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HomeMy WebLinkAbout6. Village Manager's Report 02/02/2016Mount Prospect Village of Mount Prospect Mount Prospect, Illinois INTEROFFICE MEMORANDUM TO: VILLAGE MANAGER MICHAEL CASSADY FROM: ASSISTANT VILLAGE MANAGER DATE: JANUARY 26, 2016 SUBJECT: APPROVAL OF THE PUBLIC WORKS UNION CONTRACT The Village and International Union of Operating Engineers, Local 150 recently came to a tentative agreement for a new collective bargaining agreement. The most recent contract expired on December 31, 2015. The new contract will be in effect from January 1, 2016 until December 31, 2020. This five year contract is one of the longer term contracts the Village has ever entered into. The 39 public works employees who are covered under this contract will receive a 2% wage increase on January 1, 2016, retroactive back to January 1. The employees will receive future increases of 2% effective January 1, 2017, 1% effective January 1, 2018, 1% effective July 1, 2018, 1% effective January 1, 2019, 1% effective July 1, 2019, 1% effective January 1, 2020, and 1% effective July 1, 2020. The Village and union also agreed to a side letter that will allow the two parties to return to the negotiation table in the event the State reduces state shared revenue by more than 10% to discuss potential cost saving measures including forgoing a wage increase in lieu of eliminating jobs. The Village and union also agreed to health insurance cost increases for the union provided health insurance benefits at a cost savings over the projected Village health insurance costs over the same timeframe. The projected savings was estimated at approximately $30,000 over the life of the agreement. Furthermore, when the employees covered by this agreement retire they continue their insurance coverage through the union as a retiree and not on the Village's insurance plan. Staff would recommend Village Board approval to accept the collectively bargained agreement between the Village of Mount Prospect and the International Union of Operating Engineers, Local 150 for the period of January 1, 2016 through December 31, 2020. DAVID STRAHL H:\HUMR\Unions\Public Works Union\2016 Contract\VB Memo IUOE Contract 2016-2020.docx Mount P"pect Mount Prospect Public Works Department INTEROFFICE MEMORANDUM TO: VILLAGE MANAGER MICHAEL J. CASSADY FROM: DIRECTOR OF PUBLIC WORKS DATE: JANUARY 28, 2016 SUBJ: RESERVOIR 17 ROOF REPLACEMENT ($1,562,167) Problem Statement On October 5, 2015, Public Works staff discovered that the roof had collapsed at the water storage reservoir adjacent to Booster Pumping Station 17 (Reservoir 17). The discovery was made during a routine daily inspection. This facility is located on Elmhurst Road near Camp McDonald Road. Figures 1 and 2 in Attachment A depict the pre and post collapse condition of the tank. Staff took immediate steps to isolate the tank from the pump station and the water system. Adjustments were made to the water distribution system pumping matrix to operate without utilizing Reservoir 17 as a water source for an indefinite period. The collapse had no impact on downstream water quality. The Village's insurance carrier, Chubb Insurance Group, was immediately informed of the collapse and began an investigation into the claim. Staff asked Tank Industry Consultants, Incorporated (TIC) of Indianapolis, Indiana to assess the structural stability of the tank. TIC is an engineering firm specializing in the construction and maintenance of steel storage tanks. A principal of this firm, Stephen Meier, was chairman of the American Water Works Association standards committee that produced the current M42 manual of practice for steel water storage tanks. Mr. John Lieb, P.E., Chief Engineer at TIC, inspected the exterior of the tank. Mr. Lieb advised that the tank shell appeared structurally stable and there was little risk of further collapse. Mr. Lieb also advised that complete replacement of the collapsed roof would be necessary in order to return the tank to service. Page 2 of 5 Reservoir 17 Roof Replacement ($1,562,167) January 28, 2016 Background Reservoir 17 is a two (2) million gallon, ground level, steel reservoir erected in 1972 by the Pittsburgh -Des Moines Steel Company. It was one of two identical storage