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Awarding the Water Distribution System Pressure Zone 2 Improvments Roosevelt Water Tower Project Copyrighted April 1 , 2019 City of Dubuque Action Items # 3. ITEM TITLE: Awarding the Water Distribution System Pressure Zone 2 Improvements: Roosevelt Street 1.25 MG Elevated Water Tower Project SUMMARY: City Manager recommending award of the Water Distribution System Pressure Zone 2 Improvements: Roosevelt Street 1.25 MG Elevated Water Tower Project Contracts A and B, pending approval by the Department of Natural Resources State Revolving Fund agency. RESOLUTION Awarding the public improvementcontracts for the Water Distribution System Pressure A one 2: Roosevelt Street 1.25 Million-Gallon, elevated Water Tower Projects Contracts A and B. SUGGESTED DISPOSITION: Suggested Disposition: Receiveand File;Adopt Resolution(s) ATTACHMENTS: Description Type Water Distribution System Pressure Zone 2 City Manager Memo Improvements-MVM Memo ProjectAward Staff Memo Staff Memo Award Resolution Resolutions THE CITY OF Dubuque � AIFA�erlwGh UB E '�� III► Masterpiece on the Mississippi Z°°'�w'2 7A13 2017 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Water Distribution System Pressure Zone 2 Improvements: Roosevelt Street 1 .25 MG Elevated Water Tower Project Award DATE: March 25, 2019 Water Department Manager Denise Blakeley Ihrig recommends City Council authorization of award, pending approval by the Department of Natural Resources State Revolving Fund agency, of the Water Distribution System Pressure Zone 2 Improvements: Roosevelt Street 1 .25 MG Elevated Water Tower Project as follows: Contract A be awarded to CB&I in the amount of$2,928,600 for a 1 .25 MG as designed; and Contract B be awarded to Portzen Construction in the amount of$986,620 The total of both Contracts A and B for the project is $3,915,220, which is $10,780 or 0.28°k under the total engineer's estimate of probable cost. I concur with the recommendation and respectfully request Mayor and City Council approval. �� �� �� Mic ael C. Van Milligen �� � MCVM:jh Attachment cc: Crenna Brumwell, City Attorney Teri Goodmann, Assistant City Manager Cori Burbach, Assistant City Manager Denise Blakeley Ihrig, Water Department Manager THE CITY OF Dubuque � All-America City UB E � r � Masterpiece on the Mississippi 200,.2012.2013 T0: Michael C. Van Milligen, City Manager FROM: Denise Blakeley Ihrig, Water Department Manager SUBJECT: Water Distribution System Pressure Zone 2 Improvements: Roosevelt Street 1.25 MG Elevated Water Tower Project Award DATE: March 22, 2019 PURPOSE The purpose of this memorandum is to authorize award, pending approval by the Department of Natural Resources State Revolving Fund (SRF) agency, of the Water Distribution System Pressure Zone 2 Improvements: Roosevelt Street 1.25 MG Elevated Water Tower Project. BACKGROUND The City of Dubuque is responsible for providing high quality, reliable water supply meeting the requirements established by state and federal government agencies. The City of Dubuque treats and distributes an average of 7.2 million gallons per day to over 23,500 customers through more than 320 miles of water main piping. Water Pressure Zones The water pressure areas or zones identified as either being boosted or reduced typically follow the natural topography within the City. There are currently nine water pressure zones including the latest additions of the sixth and seventh pressure zones supplying the region south toward the Dubuque Airport, and zones eight and nine to Barrington Lakes and the former Vernon water system. Lower pressures may be experienced in some areas due to the challenges associated with the natural topography, pressure losses associated with water main lengths, or economic feasibility. Pressure Zone 2 Issues During an evaluation of the City's distribution system in 1992 by Clapsaddle-Garber Associates of Ames, lowa, several issues were identified in Zone 2 as needing attention including low pressure and flows. In addition to working with Clapsaddle — Garber Associates, the City has also been assisted by Strand Associates, Inc. of Madison, Wisconsin and IIW, P.C. of Dubuque, lowa and has progressed toward finding efficient and economic solutions to manage the low-pressure issues experienced in Zone 2, along with a need to provide improved flows during fire flow conditions. Over a twenty-year period, the area has experienced residential development growth, and during this time, IIW has performed several distribution system analyses