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Request for Proposals - Roosevelt Street Water TowerCopyrighted November 6, 2017 City of Dubuque Consent Items # 32. ITEM TITLE: Request for Proposals - Roosevelt Street Water Tower Project SUMMARY: City Manager recommending authorization for staff to solicit proposals from professional engineering firms to assist the City in development of the preliminary engineering report, intended use plan application, archeological and environmental assessments, and the self-assessment Iowa Water System Viability documents, in support of obtaining the necessary funding for the Roosevelt Street Water Tower Project. SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Approve ATTACHMENTS: Description Type RFP for Roosevelt Street Water Tower -MVM Memo City Manager Memo Staff Memo Staff Memo THE CITY OF Masterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Request for Proposals Roosevelt Street Water Tower Project DATE: October 31, 2017 Dubuque �.nw,.rnxirxz� �111i: 2007.2012 2013.2017 Water Department Manager Denise Ihrig recommends City Council authorization for staff to solicit proposals from professional engineering firms to assist the City in development of the preliminary engineering report, intended use plan application, archeological and environmental assessments, and the self-assessment Iowa Water System Viability documents, in support of obtaining the necessary funding for the Roosevelt Street Water Tower Project. I concur with the recommendation and respectfully request Mayor and City Council approval. i)2 MicKael C. Van Milligen' MCVM:jh Attachment cc: Crenna Brumwell, City Attorney Teri Goodmann, Assistant City Manager Cori Burbach, Assistant City Manager Denise Ihrig, Water Department Manager Masterpiece on the Mississippi TO: Michael C. Van Milligen, City Manager FROM: Denise Ihrig, Water Department Manager SUBJECT: Request for Proposals Roosevelt Street Water Tower Project DATE: 30 October 2017 PURPOSE Dubuque All -America City 1 R Mr •'1112 • 2(113 • 2017 The purpose of this memorandum is to request authorization to solicit proposals from professional engineering firms to develop the preliminary engineering report, intended use plan application, archeological and environmental assessment, and the self-assessment Iowa Water System Viability documents in support of obtaining the necessary funding for the Roosevelt Street Water Tower project. The Roosevelt Street Water Tower project was identified as a solution to low operating water pressures in Zone 2 of the distribution system. Zone 2 encompasses the area in and around Roosevelt Street and Peru Road including the Sky Blue Estates subdivision currently under development and the existing Alpine Park development and Eagle Valley Subdivision. BACKGROUND The City of Dubuque is responsible for providing a safe and 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. Standards The U.S. Environmental Protection Agency establishes the treatment or water quality parameters, which in the State of Iowa are administered through the Iowa Department of Natural Resources and managed through the City's water supply operating permit. The design, permitting and operation, including pressure and flow characteristics of the distribution system, are also administered by the Iowa Department of Natural Resources based upon the Recommended Standards for Water Works, commonly known as the Ten States Standards. According to the Ten State Standards, "Water distribution systems shall be designed to maintain treated water quality. Special consideration should be given to distribution main sizing, providing for design of multidirectional flow, adequate valving for distribution system control, and provisions for adequate flushing. Systems should be designed to maximize turnover and to minimize residence times while delivering acceptable pressures and flows." The City of Dubuque's water distribution system covers several square miles of varying elevations. In areas without pumping stations, elevated towers, or distribution system valving, the resulting water pressures can range from below 35 pounds per square inch (psi) to over 100 psi. Therefore, it is necessary to either boost the water to increase the pressure or to reduce the pressure to prevent damage to pipelines. In accordance with the Ten State Standards, "The system shall be designed to maintain a minimum pressure of 20 psi (140 kPa) at ground level at all points in the distribution system under all conditions of flow. The normal working pressure in the distribution system shall be at least 35 psi (240 kPa) and should be approximately 60 to 80 psi (410 - 550 kPa) and not less than 35 psi." 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. 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 six water pressure zones, they are known as Zones 1 through 6. A seventh and eighth pressure zone will result from the connection of the City's water supply to Barrington Lakes and former Vernon water systems. The City continues to look at methods to evaluate the pressures and flows within the distribution system identifying areas where water pressures and flows need to be improved. Zone 2 Issues During an evaluation of the City's distribution system in 1992 by Clapsaddle-Garber Associates of Ames, Iowa, 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, Iowa 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. DISCUSSION 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' evaluates the second pressure zone and specifically identifies where and how the pressures can be improved. The report identifies the elevation of the overflow 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. 