Memo Mainstreet Reconstruction Sprinkler System6 ,
CITY OF HOPKINS
MEMORANDUM
DATE: 6 -27 -91
TO: Honorable Mayor and City Council
FROM: Jim Gessele, Engineering Superintendent 1c,
SUBJECT: Sprinkler System
Mainstreet Reconstruction
Council, at its workshop session on June 25, directed RLK
Associates and City staff to gather further information
concerning the three sprinkler system options presented for
reviewal. RLK was directed to compile hard figures in terms of
cost, subsidies, and funding. There also were legal issues to
40 address in terms of compliance with MS 429 (statutes governing
assessment).
Unfortunately, compilation of all this information will take
longer than the submittal deadline for this memorandum. Council
will have a full report and staff recommendations at the July 2
meeting.
JG: j
0 Sprinkler System report to the City Council
I. Background on the Sprinkler System program (see memorandum dated
6/18/91 to City staff, attached)
II. Current Sprinkler System Program available to property
owners in Hopkins.
A. See the attached brochure on sprinkler systems
B. 15 year assessment, 8% interest rate
C. RLK staff has contacted approximately 40 property owners,
50% of whom have indicated an interest'in the program and
want additional information.
D., Additional items available to property owners on the
program include a VHS 15 minute tape and two different
explanation of sprinkler systems.
III.: Design and Construction of the sprinkler system installation
A. System between the building structure and the watermain in
the street.,
1. Sprinkler systems need a 6" watermain from the street
to feed the building water system.
2. The contractor on the project intends to replace all
antiquated water service lines with new service lines;
estimated at 40 services.
3. The City will allow the 6" fire sprinkler line to be
used for domestic purposes (maximum service off of the fire
line is 1 1/2 inches), thus eliminating the need for an
additional 1" domestic service line.
4. Construction of a 6" water line to buildings on
Mainstreet will suffice for pressure and water flow for all
but a few unique cases, i.e. the proposed retail
development between 6th Avenue and 8th Avenue on the north
side of Mainstreet.
5. The delay to the street project because of 6" water
line installations will be minimal. This will be measured
in days and will not effect completion of Segment #3 in
1991 and Segment #4 in 1992. Forty service replacements
are contained in the bid specifications.
B. Placement of the sprinkler system within the buildings
adjacent to Mainstreet.
1. A separate contractor from the Mainstreet contractor
will need to be contracted to complete the work within the
building relating to the sprinkler system.
2. There are approximately 25 individual automatic fire
sprinkler system contractors available listed in the
business pages of the telephone book.
3. This work can go on simultaneously with the Mainstreet
str et improvements; there will be no delay.
Sprinkler system, City Council, June 25, 1991 Page 2
4. Significant administration by the City will need to be
completed for each of the installed sprinkler system.
IV. Economics of the Sprinkler installation program -- infrastructure
within the street right of way
A. Current program allows installation of a sprinkler system
and payment of the cost with an assessment spread over 15
years at 8% interest. The City Council on May 21, 1991
agreed to allow payment by the property owner of the
sprinkler system installation costs, including the int rnal
system to the building, in accordance with the general
assessment guidelines for the project.
B. The current proposed assessment for a 1" water service to
the building face is $1405.
C. There are several potential sprinkler installation systems
that could occur within the street right of way:
(all costs include .*a 25% overhead charge)
5th Avenue to 11th Avenue (north side):
1. 6" DIP water line from the main in the street to the
inside of the building basement wall. Seventeen buildings
are in this category. $4,900 each
2. 6" DIP water line from the main to the property line.
Three buildings are in this category. $4,000 each
5th Avenue to 11th Avenue (south side):
3. 6" DIP from the main to the inside of the building
basement wall. Fourteen buildings are in this category.
