BACKGROUND

The approved Capital Projects Budget includes $200,000 in FY15 for the internal sandblasting and painting of the East Tank at Well #17, which is located at 222 N. Ridge Avenue. This project is part of our ongoing program to rehabilitate our water tanks for continued use as potable water storage.

On July 21, 2014, the Village Board awarded a contract to AM Coat of Homer Glen, Illinois for $186,200 to sandblast and paint the inside of the East Tank at Well #17.

The repainting project commenced in early September.  The inside walls were sandblasted to bare metal. Once the paint on the inside of the East Tank was removed, an issue was discovered which was not part of the original project scope but needed to be addressed. The welded seam that connects the water tank wall to the roof failed in numerous areas throughout the entire 230’ circumference. It is not uncommon for additional work related to water tank rehabilitation to be discovered once the paint is fully removed. The original bid quantities were developed based on an inspection of the inside tank with existing paint conditions. It is difficult to determine the condition of weld seams that have existing paint covering them.

It was the consensus of Village Staff and Dixon Engineering (Water Tank Consultant) that all necessary repairs be made to the weld seam to ensure water tank integrity. This emergency work was approved by Interim Village Manager Diana Mikula in order to expedite the repairs and take advantage of favorable weather conditions.

The total cost for all materials, equipment, fuel and labor to repair the weld seam was $31,706. While this is a significant increase to the original bid award, it must be noted that the circumstances which resulted in the additional costs could not have been accurately predicted. 

There is presently a $175,900 balance in the Water and Sewer Fund Operating Contingency Account (account number 505-9901-591-40.96) which can be used to fund this additional work.

RECOMMENDATION

It is recommended that the Village Board approve Change Order #1 to AM Coat of Homer Glen, Illinois for the emergency repairs to the East Tank at Well #17 in the amount of $31,706, and approve a budget transfer of $31,706 from the Water and Sewer Fund Operating Contingency Account to the Water Capital Outlay Account to pay for the additional costs.