CR 2013-110 Approve Water Tower Maintenance Agreementm
Cite of Hopkin
October 15, 2013 Council Report 2013-110
Approve Water Tower Maintenance Agreement
Proposed Action
Staff recommends adoption of the following motion: Move that Council adopt resolution
2013-067 Approving Water Tower Maintenance Agreement.
Overview
As we have discussed at previous meetings, as our water towers age, it is important to
increase the frequency and intensity of the preventive maintenance regimen on these
facilities. To meet this important challenge, staff has selected SEH Design Build, Inc. to
provide the maintenance including repainting the towers over the next 14 years.
The primary benefits of procuring these services in this manner are having an
experienced service provider that has successfully worked with Hopkins in the past and a
long term warranty on the coating systems that is unavailable in a conventional design
bid manner.
If approved, the contact is worth $1,529,400 over the 14 years. Approximately $1
Million of this cost is for the re -painting of the towers, $400,000 is for pressure washing
and repair every 5 years. The remaining $100,000 is for annual inspection and
maintenance. The recently completed Utility Rate Study has taken this expenditure into
account.
The attached contracts included a detailed schedule and necessary improvements in year
one.
Supporting Information
• Contract documents
• Resolution 2013-067
l
John R. Bradford, P.E., City Engi eer
Financial Impact: $1,529,400 Budgeted: Y/N Y Source: Water Fund
Related Documents (CIP, ERP, etc.): Utility Rate Study
Notes:
AGREEMENT
THIS WATER TANK MAINTENANCE SERVICES AGREEMENT (hereinafter called "Agreement") is made as of the
15s' day of October, 2013 (the "Effective Date") by and between the City of Hopkins, Minnesota (hereinafter called
"Owner") and SEH Design/Build, Inc., with its principal place of business at St. Paul, Minnesota (hereinafter called "SEH
DIB").
In consideration of the agreements hereinafter contained, the parties hereto agree as follows:
1. SCOPE OF SERVICES
The Owner retains SEH D113 to fiunish the services set forth on the attached Exhibit "A". SEH DIB agrees to perform
the services. SEH DIB shall provide all personnel, supervision, services, materials, tools, equipment and supplies and do
all things necessary for the Water Tank Services and all materials, equipment and improvements ancillary thereto
specified on Exhibit "A" (Sometimes referred to herein as "the Project").
The Project bound by this Agreement is:
The Blake legged tank, located south of Excelsior Boulevard and south and west of the Blake School.
The adjacent address to the west is 137 Harrison Avenue South, in Hopkins, Minnesota.
The work to be performed under this Agreement shall be done under the review of a professional engineer licensed in the
State of Minnesota, who shall attest that the work will be performed in compliance with all applicable codes and
engineering standards.
All procurement and construction shall be in accordance with drawings, specifications or other documents to be prepared
by SEH DIB in accordance with design premises, performance requirements and other criteria set forth or referenced in
the Exhibits hereto. The work shall be performed as set forth in the Contract Documents, which includes this Agreement
and Exhibits, including Exhibit "X'— Schedule and Scope of Services and Exhibit `B" — Compensation Schedule. In
the event any ambiguity or conflict between the Contract Documents listed above, the order of precedence shall be the
following order: (i) this Agreement; (ii) Exhibit 'W', (iii) Exhibit `B".
2. REPRESENTATIVES
Owner has designated , for the City of Hopkins, MN (the "Owner Representative"),
and SEH DIB has designated Mr. Jason Sprague (the "SEH DIB Representative'). The Owner Representative and
the SEH DIB Representative shall be available as often as is reasonably necessary for reviewing the Water Tank
Services, providing required information or decisions, and for authorizing changes therein as may be required.
3. COMPENSATION
SEH DIB shall be paid by the Owner for the services described in paragraph 1 in accordance with the amounts
designated in Exhibit B for each year of service, inclusive of reimbursable costs.
4. INVOICING
4.1 The invoice for the first year fee will be submitted upon completion of the work done in the first year.
Invoices for the subsequent fees will be submitted in the anniversary month of this Agreement.
4.2 Invoices for change orders shall be separately mailed and billed as outlined in the Change Order.
4.3 Amounts more than 30 days past due shall accrue interest at the lesser of 1.5% per month or at the
maximum rate allowed by law. If the Owner fails to make timely payment, SEH DIB may suspend work
until receipt of payment.
4.4 If any of the payments listed in Exhibit B and due as set out above exceed the total water utility charges
received for the Owner for the year payments are due (" Water Utility Charges"), then the Owner may
Page 1 City of Hopkins, Minnesota
�SEHDesignlBuild, Inc.
extend payments, and such amounts shall become due upon the Owner's receipt of additional Water Utility
Charges. Owner agrees to increase, assess or adjust Water Utility Charges as necessary to secure funds for
payment within a reasonable time.
4.5 Invoices for services required for the engineering, repair and services required to bring the water tank or
appurtenant facilities into compliance with applicable federal, state and local codes shall be separately itemized
by SEH DIB.
4.6 The maximum payment due from the Owner shall not exceed the total Water Utility Charges and fees collected
by the Owner in the ordinary course of business.
5. COMPLETION
SEH DIB has prepared a schedule in the attached Exhibit A that identifies the duration of the contract, including the
overall contract length and intermediate project milestones and completion dates. This schedule is subject to
adjustment as allowed or required by this Agreement, the Owner, and SEH DIB.
6. SUBCONTRACTING
The subcontracting of any portion of the Work shall not relieve SEH DIB of responsibility for the performance of
the Work, as provided hereunder. However, SEH DIB shall have the right to subcontract such portions of the Work
as it shall determine to others, including any affiliates of SEH DIB ("Affiliates").
7. OWNER RESPONSIBILITIES
7.1 TELECOMMUNICATIONS
7.1.1 Owner recognizes that any telecommunications equipment located on the water tank(s) or
appurtenant facilities may interfere with the work contemplated in this Agreement. If requested
by SEH DIB, Owner agrees to arrange for the owner of any telecommunications equipment
located on the water tank(s) or appurtenant facilities to remove or protect telecommunications
equipment during the Work. SEH DIB cannot and will not remove such equipment and the
removal of such equipment by the Owner or the owner of such equipment is a condition precedent
to SEH DNB's obligations under this Agreement.
7.1.2 Owner will also arrange for the reinstallation of the telecommunications equipment after SEH DIB
has notified the Owner that rehabilitation work has been completed or that the work has proceeded
to the point where such equipment may be reinstalled. SEH DIB shall have no responsibility for
the reinstallation of the telecommunications equipment.
7.1.3 Owner acknowledges that SEH DIB cannot be responsible for any damage to the
telecommunications equipment during the removal and reinstallation of the existing equipment.
