35 design-build projects together 25 years as joint venture - - PowerPoint PPT Presentation

Burns & McDonnell / Alberici

Joint Venture History

35

design-build projects together

25

years as joint venture partnership cost or schedule overruns, lost time incidents, or construction claims

City of Wichita Staff & Stakeholders A Burns & McDonnell/ Alberici Joint Venture DESIGN CONSTRUCTION DESIGN - BUILDER

Division of Work

Project Administration Design WIFIA Application SRF Application GMP Development Operations Coordination Regulatory/Permitting Subcontractor Outreach MBE/DBE/EBE Outreach Communications Utility Coordination Project Administration Construction Management Safety Management Project Controls QA/QC Subcontractor Management Detailed Design – Process Detailed Design – Utilities Detailed Design – Pipelines Detailed Design – Facilities Construction – Facilities Construction – Pipelines Construction Civil/Site Commissioning Training

Phase One (30% Design and GMP) Phase Two (Detailed Design, Construction, Commissioning, Startup) Wichita Water Partners                           Alberici                  Burns & McDonnell                       HDR           MKEC      PEC       Dondlinger        UCI        Wildcat      DuBois Consultants       Dudley Williams     GLMV    Greteman Group    SJCF   

We take very seriously our responsibility to the rate payers of Wichita. We understand how significant this project is for the people of this City.

Our Commitment

We bring a world class team of experts with tremendous experience -- here in Wichita and across the country -- to design and build this project. We will continue to work with the City’s staff to refine plans and identify cost savings for rate payers. We have team members who live in this community and call Wichita home.

What We Will Cover Today

Address any questions you may have Provide an overview of the process to date Give you a detailed overview

• f the project

Discuss what we are doing to find additional savings and added value to the project, the City and the rate payers

1 2 3 4

Delivering Solutions to Your Water Supply Projects for Three Decades

ASR Surface Water Treatment Plant Wichita, KS Water Treatment Plant Expansion Fargo, ND Water Supply, Treatment Plant Upgrades, Parallel Raw Water Pipelines Fort Smith, AR Florence Water Treatment Plant Metropolitan Utilities District, Omaha, NE

Platte West Water Treatment Plant Metropolitan Utilities District, Omaha, NE F.J. Horgan Water Treatment Plant Expansion Toronto, Ontario CA Integrated Pipeline Project Tarrant Regional Water District, Fort Worth, TX

Pipeline Aerial . Tarrant Regional Water District (2018). Retrieved from https://www.trwd.com/ipl/

Alexander Orr Jr. Water Treatment Plant Miami-Dade County, Florida

Alexander Orr, Jr. Water Treatment Plant Rehabilitation and Replacement. (2018). Retrieved from https://www.hdrinc.com/portfolio/alexander-orr-jr-water-treatment-plant-rehabilitation-and- replacement

New Water Treatment Plant Thornton, CO

Large Water Treatment Plant Experience

MGD

Platte West WTP 100 Florence WTP Improvements 160 Alexander Orr Jr. WTP Improvements 215 Harry Tracy WTP 180 Sioux Falls Water Purification Plant 75 Houston, TX East Water Purification Plant 360 Detroit Waterworks Park 320 F.J. Horgan WTP Expansion 211 R.L. Clark WTP Chemical System Upgrades 162 RC Harris WTP 250 Hemphill WTP Improvements 136 San Jacinto Surface WTP 120 Louisville Water Crescent Hill WTP 150 Missouri American Water Central WTP 200 Austin AR Davis WTP 130 Denver Moffat WTP 275 Indianapolis White River North WTP 120 Aurora Prairie Waters Project 100