to assist the City with direction on how to better serve new development and existing property owners. Zone 2 pressures are currently provided by the Eagle Point Park elevated water tower. It has a volume of 500,000 gallons with an overflow elevation of 935 feet above mean sea level. Water is pumped into the second pressure zone from two locations, the water treatment plant and the Stafford Street booster station. Zone 2 Reports An engineering report prepared by IIW in 2002 titled 'Intermediate Pressure Zone: Replacement Water Tower Site Evaluation' evaluated the second pressure zone and specifically identifies where and how the pressures can be improved. The report identifies the elevation of the overtlow at the Eagle Point Park tower as limiting the available water pressure in the zone; most notably the pressure at the highest point along Roosevelt Road is recorded between 20 and 25psi. This is problematic when looking to achieve system pressures of 60 to 80 psi with a minimum working pressure of 35psi to serve current, new, and future developments. Following the siting evaluation, the City was presented with an opportunity to purchase land along Roosevelt. In 2010, the City purchased an approximate 1 .3-acre parcel located at 3301 Roosevelt Street for the proposed construction of a water tower. A 2008 report also by IIW, evaluates all of the pressure zones including Zone 2 and looks at the water storage and pressure availability City-wide. Again, the 2008 report identifies the pressure issues in Zone 2. More importantly, the 2008 study demonstrates the pressure relationship and connection between the zones and that each zone does not function independently. Zone 2 and 3 Analysis Reviewing the past and current analysis of Zone 2, the relationship with pressure Zone 3, which encompasses the majority of the area on the bluff to the west and to the south, was taken into consideration when developing the strategy and solutions for Zone 2 pressures and flows. The most recent analyses, completed by IIW in 2013 and 2014, includes support of an elevated tower to alleviate the flow and pressure issues experience in Zone 2 and illustrates how an elevated tower in Zone 2, if sized accordingly, would be able to be connect to Zone 3. The 2013 report goes further and describes not only current solutions to address low pressure and fire suppression in Zone 2, but also provides a preliminary examination of 2 Zone 3 currently served by the College Street elevated tower, Asbury standpipe and Pennsylvania Standpipe, and illustrates how a tower in Zone 2 would be able to provide necessary water storage when connected to Zone 3. In all reports, the solution presented to addressing low pressure, fire suppression, preparation for growth, and enhancing Zone 3, is the installation of an elevated water tower. In July 2017, with support from the City Manager and Council, the City advanced the option to obtain a planning and design loan from the State of lowa Revolving Fund (SRF) program in the amount of$475,000. The planning and design was completed by IIW and in June 2018, a preliminary engineering report (PER) was submitted to the lowa DNR for review and approval of a 1 .25MG elevated storage tower, pressure reducing stations, water main improvements, and water treatment plant pump improvements. DISCUSSION lowa Department of Natural Resources — PER On January 17�h, 2019 the lowa DNR issued approval of the PER submitted in June 2018. The notice approved lowa SRF funding in support of a 1 .OMG elevated storage tower and not the recommended 1 .25MG elevated storage tower. However, in reviewing the original PER there are clear benefits to the tower being sized at 1 .25MG. Zone 2 and Zone 3 Benefits The distribution system analysis focused on site selection, tower sizing, overflow elevation, and fire suppression needs. The Roosevelt Street location in Zone 2 was selected due its proximity to two 12-inch diameter mains, land and site access availability, the overall site elevation, and its proximity to drainage facilities in the event of an overflow and drainage associated with tank maintenance. Sizing of the tower has varied between 750,000 gallons and 1 .25 million gallons. Sizing the tower at 1 .25 million gallons would replace the functionally obsolete 0.5 million-gallon Eagle Point Park Elevated Tower and the Stafford Street booster pump station and provide maximum fire flows and normal usage during a major fire and accommodation of service area expansion. In addition, Zone 2 could be connected to Olympic Heights