Adopt Resolution #23-032 Approving Plans and Specifications and Authorizing Bids for Improvement Project #21-09, Centralized Water Treatment Plant

Purpose:
Adopt Resolution #23-032 approving plans and specifications and authorizing advertisements for bids for Improvement Project #21-09, Centralized Water Treatment Plant. 
 
Background:
In early 2019, the Minnesota Department of Health detected manganese concentrations above recommended health guidelines in several of Ramsey's city wells. Since then, the following actions have been completed.

• Staff drafted a letter outlining the new manganese issue and the City's short and long-term plans to address the issue and mailed the letter on 5/15/2019 to 5,600 Ramsey households.
• A public meeting was held at city hall to address concerns with residents.
• Wells #5, 6 and 7 have been exclusively utilized since these wells have the lowest concentrations of manganese.  Unfortunately, these three wells have the largest concentrations of Iron leading to increased rusty water complaints.
• Wells #1, 3, 4 and 8 have Manganese concentrations above the MDH guidelines. These wells have only been utilized when water demand increases beyond the capabilities of wells #5, 6 and 7.
• A Manganese hot line was established and Staff spoke to 88 concerned residents regarding Manganese and Iron in Ramsey's municipal water supply.
• Several articles have been published on Facebook and in the Ramsey Resident
• Monthly updates are being made to Ramsey’s website regarding current Manganese concentrations. Staff collects and tests 15 random water samples monthly and publishes results on the City website.
• SEH, Inc. completed a pilot plant study on Wells #3 and #4 to determine the correct filtering process to remove Manganese and Iron from Ramsey's municipal supply.
• SEH, Inc. completed a water treatment plant Feasibility Study.
• SEH, Inc. prepared final plans and specifications for the required raw and finished water trunk lines needed to serve the proposed water treatment plant. The plans were advertised for bids but all bids were rejected as they significantly exceeded the engineer’s estimate.
• AE2S prepared final plans and specifications for the proposed water treatment plant and is under contract to administer the bid process and provide construction administration services upon award of the project to the lowest responsible bidder.

.
The proposed City of Ramsey Water Treatment Plant (WTP) project generally consists of constructing a new 10 million gallons per day (MGD) gravity filtration WTP.  In general;

• Building construction is proposed to consist of cast in place concrete and concrete masonry units.
• Processes are proposed to include a backwash reclaim basin, conventional dual-media gravity filters, a clear well, a reservoir, and general process piping ranging in size from 3 to 30-inches, numerous valves, fittings, and appurtenances,
• Chemical feed systems are proposed to include chemical storage tanks, chemical containment, and chemical feed equipment for chlorine, permanganate, phosphate, hydrofluorosilicic acid, and polymer; three (3) high service pumps, general mechanical work including HVAC work, ductwork; drain, waste, and vent piping; and other mechanical equipment and appurtenances.
• Electrical systems are proposed to consist of electrical circuits and controls including lighting, power, instrumentation and controls, and associated conduit and wiring. A standby generator sized to meet emergency and load management electrical requirements will be included.
• Sitework includes grading, seeding, influent water main, sanitary sewer, storm sewer, and piping appurtenances, an asphalt access road and parking lot, and a stormwater filtration basin.

 
Attached are copies of the cases from the City Council meetings referenced within the supporting resolution for additional background information.  

Notifications are not required for this case.
 
Advertisements for bids are proposed to be published in the Anoka Union Herald and in Finance & Commerce on Friday, January 27, and Friday, February 3, 2023, as required by State Statute. The project will also be advertised and bid electronically through QuestCDN. 

Observations:
The tentative schedule for the proposed WTP improvements is as follows; 
 

• January 27 and February 3, 2023 – Advertisements for bids published in ACUH and F&C
• March 9, 2023 – Bids opened
• March 28, 2023 – Award construction contract
• April 11, 2023 – Begin construction
• May 1, 2025 - Substantial completion
• August 1, 2025 – Final completion

 
The WTP trunk watermain improvements are proposed to be bid this Summer/Fall. Construction is anticipated to take 3 to 4 months to complete so these improvements can be constructed in 2024 and/or early 2025 to support a WTP commissioning date near the end of June, 2025, which is when summer peak water use season begins.  

Alternatives:
Alternative #1:
Motion to adopt Resolution #23-032 approving plans and specifications and authorizing advertisements for bids for Improvement Project #21-09, Centralized Water Treatment Plant.  

Alternative #2:
Motion of other.   
 

The engineer’s estimate of project costs for the proposed WTP is $37,000,000.
 
The 2023-2032 CIP lists total project costs for all required WTP improvements at $47.6M.  This includes costs for both the WTP and the trunk watermain improvements, which will be bid at a later date. Funding was proposed to come from the following:

• $33.6M from sewer and water utility funds
• $14M from bonding 

 
With the need to write investments down to market value in an amount of approximately $5M, this will decrease the amount of internal funding. So, as of today it is estimated that the sewer & water utility funds will provide about $29M and bonding the rest.  The amount of bonding needed will determine how much the sewer and water rates will need to increase.  A 10% rate increase was calculated, but this may need to be increased based on final bonding amount.  Any funds received from the legislative session will have the direct result of reducing bonding needs and the possible reduction of double-digit utility rate increases.