As a result, Owner will indemnify, defend and hold SEH DIB harmless against any and all claims,
damages, suits, disbursements or other costs including reasonable attorneys' fees incurred by SEH
DIB as a result of removal and/or reinstallation of the existing telecommunications equipment.
7.1.4 Work that results from the proposed or actual installation of future telecommunications or other
equipment that is anchored to or otherwise attaches to the tank structure or appurtenances is not
included as part of this work. Owner agrees that SEH DIB will have the right to review, approve
and inspect all proposed/future telecommunications equipment installations during the term of this
contract. SEH DAB shall be compensated in accordance with its then current hourly rates for such
work as an additional service. SEH DIB shall bill Owner for these services through a separate
invoice for this work.
Page 2 City of Hopkins, Minnesota
SEH Design IBuild, Inc.
7.2 PROJECT INFORMATION
7.2.1 The Owner shall furnish all surveys, record drawings, and other information describing legal
limitations, physical conditions, soils and subsurface conditions and utility locations material to
the Work. The Owner shall provide SEH DIB with copies of all prior evaluations, studies, reports,
or existing documentation regarding the condition of Water Tanks, or any concerns or complaints
regarding the condition or operation of the Tank(s) or other work subject to this Agreement. The
Owner shall secure and pay for necessary permits, approvals, variances, easements, assessments
and charges required for the construction, use or occupancy of the Water Tank. If the Owner
becomes aware of any fault or defect in the Project, it shall give prompt notice thereof to the SEH
DIB.
8. INDEMNIFICATION
To the fullest extent permitted by law, SEH DIB agrees to defend and indemnify the Owner, at its officers,
employees, agents, contractors, volunteers and public officials, from and against all claims, damages, losses, and
expenses, including attorney fees, attributable to the negligent, or otherwise wrongful act or omission, including
breach of a specific contractual duty, of SEH DIB, its employees, agents, contractors, or delegates under this
Agreement.
9. INSURANCE
SEH DIB shall secure and maintain such insurance as will protect SEH DIB from claims under the Worker's
Compensation Acts, automobile liability, and from claims for bodily injury, death, or property damage which may arise
from the performance of services under this Agreement. Such insurance shall be written for amounts not less than:
Commercial General Liability $1,000,000 each occurrence/aggregate
Automobile Liability $1,000,000 combined single limit
Excess/Umbrella Liability $2,000,000 each occurrence/aggregate
The Owner shall be named as an additional insured on the general liability and umbrella policies.
SEH DIB or its engineering subconsultant shall secure and maintain a professional liability insurance policy. Said policy
shall insure payment of damages for legal liability arising out of the performance of professional services for the Owner,
in the insured's capacity as engineer, if such legal liability is caused by a negligent act, error or omission of the insured or
any person or organization for which the insured is legally liable. Said policy shall provide minimum limits of
$1,000,000 with a deductible maximum of $200,000 unless the Owner agrees to a higher deductible.
Before commencing work, SEH DIB shall upon written request, provide the Owner a certificate of insurance evidencing
the required insurance coverage in a form acceptable to Owner. The certificate shall provide that such insurance cannot
be cancelled until thirty (30) days after the Owner has received written notice of the insurer's intention of cancel this
insurance.
10. INDEPENDENT CONTRACTOR
The Owner hereby retains the SEH DIB as an independent contractor upon the terms and conditions set forth in this
Agreement. The SEH DIB is not an employee of the Owner and is free to contract with other entities as provided herein.
SEH DIB shall be responsible for selecting the means and methods of performing the work. SEH DAB shall furnish any
and all supplies, equipment, and incidentals necessary for SEH DNB's performance under this Agreement. Owner and
SEH DIB agree that SEH DIB shall not at any time or in any manner represent that SEH DIB or any of SEH DNB's agents
or employees are in any manner agents or employees of the Owner. SEH DIB shall be exclusively responsible under this
Agreement for SEH DNB's own FICA payments, workers compensation payments, unemployment compensation
payments, withholding amounts, and/or self-employment taxes if any such payments, amounts, or taxes are required to
be paid by law or regulation.
EHDesignlBuild, Inc. Page 3 City of Hopkins, Minnesota
11. CHANGE ORDERS
11.1 The Owner may request that SEH DAB perform additional services not originally included in the basic
services identified in Exhibit A. No such work may be done until after the Owner has approved the change
order in writing Upon such a request by Owner, SEH DIB will generate a Change Order in writing
describing the additionally requested Work and the anticipated compensation for undertaking that Work. .
11.2 In any emergency affecting the safety of persons or property, SEH DIB shall act, at its discretion, to prevent
threatened damage, injury or loss. If the emergency was not the result of SEH DNB's fault, SEH DIB will be
entitled to an equitable contract adjustment to compensate SEH DIB for its services.
11.3 All Change Orders shall include:
11.3.1 A detailed description of the Change Order Work to be performed.
11.3.2 The amount of any adjustment (up or down) to the SEH DIB contract for the Work done pursuant
to Change Order.
11.3.3 A modification of the project schedule if necessitated by the Change Order Work.
11.4 SEH DIB may request a change order if it believes work outside the scope of services has been requested or
is needed. All such change orders must be approved in writing by the Owner before the work is done.
12. TERM AND TERMINATION
12.1 Either party may terminate this Agreement prior to the expiration of the 14 -year term for material breach of
this Agreement, provided such breach is not cured as set forth below.
12.2 If either party believes that the other has materially breached the agreement, then the party alleging the
breach shall give the other 15 days written notice setting forth the nature of the claimed breach and
confirming the intent to terminate. The party claimed to be in breach will then have 15 days to cure the
condition which constitutes the alleged material breach of the contract, or demonstrate that no breach
exists. If the party in breach fails to correct the breach or demonstrate no breach exists, the agreement will
terminate upon two days written notice.
12.3 The Owner may, at any time, terminate this Agreement for the Owner's convenience without cause upon
30 days written notice. In the event the Owner terminates this Agreement for convenience, SEH DIB shall:
12.3.1 Cease operations as directed by the Owner in its notice;
12.3.2 Take actions as necessary or as the Owner may direct for the protection and preservation of the
Work; and
12.3.3 Except for work directed to be performed prior to the effective date of the termination for
convenience, terminate all existing subcontracts and purchase orders, and enter in to no farther
subcontracts and purchase orders.
12.3.4 Determine the total amount due for services performed prior to the effective date of the
termination for convenience.
12.5 In the event of termination for convenience by the Owner, SEH DIB shall be entitled to receive payment for
all Work executed per this Agreement, and any Work Orders or Change Orders.
