Memorandum

City of Lawrence

Department of Utilities

TO:	David L. Corliss, City Manager Cynthia Wagner, Assistant City Manager Diane Stoddard, Assistant City Manager
FROM:	Philip E. Ciesielski, Assistant Director of Utilities
CC:	Dave Wagner, Director of Utilities Mike Lawless, Assistant Director of Utilities Beth Krishtalka, Assistant to Director Mark Hegeman, Utilities Operations Superintendent Dave King, Utilities Maintenance Superintendent
Date:	February 23, 2011
RE:	Agenda Item – Set a Bid Date of April 5, 2011 for Bid No. B1106, Project WW0601 Anaerobic Digester Improvements

Please include the following item on the City Commission agenda for consideration at the March 01, 2011 meeting.

Set a Bid Date of April 5, 2011 for Bid No. B1106 Project WW0601, Anaerobic Digester Improvements at the City of Lawrence Wastewater Treatment Plant.

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 Capital Improvement Plan (CIP) project was recommended as part of the 2003 Wastewater Master Plan. The project is required to increase the capacity of the wastewater plant’s solids processing stream to match the plant’s liquid processing capacity and provide wastewater treatment for a community of 100,000 persons.  

Project History:

In April 2006 the Department of Utilities contracted with Black & Veatch for an evaluation and testing of the existing digester system, and the delivery of a Pre-design Report outlining design options and a recommended scope of improvements to satisfy the CIP project requirements. In December 2006 Black & Veatch submitted a Pre-design Report, including costs, outlining options for improvements to the digester process, solids drying and digester gas utilization. The recommended improvements included the design of a dewatering and thermal dryer process, odor control, associated modifications to the existing biosolids dewatering building to accommodate the dryer installation, modifications to existing piping and valves in the solids and gas control buildings, installation of insulation on the concrete roof of Digester No.1, modifications to the gas control building/equipment to allow processing of additional digester gas and an evaluation of energy recovery from the digester gas system.

Upon receipt of the Pre-design Report staff paused the project while an evaluation of options for solids handling at the proposed Wakarusa Water Reclamation Facility (WWRF), and its integration into existing processes, was completed as part of WWRF Basis of Design Report. Based on the information and recommendations in these reports in September 2008 Staff recommended continuing project WW0601 Anaerobic Digester Improvements to expand the solids handling capacity at the existing wastewater treatment plant.

In April 2009 the Department of Utilities entered into an Engineering Services Agreement with Black & Veatch for design engineering services related to the recommended improvements in the 2006 Pre-Design Report. In July 2009, as part of the design process, one of the proposed sludge dryer equipment suppliers, Fenton Environmental Technologies, performed pilot testing to dewater and thermally dry samples of undigested sludge from the wastewater plant process stream. While the undigested sludge proved to be satisfactorily dewatered and dried the resulting thermally dried product exhibited unacceptable odor properties in both the dried and rewetted state. The resulting odors made the thermally dried product unacceptable for use in the biosolids beneficial reuse program. The only acceptable disposition for the product would be a sanitary landfill.

Based on the results of the above pilot testing Black & Veatch was directed to provide an updated summary of anaerobic digester capacity improvement options, including construction and operational costs, that met the goal of the original CIP project of increasing the solids processing capacity and provide treatment for a community of 100,000 persons. Based on a review of the options presented Staff recommended the Digester No. 3 structure be rehabilitated and put back into service along with the expansion of the sludge heating system and the gas compressor system. Additional improvements to the digester gas handling and cleaning system to improve the quality of the gas and increase the amount available for reuse in fueling the sludge heating system were also included.

July 20, 2010 the City Commission authorized the City Manager to execute Supplemental Agreement No.1 to the existing Design Phase Engineering Services Agreement with Black & Veatch increasing the scope of services from the addition of a heat dryer to the rehabilitation of Digester No. 3 as noted above, with no change to the existing fee.

Project Status:

Black and Veatch have completed the design and bid documents, and the project is ready to bid. The Kansas Department of Health and Environment has reviewed the project documents and have approved the project for construction.

Department of Utilities Staff prepared and submitted the required Site Plan and Flood Plain Development Permit applications and attachments for the project. These have been reviewed and approved. During construction Department of Utilities Staff will be providing equipment and labor related to the instrumentation and control system modifications required to control and monitor the new facilities.

Based on the final project design and construction schedule staff will negotiate a scope and fee for construction phase engineering services with Black and Veatch. This item will be place on a future City Commission meeting agenda for review and approval.

Project Schedule:

          Set Bid Date                                March 01, 2011

Pre-Bid Meeting                            March 22, 2011

          Bid Opening                                April 05, 2011

          Proposed Award Bid*                    April 19, 2011

          Proposed Notice to Proceed*                   May 6, 2011

          Proposed Project Completion*       June 1, 2012

*Note – actual project schedule is contingent upon the award of the bid, the execution of contract documents and issuance of Notice to Proceed; and weather conditions during construction.

Project Funding:

The project is funded from a combination of 2009 and reallocated 2007 Bond Funds. The total project budget is $6,159,302.00, with $5,725,287.25 remaining for construction. The 2009 Bond proceed balance of $5,249,302.00 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:

Set a Bid Date of April 5, 2011 for Bid No. B1106 Project WW0601, Anaerobic Digester Improvements.