':'CI~ k:'.. :A ":. .:- ."_':'l..r...r . ""~." '-" ~ ....~ ~.... = l -0-. v\ ': .. ('). SE'j.}L . . ~.fi. ..f '. ,,_ ~ i : ~ 10: ~~.; .. -0- : ~ ...., " . .. <'. (,(),".Y'~1 .. ..' .. to. -'" 'r'h ."".iJ' ...- < -'.' " '.. ,. 1 .r:-;'\. ' .. ~., ".." --.. "\ - ." .. "., ~ ......c. t..,...~c.". t"-' ~ ..,... ('. w, .," '.,. '..,-,; I." />.,)....'...... il,i:;u;n\'lo' I ..... 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.