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6. Resolution 4399 - Digester Cleaning ProjectAgenda - April 20, 1998 AGENDA ITEM 6 - DIGESTER CLEANING PROJECT RESOLUTION 4399 -PUBLIC HEARING NOTICE/BUDGET AMENDMENT - MORRISON-MAIERLE CONTRACT APPROVAL -PENDING BUDGET APPROVAL BACKGROUND/CONSIDERATION: I have attached a memo from the Public Works Director outlining the problems that have been found and analyzed at the Wastewater Plant. This was discussed at our departmental presentation to the Council. This problem requires two actions on our part. The first problem to address is the budget problem. This was not anticipated for this year's budget. However, we need to proceed "post-haste." The funds are available but we need budget authority to expend the funds. The second problem is an addendum to the engineering services contract. The addendum is $42,820.00 on a "not -to - exceed" contract. RECOMMENDATION: I concur with Mr. Hansz's evaluation, recommendation and the need to proceed with this project. ACTION REQUIRED: 1) Approval of Resolution 4399 is required to set a Public Hearing for the budget amendment. 2) Approval, by motion, of the addendum to the engineering contract will allow the design of this project to begin. NOTICE OF PUBLIC HEARING RESOLUTION NO._4399__. A RESOLUTION CALLING FOR A PUBLIC HEARING TO AMEND THE ANNUAL APPROPRIATIONS OF THE CITY OF KALISPELL, MONTANA, AS SET FORTH IN THE 1997-98 BUDGET ADOPTED BY THE CITY COUNCIL FOR THE SEWER FUND, WASTE WATER TREATMENT PLANT EQUIPMENT REPLACEMENT (CAPITAL IMPROVEMENT) ACCOUNT. WHEREAS, the City Council budgeted and appropriated the sum of $210,000 in the Sewer Fund for Water Treatment Plant Equipment Replacement (Capital Improvement),in accordance with M.C.A. 7-6-4271, and WHEREAS, inspection of the fermenter indicated significant and unexpected internal corrosion to a crucial element of the WWTP necessitating substantial improvements to the fermenter, and WHEREAS, the WWTP Equipment Replacement Reserve contains adequate additional funds which are expected to cover the costs of the improvement, and WHEREAS, said $180,000 was not appropriated pursuant to Section 7-6-4271, and constitutes an overall increase in appropriation authority, and WHEREAS, the appropriate fund would be Sewer Fund, WWTP Equipment Replacement (Capital Improvement), 5310 455 430645 940, with the appropriate expenditure line item. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL AS FOLLOWS: SECTION__I. That on May 4, 1998, at 7:00 o'clock P.M., in the Council Chambers, City Hall, Kalispell, the City Council will hold a public hearing on appropriating funds from WWTP Equipment Replacement Reserve in the amount of $180,000 for the purpose of making improvements to the WWTP fermenter. SZC=N--II. That notice of the passage of this resolution shall be published pursuant to Section 7-1- 4127, MCA. j:\wp\res\budgethearing PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL, THIS DAY OF APRIL, 1998. Wm. E. Boharski - MAYOR Theresa White Clerk of Council STATE OF MONTANA ) ss County of Flathead ) COMES NOW Theresa White, Clerk of the Council for the City of Kalispell, Montana and states as follows: 1. That she is the Clerk of the Council for the City of Kalispell, Montana. 2. That she caused to be published in the Daily Inter Lake, the above Resolution and Notice of Public Hearing, pursuant to Section 7-1-4128, MCA on April 23, and April 30, 1998. Dated this 20th day of April, 1998. Theresa White Clerk of Council j:\wp\res\budgethearing MEMORANDUM March 24, 1998 N L To: Clarence Krepps, City Manager From: Jim Hansz, Director of Public orks Subject: Digester cleaning and repair project, addendum to engineering contract The cleaning and inspection revealed the digesters to be in generally good order. The interior needed repair of support rods, the surfaces need re -coating with a polyurethane coating, and there was corrosion repair work necessary on the boiler gas piping. In addition, there is substantial additional work of similar nature needed inside the fermenter. This was not anticipated this year, but it had been programmed to be done next year. This additional work is critical and should be done this summer at the same time we do the digester work. We did get lucky in that no work was necessary for the outfall line. The water problem was actually caused by a leak in a yard hydrant upstream of the outfall. The original contract dealt with the inspection of the digesters, their cleaning and inspection, and repair of the outfall line. The contract specified that additional services for the repair of the digesters would be separately negotiated once the extent of the necessary repairs was identified. Attached is the addendum for the follow-on engineering work to get the