Adopt Resolution #21-061 Ordering Plans and Specifications for Improvement Project #21-08, Water Treatment Plant Trunk Watermain Improvements

Purpose:
The purpose of this case is to adopt Resolution #21-061 ordering plans and specifications for Improvement Project #21-08, Water Treatment Plant Trunk Watermain Improvements.
 
Background:
Attached is a copy of the final Feasibility Study prepared by SEH, Inc. for the proposed Water Treatment Plant. The study, dated March 4, 2021, contains a wealth of information and provides findings and recommendations on the City’s water supply source, water quality and quantity, water supply system infrastructure, water treatment process options and recommendations, water treatment plant site evaluations, estimated construction costs, funding sources, effect on water rates, and project schedule. This Feasibility Study will be presented and discussed during a City Council work session in the near future.
 
The City of Ramsey utilizes groundwater from the Tunnel City-Wonewoc (TCW) aquifer, formerly known as the Franconia-Ironton-Galesville (FIG) aquifer, as its exclusive source of drinking water. A total of eight municipal water supply wells exist, with seven being available to supply water to the City’s municipal water users. Water test results from the municipal wells show that concentrations of manganese range from 0.02 mg/L to 0.37 mg/L. The Minnesota Department of Health (MDH) recently established Health Based Values (HBV) for manganese of 0.100 mg/L for bottle-fed infants, and 0.300 mg/L for everyone else. Four of Ramsey’s eight water supply wells exceed the MDH HBV for manganese.
 
In 2019, MDH recommended that the City develop short and long term plans to reduce manganese concentrations in our water supply system. In April of 2019, the City began supplying water to municipal water users using only the three wells with the lowest manganese concentrations to make sure manganese concentrations throughout the water supply system would not exceed the MDH Health Based Value (HBV) for manganese of 0.100 mg/L. The long term solution requires construction of a water treatment plant to remove manganese from the municipal water supply system.
 
To properly plan for long-term solutions to reduce manganese and iron concentrations in the municipal water supply system, to properly treat any other emerging contaminants, and to ensure the existing aquifer used as the City’s sole groundwater source has adequate capacity to meet the future needs of the City, Staff solicited proposals from qualified consultants to provide professional engineering services under the following three general areas.
 

1. Analyze Source Water. Analyze and report on the overall accessibility, capacity, chemistry and limitations of the Tunnel City/Wonewoc (TCW) aquifer, the existing source water for the City of Ramsey’s municipal groundwater supply system, and on the long-term viability of continuing to use the TCW aquifer as the sole source of water for the municipal water supply system. This will allow the selected consultant to adequately prepare a preliminary design report by understanding the chemistry of the municipal groundwater supply system and therefore which primary, secondary and/or emerging contaminants will need to be treated over the anticipated life of the facility. This work will also allow the selected consultant to provide recommendations on the need for and use of alternative sources of water.

 

1. Develop Water Model. Develop a model of the City of Ramsey’s municipal water supply system using an industry standard software program. This model will allow the selected consultant to adequately prepare a preliminary design report, and will allow the City to evaluate future operations throughout the system by considering variable flow regimes when water is drawn from different wells and storage tanks at different times, variable water usage patterns by municipal water consumers, and proposed system expansions.

 

1. Prepare Preliminary Design Report. Prepare a preliminary design report exploring available options and recommending preferred processes for treating known and emerging contaminants that will potentially need to be treated over the anticipated life of a centralized water treatment facility in the City of Ramsey. The report must examine available treatment process options for identified contaminants potentially needing treatment, recommend a preferred treatment process for each identified contaminant, identify required space needs for preferred treatment processes, identify anticipated expansion needs, provide a recommendation as to the required size and preferred location for the facility, and provide cost estimates for constructing and operating the facility over its anticipated life.

 
On October 8, 2019, the Ramsey City Council adopted Resolution #19-248 awarding a contract to SEH Inc. to complete the tasks identified above. SEH, Inc. has since completed a Feasibility Study addressing the three general areas outlined above. The findings of the study are generally as follows.

• The TCW aquifer will be able to continue to produce potable water to meet present and foreseeable future demands.
• The most cost-effective method for removing manganese and iron from the City’s drinking water is chemical oxidation followed by sand filtration. These processes require construction of a water treatment plant.
• Based upon an analysis of Ramsey’s 2040 water demand, the initial capacity of the water treatment plant should be 10 million gallons per day (MGD), with the ability to ultimately expand to 20 MGD.
• Four water treatment plant sites were evaluated including the Fire Station site, Public Works site, Water Shop site, and Vacant City property site. The Public Works site is recommended since it requires the least overall construction costs and offers the greatest operational efficiencies. In addition, in January of 2021 the City of Ramsey’s Planning Commission, Economic Development Authority, and Public Works Committee all voted unanimously to recommend City Council approval to construct the water treatment plant on the Public Works site.
• Two treatment process alternatives were evaluated including gravity filtration and pressure filtration. Gravity filtration is recommended due to life cycle cost savings, ease of operation and maintenance, and increased flexibility for adding processes.

