HomeMy WebLinkAboutX-A-02 Resolution Approve 4th Street Water Tower Reconditioning Plans with Exception to Prevailing Wage Policy and Uthorize Advertisements for Bids City Council Memorandum
To: Mayor Fasbender & City Council Members
From: Ryan Stempski – Public Works Director/City Engineer
Date: January 12, 2022
Item: Consider Resolution to Approve 4th Street 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 4th Street 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 4th Street 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 (an
experienced engineering company in the water tower industry) 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 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,
which makes it a challenging market to jump into.
FINANCIAL IMPACT:
KLM further advised that most cities do not require prevailing wage rates when rehabilitating their water towers.
For the 4th Street Water Tower Reconditioning Project, KLM estimates an increase up to $200,000 if the
Prevailing Wage Policy were to apply. This would thereby increase the engineer’s construction estimate from
$1,400,000 to $1,600,000.
OPERATIONS COMMITTEE RECOMMENDATION:
The Operations Committee met on January 4, 2022, to include a discussion regarding prevailing wages on the 4th
Street Water Tower Reconditioning Project. Due to the unique nature of the project, specialized labor involved,
limit of approximately five qualified contractors, and the potential cost implications, the Operations Committee
recommended the project obtain City Council exception to the Prevailing Wage Policy on City Projects prior to
bidding out the project.
ATTACHMENTS
Resolution Approving the Project with Exception to the Prevailing Wage Policy on City Projects and Authorizing
the Advertisement for Bids
X-A-02
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 4TH STREET 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 $1,400,000 to $1,600,000 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 City Engineer 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 18th DAY OF JANUARY, 2022.
Ayes:
Nays:
Mary D. Fasbender, Mayor
ATTEST:
Kelly Murtaugh, City Clerk
SEAL
X-A-02