Loading...
Item 4B)DCITY OF SOUTHLAKE MEMORANDUM (March 17, 2015) To: Shana Yelverton, City Manager From: Robert H. Price, P.E., Director of Public Works Item 4B Subject: Authorize the City Manager to approve Change Order No. 1 with MK Painting, Inc. to repaint the exterior of Pearson Ground Storage Tank #1 in an amount not to exceed $106,250 Action Requested: Authorize the City Manager to approve Change Order No. 1 with MK Painting, Inc. to repaint the exterior of Pearson Ground Storage Tank #1 in an amount not to exceed $106,250. Background Information: The contract for repainting of the Pearson Storage Tanks (2-5 Million Gallon) was awarded to MK Painting for $830,650 in early October 2014. The scope is to paint the interior of Tank # 1 (west tank) and the exteriors of both tanks (Tank #1 and Tank #2) by April 1, 2015. Both tanks are required to be online before the peak water demand season which begins in early June. The interior of Tank #1 (west tank) is near completion. This change order is for the painting of the exterior of Tank #1. The contractor has begun preparation of the exterior surface of Tank #1 which was most recently painted in 2008 using Sherwin Williams paint. Prior to bidding the project, a visual inspection of the tanks revealed that the existing paint was oxidizing more rapidly which is the reason for the recommendation to use Tnemec paint. Per the specification in the contract, the contractor was to abrade the top surface to create a microscopic profile for the new paint to adhere to. During the abrading process, there were areas on the tank where the entire top coat was coming loose effortlessly. Moreover, the adhesion level of the top coat was inconsistent throughout the entire surface of the tank. Due to the inconsistency of the top coat adhesion level and removal, the contractor spot tested areas of the tank with the specified paint. On the areas where the top coat was not entirely removed, the desired surface profile was not met, and the paint blistered and curled on application. This unexpected result is not warrantable by the paint manufacturer. Item 4B After the contractor notified the staff about the adhesion issue, staff coordinated with the manufacturer, engineer and the contractor to explore options and find a suitable solution. The recommendation from all parties is the removal of the entire top coat followed by the application of a coating that results in a more reliable and warrantable paint surface system. The removal of the existing coating may result in the exposure of bare steel. Any time steel is exposed, it must be primed per the manufacturer specification before any subsequent coatings can be applied. Therefore, in order to obtain a uniform result throughout the tank, the remaining top coating will be removed completely; the entire tank exterior surface primed, and then the intermediate and top coatings will be applied. To achieve the above recommendation, the additional labor cost and time negotiated is an amount not to exceed $105,000 with MK Painting and additional 20 days to complete the work. While the contractor was working inside of Tank #1, corroded bolts that supported the roof rafter were brought to the staff's attention. The full replacement of the bolts inside of Tank #1 is recommended while the tank is out of service. The contractor and the staff have negotiated an amount of $11,250 to replace all the bolts. An amount of $10,000 was allocated as a project allowance in the original contract bid. This allowance is proposed to be used to cover this task. The remainder amount of $1,250 is added to the current change order to address the remaining cost for the bolt replacement. A mock up area on Tank #2 (east tank) was completed to investigate any potential adhesion issues. During preliminary tests, the surface seems to be behaving as desired with the exception of few spots or gummy areas where the top coating will not abrade easily. These isolated spots will be identified on Tank # 2 and will be addressed separately at a later date. Due to time constrictions mentioned earlier in the memo, completion of this project is not anticipated before water demand increases and the tank is needed back in service. Therefore, staff anticipates the need for a second change order; however, the details of that future change order are still yet to be determined. As a result of the contractor needing to return in the Fall to complete the work on the Tank #2, a remobilization cost is anticipated. Staff will continue to negotiate with the contractor and the paint supplier as more information comes available. However, in order to complete the painting of Tank #1 by mid -May when the peak water 2 Item 4B usage increases, staff recommends that the Council authorize the City Manager to approve Change Order No. 1 with MK Painting for $106,250. Financial Considerations: The project is within the budget amount allocated from the fiscal year 2014 Capital Improvements Projects Utility Fund. The budgeted amount for this project is $1,000,000. Strategic Link: The approval of this change order links to the city's strategy map relative to the focus area of Infrastructure. The specific corporate objective that is met by this contract is to provide and maintain high quality public assets. Citizen Input/ Board Review: N/A Legal Review: N/A Alternatives: The City Council may approve or deny Change Order No. 1 with MK Painting, Inc. to repaint the exterior of Pearson Ground Storage Tank #1. Supporting Documents: Location Map Draft Change Order Staff Recommendation: Authorize the City Manager to approve Change Order No. 1 with MK Painting, Inc. to repaint the exterior of Pearson Ground Storage Tank #1 in an amount not to exceed $106,250. Staff Contact: Robert H. Price, P.E., Director of Public Works Cheryl Taylor, P.E., Deputy Director of Public Works/City Engineer Chuck Kendrick, Deputy Director of Public Works -- Operations Om Gharty-Chhetri, P.E., Civil Engineer 3 U SOUTHLAKE CHANGE ORDER No. 1 Date: March 17, 2015 Project: Repainting Pearson Ground Storage Tanks Interior GST # I and Exterior GST #2 Owner: City ofSouthlake Contract: $830, 650.00 Contract Date: October 21, 2014 To: M.KPainting, Inc Contractor You are directed to make the changes noted below in the subject contract for the dollar amount stated below including all labor, equipment, materials, overhead, and profit: Nature of changes: Replace corroded bolts that support roof and remove exist. top coat and apply prime coat on Tank ft 1 Item L 16 2. 3A-2 Description Qty Unit Unit Price Total Add - Replace Existing Corroded Bolts 1 LS $ 1,250M $ 1,250.00 Add - Remove the entire existing top surface coat and 1 LS $ 105,000.00 $ t05,000.00 apply prime coat on Tank # 1 / i� These changes result in the Total Part I $ 106,250.00 Total Change Order: $ 106,250.00 adjustment of contract price and contract time: Contract Price Prior to this Change Order $830,650.00 Net Increase Resulting from this Change Order Current Contract Price Including this Change Order The above changes are approved: $106,250.00 $93 6,900.00 'Southlake city LIM Title: City Manager Date: 1of2 Change Order No. 1 Contract Time Prior to this Change Net Increase Resulting from this Change Order Current Contract Time Including this Change Order The above changes are recommended: 191 City By: Title: City Engineer Date: 150 calendar days (Days or Date) 20 calendar days (Days) 170 calendar d (Days or Date) City of Southlake City By: Title: Project Manager Date: City of Southlake City By: Title: Director ofPublic Works Date: By: Date: Contractor 2 of2