tanks constructed by Pittsburg -Des Moines during that year. The other was adjacent to Booster Pumping Station 16 (Reservoir 16) at the south end of the Village. Reservoir 17 was last inspected in 2011 after repairs to the roof support system were made. This inspection was completed by TIC. The repairs were a proactive response to the 2010 roof collapse at Booster Pumping Station 16. The tank at Station 16 collapsed due to external loading, corrosion, and a loss of horizontal bracing in the roof rafter system. As a precaution, all of the purlins (horizontal bracing) and bolts connecting the purlins to the rafter system were replaced at Reservoir 17. Other than the purlins and bolts, there was no indication of corrosion in the Reservoir 17 roofing system in 2011. The roof vent located on top of Reservoir 17 was replaced in the summer of 2013. The vent was replaced with a larger, clog -free design intended to facilitate better transfer of air and minimize pressure change influences on the roof support system. The exterior of the tank was last inspected during the annual roof vent inspection in the fall of 2014. The reservoir was scheduled for draining and inspection last fall (2015) in preparation for complete rehabilitation and painting in 2016. The purpose of this inspection was to prepare specifications necessary for rehabilitation and painting work. Funding for this work was included in the 2016 budget. The tank last underwent a complete rehabilitation and recoating in 2000. A detailed list of major maintenance performed on Reservoir 17 since initial construction is included as Attachment B. On November 30, 2015, engineers from Wiss, Janey, Elstner, & Associates (WJE) of Northbrook, Illinois inspected the interior of the tank. WJE was hired by the Chubb Insurance Group to ascertain the cause of the roof collapse. Mr. Lieb from TIC and representatives from staff accompanied WJE engineers during the inspection. On January 15, 2016, the Chubb Insurance Group denied the Village's insurance claim on the basis of WJE's findings that the collapse was caused by lateral torsional buckling (loss of horizontal bracing) caused by corrosion and external loading (wind). This finding is similar to cause of the 2010 roof failure at Reservoir 16. Chubb also denied the Village's insurance claim for losses at Reservoir 16. Page 3of5 Reservoir 17 Roof Replacement ($1,562,167) January 28, 2016 Much of the corrosion in the roof system at Reservoir 17 occurred along the top of the rafter system in the space where the rafter abuts the steel roof plates. It is the opinion of staff and TIC that corrosion proliferation in this space is attributable to the roof design. The roof system at Reservoirs 17 (and 16) is unique. It is a suspension roof without center column support and, despite a very long radius, only a single row of purlins (horizontal bracing) between the rafters. In this design, much of the torsional support (horizontal bracing) is provided by the welds between the top of the rafters and the steel roof plates. The rafters are joined to the steel roof plating by intermittent stitch welds instead of continuous seam welds. The annular space between the stitch welds is filled with a caulk to prevent water intrusion and the onset of corrosion cells. Unfortunately, once the tank is constructed, this space is unobservable making it difficult to detect corrosion or evaluate the effectiveness of periodic maintenance such as caulk replacement or recoating. Furthermore, it is relevant to note that the only proactive measure to mitigate corrosion initiated between rafter stitch welds is to replace the rafters and clean or replace the adjoining steel roof plates. TIC advises that the cost of this work is comparable to the cost of complete roof replacement. Request for Proposals The Village asked TIC to prepare proposals for the demolition of the collapsed roof, design of the replacement roof, and final painting of the tank. The estimated time for the demolition is three weeks. While this work is underway, TIC will review the submittals for the replacement roof. The final roof and painting work is estimated to take approximately fifteen weeks. The painting will occur during the last four to five weeks. Repairs should be completed in late summer 