12.6 In the event of termination for cause prior to the expiration of the term of this Agreement or any Work
Order, Owner shall pay to SEH DIB the remaining amount due for the Work performed and all claims shall
be resolved as set forth in the applicable Work Order. Such payment shall be due within 30 days of
termination. Payments not received by the last day of the month shall be overdue and will accrue interest at
a rate of 1.5% per month or the maximum rate allowed by law whichever is less.
Page 4 City of Hopkins, Minnesota
SEHDesignl Build, Inc.
13. ASSIGNMENT
Neither party shall assign this Agreement, nor any interest arising herein, nor any claims arising from or related to this
Agreement or the Project, without the written consent of the other party. Any assignment in violation of this provision
shall be null and void. Notwithstanding the above, SEH DIB reserves the right to assign its right(s) for payments due
under this Agreement to a bank, credit union or other lending institution or entity in return for immediate payments,
financing of work under this Agreement or other good and valuable consideration, and Owner hereby consents to such
assignment.
14. WAIVER
Any waiver by either party of a breach of any provisions of this Agreement shall not affect, in any respect, the validity of
the remainder of this Agreement.
15. ENTIRE AGREEMENT
The entire agreement of the parties is contained herein. This Agreement supersedes all oral agreements and negotiations
between the parties relating to the subject matter hereof as well as any previous agreements presently in effect between
the parties relating to the subject matter hereof. Any alterations, amendments, deletions, or waivers of the provisions of
this Agreement shall be valid only when expressed in writing and duly signed by the parties, unless otherwise provided
herein.
16. CONTROLLING LAW
This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. All parties to
this Agreement consent to and accept the personal jurisdiction of the State of Minnesota and agree that all claims,
disputes or litigation that arises from or relates to this Agreement shall be made in the State of Minnesota.
17. COPYRIGHT
SEH DIB shall defend actions or claims charging infringement of any copyright or patent by reason of the use or
adoption of any designs, drawings or specifications supplied by it for the Project, and it shall hold harmless the
Owner from loss or damage resulting there from for use of these documents for the Project. Owner shall not use any
designs, drawings or specifications supplied by SEH DIB for any other project without the express written consent
of SEH DIB.
18. RECORDS
The SEH DIB shall maintain complete and accurate records of time and expense involved in the performance of services.
19. BINDING EFFECT, THIRD PARTIES
Each of the provisions of the Contract Documents shall extend to and shall, as the case may require, bind or inure to
the benefit not only of the parties, but also for their respective successors, heirs or assigns, provided this clause shall
not permit any assignment by any party of the Contract Documents not otherwise permitted. The parties agree that
the Contract Documents are not intended by either party to give any benefits, rights, privileges, actions or remedies
to any person, partnership, firm or corporation (other than a party or its permitted assignee, or, to the extent
applicable, any Affiliates) as a third party beneficiary or otherwise under any theory of law.
20. MISCELLANEOUS
20.1 This Agreement states the integrated and complete Agreement between Owner and SEH DIB on this
subject and replaces any previous understandings, representations or communications, whether oral or
written.
Page 5 City of Hopkins, Minnesota
/� EHDesign�Build, Inc.
20.2 A party's failure to exercise a right in one or many instances does not waive that right as to any later
instance. The course of conduct does not affect a modification or a waiver unless ratified in writing by the
party to be bound.
20.3 In the event of any litigation between the parties related to this Agreement or its breach, each party will be
responsible for its own attorney's fees together with expert's fees and other costs.
20.4 The section headings of this Agreement are included for purposes of convenience only and will not affect the
construction or interpretation of any provision.
20.5 All provisions of this Agreement allocating responsibility between the Owner and SEH DIB will survive
the completion of the Work or termination of this Agreement.
20.6 Any provision or part of this Agreement adjudicated to be void or unenforceable under any law will be
deemed deleted, such deletion to apply only with respect to the jurisdiction in which such adjudication is
made, and all remaining provisions will continue to be valid and binding upon the parties. The parties agree
that this Agreement will be reformed to replace the deleted provision or part thereof with a valid and
enforceable provision that comes as close as possible to expressing the intention of the deleted provision.
20.7 SEH DIB warrants and guarantees to Owner that all material and work will be in accordance with the contract
documents and will not be defective. SEH DIB shall provide a manufactures warrant on paint of at least ten
years in a form acceptable to the Owner.
IN WITNESS WHEREOF, the parties hereto through their respective authorized representatives have executed
this Agreement as of the day and year first written above.
OWNER
BY:
Its:
Dated:
SEH DESIGNBUILD, INC.
IM
Its:
Dated:
Page 6 City of Hopkins, Minnesota
SEH Design IBuild, Inc.
EXHIBIT A
SCHEDULE OF SERVICES
NIAINTENANCEPLAN YEAR
500,000 GALLON LEGGED TANK 1 2013 1 2014 1 2015 1 2016 1 2017 1 2018 1 2019 1 2020 1 2021 1 2022 1 2023 1 2024 1 2025 1 2026
REHABILITATION
Overcoat System (Exterior)
X
New Coating System (Wet Interior)
X
Accessory Modifications and Repairs
X
Quality Assurance Inspections
X
VISUAL SURVEY
Coating Observation (Exterior)
(Wet Interior)
X
X
X
X
X
X
X X
X X
X
X
X
X
X
X
X
X
X
X
Accessory Observation
X
X
X
X X
X
X
X
X
X
Summary Statement
GENERAL MAINTENANCE
X
X
X
X X
X
X
X
X
X
Pressure Wash (Exterior)
(Wet Interior)
X
X
X
X
X
X
Spot Coating Repairs (Exterior)
(Wet Interior)
X
X
X
X
Minor Accessory Repairs
X
X
Quality Assurance Inspections
X
X
Coating Testing (Exterior)
and Analysis (Wet Interior)
X
X
X
X
Five-year AW WA Inspection
X
X
Tank Accessories Inspection
X
X
Report with Recommendations
X
X
❑ No warranty is expressed or implied on the existing tank coating prior to reWhilitation.
EXHIBIT A
SCOPE OF SERVICES
Tank
Blake 500,000 Gallon Legged Tank
Name:
City of Hopkins, MN
Year: 2013
1
Exterior:
3.
• Pressure wash surfaces to remove contaminants and mildew.
2.
Wet Interior:
5
• Pressure wash surfaces to remove contaminants and staining.
Years: 2014 to 2015
1.
Yearly Visual Surveys:
1
• Full tank inspection (wet interior does not have to be drained).
• Summary Report.
Year: 2016
1.
Install a new screened flap gate at the discharge end of the overflow pipe.
2
Install a new 30 in. diameter hatch in the riser pipe. Install the new hatch in the location of the current 12 in. by
18 in. hatch.
3.
Seal the hole in the neck of the vent flange on the roof.
