City of Lawrence

Utilities Department 

MEMORANDUM

TO: David L. Corliss, City Manager

                        Cynthia Wagner, 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

                        Dave King, Utilities Maintenance Superintendent

Mark Hegeman, Utilities Operations Superintendent

DATE:             April 20, 2011

RE:                  April 26, 2011 Agenda Item – Award the bid for Bid No. B1106 Project WW0601, Anaerobic Digester Improvements at the City of Lawrence Wastewater Treatment Plant, and authorize the City Manager to execute Supplemental Agreement No.2 for Construction Phase Engineering Services.

Please include the following items on the City Commission agenda for consideration at the April 26, 2011 meeting:

Award the bid for Bid No. B1106 Project WW0601, Anaerobic Digester Improvements at the City of Lawrence Wastewater Treatment Plant to the low bidder Walters Morgan Construction Inc. in the amount of $3,130,000.00 and authorize the City Manager to execute the contract.

Authorize the City Manager to execute Supplemental Agreement No.2 to the existing Engineering Services Agreement with Black & Veatch in the amount of $320,000.00 for construction phase engineering services in conjunction with project WW0601 improvements to the Anaerobic Digester Process at the City of Lawrence Wastewater Treatment Plant.

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.

March 1, 2011 the City Commission set a bid date of April 5, 2011.

March 22, 2011 Department of Utilities staff and Black and Veatch held a pre-bid meeting at the project site to review the project/bid requirements and answer questions from potential bidders, subcontractors and suppliers.

Project Status:

On April 5, 2011 bids were received from the following five (5) bidders. The bids were opened and publicly read aloud.

BRB Contractors Inc.                    $3,228,000.00

Foley Construction                       $3,267,000.00

Garney Construction                     $3,214,629.00

Walters-Morgan Construction         Inc.    $3,130,000.00

Wildcat Construction Inc.               $3,970,000.00

Engineer’s Estimate                      $3,904,000.00

Black and Veatch has reviewed the bids and qualifications of the low bidder and, per the attached letter, recommend awarding the bid to the low bidder Walters-Morgan Construction Inc..

Staff have negotiated Supplemental Agreement No.2 with Black & Veatch for Construction Phase Engineering Services in the amount of $320,000.00. The supplemental agreement reflects an appropriate scope of services and fee based on the duration and complexity of the construction, the majority of which involves the retrofit of processes that will remain in continuous operation. These services include on-site construction inspection, coordination of materials testing services, construction materials and equipment submittal reviews/approvals, equipment start-up and commissioning, equipment operations and maintenance manuals review/approval, generation of as-built record drawings, treatment process start-up, and construction contract administration for the 14 month duration of the construction contract. Some of the project aspects considered in addition to the duration of the construction include; the number and complexity of equipment and material submittals to be reviewed; the construction activities and milestones that need to be inspected by the design engineer; the level of technical support required to inspect the installation and start-up of equipment including sludge heaters, membrane gas storage cover and blowers, digester gas compressors, digester gas conditioning equipment, digester gas flare; and the level of coordination between the construction activities and the ongoing wastewater treatment process needs. 

Project Schedule:

          Set Bid Date                                March 01, 2011

Pre-Bid Meeting                            March 22, 2011

          Bid Opening                                April 05, 2011

          Proposed Award Bid*                    April 26, 2011

          Proposed Notice to Proceed*                   May 13, 2011

          Proposed Project Completion*       July 30, 2012

*Note- Project schedule is dependent on actual dates of award and notice to proceed, and weather 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.

Award the bid for Bid No. B1106 Project WW0601, Anaerobic Digester Improvements at the City of Lawrence Wastewater Treatment Plant to the low bidder Walters Morgan Construction Inc. in the amount of $3,130,000 and authorize the City Manager to execute the contract.

Authorize the City Manager to execute Supplemental Agreement No.2 to the existing Engineering Services Agreement with Black & Veatch in the amount of $320,000.00 for construction phase engineering services in conjunction with project WW0601 improvements to the Anaerobic Digester Process at the City of Lawrence Wastewater Treatment Plant.