$5,500 each
11th Avenue to 12th Avenue (south side):
A
4. 6" DIP from the open main that,will be replaced in the
street to the inside of the basement wall. One building --
Suburban Chevrolet. $3,400
S. 6" DIP from the open main to the property line. One
water service is proposed. $1,900
12th Avenue to Shady Oak Road:
6. 6" DIP from the open main to the north side property
line. Thirteen properties are included. $1,900 each
7. 6" DIP from the open main to the north side structures
and taken inside the building structures. 9 buildings are
included. $2,800 each
8. 6" DIP -from the open main to the south side property
line. Six properties are involved. $2,500 each
Sprinkler system, City Council, June 25, 1991 Page
9. 6" DIP from the open main to the south side structures
and taken inside the building structures. Four structures
are involved. $3,400 each
D. Total cost for the nine situations that could occur
multiplied times the number of buildings involved in the 6"
installations (including 25% overhead). $256,100
Cost estimate is for 68 properties or $3,800 per property.
Currently, approximately 40 of these same properties will
spend $1405 each on a water service to their basement wall
(assessment rate).
V. Economics -- Sprinkler systems within the buildings
A. The City has completed several sprinkler system programs
during the past three years in privately owned buildings.
The range of :cost has been from $20,000 to $30,000 per
structure or approximately $25,000 per structure including
work in the street right of way.
B. If 68 properties opted for the sprinkler system, this would
equate to a financing principal sum of approximately
$1,700,000. Realistically, the number of 34 properties is
more realistic; approximate cost of $850,000.
C. These 68,properties would save the installation cost for
the water service 1" line of $1,400 each which equals
$95,200.
VI. Benefits of the Water Sprinkler System Program
A. Insurance savings each year of approximately $500 to 1500
per structure dependent upon specific circumstances.
B. Safer, more fire resistant buildings throughout downtown
Hopkins. Minimization of block long fire hazards if
consistent system implementation occurs.
C. Properties that are better investments, easier to rent and
more attractive to sell.
D. With the Mainstreet construction, this is a good time to
upgrade all of the infrastructure.
E. The City's Fire Marshall is extremely interested in the
sprinkling program for all of the Mainstreet properties and
will assist with the implementation.
VII. Conclusions, Recommendations
A. Sprinkler system would be a good investment for the City of
Hopkins to make at this time with Mainstreet under -going
major reconstruction.
B. Additional financial incentives may effect an increase in
the interest in the sprinkler service program.
Sprinkler system, City Council, June 25, 1991 Page
C. Staff has identifi d three options the City Council may
wish to consider:
1. A direct subsidy of $2,400 per property is recommended
if the property owner contracts to have the internal
sprinkler system installed. Worst case mathematics
indicates this would cost the City $163,200 if 68
properties engage the program. These same 68 property
owners would finance the estimated $22,600 cost per
property (after subsidy) which equals $1,536,800.
2. Construct 68 new 6 inch services to all unsprinkled
Commercial buildings and subsidize each at a $2,400 per
installation rate. This allows all the properties adjacent
to Mainstreet within the project area to have the necessary
feeder main to their building for sprinkling purposes. The
cost of this subsidy is $163,200.
3. Construct only those 6 inch services that are
requested and allow those property owners to utilize the
current program of 15 year payback at :8% interest.
D. The City would have to set up a bonding program for the
sprinkler system costs to finance the $1.5. million program.
E. A minimal time delay would occur with the Mainstreet
project as a result of the sprinkler program. However, the
work between 5th Avenue and 11th Avenue would be completed
in 1991; the work between 11th Avenue and Shady Oak Road
would be completed in 1992.
F. Administration of the program would require a review of
procedures and personnel to handle engineering,
inspections, loan applications, and construction bidding.
G. An immediate need exists to complete the 5th Avenue to 11th
Avenue segments along Mainstreet; by August 1st, planning,
for the water services needs to be completed. This
includes contractual agreements with the property owners.
H. The recommendation from the consultant and the City staff
is to implement alternative #1. This added to the current
program, alternative #3, is a very attractive incentive to
promote sprinkler systems in commercial buildings adjacent
to Mainstreet.
