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Home My WebLink About9A - Construction of Water Treatment Facility MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: 4646 Dakota Street S.E. Prior Lake, MN 55372-1714 CITY COUNCIL AGENDA REPORT JUNE 18, 2007 9A JENNIFER WITTKOPF, PUBLIC WORKS COORDINATOR CONSIDER APPROVAL OF A RESOLUTION APPROVING PLANS AND SPECIFICATIONS AND AUTHORIZING ADVERTISEMENT FOR BIDS FOR CONSTRUCTION OF THE WATER TREATMENT FACILITY Introduction The purpose of this agenda item is for the City Council to approve the plans and specifications for the Water Treatment Facility and to authorize the advertisement of bids for construction of the facility. Historv On August 7,2006, the City Council approved the City's Standardized Contract for Professional Services with Bolton & Menk, Inc. and initiated the design report for the Water Treatment Facility (WTF). As part of the design report preparation, the Water Treatment Facility Committee (WTFC) and the consultant completed a publiC involvement process. From September to April, several neighborhood meetings were held with residents to discuss various issues with the site and facility, including exterior design and landscaping. Attendance at the meetings was primarily limited to the residents living adjacent to the site. Additionally, five issues of a project newsletter have been sent out to over 400 area residents. The City has also maintained a website and email distribution list, to keep interested residents apprised of the latest project information. The neighborhood's preference is for a building that has a residential appearance and utilizes landscaping for screening and filtering of the building. The WTFC feels that the concepts contained in the final design achieve these goals while balancing the greater community's concerns of function and budget. On December 4, 2006, the design report was presented to the City Council for approval. Issues considered by the Council at that time were: Facility size I capacity Building exterior architecture Facility roof design I appearance Equipment garage Site fencing I security Budget The City Council accepted the design report and authorized preparation of the plans and specifications for a 7.5 MGD WTF. www.cityofpriorlake.com Phone 952.447.9800 / Fax 952.447.4245 Current Circumstances The WTF design plans and specifications have been completed and the next step in the process is to advertise for construction bids. The proposed timeline for the remainder of the project is as follows: Approval of Plans and Specifications Approval of Conditional Use Permit Advertisement for Bids Open Bids Award Contract I Begin Construction Compete Construction I Start-up June 18, 2007 June 25, 2007 June - July 2007 July 2007 August 2007 February 2009 ISSUES: The issues at this time include the following: Conditional Use Permit - Staff submitted a CUP application to the Planning Commission to be considered at the June 25 meeting. A CUP is required to construct and operate the facility, a Public Service Structure, in the R1-LD (residential) zoning area. It is important for the City Council to approve the plans prior to the Planning Commission review. If Council requires any changes to the plans at this time, those changes could affect the CUP application. The CUP requires that the WTF have 60% Class 1 materials on all sides in accordance with City ordinances. The proposed facility meets this requirement ranging from 61 % to 69% on the building. When reviewing the amount of proposed Class 1 materials (brick and windows) on the facility this is an important consideration as it is an indicator of the buildings cost effectiveness. This demonstrates that while the facility is being constructed of quality materials is not excessive in the use of Class 1 materials and is therefore balancing cost concerns with aesthetics. Proiect Schedule - The project schedule has been modified slightly since the preliminary design phase. In general, the schedule was extended to give the WTFC ample opportunity to obtain resident feedback about the facility and site, and also to properly address on-site stormwater and wetland issues. Start-up of the facility is still anticipated during the winter I off-peak usage season, early in 2009. Proiect Budaet - The estimated project budget reviewed by the City Council on December 4,2006, was $14,336,000. Upon completion of the construction plans and an estimate based on