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August 15, 2012 Page 5 of 6 the Stormwater Operating Fund for the financing of this project, which shall be scheduled for repayment with interest over a period of 10 years or less. 5 Ayes, 0 Nays -Motion Carried 3. Consideration of Resolution Accepting Bids and Awarding a Contract for Project 12-5, High Service Tower Repair and Reconditioning. Report No. 12-198. Resolution No. 12-064. Public Works Director Wyffels requested the Council consider accepting bids and award a contract for Project 12-5, High Service Tower Repair and Reconditioning. He noted the Council has previously called for bids, which were rejected given the fact the City's work scope was not properly designed and bids came in over budget He indicated additional bids were requested after rewording the work scope and four bids were received. The low bid was received by Champion Coating in the amount of $278,000 with work scheduled to begin in late spring of 2013. Bolton & Me* has reviewed a listing of similar projects completed by Champion Coatings and based on their experience and qualifications, recommends awarding the contract. Public Works Director Wyffels explained the project consists of reconditioning and repainting the 150,000 - gallon High Service Tower located at 30015' Street NW. The tower was built in 1992 and was originally scheduled for service in 2011 or 2012. He noted this tower gets a lot of icing and for this reason, staff recommends the installation of an internal mixer. The reconditioning of the tower was expected to take approximately six to eight weeks. An interconnection with the City of Columbia Heights would be needed during this time. Staff further broke down the expense of the project and stated $300,000 was allotted in the City's budget He recommended the Council accept the bids and adopt a Resolution awarding a contract for City Project 12-5, High Service Tower Repair and Reconditioning Councilmember Samuelson questioned the price of a new water tower. Public Works Director Wyffels commented the price of a new water tower 10 years ago was $200,000. However, this was not true today and he estimated the expense to be approximately $3.00 per gallon. He indicated the paint job would last 20+ years. Mayor Jacobsen asked if the water tower could be insulated externally to avoid the need for an internal mixer. Public Works Director Wyffels stated this was not the practice, and the most efficient fix was to purchase the internal mixer for the water tower to avoid future freezing Councilmember Bauman inquired if the City used 100,000 gallons of water per day and if the eight weeks would be sufficient to complete the water tower reconditioning. Public Works Director Wyffels explained he has been spealdng with the City of Columbia Heights regarding this matter. He noted the City estimated the use based on meter readings and felt this was an appropriate estimate. The City did not anticipate the work would take more than eight weeks. Councilmember Jacobsen questioned if a new logo would be added to this water tower and if the mildew on the tower would be removed. Public Works Director Wyffels stated an updated logo would be placed on this tower in a condensed version to match the south water tower. He noted the mildew on this tower would be removed through the reconditioning and the new paint would be mildew resistant He explained the City would have to remember to routinely wash the tower in the future. Councilmember Bauman was in favor of the proposed internal mixer. She questioned if the water flavor would be affected by this piece of equipment Public Works Director Wyffels stated the water flavor should be improved, as the water would be mixed more frequently and not become stagnant. The pumps that were currently being used could not keep up in the wintertime and were buming out Councilmember Samuelson requested staff provide the Council with pricing information on a new water tower. Public Works Director Wyffels stated he would pass this information along through the next Friday memo. City Manager Lotter recommended the Council take action on the project this evening, as the price for a new tower would be exponentially higher than repainting. Motion by Councilmember Burg, seconded by Councilmember Bauman to adopt a Resolution accepting bids and awarding a contract to Champion Coating, Inc. in the amount of $278,000 for City Project 12-5, High Service Tower Repair and Reconditioning. 3. Consideration of Resolution Accepting Bids and Awarding a Contrad for Project 12-5, High Service Tower Repair and Reoonditioning. Repot No. 12-198. Resolution No. 12-064.