digesters and fermenter re -coated, and the cleaning of the last digester accomplished. I have reviewed this addendum and feel it addresses all the remaining work to be done. Please not that this is a not to exceed contract and this remains unchanged with this addendum. For you information, the contract ceiling on the original contract was $44,540.00. The total amount spent on the first phase engineering was $38,941.72. The total amount of this addendum is $42,820.00. If all this is spent then the total cost of all engineering for this project will be $81,761.72. I will prepare an agenda item for the April 6 council meeting to discuss the additional budget needed for repair of the fermenter. Post Office Box 1997 • Kalispell, Montana 59903-1997 ®Telephone (406) 758-7700 • FAX (406) 758-7758 MEMORANDUM April 1, 1998 To: Clarence Krepps, City Manager From: Jim Hansz, Director of Public W rks Subject: Supplemental budget authority for digester cleaning project. Background: This project originally was approved for the cleaning and repair of the primary and secondary wastewater sludge digesters. Cleaning and inspection revealed the digesters to be in generally good order. The interior support rods needed repair which was not expected. The interior surfaces need to be re -coated with a polyurethane coating as expected. There was some corrosion repair work necessary on the boiler gas piping from the digesters and within the gas delivery system. This was not expected and was immediately done to ensure safe operation. We did get lucky in that no work was necessary for the outfall line. The water problem was actually caused by a leak in a yard hydrant upstream of the outfall. The savings from not doing this repair funded the unexpected repairs noted above. Current issue: The inspection effort spilled over to the adjacent fermenter and identified significant internal corrosion. This unit was programmed to receive maintenance work next year because of the known corrosive nature of its environment. During the digester work the plant operators noted external evidence of corrosion around the fermenter which was not visible earlier therefore the unit was taken down for inspection. This inspection showed the fermenter to be in much worse condition than we expected and that substantial additional repair work is needed as soon as possible. The unit has been returned to service due to its critical role in the plant operation. Treatment system process control depends on the fermenter. Plant operation without the fermenter requires use of expensive chemicals to maintain the process, this is a situation that we cannot and should not carry on for the long term. We had intended to bid the digester coating work now, but we were delayed by the need for the supplemental inspection report for the fermenter. The additional work on the fermenter is essential and should be done this summer instead of next year. Delaying the repair will result in significant additional damage to the fermenter interior that could make repairs prohibitively expensive or, in the worst case, impossible because of basic structural damage. We propose to do this work at the same time we Post Office Box 1997 • Kalispell, Montana 59903-1997 Telephone (406) 758-7700 • FAX (406) 758-7758 do the remaining digester repair work. This issue was raised to the Council during the February 23`d work session. Cost: The original project dealt with the engineering, inspection, cleaning and repair of the digesters, and inspection, and repair of the outfall line. This is currently budgeted at $210,000.00. The fermenter inspection and the unanticipated repairs of the digesters were done within the current budget without impact because of budget savings from not needing costly repairs to the outfall. However, the additional work necessary to repair the fermenter would far exceed the current project budget. The additional work is presently estimated to add $180,000.00 to the total current project budget of $210,000.00. The actual cost will depend on the full extent of repairs required after complete sandblasting and cleaning of the fermenter interior. The inspection report recommended a program of repairs that are specific to the degree of corrosion and deterioration of each surface and material inside the fermenter. The amount of additional budget authority requested is believed to be adequate for the "worst case" requirement. The revised project budget will be $390,000.00. All necessary funds are presently available in the WWTP replacement reserve fund. The maintenance plan for this facility anticipated fermenter repairs in 1999. Therefore, since funds are available, I see no significant impacts by moving these repairs up a year to 1998. Recommendation: There is no impact to the General Fund