HomeMy WebLinkAboutWTR2702210(6) W-2210 Highlands 565 Tank InteriQr. Painting-City CQrr.
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CITY OF RENTON COUNCIL AGENDA 811 I.
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SRMmm'D n Planning,BuildingtPublic Works Er,r Agaen M:
Del+.D,.:anra. Utility Systems Division/Water Utility September 8, 1997 #.
sou CaeRxa.. Tom Malphros tx4m AR<nda Snhls
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Sat a. N'An ileenry_.
CAG-96-038 Contract with Production Finishing,Inc. for (nrmxryNerc<..
Highlands 565 Zone Reservoir Interior Recoating Project ordhurce... f
Revalulxw
Esh.", New avvrcx..
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Re<rxmwM<d Aa. Apryrnab '"
Council concurrence for close of contract for failure of lagl Very__... '
performance. EIrcKe Dery._..
Fat 1nq t
EaK�tlnurt Repurrvd... None I�ar.vc�an�ewnrlx -
Ar�n,uni S200,000.00
Tnul Prn•I<:1 Budget S 86,332.-8 Cn.share 1'.1 Pon<,
IAII iRaW1.01 R.]wU.IR1.4.fS.USS.1.Nk33]]UI
Sunarcn or Aclxw
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On May 9th, 1996, the City entered into contract with Production Finishing, Inc. to recoat the interior of
the Highlands Elevated Reservoir. On September 6, 1996. the Ci• notified the Surety that Production
Finishing, Inc., was failing to show up at the project site. On September 16. 1996. the City notified the ' y
Surety that Production Finishing, Inc., was in breach of contract and had fifteen calendar days in which to
remed• the breach, failure of which would result in the transfer of the •'> performance of work from
Production Finishing, Inc., to the Surety. On October 3, 1996. we transferred the performance of work
from Production Finishing. Inc.,to the Surety,
Negotiations with the Surety led to the completion of the project by Long Painting Company under contract
#CAG-97-023.
We now wish to close our contract with Production Finishing, Inc.(CAG-96-038)
WAH RECOMMENDATION
Council concurs that the subject contract be closed for failure of perforrmi ce and that the retention of
$3.989.50 be released to account 421.000500.018.5960.0034.15.035330/55330 after thirty days, subject to
the receipt of all required authonrations.
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WDltOV-714:111M.w
CITY OF RENTON COUNCIL AGENDA BILL
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a,un,;nms wu- PlannvlgrBuilding,Public Works F°r A6 °r
D,I,M-m.rd.. Utility Svstems Division/Water Utility A n 4 1997
b,acan.a.. Tan Malphrw(Xd 13) Agnk S1°
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CAG•97-023 Highlands 565 Zone Reservoir Interior
Rea6atimg Projeet oNvasce............
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Lddea.: N.w Baar9._...
Final Pay Estimate
Notice of Completion of Public Works Contract -
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Council concurrence for approval of project and final pay estimate Rq
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.20(fina l payment)
$200,000.00
,722,34
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0 It 3960.0034 63 03 330W53330
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ay 9th, 1996,the City entered into a contract with Production Iocshing,Inc.,to recept the interior ofHighands Elevated Reservoir. Production Finishing,Inc.,failed to complete the project. On January 27, 1997,
the City declared the project an emergency(Resolution No. 3242). On February 6, 1997,the City contracted
with Long Painting Company to complete the project for$150,349.48.
Long Painting Company has successfully completed the project. This payment of$760.20 is the final project
payment. The difference betty=the original contract amount of$150,549.49 and the final contract amount of
S 150,722.34 is the result of the 0.4%increase in sale tar that took effect on April 1, 1997.
The total project budget includes Project Management and Administration$5,000
Engineering/Construction Inspection $5,000
Construction $1501722.34
The amount remaining in the project budget will be carried forward and used on the Highlands Elevated
Reservoir Exterior Coating Project.
STAPF RHCOMNffiNDATION
The Utility Svstems Division of the PlamingfBuilding/Public Works Department recommends that the project
fin] ct
be accepted,the el pay estimate be approved and the retention of$6,957.00 be released alter thirty days,
subject to the receipt of all required authorizations.
