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 Mike Lawless – Assistant Director of Utilities Beth Frailey Krishtalka – Assistant to Director Mark Hegeman – Utilities Operations Superintendent
Date:	January 12, 2011
RE:	January 18, 2011 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 of additional watermain replacement adjacent to Phase II of project UT0810DS Watermain Replacement Program

Please include the following item on the City Commission Agenda for consideration at the January 18, 2011 meeting:

Authorize the City Manager to execute Supplemental Agreement No. 3 in the amount of $42,527.00 to the current Engineering Services Agreement with BG Consultants for Design and Construction Phase Engineering of additional watermain replacement adjacent to 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.

Staff have evaluated watermains adjacent to the alignments in 9^th Street and Kentucky Street as identified above and recommend that the following watermains be replaced as part of phase II of this project:

13^th Street: Tennessee to Vermont, 8” Cast Iron (1938)

18^th Street: Tennessee to Kentucky, 8” Cast Iron (1922)

Tennessee Street: 9^th to 10^th Street, 12” Cast Iron (1912)

The above additional watermains were identified for replacement as part of phase II of this project due to their ranking in the Watermain Condition Assessment and Prioritization Model as well as constructability aspects including ease of connection to the existing distribution system, limited service connections, and integration with proposed mill and overlay/street rehabilitation projects. An exhibit is attached for reference.

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 watermain replacement on 9^th Street from Tennessee to Vermont and Kentucky Street from 12^th to 19^th Street.

On September 28, 2010 the City Commission authorized the execution of supplemental agreement No. 2 for the design and construction phase engineering services for the 9^th Street and Kentucky Street alignments in the amount of $122,156.00. 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.

The construction costs have been estimated at $1,079,580 for the 9^th Street and Kentucky Street alignments, $164,615.00 for Tennessee Street, $117,150.00 for 13^th Street, and $65,175.00 for 18^th Street.

Project Status/ Details

Staff have negotiated a scope and fee in the amount of $42,527.00 for the required engineering services related to the additional watermain replacement in Tennessee Street, 13^th Street and 18^th Street. The fee consists of $33,678.00 for survey and design tasks, $8,733.50 for bid and construction phase services, and $115.50 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 the total estimated cost of construction. Construction cost estimates were 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 $1,426,520.00

Design Phase & Reimbursable Costs - % of construction 9.3%

Construction Phase - % of construction 2.2%

Total ESA - % of construction 11.5%

Based on the design fee guideline adopted as part of the January 11, 2011 City Commission Agenda, the recommended base design engineering services fee is 7.8% of the estimated construction cost as determined by linear interpolation. The design fee guideline does not provide recommendations for construction phase services. The design phase percentage of estimated construction cost for this project is elevated above the recommended fee basis due to work at multiple locations, additional public meetings, and unusual site conditions which include construction sequencing to allow continuous water service to over 270 customer connections while accomplishing 25 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; and the tapping of 16” concrete and cast iron transmission mains.

Construction documents will be developed to permit each of the recommended areas of additional work to be bid as an alternate to the primary project. This will allow staff to accept or reject additional work based on available budget and actual construction cost at the time of bidding.

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