2 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 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, is highlighted and should be taken into consideration when developing the strategy and solutions for Zone 2 pressures and flows. The most recent analyses completed by IIW, includes reports dated 2013 and 2014 which demonstrate two options that can assist with improving water pressures in Zone 2. The 2013 report provides for an elevated water storage tower and the 2014 reports targets a stand-alone booster pump station, with an elevated water storage tower to be installed at a later date. The 2013 IIW report titled Roosevelt Street Water Tower, Implementation Planning Report, provides a systematic review of the City of Dubuque's pressures zones. The report also references the previous studies including the 2002 water tower site evaluation and the 2008 study. The 2013 report goes further and describes not only present solutions to address low pressure and fire suppression in Zone 2, but also provides a preliminary examination of Zone 3 currently served by the College Street elevated tower, Asbury standpipe and Pennsylvania Standpipe. In all three 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. Zone 2 and Zone 3 Benefits The distribution system analysis in each of the reports, focuses 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. Using a sizing estimation of 1.25 million gallons (the final capacity and overflow and operational range elevations vary and are subject to final engineering and distribution network analysis or modelling) 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. 3 If Zones 2 and 3 were 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 a proposed Roosevelt Tower is discussed as matching the overflow elevations of Zone 3 storage facilities, including College Street tower. Should a connection between Zone 2 and Zone 3 be established, the overflow elevations would require analysis of not only Zones 2 and 3, but also Zone 1 located east of the bluff and served by the West 3rd 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 include water storage tank coating maintenance and eliminating water storage deficiencies present in Zone 3. The DNR regulations require water storage rnust 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. In 2013, the City was prepared to move forward with the installation of an elevated water tower on Roosevelt Street located on the site purchased in 2010, however following further consideration of the budget and user rates, the tower project was delayed. The City approached IIW to assist in the development of an interim solution. The January 2014 IIW report titled Intermediate Water Service Zone, Interim Pressure Modifications Options was prepared. The interim solution of a booster pump station, would provide increased pressure to the existing development and areas currently in the development phase adjacent to the booster pump station site. The booster pump station would not provide for increased pressures elsewhere in Zone 2 and would not improve the storage deficiencies identified in Zone 3. During a 2017 water department review of the booster pump station and acknowledgment of the limited benefits of the project to the pressure zone and the surrounding areas, the current recommendation is to place the booster pump station project on hold to pursue the Roosevelt Street Elevated Water Tower project in two phases. Phase 1 will address the increase in pressures throughout Zone 2, and Phase 2 which will connect Zone 2 to Zone 3, thereby eliminating the storage deficiencies in Zone 3 and removing the need to operate and maintain a pumping station in the Olympic Heights subdivision known as pressure Zone 5. 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 will be placed on hold until 4 further analysis of the storage and distribution system have been conducted under the PER process to determine if alternative storage is available and the tank can possibly be taken out of service. 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 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. BUDGET The State Revolving Loan program along with Water Department cost savings are available to fund the Roosevelt Street tower project. Working with IIW, P.C., the 2013 cost estimates have been adjusted for inflation for a 2018 or 2019 bid letting schedule. The estimated total project cost including, engineering, construction, inspection, and contingency is $5,556,500.00. The project is being presented in two phases, where phase one would address the pressure and flows in Zone 2 with an elevated water tower; and phase two includes the connection to Zone 3 and the elimination of Zone 5 (Olympic Heights). The Phase 1 cost estimate totals $4,125,500.00, fora 1.25 million gallon (MG) elevated tower including water distribution improvements. The preliminary engineering report will require a hydraulic distribution network model be built to identify the final tank size. Local engineering firm IIW, P.C. identified that that some or part of the project may not be SRF eligible and other funding sources such as local construction funds will be necessary to cover a possible $1,000,000 for those project costs, funding sources are described below. The Phase 2 project to connect Zone 2 to Zone 3 and eliminating Zone 5 including engineering design is estimated to be $1,431,000.00, and will be programmed at a later date. Design and Engineering — Planning and Design Loan through SRF In June 2017, the City sought favorable financing for Planning and Design funds from the State Revolving Fund (SRF), through the Iowa Finance Authority. Per the SRF program, Planning & Design Loans cover costs incurred in the planning and design phase of a water infrastructure project. These loans have 0 percent interest for up to three years and require no initiation or servicing fees. In addition, there is no minimum or maximum loan amount and no principle payments are due for three years or until the construction project commences, whichever comes first. Eligible costs include engineering fees, archaeological surveys, environmental or geological studies, and costs related to project plan preparation. The loans may be rolled into