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Regular City Council Meeting Monday,February 24, 2014 Page 6 stallation of a mixing system to minimize ice build-up in the tank. After review of references for both firms, their safety record, and other considerations, Mr. Schwartz advised that staff was recommending awarding the bid to S.E.H. Design Build, a local firm. Mr. Schwartz noted that the City of Little Canada was pursuing a similar project, and if their City Council recommended the same project team, anticipated being able to coordinate projects for both cities to realize some economies of scale, as well as better control of the maintenance schedule, since both cities relied on each other for back-up emergency water service. As noted in the RCA, Mr. Schwartz advised that Finance Director Chris Miller had completed a net present value and financial analysis and concurs with the proposed five-year contract as serving the City of Roseville best. Mr. Schwartz noted that the three communications providers located on the tower had been noticed of the recoating this summer, as per their contract, were required to remove their equipment to a temporary location to be coordinated with City staff. Mr. Schwartz advised that, as the City of Little Canada determines their project scheduled and team, Roseville staff would then coordinate a timeframe this summer to initiate the maintenance work. Mr. Schwartz noted that there would be little impact to local customers beyond minor pressure fluctuations, most noticeable in the SW area of the City, even though the City would still be connected to the Arden Hills tank for additional storage capacity as needed. Discussion included the epoxy type coating for the inside of the tank provided by a long-term and reputable company; duration of the maintenance program in 2014 estimated at approximately eight weeks; need for an internal loan to the Water Fund from the Sewer Fund for the first year payment of$605,000 due to a lack of funds in the Water Fund at this time; original cost projections of$800,000 in the Capital Improvement Program (CIP) budget projections; and deferment of the work based on favorable annual inspections over the last 3-4 years, with the last inspection indicating that it was now time to complete the work due to concerns evidenced with internal rust. McGehee moved, Willmus seconded, approval to authorize the City Manager to enter into a five (5) year maintenance contract with S.E.H. Design Build for the rehabilitation, recoating, and maintenance of the Fairview Avenue, 1.5 million gallon water tower in an amount not to exceed $694,500 over the term of that con- tract. Roll Call Ayes: Willmus; Laliberte; Etten; McGehee; and Roe. Nays: None. Recess