4.
The concrete foundations and grout will be coated to help prevent deterioration.
5
The sidewall/roof ladder will be replaced with a vertical ladder and a step off platform with handrails that
connect to the new roof handrail. This will make the ladder easier and safer to use.
6
Install a new 16 ft. diameter OSHA compliant handrail on the roof. The handrail will increase safety while
working on the roof. The new handrail will connect to the ladder walkway handrails.
7.
Install a new 30 in. hatch to the wet interior inside the new roof handrail. This hatch can be installed over the
existing location of the tombstone shaped hatch. Install a lock on the new hatch to the wet interior on the roof.
City of Hopkins, Minnesota
SEH Design IBuild, Inc.
Tank
Name:
Blake 500,000 Gallon Legged Tank
City of Hopkins, MN
Yearly Visual Surveys:
Exterior:
• Full tank inspection (wet interior does not have to be drained).
• Pressure wash all surfaces to remove contaminants, mildew and scale.
• Summary Report.
• Power tool clean all coating failure and rusted areas on exterior surfaces to equivalent of SSPC-SP3 Power
g'
Tool Cleaning Condition.
• Apply two coats of epoxy and one coat of urethane with UV protection (AWWA Outside Paint System
• To all power tool cleaned areas, apply epoxy primer coating system.
No. 5) to prepared areas.
• Apply one full coat of urethane with UV protection to the entire tank.
Wet Interior:
• New paint scheme to match existing paint scheme.
• Pressure wash surfaces to remove contaminants and staining.
• Reapply the lettering/logo on the exterior to match the existing tank lettering/logo.
• Power tool clean rusted areas on wet interior surfaces to equivalent of SSPC-SP 11 Power Tool Cleaning to
Wet Interior:
Bare Metal Condition.
• Complete removal of existing coating system on the wet interior surfaces to equivalent of SSPC-SP10 Near
• Apply two coats of epoxy coating (AWWA Inside Paint System No. 1) to prepared areas.
White Blast Cleaning Condition.
g
• Provide special hazardous waste considerations if required.
Engineering Evaluation:
• Apply two coats of epoxy coating that is approved for use in potable drinking water tanks (AWWA Inside
• Inspection of the exterior and wet interior coatings.
Paint System No. 1).
• Wet interior will be drained and coincide with the wet interior pressure wash and coating repairs.
• Caulk the roof beams and seams.
• Tank accessories inspection.
• Disinfect the tank interior per AWWA C652.
Years: 2017 to 2020
Yearly Visual Surveys:
1 •
• Full tank inspection (wet interior does not have to be drained).
i
• Summary Report.
Year: 2021
Exterior:
• Pressure wash surfaces to remove contaminants and mildew.
i
• Power tool clean rusted areas on exterior surfaces to equivalent of SSPC-SP 3 Power Tool Cleaning
Condition.
• Apply two coats of epoxy and one coat of urethane with UV protection (AWWA Outside Paint System
No. 5) to prepared areas.
Wet Interior:
• Pressure wash surfaces to remove contaminants and staining.
2.
• Power tool clean rusted areas on wet interior surfaces to equivalent of SSPC-SP 11 Power Tool Cleaning to
Bare Metal Condition.
• Apply two coats of epoxy coating (AWWA Inside Paint System No. 1) to prepared areas.
• Disinfect the tank interior per AWWA C652.
Engineering Evaluation:
• Inspection of the exterior and wet interior coatings.
3.
• Wet interior will be drained and coincide with the wet interior pressure wash and coating repairs.
• Tank accessories inspection.
• Report with recommendations.
City of Hopkins, Minnesota
-- `= SEH Design IBuild, Inc.
Years: 2022 to 2025
Yearly Visual Surveys:
1
• Full tank inspection (wet interior does not have to be drained).
1
• Summary Report.
Year: 2026
Exterior:
• Pressure wash surfaces to remove contaminants and mildew.
1
• Power tool clean rusted areas on exterior surfaces to equivalent of SSPC-SP 3 Power Tool Cleaning
Condition.
• Apply two coats of epoxy and one coat of urethane with UV protection (AWWA Outside Paint System
No. 5) to prepared areas.
Wet Interior:
• Pressure wash surfaces to remove contaminants and staining.
2.
• Power tool clean rusted areas on wet interior surfaces to equivalent of SSPC-SP 11 Power Tool Cleaning to
Bare Metal Condition.
• Apply two coats of epoxy coating (AWWA Inside Paint System No. 1) to prepared areas.
• Disinfect the tank interior per AWWA C652.
Engineering Evaluation:
• Inspection of the exterior and wet interior coatings.
3.
• Wet interior will be drained and coincide with the wet interior pressure wash and coating repairs.
• Tank accessories inspection.
• Report with recommendations.
City of Hopkins, Minnesota
SEH Design IBuild, Inc.
1*141,11113Yr:3
COMPENSATION SCHEDULE
In return for the services rendered in Exhibit A, the Owner agrees to compensate SEH DIB in accordance with the following
schedule of payments. The first payment shall be invoiced upon completion of the work tasks identified in 2013.
Each additional annual payment shall be invoiced on the anniversary date of the year #1 work completion.
Maintenance contract costs can be paid as incurred on an annual basis, or may be amortized over the 14 -year maintenance
plan into an equal annual payment, or an equal annual payment that is adjusted for inflation during the term of the contract.
The Owner may select from the following payment options:
City of Hopkins, Minnesota
SEHDesignIBuild, Inc.
Variable
Payment
(pay-as-you-go)
Equal Annual
Payment
Equal Annual
Payment
(inflationary)
2013
$37,000
$44,900
$36,839
2014
$6,000
$44,900
$37,979
2015
$6,000
$44,900
$39,153
2016
$336,200
$44,900
$40,364
2017
$6,000
$44,900
$41,613
2018
$6,000
$44,900
$42,900
2019
$6,000
$44,900
$44,227
2020
$6,000
$44,900
$45,574
2021
$51,000
$44,900
$46,941
2022
$6,000
$44,900
$48,349
2023
$6,000
$44,900
$49,799
2024
$6,000
$44,900
$51,293
2025
$6,000
$44,900
$52,832
2026
$51,000
$44,900
$54,417
Totals:
$535,200
$628,600
$632,280
City of Hopkins, Minnesota
SEHDesignIBuild, Inc.
AGREEMENT
THIS WATER TANK MAINTENANCE SERVICES AGREEMENT (hereinafter called "Agreement") is made as of the
15`h day of October, 2013 (the "Effective Date") by and between the City of Hopkins, Minnesota (hereinafter called
"Owner") and SEH Design/Build, Inc., with its principal place of business at St. Paul, Minnesota (hereinafter called "SEH
DIB").