a State Revolving Fund (SRF) construction loan or can be repaid when permanent financing is committed. The use of State of Iowa Revolving Loan funds would require development of a Preliminary Engineering Report (PER), completion of an Intended Use Plan (IUP), an archeological research report, and an environmental study. The cost estimate to prepare the documents is estimated at $150,000.00. The final design, plan and specification preparation is estimated to be 5 $325,000 for Phasel. The total estimate for preliminary and final design engineering for Phase 1 is $475,000.00. On September 22, 2017, the City was successful in obtaining an SRF Planning and Design Loan in the amount of $475,000.00. Construction Phase 1 of construction would include the installation of a composite style water tower, the estimated size prior to a hydraulic analysis is 1.25 million gallons, and is estimated to be $2,935,000.00. The associated water main improvements, pressure reducing stations, pump replacements, abandonment of Stafford Street pump station and the demolition of Eagle Point Park water tower, to support the project are estimated at $653,500.00. Construction inspection will also be required and is estimated at $62,000.00. The estimated total construction cost for Phase 1 is $3,650,500.00. Following the submittal of a Preliminary Engineering Report and Intended Use Plan to the State of Iowa Revolving Fund program, the project will be reviewed to determine construction costs that are eligible for SRF monies and construction costs that are ineligible. Local engineering firm IIW, P.C. following a review of the preliminary costs, estimates approximately $1,000,000.00 of the total construction costs may not be eligible and could be required to come from other funding sources other than the SRF program, such as local funds. The final sizing and storage capacity of the tower may differ from the requirements of SRF program, and may be larger based on the future needs and growth of the community serviced by the proposed tower. These increased costs may not be eligible for reimbursement and are not included in this budget proposal as it is unclear as to if the final tower size will change. Funding The cost of the Roosevelt Street Water Tower project includes $475,000 in engineering and design and $3,650,500 in construction plus construction observation. The following projects have bond proceeds from previously issued debt that will be used to fund a portion of the Roosevelt Street Water Tower project: Project Amount Main Extension Annexation 1 $421,700 Roosevelt Road Main Extension $546,600 Generator Savings $100,000 Total I $1,068,300 The remainder of the Roosevelt Water Tower project will be funded through an Iowa Finance Authority State Revolving Fund loan. The planning and design loan in the amount of $475,000.00, which has a 0% interest loan would be eligible to roll into the construction loan. An Iowa Finance Authority State Revolving Fund construction loan in the amount of $2,582,200 will be requested in August 2018, which has a 2% interest rate. The total amount of debt being issued is $3,057,200 which will not count against the City's statutory debt limit because it is revenue debt. 6 It is possible to issue $3,057,200 in debt without increasing Water rates for several reasons. First, the Water Plant Manager position is currently frozen in Fiscal Year 2017 and 2018 and will be eliminated, which is a savings of $109,459. There is also a vacant Plant Operator position that will be eliminated for a savings of $75,437. Electricity savings of $2,200 will be realized annually from the Stafford Pump Station. In addition, there are two existing State Revolving Fund loans that will be refinanced from a 3.25% interest rate to a 2.00% interest rate, which will save the Water fund approximately $216,000 over the remainder of the loans. The savings by year is as follows: 2018 2019 2020 2021 2022 2023 Clear Well $(4,282.50) $(6,447.08) $(5,987.17) $(5,482.43) $(4,965.75) $(4,405.02) 2024 $(3,800.70) 2025 $(3,185.70) 2026 2027 2028 2029 2030 2031 $(2,527.95) $(1,827.91) $(1,086.03) Total $(43,998.24) Meters $- $- $- $(25,701.10) $(23,983.11) $(22,201.19) $(20,291.67) $(18,288.39) $(16,192.76) $(13,973.66) $(11,632.55) $(9,170.89) $(6,590.16) $(3,859.50) $(171,884.98) Total _ $(4,282.50) $(6,447.08) $(5,987.17) $(31,183.53) $(28,948.86) $(26,606.21) $(24,092.37) $(21,474.09) $(18,720.71) $(15,801.57) $(12,718.58) $(9,170.89) $(6,590.16) 1 $(3,859.50) $(215,883.22) In summary, the Roosevelt Water Tower Project is funded as follows, based on preliminary estimates: 1 -Main Extension Annexation CIP 1 Roosevelt Road Main Extension CIP 1 Generator CIP 1 IFA State Revolving Fund Loan [ Total Funding 7 $421,700 $546,600 $100,000 $3,057,200 $4,125,500 TENTATIVE SCHEDULE Planning and Design Loan Request to the State of Completed Iowa Revolving Loan Fund program and Obtained Phase 1 Preliminary Engineering and Intended Use Plan Submittal March 1, 2018 Phase 1 Final Engineering Design, Bid and Award August 2018 Phase 1 Loan Application Submittal and Award August 2018 Phase 1 Construction Start September 2018 Phase 1 Construction Completion June 2020 REQUESTED ACTION Having successfully obtained the requested $475,000.00 SRF Planning and Design Loan, I respectfully request permission to solicit proposals from professional engineering firms to assist the City in development of the preliminary engineering report, intended use plan application, archeological and environmental assessments, and the self-assessment Iowa Water System Viability documents, in support of obtaining the necessary funding for the Roosevelt Street Water Tower project as described above. Cc: Gus Psihoyos, City Engineer Jenny Larson, Budget Director Jean Nachtman, Finance Director Tami Lansing, Assistant Finance Director Alexis Steger, Senior Budget Analyst Brant Schueller, Water Distribution Supervisor file:///T:IWATE R1RooseveltTowerEnyineeringRFPMemoOct2017.doc 8