subdivision (Zone 5) and the Olympic Heights booster pump station could be taken out of service reducing energy, operation and maintenance costs and a pressure zone. The Olympic Heights pump station is required to run 24 hours per day to provide daily usage. If and when Zones 2 and 3 are to be combined, water fed from the north with a 1 .25- million-gallon tank would improve flow rates and reliability into Zone 3. The overflow elevation of the proposed Roosevelt Tower has been set to match the overflow elevations of Zone 3 storage facilities, including College Street tower. When a connection between Zone 2 and Zone 3 is established, the overflow elevations would 3 require analysis of not only Zones 2 and 3, but also Zone 1 located east of the bluff and served by the West 3�d Street in ground reservoir and Park Hill Standpipe. As Zone 1 and Zone 2 could both provide water supply and pressure to Zone 3, an analysis of how these zones can work together will enable to the City to make effective and economical water storage improvements in the future. Such storage improvements would be scheduling of water storage tank coating maintenance and eliminating water storage deficiencies present in Zone 3. The DNR regulations require water storage must be equal to the average daily use and/or the recommended fire protection volume. While excess storage is discouraged due to water quality issues that may arise, insufficient storage is equally as important. The lowa DNR supports and is in general agreement with the concepts in the PER including the connection of Zone 2 to Zone 3 allowing for the proposed water tower to be common to the demands of both zones. Future Savings In addition, to the widespread pressure and fire suppression benefits of installing an elevated tower on Roosevelt Street in Zone 2, with eventual connection to Zone 3, there are multiple cost savings. In 2010 and 2015, KLM Engineering Incorporated of Minnesota, conducted an inspection of all City owned water storage facilities. The reports indicate needed maintenance and improvements to several of the City of Dubuque's water storage tanks and reservoirs. In Zone 2, the 500,000 gallon Eagle Point Park water tower was identified as needing new internal and external tank coatings along with several structural repairs estimated at $692,000.00. In Zone 3, the 750,000 gallon College Street water tower was identified as requiring structural repairs and interior and external protective coatings estimated at $929,000.00. These projects have not yet been budgeted. The Eagle Point Park water tower project will no longer be required with installation of a new Roosevelt Street tower. The improvements to College Street tower were placed on hold until completion of the analysis of the storage and distribution system. Since completion of the distribution hydraulic model, the College Street water tower will not be hydraulically connected to the proposed Roosevelt Street Water Tower, meaning College Street water tower will need to remain in service, and will be budgeted for improvements in upcoming budget cycles. The proposed Roosevelt Street Water Tower is however hydraulically connected to Asbury Standpipe and it is recommended that the standpipe be taken out of service prior to any future rehabilitation following installation of the Roosevelt Street water tower. As part of the Phase 1 project, Stafford Street pump station will no longer be needed saving approximately $2,200 per year in operational expenses. Olympic Heights pumping station will no longer be required following installation of the water tower and 4 connection of Zone 2 to Zone 3, saving approximately $7,800 per year in operational expenses. The estimated short-term savings associated with completing Phase 1 , include no longer performing maintenance and repairs to the Eagle Point Water tower and the Stafford Street pump station and are estimated to be $695,000.00. Project Scope The scope of the Project is as follows: Contract A: Roosevelt Street Water Tower and Water Distribution Improvements. The extent of the work consists of the construction of a 1 .25 MG water tower and associated water main installation. The project also includes various work associated with the site improvements including: earthwork, storm sewer, sanitary sewer service, clearing and grubbing, PCC pavement, seeding, and erosion control. Traffic control is included in the project to maintain a safe work site for both the Contractor and the public. Contract B: Eagle Point Water Treatment Plant and Water Distribution