Adopt Resolution #23-168 Approving Professional Services Agreement to Revise Plans and Re-Bid Improvement Project #21-08, Water Treatment Plant Trunk Watermain Improvements

Purpose:
The purpose of this case is to adopt Resolution #23-168 Approving a new Professional Services Agreement to Revise Plans and Re-Bid Improvement Project #21-08, Water Treatment Plant Trunk Watermain Improvements.
 
Background:
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. The City owns and operates eight municipal water supply wells, with seven 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 early 2019, MDH recommended that the City develop short and long-term plans to reduce manganese concentrations in our water supply system.
 
In April 2019, the City instituted it’s short-term plan by employing only the three wells with the lowest manganese concentrations to supply water to municipal water users to reduce manganese concentrations throughout the water supply system as much as practical. The City also began working towards its long-term solution to construct a water treatment plant to remove manganese from the municipal water supply system.
 
On October 8, 2019, the City Council adopted Resolution #19-248 awarding a contract to SEH Inc. to complete a Feasibility Study for a water treatment plant. 
 
On March 9. 2021, the City Council adopted Resolution #21-061 ordering plans and specifications for Improvement Project #21-08, Water Treatment Plant Trunk Watermain Improvements.
 
On May 25, 2021, the City Council adopted Resolution #21-143 approving the Water Treatment Plant Feasibility Study prepared by SEH, Inc.
 
On October 26, 2021, the City Council adopted Resolution #21-303 approving plans and specifications and authorizing advertisements for bids for Improvement Project #21-08, Water Treatment Plant Trunk Watermain Improvements. 
 
On January 25, 2022, the City Council adopted Resolution #22-033 rejecting bids for the Water Treatment Plant Trunk Watermain Improvements, Improvement Project #21-08, and authorizing Staff to work with SEH, Inc. to revise the approved plans to reduce project costs and to monitor the bidding environment to identify the most favorable time to bid the project again.
 
On January 24, 2023, the City Council adopted Resolution #23-032 approving plans and specifications and authorizing advertisements for bids for Improvement Project #21-09, Centralized Water Treatment Plant. 
 
On March 28, 2023, the City Council adopted Resolution #23-061 accepting bids and awarding a Contract for construction of Improvement Project #21-09, Centralized Water Treatment Plant, to Magney Construction, Inc. for their Base Bid and Section 01 21 00 Allowances in the amount of $31,528,500.
 
Staff has been in contact with SEH, Inc. since bids were rejected for the trunk watermain improvements on January 25, 2022.  Given that construction of the Water Treatment Plant has now started, and that bid prices for trunk watermain materials have not declined but have rather been increasing since bids were rejected, staff from the City and SEH, Inc. recommend proceeding to revise the approved plans to reduce project costs and to re-bid the project this Fall.
 
In general, proposed plan revisions include increasing the amount of open trench watermain construction to save costs based on current material costs, including open trenching all watermain under 143^rd Avenue and through Cottonwood Park, removing existing watermain east of Center Street and south of Bunker Lake Boulevard to better facilitate future development, and converting the watermain crossing of Bunker Lake Boulevard on the east end of 143^rd Avenue to directional drilling to prevent impacts to the recently reconstructed highway, and adding numerous wellhouse related improvements to facilitate the commissioning of the water treatment plant in 2025. Additional details on these improvements are shown on Attachment 1 and listed on page 2 of the Proposal for Professional Design Services memo dated July 18, 2023, both of which are attached to the agreement attached to this case.
 
Per the project schedule outlined in the attached agreement, if Council approves the agreement this evening, Staff anticipates requesting approval of plans and specifications and authorization to advertise for bids on September 12, 2023. 

None reqiured.

The City has successfully supplied its municipal water users with safe potable water without interruption by running the three municipal wells with the lowest manganese concentrations continually for over 4 years now, which has and will continue to result in more frequent repairs to this infrastructure.   

Staff feels that SEH’s proposed design revision services fee of $116,719 is reasonable given the scope and complexity of the required plan revisions. This cost also includes fees for additional survey work, permitting, and project bidding.
 
The agreement also includes $94,582 for construction related services including preconstruction activities, construction administration, construction staking, and project closeout.  These costs will only be billed if used.
 
SEH estimates construction cost savings related to the proposed plan revisions at $700,000.
 
SEH estimates the additional construction costs related to the added wellhouse improvements at $670,000.
 
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. Other potential funding sources include legislatively approved State grant funds. 

Staff recommends approving the new Professional Services Agreement with SEH, Inc. to revise plans and re-bid Improvement Project #21-08, Water Treatment Plant Trunk Watermain Improvements, to ensure the City’s water supply distribution system will be connected to the new 10 MGD water treatment plant by Spring of 2025 when the plant is ready to be commissioned.