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Home My WebLink About10B - Water Treatment Plant MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 CITY COUNCIL AGENDA REPORT AUGUST 7,2006 10B STEVE ALBRECHT, DIRECTOR OF PUBLIC WORKS CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE THE CITY'S STANDARD PROFESSIONAL SERVICES AGREEMENT WITH BOLTON & MENK, INC FOR THE WATER TREATMENT PLANT Introduction The purpose of this agenda item is for the City Council to authorize a standard professional services agreement with Bolton & Menk, Inc. for design and construction services associated with the Water Treatment Plant. Historv The City of Prior Lake Capital Improvements Program (CIP) has planned for a Water Treatment Plant since the mid '90s. The CIP has budgeted $13 million for the construction of a Water Treatment Plant and associated water storage. In January of 2005 the City Council raised water rates. Part of that rate increase was in anticipation of the Water Treatment Plant. By adjusting these rates previously the plant can be completely funded without use of any tax dollars or additional adjustments to water rates. The City of Prior Lake draws the majority of our drinking water from the Jordan Aquifer. In Prior Lake this aquifer is high in both iron and manganese. While the water is safe to drink, the levels of these minerals present in the water exceed secondary drinking water standards established by the Environmental Protection Agency (EPA). As a result numerous residents experience water staining, odor and even taste issues at their residences. These high levels also affect the life of water filters and softeners. In addition to the impacts at residences these minerals cause build-up in the water system piping that can substantially reduce the capacity of watermains and water services. The natural environment that makes Prior Lake so special causes problems with our water system. The lake acts as a barrier resulting in numerous dead- end watermains where lack of water circulation results in the above problems. For that reason City staff flushes watermains on an aggressive schedule to keep them as clean as possible. On June 5, 2006 the City Council held an informational meeting to discuss the status of the Water Treatment Plant. At that meeting the City Council directed the Water Treatment Plant Committee (WTPC) to proceed with the consultant selection process. www.cityofpriorlake.com Phone 952.447.4230 / Fax 952.447.4245 Current Circumstances In June of 2006 the WTPC solicited Requests for Qualifications from interested consultants for design and construction management services associated with the Water Treatment Plant. Seven consultants responded to the request, six submitted qualifications for review by the City. The WTPC reviewed the qualifications and short-listed four consulting firms to receive formal proposals from. The short-list of consultants was determined by evaluating the following criteria: 1) Water Treatment Plant Design Experience 2) Proposed Project Manager and Staff 3) Past experience with the City of Prior Lake The WTPC requested proposals from Advanced Engineering and Environmental Services (AE2S), WSB and Associates, Bonestroo and Bolton & Menk, Inc. On July 14tli the WTPC received proposals from the consultants for evaluation. The WTPC completed a comprehensive review of the proposals and cost proposals. Additionally on July 1 ih a WTPC interview subcommittee consisting of Councilmember Chad LeMair, Joe Goracke (Resident), Paul Evenson (Resident), Utilities Supervisor Craig Eldred, Public Works Coordinator Jen Wittkopf and Director of Public Works Steve Albrecht. The interview committee made a unanimous recommendation to select Bolton & Menk, Inc. to the City Council based on the proposals and interviews. The Committee felt that the Bolton & Menk project team best addressed the neighborhood and overall community concerns in their proposal and interview. The WTPC identified those concerns as neighborhood involvement, budget, schedule, past project success and proposed personnel for the purposes of the evaluation. While the recommendation was not cost driven it should be noted that Bolton & Menk was also the low cost proposer. However, they were not the low hour proposer meaning the City was getting substantial value for our investment. Other items noted by the Committee were the fact that Bolton & Menk has three licensed Water Treatment Plant Operators on staff who are also construction managers. This is a great benefit to the City as it helps with City Staff training and start-up. By using licensed construction managers instead of project engineers a substantial cost savings is realized. The following table shows the costs, budget hours and average hourly rate. Consultant Proposed Cost Budget Hours Average Hourly Rate Bolton & Menk $686,560.00 7,810 $88 Bonestroo $771,506.00 7,278 $106 AE2S $1,124,818.00 8,905 $126 WSB $1,135,931.00 