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Signed Contracts_Strand Associates WPCP Cogenerations FacilitiesMasterpiece on the Mississippi TO: Michael C. Van Milligen, City Manager FROM: Steve Sampson Brown, Project Manager DATE: January 9, 2012 Dubuque kdial yAII- America City 1 2007 SUBJECT: Water Pollution Control Plant Cogeneration Facilities Strand Associates, Inc. Design, Bidding - /Construction - Related Services Agreement Amendment 1 INTRODUCTION This memorandum is to seek your approval and execution of Amendment No. 1 to the September 16, 2010 Agreement for Design, Bidding- and Construction - Related Services between the City of Dubuque and Strand Associates, Inc. (Strand) for the Water Pollution Control Plant (WPCP) Cogeneration Facilities Project (Project). BACKGROUND The WPCP Project provides for the installation of electrical generation equipment (microturbines) that will use biogas from the anaerobic digestion facilities to produce electricity. In addition, the heat recovery equipment will further recover energy as heat to improve the overall alternative energy recovery efficiency from the biogas. DISCUSSION Attached is Amendment No. 1 of the September 16, 2010 Agreement for Design, Bidding - and Construction - Related Services between the City of Dubuque and Strand Associates, Inc. (Strand) for the Water Pollution Control Plant (WPCP) Cogeneration Facilities Project (Project). This amendment provides Strand to conduct two additional evaluations: 1. Biogas conditioning and compression facilities installation: It will include documentation on the implementation and the related costs to use this fuel in existing and new vehicles (compressed natural gas /CNG). 2. On -site oxygen generation in lieu of or to supplement the current operation of hauling liquid oxygen to the plant for use in the activated sludge process. BUDGET IMPACT The cost of these additional services will be $20,000, for an agreement total of $270,000. The funding for Amendment No. 1 will be from the remaining WPCP Project (CIP 7101837) project contingency of $762,701.55. ACTION TO BE TAKEN The execution of Amendment No. 1 to the September 16, 2010 Strand Associates agreement is requested. cc: Jenny Larson, Budget Director Jonathan Brown, Water Pollution Control Plant Manager Gus Psihoyos, City Engineer Attach. K: \PROJECTS \Water Pollution Control Plant Replacement\ PSA Negotiations \Strand\2012 01 -05 -12 MVM Memo re Cogeneration Facilities Amendment No. 1.doc 2 44A1Ava STRAND Strand Associates, Inc? 910 West Wingra Drive Madison, WI 53715 (P) 608-251-4843 (F) 608- 251 -8655 ASSOCIATES' December 23, 2011 City of Dubuque 50 West 13th Street Dubuque, IA 52001 -4864 Attention: Mr. Michael C. Van Milligen, City Manager Re: Amendment No. 1 to the September 16, 2010, Agreement for Design Services, Bidding - Related Services and Construction - Related Services Cogeneration Facilities at the Water Pollution Control Plant This is Amendment No. 1 to the referenced Agreement. Under Scope of Services, ADD the following at the end of the section: "Additional Services 1. Conduct an evaluation related to installing biogas conditioning (CO2 removal) and compression facilities at OWNER's WPCP. This effort will include technical, financial (capital and annual), and related evaluations to provide information to OWNER pertaining to the use of digester biogas as a vehicle fuel. The scope of this effort includes evaluations for implementing such a project at the WPCP, as well as preliminary evaluations of the cost to use this fuel in existing and new vehicles. The deliverable for this task will include a letter summary with attached tables, photographs, and a site location figure. 2. Conduct an evaluation related to generating oxygen on site in lieu of, or to supplement, the current operation of hauling liquid oxygen to the plant for use in the activated sludge process. This effort will include technical, financial (capital and annual), and related evaluations pertaining to vacuum pressure swing adsorption technology to generate oxygen. Ownership models (own, lease, or contract operate) will be evaluated as part of this task. The scope of this effort includes evaluations for implementing such a project at the WPCP. The deliverable for this task will include a letter summary with attached tables, photographs, and a site location figure." Under Compensation, CHANGE $250,000 to "$270,000." RAW:dlh:skb \R:\ MAD\ Documents\Agreements\D\Dubuque, City of (IA) \CogenerationFacilities n WPCP .2010\Agr\Amd \1154.033.1.docx Arizona 1 Illinois 1 Indiana 1 Kentucky I Ohio I Wisconsin www.strand.corn City of Dubuque Page 2 December 23, 2011 Under Schedule, REPLACE the table with the following: "Project Milestone Notice to Proceed Submit Brief Report Submit Design Documents to IDNR Bid Date Notice to Proceed of Construction Contract Final Completion of Construction Strand Associates, Inc Anticipated Completion Date October 2010 January 2011 January 2012 April 2012 June 2012 August 2013" IN WITNESS WHEREOF the parties hereto have made and executed this Amendment. ENGINEER: STRAND ASSOCIATES, INC.® Va2Ps// I Matthew S. Richards te Corporate Secretary OWNER: CITY OF DUBUQUE Michael C. Van Millig n Date City Manager RAW: dlh: skb \R: \MAD\Documents\Agreements\D \Dubuque, City of (IA) \CogenerationFacililies a WPCP .2010\Agr\Amd \1154.033.1.docx wW W.strancL.com