Memorandum

City of Lawrence

Utilities Department

TO:	David L. Corliss – City Manager Cynthia Wagner - Assistant City Manager Diane Stoddard - Assistant City Manager
FROM:	John Shutak – Utilities Engineer
CC:	Dave Wagner – Director of Utilities Philip Ciesielski – Asst. Director of Utilities Mike Lawless – Asst. Director of Utilities Dave King – Utilities Maintenance Superintendent Mark Hegeman – Utilities Operations Superintendent Beth Frailey Krishtalka – Assistant to Director
Date:	August 12, 2010
RE:	Agenda Item – Authorize the City Manager to execute an Engineering Services Agreement with Burns & McDonnell for Design and Construction Phase Engineering Services, Project UT0915KW - North Final Electrical and Kaw Well Field Electrical Improvements (Kaw Water Treatment Plant).

Please include the following item on the City Commission Agenda for consideration at the August 17, 2010 meeting:

Authorize the City Manager to execute an Engineering Services Agreement with Burns & McDonnell in the amount of $45,329 for Design and Construction Phase Engineering Services, Project UT0915KW – North Final Electrical and Kaw Well Field Electrical Improvements (Kaw Water Treatment Plant).

Project Description

The Department of Utilities budgets a yearly fund to address the maintenance and, when necessary, the replacement of electrical systems that support both water supply and wastewater treatment.

Project Details

The City of Lawrence utilizes well water for a portion of its source water. The well field consists of pumps and piping that convey raw water to the Kaw Water Treatment Plant. The electrical meter servicing wells No. 5 and No. 7, as shown on the attached map, has failed and Westar has stated that they will not provide a new service connection or electrical meter until new services from the well heads to the electrical meter are installed. Westar is requiring the new services be installed prior to the installation of a new service connection and electrical meter due to their age and existing condition.

The North Final Building at the Wastewater Treatment Plant, as shown on the attached map, houses electrical components that control two thirds of the equipment used in the secondary treatment process for the north basin train. The existing electrical equipment dates back to 1975 and has outlived its useful life. The original electrical equipment requires replacement in order to adequately address the current need for an updated motor control center and to consolidate power distribution and switched BUS connections.

Project History

On November 10, 2009 City Commission authorized staff to advertise a request for proposals for engineering services for the North Final Electrical and Kaw Well Field Electrical Improvements, Project UT0915KW.

On November 12, 2009 staff advertised the request for proposals via demand star online service and direct mailing.

On December 29, 2009 City Commission authorized staff to negotiate an Engineering Services Agreement for Preliminary Engineering services with Burns & McDonnell for the North Final Electrical and Kaw Well Field Electrical Improvements, Project UT0915KW.

On March 9, 2010 City Commission authorized the City Manager to execute an engineering services agreement with Burns & McDonnell for preliminary engineering services in the amount of $12,131.00

On June 16, 2010 Burns & McDonnell completed the preliminary design report which provides an evaluation of existing conditions and design options, cost estimates for each design option, and a recommendation of the preferred alternative for both the North Final Electrical and Kaw Well Field Electrical Improvements.

Project Status

Staff have met with Burns & McDonnell and have negotiated a scope and fee for Design and Construction Phase Engineering Services for the preferred alternatives identified in the preliminary design report in the amount of $45,329.00. The fee is broken down as follows:

Engineering Design Services: $35,856.00

Construction Phase Services: $9,473.00

These fees represent 14.1 percent and 3.7 percent of the original Capitol Improvement Project budget of $254,000.00, respectively.

Construction cost estimates provided in the preliminary design report indicate a probable total construction cost of $129,000.00. The proposed design and construction phase engineering services fees represent 27.8 percent and 7.3 percent of the construction cost estimate, respectively. These percentages would appear to be disproportionate to the probable total cost of construction. However, there are several considerations that influence these percentages.

Project Location: The project areas are located within the existing Kaw Water Treatment and Wastewater Plant environments and as such present a more challenging design and construction environment than greenfield or new construction conditions.

Service Interruptions: The replacement of the North Final Motor Control Center (MCC) must be accomplished with no interruption of service to return sludge pumps 1, 2, 3, and 4, waste activated sludge pumps 9-1 and 9-2, and final clarifier drives 1 and 2. This equipment is controlled by the existing MCC.

Overall Construction Cost: At the onset of the preliminary engineering phase, City staff directed Burns and McDonnell to provide construction alternatives that minimized the overall cost of construction. In response to this direction Burns and McDonnell provided detailed construction phasing and equipment requirements which minimized costly modifications to the existing North Final Electrical Building. To convey the proposed phasing and equipment requirements will require additional hours during the design phase of the project.

These considerations drive the design phase engineering costs up. However, the expenditure of funds at the onset of the project, or taking value engineering approach to the design, results in significant savings to the overall construction cost of the project. Reviewing engineering expenditures, current and proposed, as well as the estimated construction cost indicate a total project expense of $186,460.00. This represents a reduction in the projected budget of $67,540.00. This reduction in the projected budget exceeds the total projected expenditure on engineering services for the project.

Project Funding:

These projects will be funded out of the 2009 Department of Utilities non-bonded construction fund. Construction is anticipated to begin in late 2010.

Action Request:

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