•
M E M O R A N D U M
DATE: June 18, 1991
TO: Tom Harmening, Community Development Direct
FROM: Dick Koppy, Mainstreet Construction ManagerJ�
SUBJECT. Sprinkler Systems, Summary of Issues
Questions have been raised about the installation of water services to
buildings adjacent to Mainstreet. The concern is whether a water
service can supply the joint purpose of a domestic water service and
fire service for an individual building. Additionally, the economics
of installing this service has been requested. This memorandum
attempts to explain the design, construction and economics of a single
water service installation for buildings adjacent to Mainstreet that
need a new water service and do not have sprinkler systems.
DESIGN: Many of the buildings adjacent to Mainstreet are in need of a
new water service because of "an antiquated existing water servic .
The existing water line may. be lead lined or jointed, or it may be
undersized for the existing land use. In any event, as part of the
Mainstreet improvements, it is planned to remove the existing
deteriorated, or under capacity, services and replace them with new
services of appropriate size.
in the case where a building is not currently sprinkled, the City'has
arranged a program where the property owner can place a fire line
service to the building and have it assessed with the other project
assessments under the same financial terms (see attachment #1). There
are 41 buildings along Mainstreet, that do not have sprinkler systems.
Attachment #2 is a schematic diagram of the Mainstreet project
indicating the properties that have sprinkler systems installed.
A 6" Ductile Iron Pipe (DIP) is recommended for fire line supply to
the building's sprinkler system in over 90% of the cases of the
properties adjacent to Wainstreet. The Hopkins Fire Marshall has
verified that the City does allow domestic water to be tapped off of a
fire line. This is done within the building after the shut -off valve.
Thus, the property owner or tenant will be immediately aware of the
fire protection service being shut -off, since their toilets and
faucets for the domestic service will not work either. Therefore, if
a,6" DIP is constructed for a property owner, the 1" copper service
line for domestic service within the street and boulevard area
not be necessary.
If buildings have joint plumbing and they can negotiate a joint
easement, or covenant, it will be possible to serve more than one
building with a 6" line. The final decision on this matter and the
sizing of the water line will be made by the City's Fire Marshall.
There are several other design matters that must be dealt with during
the specific design of the water system. For example, some properties
may need to be equipped with a detector valve. Others may request an
external indicator valve. All properties n ed to have an external
siamese connection. This requirement does not have to be met until
the internal fire protection system is compl ted. Each property must
be evaluated on a case by case basis.-
, CONSTRUCTION: C. S. McCrossan, Inc. is the apparent low bidder on the
project for the installation of streets and utilities. The
superintendent for this project has worked with the RLK Associates,
Ltd. staff and concurred with the material contained in this
memorandum. All of the construction on the water service lines in the
public right of way, whether 1" domestic copper lines or 6" DIP
domestic /fire service lines, will be done by the City's contractor.
Work on the water system internal to the building may be done by the
same contractor; or, the property owner could use a contractor of his
choice. When requested, McCrossan will prepare an estimate for the
property owner of the sprinkler system installation work prior to th
commencement of activities. If the property owner accepts the work
estimate and signs the appropriate agreement forms, work will begin
immediately, or as the contractor's schedule permits.
Placement of the 6" DIP versus the 1" copper pipe will not affect the
method of construction that is expected on Mainstreet. .Traffic will
be routed thru the construction area between 5th,Avenue and 11th
Avenue in the CBD area. West of 11thlAvenue, the $" watermain in the
street is being upgraded to a 12" watermain. Therefore, water _
services construction in this area will be simpler and less expensive.
Dependent upon the number of property owners who subscribe to the
program, the schedule for the Mainstreet construction could be
Slightly delayed. However, the schedule will not change with respect
to the overall construction program for 1991 and 1992. Work will be
completed on Mainstreet between 5th and 11th Avenue in 1991. The
remainder of the work between 11th Avenue and Shady Oak Road will be
completed in 1992.
ECONOMICS: Estimates of cost are explained thoroughly in attachment
#3 to this report. In the downtown atea, to bring a 6"' DIP main into
the adjacent building the cost is estimated at $4,300,. ,On the west
end of the project where the street will be removed because of the
utility installations, the cost is estimated at $2,625 if the water
line is brought into the building. If the building sets back from the
property line the cost estimate to plug the water main. at the property
line is $1,725. These costs do not include the project. overhead and
administration costs. Approximately 2511 should be added for this
feature. The table below summarizes these costs including overhead.