Improvements. The extent of the work consists of the construction of four pressure control stations. Two of the stations will be cast-in-place, 10-foot by 14foot-3inch structures, and two of the stations will be 6-foot diameter precast manhole structures. The stations will include control valves and process piping. The construction of the pressure control stations will include surface restoration including PCC and HMA pavement patching and associated traffic control. Also included in the project is process piping modifications and pump replacement at the Eagle Point Pumping Facility for pumps#6 and #7 which involves controls and electrical improvements. On February 18�h, 2019, the City Council authorized via Resolution 60-19 the City Clerk to advertise for proposals and established a Public Hearing date. The Public Hearing was held on March 4�h in council chambers at the Federal Building, and was held without comment. 5 BID RESULTS The project was publicly advertised for bid on February 22, 2018. Sealed bids were received and publicly read aloud at 230 PM on March 21 , 2019. In attendance were City of Dubuque Water Department staff along with representatives from IIW, P.0 and representatives from construction firms bidding the project. A summary of Contract A: Roosevelt Street 1.25 MG Water Tower and Water Distribution Improvements bid results are: No. Bidder Total Price % Over/(Under) Engineer's Est. of$2,900,000 1 CB & I (MCDERMOTT) $2,928,600 0.98% 2 Caldwell Tanks $2,937,000 1 .26°k 3 Landmark Structures $2,957,000 1 .93°k 4 Phoenix Fabricators & Erectors $3,076,000 5.72°k A summary of Contract B: Eagle Point Water Treatment Plant and Water Distribution Improvements bid results are: No. Bidder Total Price % Over/(Under) Engineer's Est of$1,026,000 1 Portzen Construction $ 986,620 (3.99°k) 2 Tschiggfrie Excavating $1,127,485 9.00°k 3 Top Grade Excavating $1,135,860 9.67°k The apparent low bidder for the Contract A is CB&I, LLC of Plainfield, Illinois in the amount of $2,928,600; this amount is $28,600 or 0.98°k over the engineer's estimate of probable cost. Portzen Construction of Dubuque, lowa submitted the low bid in the amount of $986,620 for Contract B; this amount is $39,380 or 3.99°k under the engineer's estimate of probable cost. The total of both contracts A and B for the project is $3,915,220, which is $10,780 or 0.28°k under the total engineer's estimate of probable cost. Contract A was bid requesting costs for both for a 1 .OMG and a 1 .25MG elevated water tower. The evaluation of the bids is based on the base bid size which is 1 .25 MG. The apparent low bidder CB&I provided a price reduction of$171 ,000 should the City select a 1 .OMG elevated tower. 6 BUDGETIMPACT The State Revolving Loan program along with Water Department cost savings are available to fund the Roosevelt Street tower project. Construction - $3,926,000 The project estimate of$3,926,000 included the installation of a 1 .25-million-gallon composite style water tower, associated water main improvements, pressure reducing stations, and water treatment plant pump replacements. The engineer's estimate of probable cost is as follows: Description Estimated Cost 1.25 MG Elevated Storage Tower $2,285,000 (Composite) (1.OMG SRF Eligible Portion) 1.25 MG Elevated Storage Tower $300,000 (Composite) (0.25MG Local Funds) Tower Site Improvements (SRF Eligible) $315,000 Distribution System Improvements (SRF $699,000 Eligible) Distribution System Improvements — $67,000 Residential PRV installation (Local Funds) Water Supply (Water Treatment Plant) $260,000 Improvements (Pumps 6 and 7) (SRF Eligible) Revised 2019 Total Estimate $3,926,000 Contract A as bid in the amount of$2,928,600 and Contract B as bid in the amount of $986,620, total $3,915,220, is $10,780 or 0.28°k under the total engineer's estimate of probable cost of$3,926,000. Non-Construction Proiect Costs Include Non-construction costs are included in this award report to provide an update on the known and anticipated costs identified at the time of bidding Contract A and Contract B. The budget impact of Contracts A and B as they relate to the overall project and identified available funding is described in the following section, Project Cost and Funding. 