In consideration of the agreements hereinafter contained, the parties hereto agree as follows:
1. SCOPE OF SERVICES
The Owner retains SEH DIB to furnish the services set forth on the attached Exhibit "A". SEH DIB agrees to perform
the services. SEH DIB shall provide all personnel, supervision, services, materials, tools, equipment and supplies and do
all things necessary for the Water Tank Services and all materials, equipment and improvements ancillary thereto
specified on Exhibit "A" (Sometimes referred to herein as "the Project").
The Project bound by this Agreement is:
The Moline standpipe, located south of Excelsior Boulevard and east of 1P Avenue South, at 10421
Excelsior Boulevard, in Hopkins, Minnesota.
The work to be performed under this Agreement shall be done under the review of a professional engineer licensed in the
State of Minnesota, who shall attest that the work will be performed in compliance with all applicable codes and
engineering standards.
All procurement and construction shall be in accordance with drawings, specifications or other documents to be prepared
by SEH DIB in accordance with design premises, performance requirements and other criteria set forth or referenced in
the Exhibits hereto. The work shall be performed as set forth in the Contract Documents, which includes this Agreement
and Exhibits, including Exhibit "N'— Schedule and Scope of Services and Exhibit `B" — Compensation Schedule. In
the event any ambiguity or conflict between the Contract Documents listed above, the order of precedence shall be the
following order: (i) this Agreement; (ii) Exhibit "A", (iii) Exhibit `B".
2. REPRESENTATIVES
Owner has designated , for the City of Hopkins, MN (the "Owner Representative"),
and SEH DIB has designated Mr. Jason Sprague (the "SEH DAB Representative"). The Owner Representative and
the SEH DIB Representative shall be available as often as is reasonably necessary for reviewing the Water Tank
Services, providing required information or decisions, and for authorizing changes therein as may be required.
3. COMPENSATION
SEH DIB shall be paid by the Owner for the services described in paragraph 1 in accordance with the amounts
designated in Exhibit B for each year of service, inclusive of reimbursable costs.
4. INVOICING
4.1 The invoice for the first year fee will be submitted upon completion of the work done in the first year.
Invoices for the subsequent fees will be submitted in the anniversary month of this Agreement.
4.2 Invoices for change orders shall be separately mailed and billed as outlined in the Change Order.
4.3 Amounts more than 30 days past due shall accrue interest at the lesser of 1.5% per month or at the
maximum rate allowed by law. If the Owner fails to make timely payment, SEH DIB may suspend work
until receipt of payment.
4.4 If any of the payments listed in Exhibit B and due as set out above exceed the total water utility charges
received for the Owner for the year payments are due (" Water Utility Charges"), then the Owner may
Page 1 City of Hopkins, Minnesota
SEHDesignIBuild, Inc.
extend payments, and such amounts shall become due upon the Owner's receipt of additional Water Utility
Charges. The Owner agrees to increase, assess or adjust Water Utility Charges as necessary to secure funds
for payment within a reasonable time.
4.5 Invoices for services required for the engineering, repair and services required to bring the water tank or
appurtenant facilities into compliance with applicable federal, state and local codes shall be separately itemized
by SEH DIB.
4.6 The maximum payment due from the Owner shall not exceed the total Water Utility Charges and fees collected
by the Owner in the ordinary course of business.
5. COMPLETION
SEH DIB has prepared a schedule in the attached Exhibit A that identifies the duration of the contract, including the
overall contract length and intermediate project milestones and completion dates. This schedule is subject to
adjustment as allowed or required by this Agreement, the Owner, and SEH DIB.
6. SUBCONTRACTING
The subcontracting of any portion of the Work shall not relieve SEH DIB of responsibility for the performance of
the Work, as provided hereunder. However, SEH DAB shall have the right to subcontract such portions of the Work
as it shall determine to others, including any affiliates of SEH DIB ("Affiliates").
7. OWNER RESPONSIBILITIES
7.1 TELECOMMUNICATIONS
7.1.1 Owner recognizes that any telecommunications equipment located on the water tank(s) or
appurtenant facilities may interfere with the work contemplated in this Agreement. If requested
by SEH DIB, Owner agrees to arrange for the owner of any telecommunications equipment
located on the water tank(s) or appurtenant facilities to remove or protect telecommunications
equipment during the Work. SEH DIB cannot and will not remove such equipment and the
removal of such equipment by the Owner or the owner of such equipment is a condition precedent
to SEH DNB's obligations under this Agreement.
7.1.2 Owner will also arrange for the reinstallation of the telecommunications equipment after SEH DIB
has notified the Owner that rehabilitation work has been completed or that the work has proceeded
to the point where such equipment may be reinstalled. SEH DIB shall have no responsibility for
the reinstallation of the telecommunications equipment.
7.1.3 Owner acknowledges that SEH DIB cannot be responsible for any damage to the
telecommunications equipment during the removal and reinstallation of the existing equipment.
As a result, Owner will indemnify, defend and hold SEH DIB harmless against any and all claims,
damages, suits, disbursements or other costs including reasonable attorneys' fees incurred by SEH
DIB as a result of removal and/or reinstallation of the existing telecommunications equipment.
7.1.4 Work that results from the proposed or actual installation of future telecommunications or other
equipment that is anchored to or otherwise attaches to the tank structure or appurtenances is not
included as part of this work. Owner agrees that SEH DIB will have the right to review, approve
and inspect all proposed/future telecommunications equipment installations during the term of this
contract. SEH DIB shall be compensated in accordance with its then current hourly rates for such
work as an additional service. SEH DIB shall bill Owner for these services through a separate
invoice for this work.
SEHDesignl Build, Inc. Page 2 City of Hopkins, Minnesota
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7.2 PROJECT INFORMATION
7.2.1 The Owner shall furnish all surveys, record drawings, and other information describing legal
limitations, physical conditions, soils and subsurface conditions and utility locations material to
the Work. The Owner shall provide SEH DIB with copies of all prior evaluations, studies, reports,
or existing documentation regarding the condition of Water Tanks, or any concerns or complaints
regarding the condition or operation of the Tank(s) or other work subject to this Agreement. The
Owner shall secure and pay for necessary permits, approvals, variances, easements, assessments
and charges required for the construction, use or occupancy of the Water Tank. If the Owner
becomes aware of any fault or defect in the Project, it shall give prompt notice thereof to the SEH
DAB.
8. INDEMNIFICATION
To the fullest extent permitted by law, SEH DIB agrees to defend and indemnify the Owner, at its officers,
employees, agents, contractors, volunteers and public officials, from and against all claims, damages, losses, and
expenses, including attorney fees, attributable to the negligent, or otherwise wrongful act or omission, including
breach of a specific contractual duty, of SEH DAB, its employees, agents, contractors, or delegates under this
Agreement.