8,786* $92** *Proposal did not include hour totals for sub-consultants **Based on WSB costs and hours, does not include sub-consultants Bolton & Menk, Inc has completed more than 60 water treatment plant projects successfully. The proposed project team includes Architects Plus who has worked on 25 water and wastewater treatment plant projects with Bolton & Menk. Historically they have completed quality projects with a low average cost per million gallons per day plant design. This is a good indicator of minimal change orders and budget management. ISSUES: In order to have the Water Treatment Plant in operation by January of 2009 the City needs to select a consultant. The following schedule indicates the project timeline: Activity Select Consultant & Award Contact Issue Consultant Notice to Proceed Hold Neighborhood Meetings Present Preliminary Report to City Council/Authorization for Final Design Complete Final Design Open Construction Bids Begin Construction Complete ConstructionlWater Treatment Plant Start-up Date August 7, 2006 August 8. 2006 September/October 2006 November 2006 April 2007 May 2007 June 2007 December 2008/January 2009 City Staff worked with consultants to develop the above schedule based on realistic timelines that will not cause cost increases due to schedule. The City has also identified completion of the preliminary design report as a critical evaluation element in the contract. If the City feels that the Consultant has not performed as represented in the proposal the City could terminate the Contract at that point. While not recommended as it most likely will result in additional costs and some continuity issues it does provide the City with an evaluation point for the project consultant. FINANCIAL IMPACT: The total project budget is $13,000,000 for the Water Treatment Plant and associated ground water storage facility. The budget includes professional services and the selection of Bolton & Menk preserves the maximum amount of budget available for the project. ALTERNATIVES: The alternatives are as follows: 1. Approve a resolution authorizing the Mayor and City Manager to execute the City of Prior Lake's Standard Professional Services Agreement for Design and Construction Management Services for the Water Treatment Plant in the amount of $686,560.00 with Bolton & Menk, Inc. 2. Table this agenda item for a specific reason. 3. Deny this agenda item for a speCific reason and provide staff with direction. RECOMMENDED Staff recommends alternative number 1. MOT~OjJ.L Reviewedc~Onl,Boy'es. City M~nager 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 RESOLUTION 06-xx A RESOLUTION AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE THE CITY'S STANDARD PROFESSIONAL SERVICES AGREEMENT WITH BOLTON & MENK, INC FOR THE WATER TREATMENT PLANT Motion By: Second By: WHEREAS, The City Council authorized the Water Treatment Plant Committee to begin the Consultant selection process on June 5, 2006; and WHEREAS, The City has planned for a Water Treatment Plant for more than 10 years; and WHEREAS, The City Council made the required water rate adjustments in 2005 to fund the project; and WHEREAS, The Water Treatment Plant Committee solicited Requests for Qualifications from interested consultants and developed a short-list of qualified consultants by evaluating related project experience, project design team staff and past performance for the City of Prior Lake; and WHEREAS, The Water Treatment Plant Committee solicited formal proposals for design and construction management services for the Water Treatment Plant from four consultants. The cost proposal results were as follows: Consultant Proposed Cost Budget Hours Average Hourly Rate I Bolton & Menk $686,560.00 7,810 I Bonestroo $771,506.00 7,278 I AE2S $1,124,818.00 8,905 I WSB $1,135,931.00 8,786* *Proposal did not include hour totals for sub-consultants **Based on WSB costs and hours, does not include sub-consultants $88] $106] $126] $92** ] WHEREAS, Based on a comprehensive review of the proposals, costs and interviews with each of the Consultants the Water Treatment Plant Committee recommends a professional services contract be awarded to Bolton & Menk, Inc for preliminary design, final design and construction management services required for the Water Treatment Plant Project; and WHEREAS, The City must proceed with consultant selection at this time in order to complete the Water Treatment Plant by December of 2008. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. www.cityofpriorlake.com Phone 952.447.4230 / Fax 952.447.4245 2. The Mayor and City Manager are authorized to enter into a professional services contract with Bolton & Menk, Inc. for an amount not to exceed $686,560.00. PASSED AND ADOPTED THIS 7TH DAY OF AUGUST, 2006. YES NO Haugen Dornbush Erickson LeMair Millar HauQen Dornbush Erickson LeMair Millar Frank Boyles, City Manager R:\Agenda Reports\Aug 7 2006\WTP Contract Resolution.DOC