Memorandum

City of Lawrence

Utilities Department

TO:	David L. Corliss – City Manager Cynthia Boecker - Assistant City Manager Diane Stoddard - Assistant City Manager
FROM:	Philip Ciesielski – Assistant Director of Utilities
CC:	Dave Wagner – Director of Utilities Mike Lawless – Assistant Director of Utilities Beth Frailey Krishtalka – Assistant to Director Mark Hegeman – Utilities Operations Superintendent
Date:	September 20, 2010
RE:	September 28, 2010 Agenda Item – Authorize City Manager to execute Supplemental Agreement No. 3 to the current Engineering Services Agreement with BG Consultants for Design and Construction Phase Engineering for Phase II of project UT0810DS Watermain Replacement Program

Please include the following item on the City Commission Agenda for consideration at the September 28, 2010 meeting:

Authorize the City Manager to execute Supplemental Agreement No. 3 in the amount of $122,156.00 to the current Engineering Services Agreement with BG Consultants for Design and Construction Phase Engineering for Phase II of Project UT0810DS Watermain Replacement Program.

Consistent with the City Commission’s direction during the 2011 Budget Sessions Department of Utilities Staff continue to monitor and control expenses in relation to actual revenues. As these are evaluated, sources of Capital Project Funding are being identified to carry out the City Commission’s stated goal of executing priority Capital Projects even in the current economic climate. The reasons for executing this project are outlined in the memo below.

Project Description

Replacement of the existing watermains along 9^th Street from Vermont Street to Tennessee Street and along Tennessee Street across the 9^th Street right-of-way (see attached exhibit). The existing watermain along 9^th Street is 1916 12” diameter cast iron, the existing watermain along Tennessee is 1912 12” cast iron and 1886 14” cast iron. This project was approximately 40% designed by BG Consultants during the 2005 – 2007 Massachusetts Street watermain replacement projects. These existing plans will be finalized for the current project design.

Replacement of the existing watermains along Kentucky Street from 12^th Street to 19^th Street (see attached exhibit). The existing watermain along Kentucky Street is 1886, 1916 & 1922 10” & 12” cast iron. The watermains at several of the cross streets along this stretch of Kentucky also date back to the late 1800’s early 1900’s. These will also be addressed during this project. Attached are photos of the Kentucky St watermain showing the leaking joints during winter conditions and the interior condition of the pipe.

Project History

Per the City Commission’s authorizations between August of 2008 and December of 2009 Staff advertised an RFP for Engineering Services; negotiated and executed an engineering services agreement for preliminary design services; completed a preliminary design report on nine (9) potential watermain replacement projects totaling 19,025 linear feet of watermain; negotiated and executed a supplemental agreement for design and construction phase engineering services for Phase I; and completed plans and specifications and bid and constructed the Phase I project along Iowa, University, Orchard, Yale and Westdale Streets.

On February 9, 2010 the City Commission authorized staff to negotiate a supplemental agreement to the current engineering services agreement with BG Consultants for design and construction phase engineering services related to the projects noted below.

During the preliminary design phase the total project costs were estimated at $270,000.00 for 9^th Street and $1,087,660.00 for Kentucky Street.

The project to replace these sections of 94 to 124 year old watermain represents the approximately 25% of the remaining watermains 8” in diameter or larger and older than 1922. These watermains are also 4 of the top 10 pipe segments as rated by the Watermain Condition Assessment and Prioritization Model and their replacement will account for 66% of the total 3,800 lf made up by the top 10 segments. Both watermains are located within the limits of pending Public Works street reconstruction, and mill and overlay projects.

Project Status/ Details

Staff have negotiated a scope and fee in the amount of $122,156.00 for the required engineering services. The fee consists of $98,878.00 for survey and design tasks, $22,948.00 for bid and construction phase services, and $330.00 in reimbursable expenses. Department of Utilities Staff will provide the day to day construction inspection services.

The table below reflects the proposed fee components in relation to construction cost estimates derived utilizing the bid averages for items from the recent Iowa Street project and other regional data. For estimating purposes a 10% contingency is included in the construction estimate below to account for items to be defined during detailed design.

Estimated Construction Cost $1,079,580.00

Design Phase & Reimbursable Costs - % of construction 9.2%

Construction Phase - % of construction 2.1%

Total ESA - % of construction 11.3%

Some of the conditions that make the design and construction of this project unique and more complex than average include: 2 separate sites/alignments; 2 public meetings; construction sequencing allowing continuous water service to over 240 customer connections while accomplishing 19 separate points of existing, and new, watermain disconnection and reconnection, multiple stagings of traffic and pedestrian control/detours to coincide with each construction sequence; road crossings by auger boring; congested construction environments in fully developed neighborhoods; tapping of 16” concrete and cast iron transmission mains.

Staff anticipate completing the design phase and having the project ready to bid in Spring of 2011 for construction during Summer 2011.

Project Funding

Funding for the project is from a current remaining balance of $490,000.00 from the 2009 program, and Resolutions 6902 and 6903 reallocating 2007 and 2008 Revenue Bond Proceeds including $1,135,000.00 for the 2010 Watermain Replacement Program. The 2009 Bond proceeds are remaining from the Build America Bonds. Per the terms of the Bond these funds must be expended prior to August of 2012 to maintain their non-taxable status.

Action Request

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