2016. TIC recommended several experienced contractors for the work. Requests for proposals (RFPs) were sent to eleven (11) firms that specialized in one or more areas involved with the repair (demolition, steel erection, welding, and coating). The intent was to have one firm act as the general contractor and bring on one or more sub- contractors to do the specialized work such as painting or welding services. Page 4 of 5 Reservoir 17 Roof Replacement ($1,562,167) January 28, 2016 Staff and TIC were expecting four complete repair proposals but two firms advised they could not perform the work until 2017 due to existing workloads. RFP Results Two (2) firms responded to the RFP including Fisher Tank of Cropwell, Alabama and Matrix Service of Catoosa, Oklahoma. Their cost proposals are listed below: Firm Cost Matrix Services $1,420,152 Fisher Tank $2,070,000 Discussion Both proposals satisfy specifications. Both were compliant in their submittals and TIC is recommending that either firm is qualified to perform the work specified. Matrix Services of Catoosa, Oklahoma submitted the apparent lowest, responsible proposal. Their primary focus is repair of tanks and reservoirs throughout the Midwest and western United States. Matrix has not performed work for the Village but all of their references indicate satisfactory performance on recent projects of similar scale and scope. The total cost to replace the roof at Reservoir 16 (in 2010), a project similar in scope and scale to this project, was $1,176,863.32. Adjusted for inflation, this work would cost approximately $1,279,000 today. The Matrix cost proposal ($1,420,152) is approximately 9% higher than this adjusted cost. However, cost increases for steel materials and ironworker labor have exceeded the rate of inflation. In addition, physical lot constraints at the Reservoir 17 site limit staging areas necessitating more material handling and slower production. These influences explain much of the cost differential. Staff recommends including a 10% contingency in the contract award for this project to accommodate quantity variances and unforeseen circumstances. In this instance, the project award would total $1,562,167 (proposal of $1,420,152 plus 10% contingency of $142,015.20). The current budget contains $650,000 for Reservoir 17 rehabilitation work. Staff proposes to fund the balance of this proposed expenditure for deferring water main Page 5 of 5 Reservoir 17 Roof Replacement ($1,562,167) January 28, 2016 replacement work ($600,000) and drawing the remainder ($312,167) from existing water/sewer enterprise fund balance. RECOMMENDATION Staff recommends accepting the proposal from Matrix Services of Catoosa, Oklahoma for the demolition and replacement of the tank roof and reservoir painng at Reservoir 17, for an amount not to exceed $1,562,167. P. Dorsey Cc: Finance Director David Erb Deputy Director of Public Works Jason Leib Water/Sewer Superintendent Matt Overeem File H:\Water\projects\2015\station 17 reservoir roof repair\BPS 17 repairs.doc Mount Prospect Public Works Department Reservoir 17 Roof Replacement Attachment A Figure 2 Mount Prospect Public Works Reservoir 17 Roof Replacement Attachment B Reservoir 17 Timeline 1972 Reservoir built by Pittsburg Des Moines tank. Feb 1988 Bid released for interior and exterior painting. March 1988 Interior and exterior painting awarded to Jetco. December 1999 Dixon Engineering inspected tank and prepared detailed specifications for painting interior and exterior and new roof vent. August 2000 MaxCor contracted to make repairs, add roof vent and paint interior and exterior of tank. Dixon Engineering oversaw rehab project. October 2000 Maxcor authorized by Village to install new reinforcement bolts in the roof rafters. 2007 Dixon Engineering reviewed ripples in sidewall of the tank; concluding that ripples existed in 1999 and are of no significance. August 19, 2010 Public Works respond to a resident call about Reservoir 16 where we found the roof had collapsed into the tank. Sep — Oct 2010 Insurance inspections and creation of repair specs and plans by Tank Industry Consultants (TIC) for both BPS 16 and BPS 17 reservoir roofs. TIC recommends replacement of approx. % of all nuts and bolts for purlins and rafters at Reservoir 17. This work item is placed in plans and specs for Reservoir 16 project. Sept 1, 2010 TIC performs inspection of Reservoir 17 and recommends expanding the replacement from % to 100% of the nuts and bolts (approx. 