Memorandum

City of Lawrence

Utilities Department

TO:	David L. Corliss – City Manager Cynthia Wagner - Assistant City Manager Diane Stoddard - Assistant City Manager
FROM:	Mike Lawless – Asst. Director of Utilities
CC:	Dave Wagner – Director of Utilities Philip Ciesielski – Asst. Director of Utilities Beth Frailey Krishtalka – Assistant to Director
Date:	October 20, 2010
RE:	Authorize the City Manager to execute an Engineering Services Agreement for the Water Master Plan, Project UT0921MP

Please include the following item on the City Commission Agenda for consideration at the October 26, 2010 meeting:

Authorize the City Manager to execute an Engineering Services Agreement in the amount of $247,748 with Burns & McDonnell Engineering Company, Inc. for services in conjunction with the Water System Master Plan, Project UT0921MP.

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

This project will prepare a new Water System Master Plan to replace the 2003 Water System Master Plan.

Project Status/Details

The current water system master plan was completed in 2003 and was based on information from 2001 and prior. Changes in the past five years decrease the reliability of the current Master Plan, including the following:

Growth has slowed considerably.
More than $34 million in Capital Improvement Program (CIP) Projects have been completed or are in process for the water system.
Regulatory and permitting requirements are constantly changing.
Meter limitations for rural water customers are being removed from contracts.
New projects not contemplated by the previous master plan are being considered.
New data and tools exist to prepare the new master plan.

These changes are significant. As the Plan ages, the projects and recommendations contained in it become less accurate and less reliable, thereby making it more and more difficult to ensure that limited funds are applied to the highest priority projects.

The water system master plan will use the same growth projections and population data generated for the wastewater master plan. Selection of the modeling software for the water system will be evaluated during the selection of the sewer modeling software to maintain consistency in the modeling programs.

Using the detailed GIS data a model of the distribution system will be created. The same scenarios modeled in the wastewater master plan will be modeled for the water system master plan. The results of the model runs will be used to create a recommended CIP with established triggers to determine construction schedules. The plan will evaluate the impact of the removal of meter limitations and the sale of City water to the Wholesale customers. The impacts of on-going maintenance to the Bowersock Dam and future water supply needs from the Kansas River will be evaluated. The Plan will also have a rehabilitation and replacement component based on system age, pipe materials, regulatory compliance changes and staff knowledge of the system. Upon completion of the project, the calibrated model network and software will be delivered to the City for use by staff to determine more accurately the impact that proposed developments will have on the distribution system.

The RFP requires the consultant to prepare an estimate of effort-hours and include a schedule of their current hourly rates. These will be based on the consultants understanding of the project and the specific scope of services developed by each consultant in response to the RFP.

Project History:

On October 13, 2009 City Commission authorized staff to advertise a Request for Proposals for Engineering Services to prepare the Water Master Plan.

On October 20, 2009 staff advertised the RFP via demand star online service and direct mailing. A mandatory pre-proposal meeting was held November 10, 2009 to address questions regarding the RFP.

On December 4, 2009 in response to the Request for Proposals staff received proposals from two (2) groups interested in the project. Proposals were received from Bartlett & West / Professional Engineering Consultants and Burns & McDonnell / BG Consultants.

A review committee consisting of Department of Utilities and City Manager’s Office staff evaluated the proposals. Staff consistently ranked Burns & McDonnell / BG Consultants as the highest qualified respondent for the project. Several key points are detailed below:

· Burns & McDonnell presented a detailed project approach which included specific work tasks related to the following:

o Project Management

o Demand Projections for the City and Wholesale Customers

o Water Rights Evaluation

o Diversion Options for the Water Plants

o Water plant regulations and process review

o Water need determination

o Preparation of the hydraulic model

o Complete improvement cost and schedule for the distribution system

o Report development

· With their work on the Wastewater Master Plan, Burns & McDonnell will provide consistency in the GIS data import to the hydraulic model, integration of the stakeholder input and growth projections, CIP project cost estimation and report preparation.

· Burns & McDonnell presented extensive firm and key staff experience in preparing water master plans, water supply studies and water modeling projects.

Each firm also provided a schedule of hours and hourly rates with their proposal for reference. The hours and hourly rates provided by Burns & McDonnell were found to be consistent with those provided by the other respondent.

On May 4, 2010 City Commission authorized staff to negotiate an Engineering Services Agreement with Burns & McDonnell for the project.

Project Status

Staff have met with Burns & McDonnell and negotiated an appropriate project scope for preparation of the master plan in the amount of $247,478. The engineering services agreement includes the base scope of services outlined above with four optional tasks selected to complete the master plan. The optional tasks are

1. Field Testing and Additional Model Calibration and Verification: This task is equivalent of the flow monitoring program that is in place in the sewer collection system. The task will provide data loggers to record pressures at various locations throughout the water distribution system. This will be used along with the SCADA data for tower levels and pump operations. The task will provide a more accurate model calibration of the water distribution system.

2. Kaw Water Treatment Plant Assessment and CIP Development: This task will focus on electrical, process, and structural reviews to develop a capital improvements and associated costs.

3. Oread Tank/Booster Pump Station Evaluation – This task will develop a preliminary concept report for the replacement of the two Oread storage tanks. It will evaluate the operation of the water distribution system without the tanks and the need for the booster station using the water model created in the project. The task is well suited for the master plan as modeling of the distribution system is a major component of the project. The report is the first step in the project to replace the Oread storage tanks and will be used to develop an rfp for design of the project.

4. Extended Period Simulation – This task will determine the water age in the water distribution system to help model total trihalomethanes and chlorine residuals. It will also evaluate pump and storage tank performance and sizing.

Negotiations resulted in a reduction of the base scope hours to prepare the master plan by incorporating reports from previously completed projects and city staff providing water rights information, diversion data and rural water district existing and future water needs. These items reduced the project costs by more than $25,000. In addition, city staff will provide the financial strategies and rate model scenarios to determine adequate revenues and water rates to support the Capital Improvement Plan developed for the master plan.

Project Funding:

The project is included in the 2010 Capital Improvement Program as well as the 2010 Rate Plan.

Action Request: Staff recommends authorizing the City Manager to execute an Engineering Services Agreement in the amount of $247,478 with Burns & McDonnell Engineering Company, Inc. for services in conjunction with the Water System Master Plan, Project UT0921MP.

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