Memorandum

City of Lawrence

Utilities Department

TO:	David Corliss Debbie Van Saun
FROM:	Chris Stewart
CC:	Philip Ciesielski Michael Tubbs
Date:	November 16, 2006
RE:	November 21, 2006 Commission Agenda

Please include the following item on the City Commission consent agenda for consideration at the November 21, 2006 meeting:

Supplemental Amendment for Phase II Design Clinton WTP Expansion:

Project Description: This is a capital improvement project from the 2003 Water Master Plan.  Black and Veatch completed the preliminary design report and subsequently executed a contract agreement for the final design phase services for Phase II of the Clinton Water Treatment Plant expansion.  Information was presented to the City Commission on February 21, 2006 with an opinion of probable cost of $15,460,000, including a construction cost estimate of $13,710,000 and engineering services (final design and construction phase services) of $1,750,000. The City Commission directed staff to proceed with the project as presented by Black and Veatch.  To that end, staff negotiated a final design contract in the amount of $1,050,000. This did not include construction phase and resident inspection services.  The need for construction phase/resident inspection services will be evaluated during the final design process and presented to the City Commission prior to bidding the project.  

Project History: Phase I of the Clinton Plant Expansion was completed in 2002 through a modified design/build approach and improved the raw water pumping, filtering capacity, transfer pumping, and various electrical/mechanical systems. 

The Master Plan provided a schedule of work for completing Phase II expansion in 2006. The current project increases the capacity to meet projected customer demands, improve reliability of the water treatment facility, and provide for future treatment processes if needed for upcoming regulations.  The improvements will complete the expansion of the water treatment plant to a firm capacity of 25 million gallons per day (mgd) and hydraulic capacity to 30 mgd and will include new basins, high service pumping, electrical improvements and miscellaneous building/chemical feed improvements. 

Project Status: Engineering services for the second phase expansion included a preliminary design report, final design services, bid/construction phase services.  The final design is underway and we anticipate the following schedule: 

Week of December 4, 2006 - 90 % drawing submittal to Utility Department

Final Design Complete - January 30, 2006

Advertise for Bids – February 2007

Open Bids – March 2007

Award and Begin Construction   – April 2007

Projected completion - summer 2008

Project Details: The Phase II Expansion project requires modifications to the existing chlorine storage and feed systems to treat the additional water and to bring the facility into compliance with the existing building codes.  Therefore, it was deemed appropriate to evaluate the use of sodium hypochlorite in lieu of chlorine gas.  The evaluation compared the cost differences and the risk to the public and staff associated with the use of chlorine gas. Consideration was also placed on the fact that Federal legislation is being introduced to emphasize the use of safer technology such as sodium hypochlorite to replace chlorine gas.

The economic impact for hypochlorite translates to an additional capital cost of $600,000 and an increase in operating cost of $.02 per 1000 gallons (approximately $50,000 per year). In addition, the elimination of chlorine gas at the facility will also have a reduction in costs associated with security measures required by the Homeland Security Act.  It is important to note that economics are not the only factors to consider when evaluating the differences between these two disinfection systems.  A chlorine gas leak can have significant on-site and offsite consequences to both plant operators and the surrounding community.  From a risk management perspective, conversion to a hypochlorite system would certainly reduce the City’s risk profile regarding an offsite release. A single release of chlorine could significantly outweigh the additional cost of the hypochlorite system.

Based upon the staff review, discussions with Black and Veatch and the City Manager, it was determined to proceed with the design of a hypochlorite system. To that end, an amendment to the original work scope was provided by Black and Veatch. The increase in the design fee is $80,000.  The original contract includes $50,000 of contingencies for modification of design work during the final design phase.  Therefore, the actual contract amendment is a not to exceed $30,000 for the additional scope of work.

Project Funding: Funding for the engineering work for Phase II expansion is from the non-bonded construction fund for 2005/2006.  Construction funding will come from the bonded construction fund.  Funding for the supplemental engineering services will be accomplished with $50,000 of contingencies from the original contract scope and a supplemental amendment not to exceed $30,000 for the additional engineering services.

Action Request: Utility Department staff requests approval from the City Commission to authorize the City Manager to execute a supplemental services agreement with Black and Veatch in the amount of $30,000 for the design of a hypochlorite disinfection system to Phase II of the Clinton Water Treatment plant expansion.

Thank you for your assistance.  Please advise if you have any questions.