9. INSURANCE
SEH DIB shall secure and maintain such insurance as will protect SEH DIB from claims under the Worker's
Compensation Acts, automobile liability, and from claims for bodily injury, death, or property damage which may arise
from the performance of services under this Agreement. Such insurance shall be written for amounts not less than:
Commercial General Liability $1,000,000 each occurrence/aggregate
Automobile Liability $1,000,000 combined single limit
Excess/Umbrella Liability $2,000,000 each occurrence/aggregate
The Owner shall be named as an additional insured on the general liability and umbrella policies.
SEH DIB or its engineering subconsultant shall secure and maintain a professional liability insurance policy. Said policy
shall insure payment of damages for legal liability arising out of the performance of professional services for the Owner,
in the insureds capacity as engineer, if such legal liability is caused by a negligent act, error or omission of the insured or
any person or organization for which the insured is legally liable. Said policy shall provide minimum limits of
$1,000,000 with a deductible maximum of $200,000 unless the Owner agrees to a higher deductible.
Before commencing work, SEH DIB shall upon written request, provide the Owner a certificate of insurance evidencing
the required insurance coverage in a form acceptable to Owner. The certificate shall provide that such insurance cannot
be cancelled until thirty (30) days after the Owner has received written notice of the insurer's intention of cancel this
insurance.
10. INDEPENDENT CONTRACTOR
The Owner hereby retains the SEH DIB as an independent contractor upon the terms and conditions set forth in this
Agreement. The SEH DIB is not an employee of the Owner and is free to contract with other entities as provided herein.
SEH DIB shall be responsible for selecting the means and methods of performing the work. SEH DIB shall finnish any
and all supplies, equipment, and incidentals necessary for SEH DNB's performance under this Agreement. Owner and
SEH DAB agree that SEH DIB shall not at any time or in any manner represent that SEH DIB or any of SEH DNB's agents
or employees are in any manner agents or employees of the Owner. SE14 DIB shall be exclusively responsible under this
Agreement for SEH DNB's own FICA payments, workers compensation payments, unemployment compensation
payments, withholding amounts, and/or self-employment taxes if any such payments, amounts, or taxes are required to
be paid by law or regulation.
A7�&Page 3 City of Hopkins, Minnesota
SEHDesignI Build, Inc.
11. CHANGE ORDERS
11.1 The Owner may request that SEH D113 perform additional services not originally included in the basic
services identified in Exhibit A. No such work may be done until after the Owner has approved the change
order in writing Upon such a request by Owner, SEH DIB will generate a Change Order in writing
describing the additionally requested Work and the anticipated compensation for undertaking that Work. .
11.2 In any emergency affecting the safety of persons or property, SEH D113 shall act, at its discretion, to prevent
threatened damage, injury or loss. If the emergency was not the result of SEH DNB's fault, SEH DIB will be
entitled to an equitable contract adjustment to compensate SEH DIB for its services.
11.3 All Change Orders shall include:
11.3.1 A detailed description of the Change Order Work to be performed.
11.3.2 The amount of any adjustment (up or down) to the SEH DIB contract for the Work done pursuant
to Change Order.
11.3.3 A modification of the project schedule if necessitated by the Change Order Work.
11.4 SEH DIB may request a change order if it believes work outside the scope of services has been requested or
is needed. All such change orders must be approved in writing by the Owner before the work is done.
12. TERM AND TERMINATION
12.1 Either party may terminate this Agreement prior to the expiration of the 14 -year term for material breach of
this Agreement, provided such breach is not cured as set forth below.
12.2 If either party believes that the other has materially breached the agreement, then the party alleging the
breach shall give the other 15 days written notice setting forth the nature of the claimed breach and
confirming the intent to terminate. The party claimed to be in breach will then have 15 days to cure the
condition which constitutes the alleged material breach of the contract, or demonstrate that no breach
exists. If the party in breach fails to correct the breach or demonstrate no breach exists, the agreement will
terminate upon two days written notice.
12.3 The Owner may, at any time, terminate this Agreement for the Owner's convenience without cause upon
30 days written notice. In the event the Owner terminates this Agreement for convenience, SEH DIB shall:
12.3.1 Cease operations as directed by the Owner in its notice;
12.3.2 Take actions as necessary or as the Owner may direct for the protection and preservation of the
Work; and
12.3.3 Except for work directed to be performed prior to the effective date of the termination for
convenience, terminate all existing subcontracts and purchase orders, and enter in to no further
subcontracts and purchase orders.
12.3.4 Determine the total amount due for services performed prior to the effective date of the
termination for convenience.
12.4 In the event of termination for convenience by the Owner, SEH D113 shall be entitled to receive payment for
all Work executed per this Agreement, and any Work Orders or Change Orders.
12.5 In the event of termination for cause prior to the expiration of the term of this Agreement or any Work
Order, Owner shall pay to SEH DIB the remaining amount due for the Work performed and all claims shall
be resolved as set forth in the applicable Work Order. Such payment shall be due within 30 days of
termination. Payments not received by the last day of the month shall be overdue and will accrue interest at
a rate of 1.5% per month or the maximum rate allowed by law whichever is less.
Page 4 City of Hopkins, Minnesota
SEH Design IBuild, Inc.
13. ASSIGNMENT
Neither party shall assign this Agreement, nor any interest arising herein, nor any claims arising from or related to this
Agreement or the Project, without the written consent of the other party. Any assignment in violation of this provision
shall be null and void. Notwithstanding the above, SEH DIB reserves the right to assign its right(s) for payments due
under this Agreement to a bank, credit union or other lending institution or entity in return for immediate payments,
financing of work under this Agreement or other good and valuable consideration, and Owner hereby consents to such
assignment.
14. WAIVER
Any waiver by either party of a breach of any provisions of this Agreement shall not affect, in any respect, the validity of
the remainder of this Agreement.
15. ENTIRE AGREEMENT
The entire agreement of the parties is contained herein. This Agreement supersedes all oral agreements and negotiations
between the parties relating to the subject matter hereof as well as any previous agreements presently in effect between
the parties relating to the subject matter hereof. Any alterations, amendments, deletions, or waivers of the provisions of
this Agreement shall be valid only when expressed in writing and duly signed by the parties, unless otherwise provided
herein.
16. CONTROLLING LAW
This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. All parties to
this Agreement consent to and accept the personal jurisdiction of the State of Minnesota and agree that all claims,
disputes or litigation that arises from or relates to this Agreement shall be made in the State of Minnesota.