7 Design and Engineering - $475,000 Using the State of lowa Revolving Fund (SRF) program, the Roosevelt Street Water Tower project qualified for a Planning and Design Loan, which was secured in the amount of$475,000. This cost remains unchanged. Per the SRF program, Planning & Design Loans cover costs incurred in the planning and design phase of a water infrastructure project. The loan is zero (0) percent interest for up to three years and requires no initiation or servicing fees. Eligible costs include engineering fees, archaeological surveys, environmental or geological studies, and costs related to project plan preparation. The loan may be rolled into the State Revolving Fund (SRF) construction loan or can be repaid when permanent financing is committed. Legal Expenses, Land and Easements, Construction Inspection, Contingencies, and Loan Initiation Fee - $826,672 The legal expenses are estimated to be $25,000. Land and easements values were not determined at the time of the PER; however, a value was included in the SRF Intended Use Plan Application of$4,000. This value was based on the preliminary design. In 2019, the revised easement expense is estimated to be $17,000, plus the cost of onsite improvements estimated to be $25,432. These easements are currently in the process of being secured and at this time are not part of the critical path for bidding. Work will be necessary in these easement areas no later than April 2020, allowing sufficient time to finalize the easements. The 2017 cost estimate included $180,000 for construction inspection, this is being increased to $281 ,500 to reflect the level of inspection needed and startup operation assistance. Water tower coatings if not correctly inspected at the factory and onsite can result in premature failure requiring increased frequency of replacement. The coatings to ensure they are applied correctly should be inspected by NACE certified inspector. The proposed construction inspection expense includes funding for two inspection contracts, one for work associated directly with the tower and its coasting, the second with all other site work. In addition, the pressure reducing stations will require onsite start-up and coordination with assistance from the design engineer. The contingency is estimated to be $454,370. The loan initiation fee based on the total project costs as described above is $23,370. 8 Project Cost and Funding Contracts A and B have been identified in the summary below and total $3,026,000: . - � . � - � . � � - � . Legal Legal expenses associated with the SRF $25,000 SRF Loan Land and Land and Easements SRF $4,000 Easements Construction CONTRACTA: 1 .25 MG Elevated SRF $2,285,000 Storage Tower (Composite) (1 .OMG SRF Eligible Portion) Construction CONTRACT A: Tower Site SRF $315,000 Improvements Construction CONTRACT B: Distribution System SRF $699,000 Improvements Construction CONTRACT B:Water Supply SRF $260,000 (Water Treatment Plant) Improvements (Pumps 6 and 7) Engineering Onsite inspection SRF $180,000 Construction Design & Engineering Planning and Design SRF $475,000 Engineering Total Estimate SRF Eligible $4,243,000 Construction CONTRACT A: 1 .25 MG Elevated Local Funds $300,000 Storage Tower (Composite) (0.25MG additional capacity) Construction CONTRACT B: Distribution System Local Funds $67,000 Improvements — Residential PRV installation Engineering Onsite Inspection Local Funds $101 ,500 Construction Land and Land and Easements Local Funds $38,432 Easements Total Estimate Requiring Local Funds $506,932 Contingency Project contingency SRF Eligible $454,370 Loan Fee Loan Initiation Fee SRF Eligible $23,370 Total Project Cost $5,227,672 The projects shown as using local funds are those not eligible for SRF funding as part of this project but have been identified as necessary for completion of the full scope of the project. 9 The projects are to be funded using State Revolving Fund loan monies and Local Funds from Water Department project savings. The Roosevelt Water Tower Project available funding is as follows: � - � . . � � � � � . � - � Water Fund Cash from project Local Funds $1 ,412,260 savin s IFA State Revolving Fund Loan SRF $4,697,370 Total Fundin Available $6,109,630 A balance of$2,194,410 would be available for construction contingency and non- construction activities as identified. Working with Jennifer Larson, Budget Director, funding for the project has been reviewed and verified. The following projects were identified in 2017 to have bond proceeds from previously issued debt that will be used to fund a portion of the Roosevelt Street Water Tower project: Pro�ect Amount Main Extension Annexation $421 ,700 Roosevelt Road Main Extension $546,600 Generator Savin s $100,000 Manson Road Water Main $154,900 Online Process Anal zer savin s $7,760 SRF Green Alle savin s $33,600 Timber Rid e Water Main savin s $147,700 Total $1,412,260 Ms. Larson worked with the City's financial advisor on cash flows during the Fiscal Year 2020 budget process and again to update the cash flows for the expenses determined ineligible to be reimbursed by the State Revolving Loan Fund and the increased costs. 