HomeMy WebLinkAboutX-A-03 Approve Industrial Park Water Tower Plans and Specifications with Exception to the Prevailing Wage Policy and Authorize Advertisement for Bids City Council Memorandum
To: Mayor Fasbender & City Council Members
From: Ryan Stempski – Public Works Director
Date: September 3, 2024
Item: Consider Resolution to Approve Industrial Park Water Tower Reconditioning Plans & Specifications
with Exception to the Prevailing Wage Policy on City Projects and to Authorize Advertisement for
Bids
COUNCIL ACTION REQUESTED
Council is requested to consider adopting the enclosed resolution approving the Industrial Park Water Tower
Reconditioning plans and specifications with exception to the Prevailing Wage Policy on City Projects and
authorizing advertisement for bids.
BACKGROUND INFORMATION
Reconditioning of the Industrial Park Water Tower involves structural repairs and replacement of coatings on the
interior wet, interior dry, and exterior to protect the substrate of the tower. The City contracted with KLM
(same consulting firm that was used in 2022 on the 4th Street Water Tower work) to prepare plans and
specifications and to provide full time welding and coating inspections of the contractor’s work. KLM advises
that we see the same pool of well qualified contractors across the country bidding this type of project regardless
of the wage rates. This is due to the fact that full tower reconditioning is specialized work, requiring experienced
employees and expensive equipment. Exception to the Prevailing Wage Policy on City Projects was implemented
in 2022 on the 4th Street Water Tower and the City experienced qualified and competitive bidding at a reduced
price.
FINANCIAL IMPACT:
KLM further advised that most cities do not require prevailing wage rates when rehabilitating their water towers.
For the Industrial Park Water Tower Reconditioning Project, KLM estimates an increase up to $300,000 if the
Prevailing Wage Policy were to apply. This would thereby increase the engineer’s construction estimate from
$1,600,000 to $1,900,000.
ATTACHMENTS
Resolution Approving the Project with Exception to the Prevailing Wage Policy on City Projects and Authorizing
the Advertisement for Bids
X-A-03
CITY OF HASTINGS
DAKOTA COUNTY, MINNESOTA
RESOLUTION NO.
RESOLUTION APPROVING THE PLANS AND SPECIFICATIONS WITH EXCEPTION FROM THE PREVAILING WAGE POLICY ON CITY
PROJECTS, AND AUTHORIZING THE ADVERTISEMENT FOR BIDS FOR INDUSTRIAL PARK WATER TOWER RECONDITIONING
PROJECT
WHEREAS, the project plans and specifications have been completed by KLM Engineering, Inc., and
WHEREAS, it is recognized that full tower reconditioning is specialized work, and
WHEREAS, we anticipate the same pool of well qualified contractors to bid on this work, and
WHEREAS, the engineer’s construction estimate of the work increases from $1,600,000 to $1,900,000 if the
Prevailing Wage Policy on City Projects applies, and
WHEREAS, the City Council may provide an exception to the Prevailing Wage Policy on City Projects.
NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HASTINGS AS FOLLOWS; that
1. Plans and specifications for these improvements prepared by KLM Engineering, Inc. are hereby
approved with an exception to the Prevailing Wage Policy on City Projects.
2. The Public Works Director shall prepare and cause to be published on the Quest Construction Data
Network web site and on the City of Hastings official web site an advertisement for bids for the
construction of the approved Project. The advertisement shall be published for three weeks, shall
specify the work to be done, shall state that bids will be opened virtually on a date and time to be
determined, and that no bids will be considered unless filed ONLINE and accompanied by a cash
deposit, cashier’s check, bid bond, or certified check payable to the City of Hastings for 5% of the
amount of each bid.
ADOPTED BY THE CITY COUNCIL OF HASTINGS, MINNESOTA, THIS 3RD DAY OF SEPTEMBER 2024.
Ayes:
Nays:
Mary D. Fasbender, Mayor
ATTEST:
Kelly Murtaugh, City Clerk
SEAL
X-A-03