Laserfiche WebLink
UTILITIES COMMISSION MEETING <br />TO:FROM: <br />ERMU Commission Troy Adams, P.E. –General Manager <br />MEETING DATE: AGENDA ITEM NUMBER: <br />March 10, 2020 5.5 <br />SUBJECT: <br />AuburnStreet Water Tower ReconditioningProject Update <br />ACTION REQUESTED: <br />None <br />BACKGROUND: <br />At the September 11, 2018 commission meeting, the commission awarded the contract for the <br />Auburn Street Water Tower Reconditioning Project to Classic Protective Coatings, Inc. A <br />contract agreement between Elk River Municipal Utilities and Classic Protective Coatings, Inc. <br />was entered into and executed on January 16, 2019. As part of that agreement it was agreed <br />upon that the work for the project would start on or before July 26, 2019, with a completion <br />deadline of on or before October 11, 2019. <br /> <br />Even after ERMU’s project manager communicated with the contractor on numerous occasions <br />concern that their late start would put their ability to complete the project by the contractual <br />deadline at risk, the contractor assured ERMU that they would be able to complete the project <br />on time. The contractor was unable to finish by the October 11 deadline and meet the <br />contractual obligations. And because of temperature requirements for paint curing, the project <br />had to be shut down for the season. This created water system operational challenges because <br />this tower needed to remain empty and out of operation until the project is completed in <br />spring. This resulted in changes for winter operation, requiring ERMU to use the Johnson Street <br />Water Tower, which is typically emptied due to freezing issues. Operating the Johnson Street <br />Water Tower for the winter necessitated the installation of a mixer to prevent freezing, an <br />expense incurred by ERMU because of the failure of Classic Protective Coatings to meet the <br />Auburn Street Water Tower project deadline. <br /> <br />The contract for the Auburn Street Water Tower project includes daily financial penalty <br />provisions for not meeting the contractual deadline. ERMU’s project manager communicated <br />with Classic Protective Coatings that ERMU would exercise the liquidated damages provisions in <br />the contract. Classic Protective Coatings’ attorney has since communicated with ERMU that <br />their client disagrees and doesn’t believe that they should be held accountable for any <br />liquidated damages. ERMU has not released any payment to Classic Protective Coatings to date. <br /> <br />DISCUSSION: <br />Attorney Beck will provide a verbal update at the meeting. <br />______________________________________________________________________________ <br />Page 1 of 1 <br />78 <br />