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# TO FINANCE DIRECTOR _
1 FROM: PUBLIC WORKS ADMINISTRATOR
CONTRACTOR: Long Painting Company _
CONTRACT NO. CAG 97.023 ESTIMATE NO. 3
PROJECT: Highlands 565 Reservoir FINAL
1. CONTRACTOR EARNINGS THIS ESTIMATE $700.00
2. SALES TAX® 8.60% $60.20
3 TOTAL CONTRACT AMOUNT THIS ESTIMATE 6760.20
1. EARNINGS PREVIOUSLY PAID CONTRACTOR $131,518,00
5. EARNINGS DUE CONTRACTOR THIS ESTIMATE $665.00
j 3. SUBTOTAL-CONTRACTOR PAYMENTS E132,183.00
I
r RETAINAGE ON PREVIOUS EARNINGS $6 922 00
1." RETAINAGE ON EARNINGS THIS ESTIMATE E35.00 j
1. SUBTOTAL-RETAINAGE
58A57.00 ,
0. SALES TAX PREVIOUSLY PAID $11,522.14
1. SALES TAX DUE THIS ESTIMATE $60.20
2. SUBTOTAL-SALES TAX
'(95%x LINE i) $
(RETAINAGE:5%) GRAND TOTAL: $150,722.34 `
:INANCE DEPARTMENT ACTION: `I
k
'AYMENT TO CONTRACTOR(Lines 5 and 11).
ACCOUNT •421.000500.018.5960.0034.65.05533M5330/5170 $725.20 0 3
ETAINED AMOUNT(Line 8). $725.20
ACCOUNT 0 421.000500.018,5960.0034.65.055330155330/5470 $35.00 t 3
"SSW
TOTAL THIS ESTIMATE' 676p,20
CHARTER 119,LAWS OF 1996
:ITY OF RENTON CERTIFICATION
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State of Waalnngton Reg.No.
® Depammem of Revenue _ —
Au4n Procedur^aEA4mmetralron Date
PO Box 47474
OtymPa.WasMplon NSU-7474
NOTICE OF COMPLETION OF PUBLIC WORKS CONTRACT
From. DEPARTMENT USE ONLY
City of Renton Assigned To
Finance Department 'p
200 Mill Avenue South
Renton,WA 98055-2132 Dale Assigned
Notice is hereby given relative to the completion of contract or project described below
Description of Contract CAO 97.023 Highlands 565 Zone Reservoir Interior RecoaMp Project
(City of Renton Wacer Project W-2210)
Contractor's Name Long Painting Company 7eleDhona No (206)763-8433
Contractor's Address P O Box 81435.Seattle,WA 98108-1335
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Date Work Commenced Date Work Completed Date Work Accepted
February 24. 1997 April 23, 1997 August 4.1997
Surety or Bonding Cc United Pacific Insurance Company,Philadelphia.Pennsylvania
Agent's Address Willis Corroon Corporation of Seattle.P O Box 34201.Seattle,WA 98124
Jim Doyle-Phone No (206)386-7928
Contract Amount $139,140.00 Amount Disbursed'. $143,765.34
Additions or Reductions $0.00 Amount Retained. $6,957.00
Sales Tax $11.582.34 Total $150.722 34 "a
- Total $150,722.34 .
By
(Disbursing Officer)
Phone No
n e Delousing sing ORu:er must comp!ee no man THREE woes of this notice to the Depanrnent of Rewnae.Olymga,Washington
�._ 9e504.7474. eltnedetely aver awlHance of IM want cone under this contract NO PAYMENTS SHALL BE MADE FROM
RETAINED FUND until radev of Depanment'a cendiwte.and than or!y in accordance with saM mirthless,
t> FORM REV 310020(12.92) y
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CITY OF RENTON
PLANNING/BUILDING/PUBLIC WORKS
MEMORANDUM
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DATE: January 17. 1997
r0: NIdyor Tanner
j FROM: Gregg Zimmerman
II STAFF CONTACT: J.D. Wilson(X-6195)
SUBJECT: HIGHLANDS 56S ZONE RPsERVO1R-STATUS UPDATE _.r..
Here is an update on the Highlands 565 Zone reservoir:
On January IOth,the Water Utility requested and Iarry Warren prepared a resolution declaring
an emergency. 'e)
Gulf Insumnce Company has requested the City to use Eagle Harbor Construction and Rental,
Inc.as the contractor to finish the work. The request was faxed on January 14, 1997.
Eagle Harbor Construction Company picked up the"bid"package for the work on January 14.
The agenda bill, issue paper,and resolution for the declaration of emergency was forwarded to -` <
the Mayor's office on January 16.