10 There is no change in the FY 2020 recommended rates in FY20-FY24 for the additional cost and the costs ineligible for the SRF loan. The projected rate increases included in the FY 2020 budget recommendation are as follows: FY19: No change (3°k rate increase) FY20: 5.00°k FY21 : 4.25°k FY22: 3.00°k FY23: 3.00°k FY24: 3.00°k The remainder of the Roosevelt Water Tower project will be funded through an lowa Finance Authority State Revolving Fund loan including the planning and design loan in the amount of$475,000. An lowa Finance Authority State Revolving Fund construction loan in the amount of$4,630,050 was requested in August 2018, which has a 2°k interest rate. Since the construction loan was requested, ineligible costs for the SRF loan were identified which will reduce the amount of debt issued by $406,958. The total amount of debt being issued will not count against the City's statutory debt limit because it is revenue debt. RECOMMENDATION IIW, P.0 presented an award recommendation for the Water Distribution System Pressure Zone 2 Improvements: Roosevelt Street 1 .25 MG Elevated Water Tower Project and recommends Contract A be awarded CB&I in the amount of$2,928,600 for a 1 .25MG as designed; and Contract B be awarded to Portzen Construction of Dubuque, lowa in the amount of$986,620. The total of both contracts A and B for the project is $3,915,220, which is $10,780 or 0.28°k under the total engineer's estimate of probable cost. As identified in Budget Impact, the bids are within the engineer's estimate of probable cost, and the project funding identified through the SRF loan and Local funds are sufficient to support award of both Contracts A and Contract B in their entirety as bid. TENTATIVE PROJECT SCHEDULE Advertisement for Bids February 22, 2019 Notice of Hearing on Plans & Specifications February 22, 2019 Public Hearing March 4, 2019 Pre-bid Meeting March 7, 2019 Receipt of Bids March 21 , 2019 11 Award of Contract April 1 , 2019 Completion Date — Contract B November 1 , 2019 Completion Date — Contract A November 1 , 2020 REQUESTED ACTION I respectfully request that the City Council authorize award, pending approval by the Department of Natural Resources State Revolving Fund (SRF) agency, of the Water Distribution System Pressure Zone 2 Improvements: Roosevelt Street 1 .25 MG Elevated Water Tower Project, Contract A and Contract B, through adoption of the attached resolution. cc: Jenny Larson, Budget Director Gus Psihoyos, City Engineer Kerry Leppert, Water Engineering Assistant Brant Schueller, Water Distribution Supervisor 12 RESOLUTION NO. 128-19 AWARDING PUBLIC IMPROVEMENT CONTRACTS THE WATER DISTRIBUTION SYSTEM PRESSURE ZONE 2: ROOSEVELT STREET 1.25 MILLION GALLON ELEVATED WATER TOWER PROJECT CONTRACTS A AND B Whereas, sealed proposals have been submitted by contractors for the Water Distribution System Pressure Zone 2 Improvements: Roosevelt Street 1.25 MG Elevated Water Tower Project, identified as Contract A: Roosevelt Street Water Tower and Water Distribution Improvements; and Contract B: Eagle Point Water Treatment Plant and Water Distribution Improvements, (the Project) pursuant to Resolution No. 60- 19 and Notice to Bidders published on the City of Dubuque, Iowa website and a contractor plan room service with statewide circulation on the 22th day of February, 2019. Whereas, said sealed proposals were opened and read on the 21st day of March, 2019 and it has been determined that CB&I, LLC of Plainfield, Illinois with a Contract A bid in the amount of $2,928,600; and that Portzen Construction, Inc. of Dubuque, Iowa, with a Contract B bid in the amount of $986,620 are the lowest responsive, responsible bidders for the Project. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: That Public Improvement Contracts for the Project are hereby awarded, subject to approval by the Department of Natural Resources SRF agency to CB&I, LLC of Plainfield, Illinois and separately to, Portzen Construction, Inc. of Dubuque, Iowa, and the City Manager is hereby directed to execute Public Improvement Contracts on behalf of the City of Dubuque for the Project, following such approval. Passed, approved and adopted this 1st day of April 2019. Attest: 4 Kevin(S. Firnstahl, C C, City Clerk Roy D. Buol, Mayor