current construction costs, staff estimates the total project Cost to be $14,553,000. This budget includes all construction and design work associated with the WTF. The final budget will be dependent on final bids and approval by the City Council on August 6,2007. The difference in the current estimate and the December 4, 2006 estimate is the contingency. The prior estimate included a $200,000 contingency. While staff feels this is a sufficient contingency during construction we are concerned that the volatility in steel and concrete prices could greatly impact the facility. The WTF will have more than $6,000,000 worth of concrete and steel and minor fluctuations in market prices could easily impact the cost of the plant. For that reason staff has included an additional $200,000 in the current contingency to cover those potential costs. If the additional funding is not needed for construction staff proposes that the contingency be adjusted to $200,000 as proposed in the WTF Report. The additional funding is available in the Trunk Reserve Fund as that fund is responsible for 20% or $2,500,000 of the WTF non-storage related construction costs directly attributed to growth capacity being built into the WTF. Capital Eauipment Refund - The Minnesota Department of Revenue offers a refund program for sales tax paid on capital equipment and appurtenances used to refine or treat water to be sold at retail. Staff intends to work closely with MN-Revenue to obtain sales tax refunds on all aspects of the facility that apply. This could result in an estimated refund of $400,000 to $600,000 depending on final construction costs. Staff recommends that any rebate be deposited in the Water Utility Fund and used to offset the need for future water rate increases. Enerav Efficiencies I Operational Cost Savinas -Included in the facility design are features that are energy efficient and provide staff the opportunity to operate the facility at a lower cost than standard equipment. A diesel-fueled generator is included in the garage area of the facility. This generator will be used as emergency back-up power for the essential operations of the facility. The generator will also be used during peak energy demand times, in conjunction with Xcel Energy's peak control program, to save on the City's energy costs of running the facility. Staff is currently working with Xcel to determine the cost savings to the City. Staff is also proposing to include the Maintenance Center and Wells 8 and 9 in this program as the City has generator facilities at each of those locations. The pumps used to deliver the treated water into the City's system have variable frequency drive (VFD) motors. VFD's can increase operating efficiency by extending the productive life of the pumps. These also offer the opportunity to run the pumps at a lower horsepower during low-demand periods, thus using less energy. Xcel Energy also offers a rebate program for motor efficiency that staff is currently researching. FINANCIAL IMPACT: A detailed estimate of the WTF costs is attached to this report for review. The estimated WTF costs are: Amount $13,383,000 $770,000 $208,000 $192,000 Total Pro"ect Cost $14,553,000 The proposed funding for the project is as follows: Fundintl Source Amount Water Storage Fund $2,000,000 Trunk Reserve Fund (1) $2,553,000 Water Revenue Bonds $10,000,000 Total Fundintl $14,553,000 (1) 20% (1.5 MGD) New Development Apportionment for 7.5 MGD capacity Based on the above budget and the final plans and specifications, staff and the WTFC are recommending proceeding with the bidding of a 7.5 MGD facility. It is anticipated that bid results will be reviewed by the Council on August 6,2007. ALTERNATIVES: The alternatives are as follows: 1. Approve the plans and specifications and authorize advertisement for bids for construction of a 7.5 MGD Water Treatment Facility. 2. Table this agenda item for a specific reason. 