17. COPYRIGHT
SEH DIB shall defend actions or claims charging infringement of any copyright or patent by reason of the use or
adoption of any designs, drawings or specifications supplied by it for the Project, and it shall hold harmless the
Owner from loss or damage resulting there from for use of these documents for the Project. Owner shall not use any
designs, drawings or specifications supplied by SEH DIB for any other project without the express written consent
of SEH DIB.
18. RECORDS
The SEH DIB shall maintain complete and accurate records of time and expense involved in the performance of services.
19. BINDING EFFECT, THIRD PARTIES
Each of the provisions of the Contract Documents shall extend to and shall, as the case may require, bind or inure to
the benefit not only of the parties, but also for their respective successors, heirs or assigns, provided this clause shall
not permit any assignment by any party of the Contract Documents not otherwise permitted. The parties agree that
the Contract Documents are not intended by either party to give any benefits, rights, privileges, actions or remedies
to any person, partnership, firm or corporation (other than a party or its permitted assignee, or, to the extent
applicable, any Affiliates) as a third party beneficiary or otherwise under any theory of law.
20. MISCELLANEOUS
20.1 This Agreement states the integrated and complete Agreement between Owner and SEH DIB on this
subject and replaces any previous understandings, representations or communications, whether oral or
written.
Page 5 City of Hopkins, Minnesota
—ASEHDesignlBuiid, Inc.
20.2 A party's failure to exercise a right in one or many instances does not waive that right as to any later
instance. The course of conduct does not affect a modification or a waiver unless ratified in writing by the
party to be bound.
20.3 In the event of any litigation between the parties related to this Agreement or its breach, each party will be
responsible for its own attorney's fees together with expert's fees and other costs.
20.4 The section headings of this Agreement are included for purposes of convenience only and will not affect the
construction or interpretation of any provision.
20.5 All provisions of this Agreement allocating responsibility between the Owner and SEH DIB will survive
the completion of the Work or termination of this Agreement.
20.6 Any provision or part of this Agreement adjudicated to be void or unenforceable under any law will be
deemed deleted, such deletion to apply only with respect to the jurisdiction in which such adjudication is
made, and all remaining provisions will continue to be valid and binding upon the parties. The parties agree
that this Agreement will be reformed to replace the deleted provision or part thereof with a valid and
enforceable provision that comes as close as possible to expressing the intention of the deleted provision.
20.7 SEH DIB warrants and guarantees to Owner that all material and work will be in accordance with the contract
documents and will not be defective. SEH DIB shall provide a manufactures warrant on paint of at least ten
years in a form acceptable to the Owner.
IN WITNESS WHEREOF, the parties hereto through their respective authorized representatives have executed
this Agreement as of the day and year first written above.
OWNER
SEH DESIGNBUILD, INC.
BY: BY:
Its: Its:
Dated: Dated:
Page 6 City ofHopkins, Minnesota
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EHDesignIBuild, Inc.
EXHIBIT A
SCHEDULE OF SERVICES
MAINTENANCE PLAN YEAR
2.0 MG TORO -TANK AND STANDPIPE
1
2
3
4
5
6
7
8
9
10
11
12
13
14
2013
2014
2015
2016
X
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
Overcoat System (Exterior)
New Coating System (Wet Interior')
(Pit Piping)
X
X
Spot Coating Repairs (Dry Interior)
X
Accessory Modifications and Repairs
X
Quality Assurance Inspections
VISUAL SURVEY
Coating Observation (Exterior)
(Wet Interior")
(Pit Piping)
(Dry Interior)
X
X
X
X
X
X
X
X
X
X
X
X X X X X X X X X X
X X X X X X X X X X
X X X X X X X X X X
Accessory Observation
X
X
X
X
X
X
X
X
X
X
Summary Statement
X
X
X
X
}(
X
X
X
X
X
X
X
X
GENERAL MAINTENANCE
Pressure Wash (Exterior)
(Wet Interior')
X
X
X
Spot Coating Repairs (Exterior)
(Wet Interior')
(Pit Piping)
(Dry Interior)
X
X
X
X
X
X
X
X
Minor Accessory Repairs
X
X
Quality Assurance Inspections
X
X
X
X
EVALUATIONENGINEERING
Coating Testing (Exterior)
and Analysis (Wet Interior")
(Pit Piping)
(Dry Interior)
X
X
X
X
X
X
Five-year AWWA Inspection
X
X
Tank Accessories Inspection
X
X
Report with Recommendations
X
X
-Wet interior includes both the standpipe and the elevated tank
❑ No warrarfy is expressed or implied on the existing tank coating prior to rehabilitation.
EXHIBIT A
SCOPE OF SERVICES
Tank
Moline 2.0 MG Toro -Tank and Standpipe Tank
Name:
City of Hopkins, MN
Year: 2013
1
Exterior:
• Pressure wash surfaces to remove contaminants and mildew.
2
Wet Interior:
4.
• Pressure wash surfaces to remove contaminants and staining.
Years: 2014 to 2015
1
Yearly Visual Surveys:
1
• Full tank inspection (wet interior does not have to be drained).
2
• Summary Report.
Year: 2016
1
High pressure water clean the foundation grout and remove all loose and brittle pieces Properly seal all gaps in
the grout with material suited for the repair.
2
Install new PVC blow out plates in the frost -free roof vents. The components in these locations now are
undersized and do not provide a sufficient seal to prevent insects and other contaminants from entering the tank.
3.
Seal one open conduit pipe at the top of the dry interior access tube.
4.
The concrete foundations and grout will be coated to help prevent deterioration.
Exterior:
• Pressure wash all surfaces to remove contaminants, mildew and scale.
• Power tool clean all coating failure and rusted areas on exterior surfaces to equivalent of SSPC-SP3 Power
5'
Tool Cleaning Condition.
• To all power tool cleaned areas, apply epoxy primer coating system.
• Apply one full coat of urethane with UV protection to the entire tank.
• New paint scheme to match existing paint scheme.
• Reapply the lettering/logo on the exterior to match the existing tank lettering/logo.
Pit Piping:
6'
• Complete removal of existing coating system on piping and valve surfaces to equivalent of SSPC-SP6
Commercial Blast Cleaning.
• Apply two coats of epoxy coating (AWWA Inside Paint System No. 1).
City of Hopkins, Minnesota
SEHDesignIBuild, Inc.
Tank
Name:
Moline 2.0 MG Toro -Tank and Standpipe Tank
City of Hopkins, MN
Yearly Visual Surveys:
Wet Interior (of the standpipe and the elevated portion):
• Full tank inspection (wet interior does not have to be drained).
• Complete removal of existing coating system on the wet interior surfaces to equivalent of SSPC-SP 10 Near
• Summary Report.
White Blast Cleaning Condition.
Condition.
• Provide special hazardous waste considerations if required.
7.