Eagle Harbor Construction plans to submit its cost proposal to the City on January 24.
The emergency resolution is on the agenda for the January 27 Council meeting.
The anicipa•ed contract award date is January 29, 1997-contingent on Eagle Harbor
submitting the required performance bond, ACORD form,etc by this date.
The legal notice describing the emergency and actions taken will be published by February 3.
The anticipated completion date of the contract work is March 26 with the reservoir back in
operation by March 31,after it is disinfected.
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CITY OF RENTON
MANNINGBUILDING/PUBLIC WORKS
MEMORANDUM
DATE: November 28. 1994
TO; Lys Hornsby
FROM: Tom Malphrus
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SUBJECT: History of the Highlands 565 Zone Elevated Reservoir
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1 perused our files and pieced together the following history of the Highlands 565 Zone elevated
reservoir. 1 have more specific information on hand, including information regarding the 1
composition of the interior coating.
1960 The reservoir is constructed. The reservoir is accepted by the City of Rer:on on July
11, 1960.
1%9 The interior and exterior of the reservoir is inspected by CH2M. CH2M recommends
the installation t' a cathodic protection system and repaiming of the exterior of the
reservoir. CH2M also addresses reservoir downtime and water supply to the 565 zone
during reservoir downtime. See report dated May 1969.
1971 A cathodic protection system is installed. The system is energized and adjusted on
October 29. 1971.
1973 Survey of cathodic protection system by CH2M/Hill. The system is found to be
operating correctly. See report dated September 14. 1973.
1977 Inspection of the cathodic protection system by CH2M/Hill on July 20, 1977. System
is found to be functioning properly. See report dated January 18, 1978,
1978 Report from CH2M/Hill dated January 4, 1978 regarding water supply options for the
565 zone when the reservoir is drained for exterior repainting.
1978 Exterior of reservoir is repainted summer of 1978.
1978 Inspection of cathodic protection system by Galka Associates August 26. 1978. System
is operating. Galka Associates recommends repairs of certain mechanical and electrical
elements of the system. See report dated November 30, 1978,
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November 2B, 1994
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1979 City crews perform mpairs to cathodic protection system as recommended in Gallia
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Associates report dated November 30, 1978.
1985 Inspection of interior of reservoir October 23, 1985 and cathodic protection system
by CH2MIHilI. CH2MMi11 recommends replacement of interior
December 5, 1985
coating within 5 to 7 years and a re-inspection of the interior coating within 2 years to
monitor rate of deterioration.. The cathodic protection system isoffound the t he
functioning property and capable of operating unto the interior coating
rvoir
is replaced. See report dated December 13, y
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HISTORY Of THE HIGHLANDS ELEVATED RESERVOIR
(SUMMARY)
1959.60 The reservoir was constructed.
1%9 The Reservoir was inspected on 1-2-69. At that time it was noted that the paint system on the
interior of the reservoir had deteriorated considerably, panicularl) on the shell and howl.
However, them was very little evidence of corrosion damage to any area of steel. -
Recommendations included the installation of a cathodic protection system and repainting of
the exterior of the reservoir within 12 months
1911 Installation of cathodic prdection:
Anodes and associated equipment installed in August 197E
Rectifier installed in October 1971.
System energized and adjusted 10-29-71.
1973 The cathodic protection system was inspected on 7-II.7' The system was found to be
operating tttrectly. Anodes were discharging current properly and showed very little
deterioration or metal loss.
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1977 The cathodic protection system was inspected an 7.20-77. The system was found to he `
operating properly,providing adequate control of corrosion to the interior submerged surfaces.
1978 The exterior of the reservoir was panted in 1978.
1978 The cathodic protection o stem was inspected in 1978. The system was fisund to be upersting.
Recommendations were made to repair certain mechanical and electrical elements of the
system. '
1979 Repairs were made to the reservoir as per the recommendations made in the 1978 inspection
report.
1985 The interior of the reservoir was inspected on 1023.85. Corrosion was observed on the tank
walls in the area of water fluctuation. The ceiling coating was fraud to he in good condition
with some was of rust around the suppon beams. The coating at the tank base near the stand
pipe exhibited good adhesion and an acceptable coating thickness. No mebl loss or pits were
noted in this area. Calcareous deposits on the interior ladder indicatO.hat it was receiving
good corrosion protection.
The cathodic protection system was inspected on 12-5.95, A0 components of the system were
found to be functioning properly and the structure-to-water potentials indicated that the
interior submerged surfaces of the tank were receiving adequate corrosion protection. Minor
deterioration of the anodes was noted.
