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Item 1.E.
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| City Council Regular | |
| Date: | 10/28/2024 |
| Title: | W.O. 19-12: West End Project Preliminary Reservoir Design and BBWA Unloader Raw Water Delivery Design, Bidding and Construction Administration Services |
| Presented by: | Debi Meling |
| Department: | Public Works |
| Presentation: | No |
| Legal Review: | Not Applicable |
| Project Number: | N/A |
RECOMMENDATION
Staff recommends that the City Council approve Amendment No. 5 to the City’s professional engineering services contract with HDR Engineering, Inc. for W.O. 19-12: West End Reservoir (WER) Project in the amount of $2,115,400.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
HDR’s preliminary design contract for the WER project in the amount of $1,564,000 was approved by Council in March 2019. This project phase evaluated raw water sources and quality, conducted a West End Water Treatment Plant (WEWTP) siting and Hesper Road evaluation, performed geotechnical evaluations, initiated permitting activities, completed preliminary assessment of groundwater impacts, prepared a preliminary design report, developed a master plan and conceptual designs for end-land use improvements and completed a planning level cost estimate.
Council approved Amendment No. 1 in the amount of $2,096,200 in April 2020 to design a new Yellowstone River intake near the Duck Creek Bridge and 4-mile-long pipeline to the WEWTP; a shale material processing study was also included in this amendment. Amendment No. 2 in the amount of $698,400 was approved in May 2020 to perform additional geotechnical investigations and topographic survey, and Amendment No. 3 in March 2022 for $73,900 enabled some additional data collection, field work and permitting activities.
Council approved Amendment No. 4 in the amount of $1,991,300 in August 2022 to enable bidding, construction administration, field inspection, training, startup, and programming services for the River Intake & Pump Station (IPS), and Raw Water Pipeline (RWP) projects. This amendment also included some additional survey, permitting and environmental work at the river and the pipeline crossing of I-90 and Montana Rail Link.
In October 2022, the City’s General Contractor/Construction Manager (GC/CM) for the RWP project (COP Construction) presented an $18.0 million Guaranteed Maximum Price (GMP) to construct the pipeline. In November 2022, one bid of $18.0 million was received for the intake pump station project. The cost of these two projects substantially exceeded the City’s projections and neither project was awarded; instead, the City pursued a more cost-effective option to deliver raw water to the WER and WEWTP. In May 2023, the City entered into an agreement with the Billings Bench Water Association (BBWA) to receive water from the BBWA Canal. The agreement allows the City to utilize it for up to 20 years.
Amendment No. 5 now under consideration totals $2,115,400 and generally consists of:
· Reducing the current Amendment No. 4 work scope by $1,660,200 to eliminate Construction Administration services for the previously designed Intake-Pump Station and Raw Water Pipeline projects which were not awarded;
· GC/CM coordination and assistance for the West End Reservoir and BBWA Unloader Raw Water Delivery projects that have already been awarded by Council to Dick Anderson Construction; the 60% cost estimate currently being developed by Dick Anderson indicates that the new Raw Water Delivery project will cost approximately $18-20 million less than the previously designed intake, pump station and pipeline projects;
· Agency coordination, environmental, permitting and grant assistance;
· Design to 30% completion;
· Raw Water Delivery final design, bidding, construction programming, startup and training services
· End Land Use preliminary planning.
The detailed scope of work is provided in the attached contract Amendment No. 5.
Council approved Amendment No. 1 in the amount of $2,096,200 in April 2020 to design a new Yellowstone River intake near the Duck Creek Bridge and 4-mile-long pipeline to the WEWTP; a shale material processing study was also included in this amendment. Amendment No. 2 in the amount of $698,400 was approved in May 2020 to perform additional geotechnical investigations and topographic survey, and Amendment No. 3 in March 2022 for $73,900 enabled some additional data collection, field work and permitting activities.
Council approved Amendment No. 4 in the amount of $1,991,300 in August 2022 to enable bidding, construction administration, field inspection, training, startup, and programming services for the River Intake & Pump Station (IPS), and Raw Water Pipeline (RWP) projects. This amendment also included some additional survey, permitting and environmental work at the river and the pipeline crossing of I-90 and Montana Rail Link.
In October 2022, the City’s General Contractor/Construction Manager (GC/CM) for the RWP project (COP Construction) presented an $18.0 million Guaranteed Maximum Price (GMP) to construct the pipeline. In November 2022, one bid of $18.0 million was received for the intake pump station project. The cost of these two projects substantially exceeded the City’s projections and neither project was awarded; instead, the City pursued a more cost-effective option to deliver raw water to the WER and WEWTP. In May 2023, the City entered into an agreement with the Billings Bench Water Association (BBWA) to receive water from the BBWA Canal. The agreement allows the City to utilize it for up to 20 years.
Amendment No. 5 now under consideration totals $2,115,400 and generally consists of:
· Reducing the current Amendment No. 4 work scope by $1,660,200 to eliminate Construction Administration services for the previously designed Intake-Pump Station and Raw Water Pipeline projects which were not awarded;
· GC/CM coordination and assistance for the West End Reservoir and BBWA Unloader Raw Water Delivery projects that have already been awarded by Council to Dick Anderson Construction; the 60% cost estimate currently being developed by Dick Anderson indicates that the new Raw Water Delivery project will cost approximately $18-20 million less than the previously designed intake, pump station and pipeline projects;
· Agency coordination, environmental, permitting and grant assistance;
· Design to 30% completion;
· Raw Water Delivery final design, bidding, construction programming, startup and training services
· End Land Use preliminary planning.
The detailed scope of work is provided in the attached contract Amendment No. 5.
ALTERNATIVES
City Council may:
· Approve Contract Amendment No. 5 with HDR Engineering; or
· Not approve Contract Amendment No. 5. If this amendment is not approved, the City will need to revert to constructing a river intake, pump station and pipeline to serve the reservoirs and water treatment plant. The cost of these facilities would require rate increases to water users. The City will also be unable to continue with design of the reservoirs which provide essential water storage capabilities in the event raw water cannot be withdrawn from the Yellowstone River.
· Approve Contract Amendment No. 5 with HDR Engineering; or
· Not approve Contract Amendment No. 5. If this amendment is not approved, the City will need to revert to constructing a river intake, pump station and pipeline to serve the reservoirs and water treatment plant. The cost of these facilities would require rate increases to water users. The City will also be unable to continue with design of the reservoirs which provide essential water storage capabilities in the event raw water cannot be withdrawn from the Yellowstone River.
FISCAL EFFECTS
Water funds budgeted through FY25 are adequate and will be used for this project amendment.
| Original Contract | $1,564,000 |
| Previous Amendments 1 through 4 | $4,859,800 |
| This Amendment No. 5 | $2,115,400 |
| Contract Total | $8,539,200 |