E3. Approve Fermenter WCD and CO Request411111!'114
CITY OF
KALISPELL
MEMORANDUM
To: Doug Russell — City Manager
From: Susie Turner, P.E. Director of Public Works
Re: Fermenter Rehabilitation Project- Work Change Directive and Change
Order Approval
Date: 7/7/2025
BACKGROUND: The City began working on the fermenter project in 2021, starting with
several condition inspections that informed the design criteria for the rehabilitation. The project
was initially bid in January 2024. Due to multiple challenges in the bidding market at the time,
the City ended up bidding the project a total of three times before receiving an awardable
construction bid.
On September 10, 2024, the City Council awarded the fermenter rehabilitation contract to DN
Tank, Inc. for a contract amount of $2,389,500.00. The project involves rehabilitating the
fermenter to extend its useful life by 20 years. The scope includes surface preparation, repair,
and coating of the interior concrete wall, launder, and floor; structural steel beams and mixing
equipment; and the exterior walls.
Inspections conducted during the original design phase identified that the structural beams were
experiencing delamination and pitting due to prolonged exposure to a corrosive environment.
However, they were still considered structurally sound and were slated to be sandblasted and
recoated in place.
Construction began in June 2025. Upon removal of the roof structure, HDR Structural Engineers
determined that the beams have deteriorated beyond expectations and are no longer structurally
competent. As a result, the beams now require full replacement as part of the rehabilitation
project, see pictures below.
201 1st Avenue E IPhone (406)758-7720
Po Box 1997 Public Works Department Fax (406)758-7831
Kalispell, MT 59903 1 1 www.kalispell.com
City and HDR Engineers are diligently working with the contractor on the formal Work Change
Directive that will be used to complete the Change Order for replacement of the beams. It is
important to complete the additional work in a timely manner and not delay construction in order
to meet the weather specifications required for coating applications. As such, time is of the
essence to complete the Work Change Directive to minimize delays of critical components
necessary to be completed for the rehabilitation of the fermenter.
An initial estimate to complete the removal, fabrication, and reinstall of the beams and mixing
equipment could total around $300,000. Engineering Staff and HDR Consultants are working
with DN Tanks and potentially other contractors to finalize the scope of the new construction
services for the Work Change Directive(s).
ACTION REQUESTED: Motion to approve staff to move forward with the Work Change
Directive(s) and allow the City Manager to execute the necessary change order(s) to complete
the necessary work for the Fermenter Rehabilitation Project.
FISCAL EFFECTS: FY 26 funding for the construction expenses of this project are supported
with State Revolving Funds and local funding shown in Kalispell Treatment plant 922-line item -
$2,001,157 and ARPA funding 922-line item - $1,000,000. Contingency funds were included in
the budgets and are adequate to cover this increase in the construction price.
ALTERNATIVES: As suggested by the City Council.