SUBJECT: CONSENT AGENDA
Title
A Resolution of the Board of Trustees of the Town of Erie Approving Change Order No. 4 to the Agreement with Spiegel Industrial, LLC for the Second Phase of the 4MG Concrete Storage Tank Lining Removal
Body
DEPARTMENT: Public Works
PRESENTER: Todd Fessenden, Public Works Director
FISCAL SUMMARY:
Cost as Recommended: $390,900
Balance Available: $400,000
Budget Line Item Number: 500-70-110-605000-100343
500-70-110-605000-100279
New Appropriation Required: No
STAFF RECOMMENDATION:
Recommendation
Approve the change order in the amount of $390,900, between the Town of Erie and Spiegel Industrial, LLC, authorize the appropriate Town officer to execute said change order, and authorize staff to expend contracted funds.
End
SUMMARY AND BACKGROUND OF SUBJECT MATTER:
The Town’s largest drinking water storage tank, a 4 million gallon concrete tank was constructed in 2015 and a protective coating (liner) was installed to protect the concrete from corrosion (aka concrete degradation). Upon final warranty inspection in 2017 it was discovered that the liner had begun to fail and separate from the tank wall. This situation was monitored in the interim while staff considered engineering investigations and negotiations with the general contractor. In 2019 the Town received $500,000 as a settlement towards the ultimate replacement of this liner. The tank, being the main supply for fire flow and peak demand storage, has remained in service during this time. It has been regularly inspected and taken offline (drained) multiple times. This spring Spiegel LLC removed the most significant failing areas of the liner, and we placed the tank back online just in time for (early) summer irrigation season.
At that time, and after observing the condition of the liner and consulting with engineers and contractors who specialize in water tanks, staff concluded we should finish removing the rest of the existing coating and install a new one. As a result, we have requested bids for this removal process. Through a separate contract we will hire a qualified engineer to oversee the placement of this final coating and ensure it meets our specification.
Due to timing being of the essence, the need to keep this integral part of the Town’s drinking water system to be functional, and most importantly to maintain public health and safety, staff requests approval to proceed with the selected contractor and engineer for this phase of rehabilitating this tank.
Additionally, a recent sanitary survey (inspection) by the Colorado Department of Health and Environment found that the hatches installed on this tank (and previously approved by CDPHE) do not meet the State’s standard. As such we have also received a reasonable quote from Spiegel to install new hatches on this tank while it is drained and the coating work is being performed.
Fiscal Impact:
The Town has a cumulative balance of $400,000 available for the replacement of the liner and hatches for this tank between multiple accounts and a pending transfer from the Water Treatment Facility Expansion project (which is well under budget). Phase 1 for this removal process was awarded by the Board on March 24, 2020, with change orders awarded on May 12, 2020 and May 26, 2020. This Phase 2 effort and change order will cost $390,900, since the extent of crack repairs or heating equipment necessity is not known, we will return for a final change order should any additional work or equipment be needed. By awarding this final phase of work as a change order the Town will avoid the potential for conflicts should a separate contractor finish the job only to have the coating fail again, in which case it would be very difficult to prove fault due to prior work already completed. Staff has worked with the selected contractor for Phase 1 and on past tank coating projects and other projects and have found them to have excellent workmanship and service and the cost of their services were competitively bid as part of Phase 1.
Board Priority(s) Addressed:
X Prosperous Economy
X Safe and Healthy Community
X Fiscally Responsible
ATTACHMENTS:
1. Resolution
2. Change Order