6" Water Service line internally capped within the building:
5th to 11th Avenue segment: $5,375
11th to Shady Oak Road segment: $3,275
6" Water Service line capped at the right of way line, no internal
building activity:
11th to Shady Oak Road segment: $2,150
i
•
•
At the May 21st City Council meeting, the City Council voted to assess
th utility work at the completion of construction based upon specific
xp rience. However, it was indicated that rates for a new water
s rvice line approximately 1" in size would be maintained at'$2,708,
including overhead. No distinction was made with this cost wh
the property was located east or west of 11th Avenue. It is
important to note that the placement of the 6" fire service line would
eliminate the need for the 1" domestic line and the associated cost.
The Insurance Service Office of Minnesota was contacted to ascertain
their view of costs for insurance on a specific building that was
equipped with and without an approved sprinkler system.` Two
properties were used as examples to gain specific,rate quotations --
922 Mainstreet and 1601 Mainstreet.
Properties
Without Sprinkler System
With Sprinkler System
922
Mainstreet
$1425 /year
$275 /year
1515
Mainstreet
$ 900 /year
$200 /year
'Rates are based upon the following assumptions.
1) 80% co- insurance per $100 of insurance as quoted by the Insurance
Service Offices.
2) Both buildings are assumed that they will be insured for $250,000
maximum fire loss.
It is difficult to estimate the cost of the internal sprinkler system
for any building without looking at each case. However, the City
staff has quoted cost estimates of $10,000 to $30,000 for the complete
sprinkler system, including the work within the street area.
Assuming a savings of $1,000 in insurance costs per year and spreading
these savings over approximately 20 years would•result in an r
amortization of the costs of the sprinkler system installation,
assuming the total sprinkler system installation costs are estimated
at $30,000.
CONCLUSION: The RLK staff has contacted nearly 25 of the property =
owners'that do not have sprinkler systems installed in their
properties. Approximately 75% of these property owners showed an
interest in the current City program.
If the City wishes to expand or revise its current sprinkler system
program, discussion on the revisions should occur at this time.
Information can then be passed onto the property owners and
appropriate exchange of agreement can be consummated.
CITY OF HOPKINS
FIRE PROTECTION SYSTEMS
PROGRAM
The City of Hopkins is offering a financial assistance program for Mainstreet property
owners to install their own fire protection system. The financing is available in the form
of a loan through a special assessment process. The following terns are being offered
in conjunction with the Mainstreet Improvement Project:
• 8% interest rate
• 15 year term - Repayment will be handled through the special
assessment process. Principal and interest will be paid along
with the property taxes for the property.
A "fire protection system" is defined as the pipes, standpipes, spriniders, control
.systems, hydrants and other devices :and equipment installed in or outside a building
for the primary purpose of eliminating or reducing the spread of fire in the building or
providing for safe evacuation of the building.
Business owners interested in upgrading' or installing fire protection systems can have
the work done the same time as the improvements are made through the Mainstreet
Improvement Project. Installing the water main from the street into your bulling can be
done; by the same contractor hired for the Mainstreet projecL Owners will be asked to
sign an assessment waiver to accelerate the process. -
Installing the actual sprinkler system in • your building can be done by a contractor of
your choice upon review and approval' by the City. The cast of all of the work will be
added to your Malnstreet Improvement Project assessment
Business owners are encouraged to - contact your insurance agent to find out how much
a fire• protection system can save you on your insurance premiums.
Because the contractor will have easy access to your Property, you wig also experience
=st savings ty do;n ti,e work a m during the Mainstreet Improvement Project.
NOW IS THE TIME TO UPGRADE YOUR FIRE
PROTECTION SYSTEM! ,
For More Infonnation On The Fire' Protection System Program,
Cali George Magdal, Hopkins Fire Marshal, At 935 -5474
Or Richard Koppy, Mainstreet Project Manager, At 9334)972