because this is an enterprise fund, and there is no need to adjust sewer rates to generate funds for this work. In view of the importance of this operation to the City, I recommend the City Council authorize additional expenditures of $180,000.00 in this enterprise fund, budget line item number 940, for the current fiscal year to allow for the needed repairs to the fermenter. Amendment No.l Agreement to Furnish Engineering Services to the City of Kalispell for the Digester Maintenance and Repair Project The Agreement to Furnish Engineering Services to the City of Kalispell for the Digester Maintenance and Repair Project is amended as follows: ARTICLE 1. SCOPE OF SERVICES Add the following paragraph: Additional services to be provided, and the compensation for such services, shall be as mutually agreed to in this Amendment, executed by both parties and as described in Amendment No.1 Exhibit A. ARTICLE 2. BASIS OF COMPENSATION Add the following to paragraph B: As consideration for providing the services described as Tasks 1 through 3 in Amendment No. l Exhibit A, the Owner shall pay the Engineer a total fee not to exceed $42,820 without prior written approval. ARTICLE 3. PAYMENT FOR SERVICES No changes. ARTICLE 4. OBLIGATIONS OF THE ENGINEER No changes. ARTICLE 5. OBLIGATIONS OF THE OWNER Add the following to paragraph A: The Owner shall authorize the Engineer to proceed with Tasks 1 through 3 in Amendment No.l Exhibit A by executing this Amendment. ARTICLE 6. GENERAL LEGAL PROVISIONS No changes. ARTICLE 7. GENERAL PROVISIONS -a- Add the following paragraph: F. AMENDMENT NO. 1 SCHEDULE Specifications and drawings for Amendment No. 1, Task 1, shall be submitted to the Owner within sixty (60) calendar days of the Engineer' s receipt of the signed Amendment. Bid letting is anticipated in June of 1998 and the start of construction is anticipated in June of 1998. Construction observation is anticipated to be concluded in September of 1988, but may vary depending on weather effects on painting and concrete repairs. Add the following paragraph: B. This Amendment (consisting of pages a through b), and attached Amendment No. 1, Exhibit A, constitute the entire Amendment No. 1 to the Agreement between the Owner and the Engineer and supercedes all prior written or oral understandings. DATED this 2 day of , 1998. CITY OF KALISPELL By: City Manager MORRISON-MAIERLE, INC. Office Manager M Amendment No.1, Exhibit A to Agreement to Furnish Engineering Services to the City of Kalispell for the Digester Maintenance and Repair Project Task 1 - Design Services The Task 1 design services consist of preparing contract documents for bid. The contract documents will include technical specifications for repair of damaged concrete in the fermenter, painting of the fermenter, painting of the primary digester, painting of the two secondary digesters, and cleaning of one secondary digester. Task 1 design services will also include drawings of the fermenter and digesters in sufficient detail to show the area (square footage) to be painted. The report titled "Condition Assessment and Preliminary Rehabilitation Recommendations for the Kalispell Advanced WWTP Fermenter" by MMI will be included by reference. Task 1 design services also include quality control review and project management by the engineer. Task 2 - Bid Services Task 2 services include answering bidders questions during the bid period, evaluation of bids, conducting a pre -bid conference, and tabulation of the bid results. Task 3 - Services During Construction Task 3 services include review of required submittals on concrete repair and paint products, conducting a pre -construction conference, observation of the work, and documentation. Page 1 of 3 Amendment No. 1, Exhibit A to Agreement to Furnish Engineering Services to the City of Kalispell for the Digester Maintenance and Repair Project Amendment Table 1 Estimated Labor and Expense Costs Task Classification Hours Rate Cost Total Cost Task 1 - Design Services Specs, Proj Mgmt, QA Senior Engineer 172 80 13,760 Specs. Corrosion Engineer 40 90 3,600 Drawings. Technician 32 60 1,920 Specs, Corres. Clerical 24 30 720 Labor Subtotal 20,000 Expenses Printing 1 z4 a 4�98 Phone, Mail, etc. 1 6.00 Subtotal 20,500 Task 2 - Bid Services Eval Bids, Bid Questions Senior Engineer 40 80 3,200 Eval Bids, Bid Questions Corrosion Engineer 24 90 2,160 Bid Tab Clerical 4 30 120 Subtotal 5,480 Page 2 of 3 Task Classification Hours Rate Cost Total Cost Task 3 - Services During Construction Submittals Senior Engineer 32 80 2,560 Observation Engineer II 180 55 9,900 Submittals Corrosion Engineer 24 90 2,160 Corres, Memos, etc. Clerical 8 30 240 Expenses Airfare 2 760 1,520 Vehicle -4. 65 260 Per Diem 4 50 200 Subtotal 16,840 GRAND TOTAL 42,820 Page 3 of 3