Memorandum
City of Lawrence
Utilities Department
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TO: |
Diane Stoddard – Interim City Manager Casey Toomay – Assistant City Manager Brandon McGuire – Assistant to the City Manager |
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CC: |
Dave Wagner – Director of Utilities Scott McCullough – Director of Planning and Development Services Mike Lawless – Deputy Director of Utilities Beth Krishtalka – Assistant to Director Mark Hegeman – Utilities Operations Superintendent Dave King – Utilities Maintenance Superintendent Bob Brower – Utilities Field Operations Superintendent |
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FROM: |
Philip Ciesielski – Assistant Director of Utilities |
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DATE: |
October 20, 2015 |
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RE: |
Authorize the Interim City Manager to execute Supplemental Agreement No.1 to the Engineering Services Agreement with HDR in the amount of $360,978.00 for Design and Bid Phase Engineering Services for Project UT1307 Oread Storage Tank and Booster Pump Station Replacement on the Existing Site
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Background
The project addresses the replacement of the south 1931, and north 1954 Oread water storage tanks. These facilities are located in the 1200 block of Oread Avenue. The 1931 tank stores 1,000,000 gallons, and the 1954 tank stores 1,300,000 gallons. The tanks serve the Central Service area by gravity, and there is a booster pump station with a firm capacity of 1.8 million gallons per day (mgd) that pumps to the West Hills Service area. A map of the existing location is attached.
As indicated in the photos from an October 2012 inspection, which are included at the end of the memo, both tanks are exhibiting severe corrosion, loss of structural members, holes in the exteriors, deteriorated foundations and failing interior and exterior coatings. In addition, the tanks do not meet several current safety and American Water Works Association standards. The pump station is in need of replacement due to electrical and mechanical equipment life cycle, inadequate valving, maintenance and operational issues. For example, the two installed pumps are run via a single shared variable frequency drive (vfd) which is at the end of its expected service life. The loss of this single vfd drive would render both pumps out of service. Based on the condition of the tanks, and pump station, both the 2003 Water Master Plan and the Integrated 2012 Water Utilities Plan have recommended the replacement of these facilities.
Project History
In January 2014, the City executed an Engineering Services Agreement with HDR Engineering, Inc. to evaluate site options, tank sizing and configurations, operational and constructability issues, and project costs for the replacement of the storage tanks and pump station. HDR initially vetted and provided budgetary estimates for 12 combinations of sites and configurations. This initial process included the existing site on the east side of Oread Avenue, KU Endowment property on the west side of Oread Avenue, and a potential site at Water Tower Park the existing Stratford Elevated Tank site.
The evaluation concluded that based on project costs, existing water transmission and distribution piping, and operational needs the current location along Oread Avenue is the best location for the required water storage and pumping. Based on modeling current, and future water demands; and system operations the appropriate storage volume at this site in the water distribution system was determined to be 1.75 million gallons. This sizing will be reevaluated as part of the proposed design phase taking into account the upcoming University of Kansas Central District project and its associated water demands. The study recommends maintaining the two-tank layout for redundancy and operational flexibility.
Of these initial sites the project fully evaluated options for the replacement of the tanks and pump station on the existing site, on KU’s open tract on the west side of Oread Avenue, and a dual site option with one tank on each side of Oread Avenue.
Early in the project, the University of Kansas Endowment Association expressed an interest in the existing tank site for University uses adjacent to the KU Alumni Center. The Endowment Association indicated the ability to make their west side site available for the siting of the new tanks pending acquisition of the current City tract. The Endowment Association also indicated a willingness to participate in the increased project costs associated with relocating the tanks and pump station to the west side of Oread Avenue.
In addition to the current Endowment Association tract on the west side of Oread Avenue, the relocation of both tanks and the pump station would require the acquisition of the property immediately to the north of the KU tract. Options shown include the acquisition of both 1209 Oread Avenue, and the parking area to the rear of 1209 Oread Avenue – West Side exhibit attached. The acquisition of 1209 Oread Avenue was deemed unfeasible due to the property’s inclusion within the Hancock Historic District, and the project’s impact on the district. Ultimately, the acquisition of the parking area to the west of 1209 Oread Avenue was also deemed unfeasible due to its inclusion within the Hancock Historic District, and the project’s impact on the district. The property also provides parking for the apartments at 1201 Oread Avenue and its use for the Oread Tank project would have resulted in parking requirement conformance issues for the 1201 Oread Avenue apartments. Based on these issues the option of reconstructing both tanks, and the pump station on the west side of Oread Avenue was deemed unfeasible.
An option to reconstruct one tank and the pump station within the KU Endowment property on the west side of Oread Avenue, and one tank on the existing site was also evaluated. This arrangement made the south half of the existing tank site available for use by KU Endowment. KU Endowment reviewed this option, the resulting available land, and the associated project costs, and determined that the potential land acquisition did not justify the costs associated with relocating a tank and the pump station to the west side of Oread Avenue.
The information below summarizes the final two options associated with the two sites on Oread Avenue.
Existing East Side Site – exhibit
2 each 0.875 MG tanks, 70’-6” diameter x 30’ side water depth
Meets all operational requirements
$4,952,000.00 estimated total project cost
No additional property acquisition
No property available for KU’s use
2 each 0.875 MG tanks, 70’-6” diameter x 30’ side water depth
Meets all operational requirements
$5,793,000.00 estimated total project cost not including KU property acquisition costs
$841,000.00 more than the East side base case project
Requires existing University of Kansas west side tract
Approximately half of the East side site available for KU’s use
The options above both include the demolition of the existing tanks and pump station, site improvements along the east property line of the existing site including a retaining wall and sidewalk, and rehabilitation of existing watermains in Louisiana Street.
Recommendation
Staff recommends proceeding with the project based on the replacement of the water storage tanks and booster pump station on the existing east side site.
Staff have negotiated a scope and fee for design and bid phase engineering services with HDR in the amount of $360,978.00. The scope includes basic design services related to project management, site survey and the generation of plans and specifications for bidding in the amount of $304,280.00. The scope also includes non-basic services in the amount of $56,698.00 related to geotechnical investigations, pump testing and hydraulic modeling, bidding, planning activities, public meetings, as well as coordination and phasing of construction activities while maintaining distribution system operations.
Based on an estimated construction cost of $4,230,000.00 the fee for basic services is 7.2% of the construction cost. The Engineering Fee Curve for a construction project of this value estimates basic engineering services in the amount of 7.12% of construction. The proposed total fee, at 8.5%, is appropriate given the nature of the design of water storage tanks and pump stations and operational and site design considerations not considered in the scope of work cover by the Engineering Fee Curve. The non-basic services are not covered by the Engineering Fee Curve, however, Staff has reviewed the proposed tasks, hours and hourly rates and agrees that they are appropriate for the scope of work.
Project Funding
The project is funded from the Department of Utilities Bonded Construction Fund.
Action
Authorize the Interim City Manager to execute Supplemental Agreement No.1 to the Engineering Services Agreement with HDR in the amount of $360,978.00 for Design and Bid Phase Engineering Services for Project UT1307 Oread Storage Tank and Booster Pump Station Replacement on the Existing Site.