3. Deny this agenda item for a specific reason and provide staff with direction. RECOMMENDED MOTION: Alternative # 1. A RESOLUTION APPROVING PLANS AND SPECIFICATIONS AND AUTHORIZING ADVERTISEMENT FOR BIDS FOR CONSTRUCTION OF THE WATER TREATMENT FACILITY Motion By: Second By: WHEREAS, The City has planned for a Water Treatment Facility 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 City Council awarded the City's Standardized Professional Services Contract to Bolton & Menk on August 7,2007 for design of the Water Treatment Facility; and WHEREAS, A 7.5 MGD Water Treatment Facility shall be constructed to meet the City's current and future water needs as detailed in the City's Water Supply Plan accepted by the City Council on November 20, 2006; and WHEREAS, The City Council approved the project design report and authorized preparation of plans and specifications on December 4, 2006; and WHEREAS, The Water Treatment Facility budget is proposed as follows: Amount $13,383,000 $770,000 $208,000 $192,000 Total Pro"ect Cost $14,553,000 The proposed funding for the project is as follows: Fundinc Source Amount Water Storaae Fund $2,000,000 Trunk Reserve Fund (1) $2,553,000 Water Revenue Bonds $10,000,000 Total Funding $14,553,000 (1) 20% (1.5 MGD) New Development Apportionment for 7.5 MGD capacity (non-storage costs) And staff believes inclusion of the control and SCADA equipment for the Well No. 10 project is appropriate to maintain consistency and quality during installation; NOW THEREFORE, Be IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: www.cityofpriorlake.com Phone 952.447.9800 / Fax 952.447.4245 1. The recitals set forth above are incorporated herein. 2. The plans and specifications are hereby approved and staff is authorized to advertise for bids for construction of the Water Treatment Facility. PASSED AND ADOPTED THIS 18TH DAY OF JUNE 2007. YES NO Haugen Haugen Erickson Erickson Hedberg Hedberg LeMair LeMair Millar Millar Frank Boyles, City Manager N ~ ~ f ~ ~ ~ ~ i , 5 " 24'-1'l" t 50'-0' f 70'-0" r , ~ I J ~ I I I I I 01 I I I KEY PLAN I I I I 01 I I I 0 I 0 I I I8J'~TCH I I I ~ ~ CODE REVIEW: WA.1IR lRE'AnEH1' FACILnY lNTER*'TlOtW.BUlLOINCCOOE-2008~ lMlNESOTA STATE BUIlDING COOE-2007 EDmON CITYOrplOORLAK[ZONINCOR~CES 69'-8" '-1 OCCUPANCY i~.gr~J.wrR ~rIllPIATfORUIWN..KWAYS 8 OCCUPANCY CONF"EREJ<<:E ROOM/ornCE/ lAB/CORRIIlORjTOIlITS S-1 OCCUPANCY """'" _18i'~~ = ~rloEZZANINE I!.Mlffi IT.ll,'W,. ".8"11 SO.Fl. r~:~~: Ut~::;: o I ~ t CHElolICALSTORAGE: SODIUWPERw.NGANA.TE CHLORINE rLUORlOE ,""'""" PROPOSEO 1-1,000 GAl- 2-1,100 GAL ~~~:+ 1~GAL "-''''''' n. O@ :~/~~_~.~AIN LEVEL FLOOR p~~ NORTH PROPOSED .fJlEA: NON SEPARATED USE: ?QCC. (PER1ABt..E 100J,2.2.2) ?OCC.(AClUAl) H WSONRY CONSlRUClION wi PRECASl P1..ANI( ROOF 23,000 SQ. Fl J?1J5 SO. Fl. (GROSS) COMSlRlJCTI()t.IlVPE: YARDS>llOFl. SPRINl<LERSYSTnl CIlJI .;rm.;ngs on<! content copyright ......chil6ct. Plus ~ ~ _~:":!......2:"": GraphiC $cole for 1/16-.1'-0. AACl".PROJ.":2lI!iO . archhects plu8 203 nw 11...1 8ve. farlbeult, mlnn. $117~' 55021 .... JUNE 25,ZD07 IHEIlltITClJI'If"flHillTTtGP1NI.SI'[tlfICo\TIONOItll!POltT~PIlEPlUltll "'11[011 IJHIl(lIlIr IllIft:CTSUPEJilYlSlCH,_lHiIlT I"'" A DULT l.UNSlll iIoRCHfT[ClUNDEJlTHELII'SOf'MSTATEOf~(AlIC:NI1CTUIo\ONL'I) :=.."'~DAVlDJ.lolEDIN .... 9898 ;r:>~~n~;.;.I~n:~s~.::~c. '1\ -.u.... CJW;KA,* -.-.....011[$,... lJR 6-1-07 lJR 6-25-07 PRIOR LAKE. WIIINESOTA WAlER lREAntENT FAClJTY OVERALL l.WN LEVEL FLOOR PLAN 4.01 ~ ~ ) (JJ <<:t 0 z <<:t :5 ll.. :z 0::: :s 0 ~ Cl. 0 >- --I ""' u... !~~ "" --I d w ~ ~ ~ ~ --I "'~ 0::: ~d w ~ ~ i ll.. ll.. :::> ~ --I ~ ...J ~ 5 w ~ Ii; > 0 _0 ~ ' ~;:! I i <( 0 d ~ ~. ~r i ~ i Z : II w ; 5 j ~ .d. ~ !I.( z III a ~'I I- ~ Ii ..J "I gE- ~ III ~ !!I ~ "I ~ ill ~I I ill II; il : ~ : !i~ ,,~ m ~ 5"! 1'1 ~, -. i!i~~~ ~!f~~1 ~F3 _ "='! r D ~~~~ i i i~ II- , s. ~ ~ " .x ." 8- " ~ " f a H:)'I:IV 'Wd 6V:~~:Z l.OOZIL/9 'lIMp.l>O'j;reOS8~'0ld\OS8l\!OJdZ1P'<1\:" q4~y City of Prior Lake Water Treatment Facility Cost Estimate - 6/11/07 Item Cost Mobilization $750,000 site work $250,000 roads, curb/gutter $200,000 storm water ponds $65,000 excavation/backfill $500,000 fence $100,000 concrete $3,000,000 precast concrete $275,000 Ext. brick $275,000 Ext. block $125,000 Int. block $125,000 Metal roof $350,000 Flat roof $150,000 misc. metals $250,000 Doorslwindows $150,000 Painting $250,000 aerators $180,000 filter equip. $500,000 blower $60,000 HSP/BW pumps $300,000 chem feed $150,000 sub. Pumps $50,000 site piping $250,000 process piping/valves $2,250,000 Mech. HVAC/Plumbing $845,000 Electrical/SCADA $1,583,000 Sub Total $12,983,000 Contingency 3% $400,000 Total Construction Cost $13,383,000 Engi nee ring/ Ad mi n istration $770,000 Bonding Costs $208,000 Landscapingll rrigation $92,000 Security $30,000 FFE $70,000 Total Proiect Cost $14,553,000 Project Funding Water Storage Fund $2,000,000 Water Revenue Bonds $10,000,000 Trunk Reserve $2,553,000 Total Project Funding $14,553,000