• Apply two coats of epoxy coating that is approved for use in potable drinking water tanks (AWWA Inside
No. 5) to prepared areas.
Paint System No. 1).
Wet Interior:
• Includes the catwalk at the top of the standpipe.
• Pressure wash surfaces to remove contaminants and staining.
• Caulk the roof beams and seams.
• Power tool clean rusted areas on wet interior surfaces to equivalent of SSPC-SP 11 Power Tool Cleaning to
• Disinfect the tank interior per AWWA C652.
Bare Metal Condition.
Dry Interior:
g.
• Power tool clean rusted areas on dry interior surfaces to equivalent of SSPC-SP3 Power Tool Cleaning
• Disinfect the tank interior per AWWA C652.
Condition.
Pit Piping:
• Apply two coats of epoxy coating (AWWA Inside Paint System No. 1) to prepared areas.
Years: 2017 to 2020
Yearly Visual Surveys:
1
• Full tank inspection (wet interior does not have to be drained).
1,
• Summary Report.
Year: 2021
Exterior:
• Pressure wash surfaces to remove contaminants and mildew.
1,
• Power tool clean rusted areas on exterior surfaces to equivalent of SSPC-SP 3 Power Tool Cleaning
Condition.
• Apply two coats of epoxy and one coat of urethane with UV protection (AWWA Outside Paint System
No. 5) to prepared areas.
Wet Interior:
• Pressure wash surfaces to remove contaminants and staining.
2.
• Power tool clean rusted areas on wet interior surfaces to equivalent of SSPC-SP 11 Power Tool Cleaning to
Bare Metal Condition.
• Apply two coats of epoxy coating (AWWA Inside Paint System No. 1.) to prepared areas.
• Disinfect the tank interior per AWWA C652.
Pit Piping:
3.
• Power tool clean rusted areas on dry interior surfaces to equivalent of SSPC-SP3 Power Tool Cleaning
Condition.
• Apply two coats of epoxy coating (AWWA Inside Paint System No. 1) to prepared areas.
Dry Interior:
4.
• Power tool clean rusted areas on dry interior surfaces to equivalent of SSPC-SP3 Power Tool Cleaning
Condition.
• Apply two coats of epoxy coating (AWWA Inside Paint System No. 1) to prepared areas.
City of Hopkins, Minnesota
SEHDesignIBuild, Inc.
Year: 2021
Engineering Evaluation:
l
• Inspection of the exterior, wet interior, dry interior and pit piping coatings.
5.
. Wet interior will be drained and coincide with the wet interior pressure wash and coating repairs.
• Tank accessories inspection.
• Report with recommendations.
Years: 2022 to 2025
Yearly Visual Surveys:
l
• Full tank inspection (wet interior does not have to be drained).
1.
• Summary Report.
Year: 2026
Exterior:
• Pressure wash surfaces to remove contaminants and mildew.
1.
• Power tool clean rusted areas on exterior surfaces to equivalent of SSPC-SP 3 Power Tool Cleaning
Condition.
• Apply two coats of epoxy and one coat of urethane with LJV protection (AWWA Outside Paint System
No. 5) to prepared areas.
Wet Interior:
• Pressure wash surfaces to remove contaminants and staining.
2.
• Power tool clean rusted areas on wet interior surfaces to equivalent of SSPC-SP 11 Power Tool Cleaning to
Bare Metal Condition.
• Apply two coats of epoxy coating (AWWA Inside Paint System No. 1) to prepared areas.
• Disinfect the tank interior per AWWA C652.
Pit Piping:
3.
• Power tool clean rusted areas on dry interior surfaces to equivalent of SSPC-SP3 Power Tool Cleaning
Condition.
• Apply two coats of epoxy coating (AWWA Inside Paint System No. 1) to prepared areas.
Dry Interior:
4'
• Power tool clean rusted areas on dry interior surfaces to equivalent of SSPC-SP3 Power Tool Cleaning
Condition.
• Apply two coats of epoxy coating (AWWA Inside Paint System No. 1) to prepared areas.
Engineering Evaluation:
• Inspection of the exterior, wet interior, dry interior and pit piping coatings.
5.
• Wet interior will be drained and coincide with the wet interior pressure wash and coating repairs.
• Tank accessories inspection.
• Report with recommendations.
City of Hopkins, Minnesota
SEHDesignIBuild, Inc.
EXHIBIT B
COMPENSATION SCHEDULE
In return for the services rendered in Exhibit A, the Owner agrees to compensate SEH DIB in accordance with the following
schedule of payments. The first payment shall be invoiced upon completion of the work tasks identified in 2013.
Each additional annual payment shall be invoiced on the anniversary date of the year #1 work completion.
Maintenance contract costs can be paid as incurred on an annual basis, or may be amortized over the 14 -year maintenance
plan into an equal annual payment, or an equal annual payment that is adjusted for inflation during the term of the contract.
The Owner may select from the following payment options:
The inflationary adjusted column assumes a 3% inflationary rate.
City of Hopkins, Minnesota
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EHDesignIBuild, Inc.
Variable
Payment
(pay-as-you-go)
Equal Annual
Payment
Equal Annual
Payment
(inflationary)
2013
$62,700
$83,600
$68,592
2014
$8,000
$83,600
$70,713
2015
$8,000
$83,600
$72,900
2016
$643,000
$83,600
$75,155
2017
$8,000
$83,600
$77,479
2018
$8,000
$83,600
$79,876
2019
$8,000
$83,600
$82,346
2020
$8,000
$83,600
$84,854
2021
$104,250
$83,600
$87,400
2022
$8,000
$83,600
$90,022
2023
$8,000
$83,600
$92,722
2024
$8,000
$83,600
$95,504
2025
$8,000
$83,600
$98,369
2026
$104,250
$83,600
$101,320
Totals:
$994,200
$1,170,400
$1,177,252
The inflationary adjusted column assumes a 3% inflationary rate.
City of Hopkins, Minnesota
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EHDesignIBuild, Inc.
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 2013-067
RESOLUTION APPROVING
WATER TOWER MAINTENANCE AGREEMENT
WHEREAS, the water tower and standpipe in Hopkins are aging and increased
maintenance is required; and
WHEREAS, a long term maintenance contract allows the City to benefit from an
experienced contractor familiar with the City; and
WHEREAS, this type of contract also affords the City a long term warranty on all work
completed under this contract;
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Hopkins,
Minnesota, that the proposed water tower maintenance agreement is approved and the Mayor and
City Manager are authorized and directed to enter into the agreement with SEH Design Build,
Inc.
Adopted by the City Council of the City of Hopkins, Minnesota, this 15th day of October, 2013.
Eugene J. Maxwell, Mayor
ATTEST:
Kristine Luedke, City Clerk