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The exterior coaling was bond to he in excellent condition with only minor areas of coating
damage.
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1995 Observations of the interior and exterior of the reser a r were made during the months of June
and July of 1995.
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CITY OF RENTON
PLANNING/BUILDING/PUBLIC WORKS
! MEMORANDUM
DATE: April 17,1996
TO: Marilyn Petersen.(it, Clerk
FROM: Tom Malphms.Water Utility
SUBJECT: Contract Award:Highlands%5 Zone Reservoir
Interior Recoating Project
Three bids were received for the Highlands 565 Zone Reservoir Interior Recoating Project. The bids
were publicly opened ano,cad on April 2, 1996. The bids have been checked and tabulated. The
results are included.
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The low bid was submitted by Production Finishing, Inc. Their bid is for the amount of -y,-
$143,906.00. The engineer's estimate for the project is$178.530.00.
No Irregularities were found In the tow bid.
jTlw Planning/Building(Public Works Department recommends that the contract be awarded to
Production Finishing,Inc.,for the amount of S 143,906.00,
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CITY OF RENTON
PLANNING/BUILDING/PUBLIC WORKS
MEMORANDUM
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DATE: May 7, 1996
TO: Marilyn Petersen,City Clerk
FROM: Tom Malphrus,Water Utility 9A1
SUBJECT: Highlands US Zone Reservoir Interior Recoating Project
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On April 22, 1996,the Renton City Council accepted the bid submitted by Production Finishing.
Inc.,as the low hid for the above referenced project.
The City Attorney's office has approved the contract document per legal form. The City's Risk
Manager has approved the Certificate of Insumnce for:overage required by the City of Renton.
Please have the Mayor sign the contract at his earliest convenience.
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j CITY OF RENTON
PLANNING/BUILDING/PUBLIC WORKS
MEMORANDUM
DATE: July 1, 1996
TO: An Larson
FROM: Ron Olsen cr T Pik
STAFF CONTACT: Tom Malphrus N-4413)
SUBJECT: Highlands Elevated Reservoir
Beginning the first week of July and continuing through the first muck of August,the Highlands
Elevated Reservoir will be out of service for malntcnancc. The.Highlands area will be served by a
syslcm of pumps during this time.
Beginning today,if an cmlerge Icy should occur in the Highlands area,please notify the Water Utility
as soon as possible. Water Utiity personnel will respond and monitor the pump system during the
emergency.
Contact numbers are:
Monday-Friday-§99 a m -4'30 o m
Call 235-2646 or 235.2366
George Stahl
Pete Rouyk
Cliff Nelson
Ron Dnlcc
John Bailey
After hours '
r George Stahl (206)255-3909
_�..,.. I Pete Rosn k 360 -43568.6743 _
Cliff Nelson (206)229-9574
Ron Dmce (206)630.9736
John Bailc% (206)271-8830
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CITY OF RENTON
PLANNINGBUILDING/PUBLIC WORKS
MEMORANDUM
DATE: October 3, 1996
TO; Marilyn Petersen
FROM: Tom Malphrus(x-4413)
SURZCT; Highlands F.kvated Reservoir Coatnct(CAG-9(.QM)
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The contractor on this project has gone out o(business. On October 3.1996,we lmnsfermd the
performance of the work from the contractor to the Surety.Gulf Insurance Company. _
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You may receive claims against the bond held by Gulf Insurance Company. I have received
numerous calls from suppliers and sub consultants who claim that the contractor owed them money.
My understanding is that suppliers and sub contractors claiming against the bond are required to
notify the City as well as the Surety of their claim.
I am going to talk with Larry Warren about such claims. I will notify you as sown as I determine
how we should handle them.
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CITY OF RENTON f
PLANNING/r 11,DING/PUBLIC WORKS
MEMORANDUM
DATE: December 6, 1996
TO: Ronald Olsen
i FROM: Tom Malphrus
SUBJECT: Highlands Elevated Reservoir Co rtmct Relativistic
I spoke with Leonard Bell,employee with the stale revenue department,about Production Finishing,
Inc. It appears that they did not pav taxes for all of 1996. We can assume that they did not pay taxes
on our project. Leonard told me that upon completion of the project,the state will claim against the
money held in retainage. We cannot view this money as undisbureed funds,as the surety suggests.
