Memorandum
City of Lawrence
Utilities Department
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TO: |
David Corliss – City Manager Debbie Van Saun – Assistant City Manager |
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FROM: |
Philip Ciesielski – Utilities Engineer |
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CC: |
Dave Wagner – Director of Utilities |
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Date: |
April 9, 2007 |
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RE: |
April 17, 2007 City Commission Agenda |
Please include the following items on the City Commission Agenda for consideration at the April 17, 2007 meeting:
· Award the construction contract for the Phase II Clinton Water Treatment Plant Expansion.
· Authorize the City Manager to execute the Construction Phase Engineering Services Agreement.
· Authorize advertisement of a Request for Proposals for instrumentation and control services (to include, HMI and PLC programming, revision of existing HMI and PLC programming standards, control panel design and documentation and training of city staff).
Project History:
Phase I of the Clinton Water Treatment Plant (WTP) expansion was completed in 2002 through a modified design build approach. Phase I of the expansion improved the raw water pumping, filtering capacity, transfer pumping and various electrical/mechanical systems. The phased implementation of the Clinton WTP expansion provided the flexibility to the City of Lawrence to meet seasonal demands without water restrictions and delay constructing infrastructure in advance of regulatory determinations which could impact the selection of treatment processes.
The 2003 Master Plan provided a schedule of work for completing Phase II of the expansion. The project will increase 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. This will include new basins, high service pumping, electrical improvements and miscellaneous building/chemical feed improvements.
The Utilities Department solicited proposals for engineering services for the second phase expansion of the Clinton WTP with approval by the City Commission on February 22, 2005. Black & Veatch was selected as the firm most qualified to complete the engineering services. Subsequent approval from the City Commission allowed the preliminary design report to begin.
The preliminary design report was completed by Black and Veatch and a status update was provided to the City Commission. Direction was provided to staff to proceed with the project as presented by Black and Veatch with an opinion of probable cost of $15,460,000.
An Engineering Services Agreement with Black & Veatch for final design of the improvements was approved by the City Commission on March 14, 2006. Final design was completed and Black & Veatch prepared an updated opinion of probable cost for construction of $16,700,000.00 based on the final design. Black & Veatch provided the information below in support of the higher current construction cost estimate.
“One of the biggest obvious changes in cost was in the basin equipment. Overall, the costs went up $525,000 over what we had received from the equipment vendors as budgetary numbers last year. This has snowball effects with the General Requirements and Contingency values, as they are percentages of the total cost. That has an effect of about another $75,000, so the effect of the basin equipment cost increase is approximately $600,000.
General Requirements increased approximately $280,000, due to multiplier effects. Sitework increased approximately $200,000 due to design definition. From December 2005 to December 2006, there has been inflation of about 7.1% for water and wastewater treatment facility type projects. This is reflected in the remainder of the cost increases, which are due to various increases in unit costs for concrete and steel, actual quantity takeoff amounts, and various miscellaneous items that were not included in our previous estimate.
We are still carrying 5% contingency. However, we are not ready to reduce it significantly until we ensure ourselves that we have covered everything.”
Also included in the updated construction cost estimate was approximately $500,000 associated with the excavation and disposal of the existing municipal solid waste that was previously deposited at the site. Due to a lack of information on the extent and nature of the solid waste, this cost was not defined at the time of the preliminary report. On site testing has been used in an attempt to both quantify and qualify the expected nature of the solid waste. This recent testing information is the basis for the current estimate.
As part of the ongoing value engineering effort staff recognized two potential opportunities for savings in the project. Utility Department staff will be supplying and integrating the majority of the instrumentation and control systems to be installed as part of this project. As part of this effort, staff is requesting to advertise a Request for Proposals (RFP) for instrumentation and control services to support the Department staff effort. Staff has a history of successfully performing and coordinating this work as part of the current North Lawrence Pump Stations project, the Pump Station PS48 project, and the recently completed Pump Station PS16 rehabilitation. In addition, over the last year, staff procured and built over 20 control panels for retrofit at existing sanitary sewer pump stations.
In addition to the instrumentation and control work, the costs associated with land filling the municipal solid waste that was previously deposited at the site will be billed to and paid directly by the City. On site testing did not provided definitive information on the extent and nature of the solid waste and this cost was still extremely variable at the time of advertisement. By agreeing to directly pay the landfill “tipping fees” the City has taken the risk out of the contractors bid and as a result will not be paying for the potential variability in this effort.
Project Status:
On March 27, 2006 the following 3 base bids were received:
CAS Construction, LLC $13,929,000.00
BRB Construction $14,351,000.00
Foley Construction $15,486,300.00
Engineer’s Estimate of Probable Cost $15,560,000.00
Attached to this memo is a recommendation from Black & Veatch Engineering to award the project to CAS Construction, LLC. The Utility Department staff is in agreement with the recommendation.
Staff has negotiated a contract with Black & Veatch for Construction Phase Engineering Services in the amount of $1,400,000.00. These services will provide for inspection, engineering support and contract administration for the duration of the construction contract.
Project Costs- Construction Phase:
CAS Construction, LLC including Alternative C $13,979,000
Alternative D $ 900,000
Black & Veatch Construction Phase Engineering Services $ 1,400,000
City of Lawrence Instrumentation & Controls $ 500,000
City of Lawrence Municipal Solid Waste Disposal $ 500,000
Total Construction Phase $17,279,000
Project Schedule:
Updated Project schedule as presented by Black and Veatch:
Award - April 17, 2007
Notice to Proceed - May 7, 2007
Construction - Plant Expansion Complete July 2008;
Final Completion January 2009
Project Funding:
Funding for the construction of the Phase II expansion, and the associate construction phase engineering services, will come from the bonded construction fund for 2005/2007. A previous resolution for bonding the construction phase of the project was submitted and approved at the April 5, 2005 City Commission meeting. The additional cost increases from the Master Plan projection, as presented to the City Commission by Black and Veatch, will require additional bonding as proposed by the Finance Director. A resolution for bonding the additional construction costs was prepared and approved by the City Commission on February 20, 2007.
Action Requests: Utilities staff requests approval from the City Commission for the following actions:
· Award the project to the low bidder, CAS Construction, in the amount of $13,979,000.00 with the Owner reserving the right to implement Alternative D in the amount of $900,000.00 and authorize the City Manager to execute a contract agreement for the project
· Authorization to execute the contract for Construction Phase Engineering Services with Black & Veatch in the amount of $1,400,000
· Authorization to advertise a Request for Proposals for instrumentation and control services (to include, HMI and PLC programming, revision of existing HMI and PLC programming standards, control panel design and documentation and training of city staff).
Thank you for your assistance. Please advise if you have any questions.