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