To: David Wagner

Phillip Ciesielski

From: Burns & McDonnell / Garney LLC

Re: Yankee Tank Creek Interceptor Improvements

Initial Design, Value Engineering, and Cost Development.

Background:

Through submission and detailed evaluation of qualifications, the City Commission has selected Burns & McDonnell/Garney LLC as the design build contractor for improvements to the Yankee Tank Creek Interceptor (YTC2-1 and YTC2-2). Utilities Staff have participated in several design reviews, value engineering sessions, and review of subcontractor and material bids. Burns & McDonnell/Garney LLC met with staff on September 27, 2006 and conducted a review of project costs inclusive of both design and construction. The result of the Initial Design Phase, Value Engineering and Cost development process and a summary of the competitive process utilized to develop the project cost is summarized below.

Initial Design and Value Engineering:

The initial design of the project is now complete. During the initial design process, the design / build team including the Utilities Department staff participated in the definition of needs, review of concepts and development of design criteria and value engineering of the project. Major scope elements include the following:

Increasing the interceptor capacity to 22 million gallons per day.
Adjustment of the alignment to improve operations and maintenance.
Adjustment of pipe lengths to minimize total number of manholes.
Evaluation of construction materials from a constructability and reliability standpoint.

Cost Development and Competitive Process:

The total cost developed for the project including engineering design is broken down as follows:

Construction: $1,477,540

Engineering: $182,000

Contingency: $36,510

Rock Excavation Contingency: $90,000 Access Road Construction & Removal: $75,967

Total: $1,862,017

The price for Access Road Construction may be deducted from the total price if the City is able to negotiate a temporary construction access agreement with property owners near the north end of the project alignment

To derive the construction cost, major equipment and subcontract packages were competitively bid among several suppliers, including:

Pipe

Manholes

Manhole Interior Coating

Bedding

Concrete

Flowable Fill

TV Inspection Services

Bypass Pumping

Seeding & Sodding

Competitively bid equipment and materials account for 67% of construction cost. Fixed cost including insurance cost, bonds, stormwater BMP equipment and general conditions cost account for an additional 8% of the construction cost. Therefore the competitively bid and fixed costs account for 75% of construction cost.

Three potential combinations of construction materials were evaluated. Those were: Hobas composite pipe with concrete manholes, Hobas pipe with fiberglass manholes, and PVC pipe with concrete manholes. Based on both the materials cost and recommendations by the Design/Build Contractor, the combination of Hobas pipe with concrete manholes was selected.

Design & Engineering Cost.

Design and engineering cost equates to 9.8% of the total project cost. National average for new construction ranges from 8% to 15%, with the mean at 12%. These published average values do not include the cost to remove or abandon existing piping. The costs do include preliminary studies and evaluations, conceptual and final design and appropriate and prudent levels of engineering support during construction. A more detailed breakdown of engineering costs has been provided to staff.

Involvement of Local Resources:

Burns & McDonnell / Garney LLC is committed to the use of local resources wherever practical. Where possible equipment materials as consumables will be purchased locally.