400) at Reservoir 17. Village approves this expansion of scope. November 2010 Board awards roof repairs for both Reservoir 16 and 17 to Chicago Bridge & Iron (CBI). Work at 17 to include replacement of all nuts and bolts on rafters and purlins as noted by TIC in raft inspection of Reservoir 17 ($53,500). November 15, 2010 CBI mobilizes on-site for demo of Reservoir 16. Repairs to Reservoir 17 (the nuts & bolts) scheduled for late winter 2010. January 28, 2011 TIC inspects interior of Reservoir 17 and informs Village that internal inspection of Reservoir 17 shows that approximately 27 purlins "have experienced significant metal loss and that these purlins are in inadequate structural conditions to last". Village authorizes CBI to replace purlins as Change Order #2 ($11,900) March 9, 2011 TIC performs inspection of repairs at Reservoir 17 and notes no structural issues and recommends re -inspection and painting at a future date. February 2013 Roof vent inspection notes issues with roof vent. Summer 2013 Roof vent replaced. November 2013 Roof vent inspection noted no issues. Page 1 1 Mount Prospect Public Works Reservoir 17 Roof Replacement Attachment B Reservoir 17 Timeline (con t'd) Sept 2014 Roof vent inspection noted no issues. Sept 2015 Purchase order issued and TIC requested to perform inspection and prepare for creating bids and plans for painting and rehabilitating Reservoir 17 in FY 2016. Sept 2015 Purchase order issued for annual roof vent inspection. October 5, 2015 At approximately 2:30pm staff discovers that roof has collapsed. Cathodic protection system checks are documented annually. Page 1 2 Mount Prospect Public Works Department INTEROFFICE MEMORANDUM �M?/ TO: VILLAGE MANAGER MICHAEL J. CASSADY FROM: DIRECTOR OF PUBLIC WORKS DATE: JANUARY 28, 2016 SUBJ: CONSTRUCTION ENGINEERING SERVICES FOR RESERVOIR 17 ROOF REPLACEMENT ($65,100) BACKGROUND Replacement of the collapsed roof on the water storage reservoir adjacent to Booster Pumping Station 17 (1480 North Elmhurst Road) requires construction engineering and quality control skills staff does not possess. In particular, requisite skills include knowledge of steel water storage tank design, structural steel assembly, welding, and water storage tank coating systems. Staff requested a proposal for these services from Tank Industry Consultants of Indianapolis, Indiana (TIC). TIC is a highly recognized national engineering firm specializing in the design, maintenance and repair of steel storage tanks. The firm has completed number of successful tank rehabilitation projects for the village including the recent elevated tank rehabilitation (2014) and replacement of the collapsed roof on Reservoir 16 in 2010. PROPOSAL TIC prepared a proposal for specified construction engineering and quality control work necessary to facilitate replacement of the roof at Reservoir 17 in an amount not to exceed $65,100. This amount is for full-time on-site monitoring during the estimated 15 -week project period. DISCUSSION Staff finds that TIC is well-qualified to deliver the specified services. In fact, their experience facilitating the replacement of a similar roof at Reservoir 16 makes them somewhat uniquely qualified for this project. TIC's cost proposal ($65,100) includes over 600 hours of on-site construction supervision by an experienced tank engineer at the rate of $108 / hour. It is the opinion of staff that the hours allotted are sufficient for the scope of work involved and the rate is competitive. RECOMMENDATION I recommend that the Village Board accept the proposal from Tank Industry Consultants of Indianapolis, Indiana to provide full-time construction engineering for the Reservoir 17 Roof Replacement Project in an amount not to exceed $65,100. Page 2 of 2 Construction Engineering Services for Reservoir 17 Roof Replacement ($65,100) January 28, 2016 Funds for this proposed expenditure will be drawn from existing water/sewer enterprise fund balance. i "an P. Dorsey Cc: Finance Director David Erb Deputy Director of Public Works Jason Leib Water/Sewer Superintendent Matt Overeem