 
Next Steps
The City has been able to continue to supply its municipal water users with safe potable water without interruption by running the three municipal wells with the lowest manganese concentrations continually for almost 2 years now, which has and will continue to cause the existing water supply system infrastructure to wear out faster than normal.
 
The City has been utilizing Wells #5, #6 and #7 since April of 2019. Since such time, we have been running these three wells almost non-stop, which is very hard on moving parts such as meters, motors and pumps. Last fall the City had to repair Well #7, during which time it was out of service.  Then early this winter the same repairs were needed to Well #6, requiring this well to be shut down for a month while it was repaired. Luckily, these repairs were not needed during our peak water use time during the summer months when people area watering lawns, filling swimming pools, washing their cars, etc.
 
The City also recently had to replace the water meter at Well #6, and have had ongoing issues with Well #7’s water meter. A cooling unit also failed recently in the service cabinet for Well #6, which can cause the well to overheat and shut down. Staff believes the constant use of these wells contributed in large part to the required repairs. We have been lucky so far that the repairs were not needed during peak water use times. If one of the wells would need to be repaired during a peak water use time we would need to rely on another well with higher manganese concentrations, which would increase manganese concentrations throughout the system. Staff therefore recommends moving forward with implementation of the water treatment plant project as soon as possible.
 
In addition, Anoka County plans to construct interim improvements to Bunker Lake Boulevard between Armstrong Boulevard and Sunfish Lake Boulevard starting on or after September 7, 2021. This corridor of Bunker Lake Boulevard is proposed to receive significant trunk watermain improvements needed to serve the proposed water treatment plant with raw water from the six municipal wells in The COR, and to deliver treated water to the distribution system. In order to allow the trunk watermain improvements to be constructed along Bunker Lake Boulevard in advance of Anoka County’s interim Bunker Lake Boulevard improvements, which will save significant project costs, the City must begin designing and preparing plans for the trunk watermain improvements as soon as possible. If the City’s watermain contractor and the County’s highway contractor wanted to complete work in the same area, the City’s contractor would receive a lower priority and could face work delays, which could cost the City many thousands of dollars per day.
 
Direct Selection of SEH, Inc.
In order to meet these timelines, Staff recommends direct selecting SEH Inc. to prepare final plans and specifications for the required trunk watermain improvements and provide project bidding services. Upon acceptance of bids and award of a contract, Staff would then recommend direct selecting SEH Inc. to provide construction services. See the attached proposal for more details on work tasks, staffing, estimated hours and costs, and project schedule. Any time a consultant prepares project plans and specifications, Staff recommends using that consultant for construction services because they will be the most efficient at translating information from the plans to the field, especially as related to staking construction and applying specifications in the field.
 
Staff understands Council generally prefers to solicit requests for proposals from multiple vendors, especially for larger projects such as this. However, Staff believes it is in the City’s best interest to direct select SEH, Inc. to prepare plans and specifications, to assist in bidding the plans, and to provide construction services as outlined in the attached proposal to ensure the watermain improvements can be constructed in advance of the Anoka County improvements along Bunker Lake Boulevard.
 
SEH’s proposed design services fee is $235,895, which equates to 6.89-percent of the estimated trunk watermain improvements construction cost of $3,424,750. Considering the scope and complexity of the trunk watermain improvements proposed with this project, Staff would anticipate receiving design services proposal fees in the range of 7 to 12-percent. The proposed design services fee is therefore reasonable and Staff would not anticipate receiving other proposals with significantly smaller fees, if at all.
 
SEH’s proposed construction services fee is $144,947, which equates to 4.23-percent of the estimated construction cost. Again, considering the scope and complexity of the trunk watermain improvements proposed with this project, Staff would typically anticipate receiving construction services proposal fees in the range of 6 to 11-percent. The proposed construction services fee therefore seems very reasonable and Staff would not anticipate receiving a proposal other proposals with significantly smaller fees.
 
Staff will highlight and summarize this information during their presentation to Council.    
 

Notifications are not required for this item.
 

Observations:
Per the preliminary project schedule in the attached proposal, if Council orders plans and specifications on March 9th, Staff anticipates requesting approval of plans and specifications and authorization to advertise for bids on June 29, 2021.  
 
Alternatives:
Alternative #1 – Motion to adopt Resolution #21-061 Ordering Plans and Specifications for Improvement Project #21-08, Water Treatment Plant Trunk Watermain Improvements.  
 
Alternative #2 – Motion of other.  
 

Funding for this project is proposed to come from water enterprise funds. For almost two decades, municipal water users have been contributing to a future water treatment plant, which includes off-site trunk watermain improvements required to provide the plant with raw water, and to transport treated (finished) water out to the distribution mains.  

Staff recommends approving alternative #1 for reasons noted herein.  

Motion to adopt Resolution #21-061 Ordering Plans and Specifications for Improvement Project #21-08, Water Treatment Plant Trunk Watermain Improvements.