We need to keep it in the churrage,account until the pmjecl is complete and the state hu had the i
opportunity to claim against it. The amount in mhunage is,f3989.50.
In my opinion,in your negotiations with the surety,you should insist that we have$59,963.22 in .i
undisbursed funds,not$62.952.72.
MEMO DOTI
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CITY OF RENTON
PLANNING/BUILDING/PUBLIC WORKS
MEMORANDUM
DATE: February 4. 1997
TO: Gregg Zimmerman
FROM: Lys Hornsby
t!`r STAFF.;ONTACT: Tom Malphrus(X•4413)
,. SUBJECT: Highlands 565 Reservoir Costa
Original Bids: .
The original bids,received April 2, 1996,for the Highlands 565 Zone Reservoir Interior Rccoating
i Project are as follows:
Production Finishing $143,906.00
Long Painting Co. S198,540.51
Coatings Unlimited S171,497.00)
Additional Cost Associated with Contractor Default:
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We compared last year's electricity bills against this year's bills for the Highlands Pump Station �
(includes the dehumidifier)and the Monroe Pump Station. We are paying an additional $120 per
day in electricity costs to operate the system with the reservoir down and the dehumidifier running.
The original contract completion date was August 6, 1996. As of January 1, 1997,the City has paid
$17,640 in additional electricity costs because of the contractor default.
Rental for the dehumidifier is$4.200 per month. The Surety is paying the rental fee and subtracting
the rent from the bond penal fund. The City will be able to claim against the fund for damages once
the project is concluded. Fsch rental payment decreases the amount of funds available for the City
to claim against for damages. As of January I,1997.additional rent paid for the dehumidifier due to
the contractor default was$21,000. 1r.
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Jerry Duppong of CH2M Hill estimates that we will pay CH2M Hill an additional SI0,000 for costs :!
associated with the contractor default. This cost includes consultation regarding surety proposal and
potential contractors and duplication of effort in relation to surface preparation of reservoir.
g_ We estimate that as of January 1, 1997,the City will have paid an additional$2,840 in staff costs
associated with the contractor default.
Proposed Settlement with Surety:We paid the original contractor a total of$86,332.79 of which$3,989.50 remains in retainage(the
retained amount may be c'rimed by the State). This amount includes one change order that totaled
$1,503.99. We now have S63,066.70 remaining in '�sbur and funds. -
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Highlands 565 Reservoir Costs
Page 2
The Surely proposes to pay the City an up front payment of$65,637.30. This payment is based on a
bid from D.S.Purcell Painting,Inc.,to complete the project for$129,704.00($128,704-563,066.70
i $65,637.30).
1 Bid from Long Paintiag Company:
Long Painting Company's esti,nate to complete the project, as per the original Scope Of Work, is
$145,474.90. !f we use Long Painting Company to complete the project instead of D.S. Purcell,
Inc.,we will be paying an additional out-of-pocket cost of$16,770.90,
Original Contract Amount: SI43,906.00
Coat due to Contractor Default Not Covered in Initial Payout by Surety:
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Electricity Costs• 517,640.00
Dehumidifier Rental $21,000.00
Consultant Costs• f 10,000.00
Staff Costs• 52.840.00
Reuinage(assuming State claims it)• $3999.50
Additional Costs for Long Painting Company $16,770.90
Total $72,240.40
Total Cost to City to Complete the Project as
per original scope of work: $216,146.40
Total cost to City to complete the project with
new change order for the installation of an
anode element in the standpipe $221,220.98
" Reimbursable Costs:
Thirty days after the City issues final payment for completion of the project,the City an
claim for damages against any funds remaining of the Surety's bond penal aunt of$143,906.
i However, because them is a large number of claims against the bond by suppliers and
subcontractors,the amount remaining in the bond penal sum is expected to be minimal.
Funds available to complete the project:
1-he Water Utility has$320,828 available under line lent 4 2 1 6 0011 8.5%.34.65.55330 565 Reservoir
Recoat
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Gregg Zimmerman
Highlands 565 Reservoir Costs
Page 3
Award of contract to Long Painting Company:
The Water Utility recommends that we award the contract to complete the interior mcoating of the
Highlands Elevated Reservoir to Long Painting Company. Long Painting Company has the
equipment and experience necessary to complete the project. In addition, they am manufacluter
certified to apply the specialty coating specified for the project. Awarding the contract to Long
Painting Company will ensure that the project will be completed in a timely manner. See attached
letter from the project engineer.
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