Memorandum

City of Lawrence Utilities Department

TO:	David Corliss, City Manager
FROM:	Debbie Van Saun, Asst. City Manager Dave Wagner, Interim Utilities Director
CC:	Phillip Ciesielski, Utilities Engineer
Date:	February 15, 2007
RE:	February 20, 2007 City Commission Agenda Item

Please include the following item on the City Commission Agenda for consideration at the February 20, 2007 meeting. The following provides a status update on the project as well as staff recommendation for proceeding with the project:

Project History

The 2003 Waste Water Master Plan identified the need for the completion of a 7.0 million gallon per day wastewater facility discharging to the Wakarusa River by the end of year 2010.  Adding this facility and the associated infrastructure to the sanitary sewer system will allow service to a population of 150,000. 

In 2005, the City Commission authorized the Utilities Department to solicit proposals for engineering services for the Wakarusa Water Reclamation Facility (WWRF). The City entered into a contract with Black & Veatch for siting the treatment plant and subsequently for the conveyance corridor study, a Basis of Design Report, a Design Memorandum, and a Value Engineering Study. The City Commission subsequently approved the selection of the site and purchase of the properties.

Project Status:

Major efforts underway include:

• Preliminary design work by Black and Veatch and staff continues that will deliver a Basis of Design Report, Design Memo, Corridor Study, and Process Diagrams and is nearing final draft stages.
• Facility site acquisition is nearing completion and we expect to have all property purchased this month.
• In December 2006, staff applied to KDHE for a NPDES discharge permit and it is expected to be issued in draft form for a 30-day comment period as early as March. After the 30-day comment, period KDHE will consider comments and is likely to issue a final permit shortly thereafter.
• Public outreach, input, and dissemination of information about the project will continue using public meetings and involvement with the project by the three members of the Public Advisory Committee (PAC).

Project Execution

Staff has reviewed the alternatives for completing the design and construction of the Wakarusa WWRF. Key objectives include having a single point of responsibility, obtaining a competitive price, ensuring a high degree of collaboration with staff, continuation of local involvement in the project, and getting a coordinated project that is completed on time and within budget. To accomplish these objectives, staff recommends that the project be completed via design/build and the project delivered by one entity responsible for the collection system and the treatment facilities. To that end, the design/build team should be selected by the Qualification Basis Selection (QBS) process.

This project delivery method offers the following benefits:

• Local Contractors Additional Opportunities – Design-Build allows for multiple local contractors to participate as subcontractors and this will be required to an appropriate extent in both the RFQ and the Design-Build contract
• Single-point of responsibility – By awarding the project to one entity, there will be one point of contact for all project issues, such as cost, quality, schedule, performance, etc.
• Schedule – Design/build allows for parallel activities to occur through the design, procurement, construction, start-up and commissioning of the project. These parallel activities will allow the project to be complete up to one year ahead of the more traditional design bid build delivery. This compressed schedule will benefit the City through cost savings associated with project execution and management.
• Collaboration – QBS design/build projects offer the highest degree of interaction between staff, contractor, and engineer who jointly establish performance expectations, costs, schedule, and quality requirements.
• Rate Impact Control – By working with the design/build team to establish the project schedule, City Staff can evaluate the project’s cash flow to ensure the existing rate structure generates sufficient revenue to fund the project.
• Value Based Decisions – Immediate feedback on desired scope enhancements or reductions can be made by the team based upon actual budget and/or schedule implications.
• Continuous Cost Control – Designs can be completed around specific equipment with the contractor’s input regarding their desired construction staging and methods of erection. If the project costs increase beyond the allocated budget, immediate feedback with staffs' input can be utilized to re-direct design efforts.
• Inflation Control – QBS selection of a design/build team is the most efficient way to engage a team to design and construct the desired facilities. This allows the team to buy-out major equipment purchases, materials, and execute subcontracts for a fixed price, reducing inflationary risks.
• Labor Pool Commitment – The construction industry is extremely busy at this time. By selecting a design/build team, commitment of key staff and resources can be made in advance of other planned projects.

Project Schedule:

Updated project schedule:

• Complete Basis of Design Report – March 2007
• Commence Corridor Acquisition – May 2007 through end of year
• Complete Design Memorandum – June 2007
• Complete Value Engineering Study – June 2007
• Obtain Commission Approval for Design/Build RFQ – March 6, 2007

Action Request:

Utility Department staff requests approval from the City Commission to authorize the City Manager to: 

• Formally request the involvement of the PAC subgroup to assist in reviewing design concepts for the Wakarusa WRF facilities
• Utilize design/build to design and construct the Wakarusa WRF
• Proceed with the selection of the design/build team utilizing a qualification based selection process