Water Transmission Pipeline Experience

Diameter Length

Fort Smith Water Transmission Main 48” 129,400 ft. Tarrant Regional Integrated Pipeline 84” 110,880 ft. Amarillo 24th Street & Arden Road 48” 79,200 ft. Thornton Water Project 48” 38,175 ft. Broomfield South Outfall Interceptors 54” 42,240 ft. Gillette Madison Pipeline 60” 274,560 ft. Wichita 66” Raw Waterline 66” 26,516 ft. Wichita Northeast Transmission Line 48” 25,422 ft. Nevada Groundwater Development Project 96” 1,478,400 ft. Tacoma-Cascade Pipeline 72” 264,000 ft. San Diego North City Conveyance System 48” 147,840 ft. Nevada Treatment and Transmission Project 144” 528,000 ft. Oregon SW 124th Street Avenue 72” 105,600 ft. Tacoma Second Supply Project 90” 179,520 ft. Lewis & Clark Rural Water Transmission 60” 2,112,000 ft. Miami Dade Area N. Water Transmission Main 48” 132,000 ft. Aurora Prairie Waters Project 60” 195,360 ft. Brightwater Conveyance 168” 63,360 ft.

Platte West Water Treatment Plant Metropolitan Utilities District, Omaha, NE

Design Update

Northwest Water Facility Wichita, KS

Northwest Water Facility – Aerial View Looking Northeast Wichita, KS

Northwest Water Facility – Aerial View Looking East Wichita, KS

LOI Pipeline Concept

Alternate 1: 42” Pipeline – Raw Water Supply Existing Unused 42” Pipeline Existing 64” Pipeline – New Finished Water Supply Existing 66” EBWF Pipeline – Raw Water Supply Existing 60” Cheney Pipeline – Raw Water Supply Alternate 2: 66” Repurposed Pipeline – Raw Water Supply and Finished Water Emergency Use

Current Pipeline Concept

Design Takeaw ays

Redundancy in every system Maximum flexibility Plant that lasts multiple generations

Progressive Design-Build Process

1

Concept Design Development 5%

2

Early Cost Model

3

Preliminary Design 30%

4

Pricing Cost Model

5

Project Optimization Period

Phase 1 | Preliminary Design and Project Cost Development

Progressive Design-Build Process

Phase 2 | Detailed Design, Procurement and Construction

6

Work Package Development

7

Detailed Design

8

Material and Work Package Procurement

9

Construction Activities

10

Start-up, Operations and Plant Commissioning

Delivering a Reliable and Accurate GMP at 30% Design

Concept Design

(5% design and WIFIA LOI) Preliminary parametric cost estimate (LOI budget)

Design Optimization

(GPSX processes and operations model) Update parametric cost estimate

30% Design

(Plant, pipeline, utilities) Market based cost model (open book self platform, competitive subcontractor and supplier pricing, GCs, insurance and bond warranty) Risk-based contingency (risk register) GMP price GMP proposal Value-based Design refinement Design/scope reconciliation GMP proposal delivered by Oct 28, 2019

We are here

Quick Statistics

1.6 million trade manhours 350 peak onsite staffing 70,000 cubic yards of concrete 18 million pounds of rebar 662,000 cubic yards of dirtw ork $35 million in process equipment $60 million in pipe, valves and fittings 17 miles of pipe on the plant site (1” – 96”)

Over 200 firms provided market proposals for estimate

90% direct cost has been market priced to date

Status of Cost Development

Northwest Water Facility Cost Variances May 2018 to Current Trend

Re-baselined EGMP estimate Conversation to Actual Pricing

Cost Progression

LOI Estimate to May 2019 Early Cost Model

Estimate Level

Value Running Value (M’s) Category

LOI Budget – May 2018 $524.2 Eliminate 72” Pipeline ($87.0) $437.2 Design Progression Flocculation/Sedimentation from Settlers $14.7 $451.9 OPEX v CAPEX Aeration Process $5.9 $457.8 OPEX v CAPEX Enlarge Backwash Basin $10.3 $468.1 Design Progression Fiber Optic $1.0 $469.1 Design Progression Offsite Pipe Configuration (72” Alternative) $53.8 $522.9 Design Progression May 2019 ECM Budget $522.9

Cost Progression

May 2019 ECM to June 2019 ECM

Estimate Level

Value Running Value (M’s) Category

05/2019 ECM Budget $522.9 Cox Property Change ($10.0) $512.9 Optimization Aeration Bypass Loop $2.0 $514.9 OPS Flexibility Enlarge Pressure Reduction Building $1.9 $516.8 OPS Flexibility Enlarge Mussel Shell Building $3.5 $520.3 OPS Flexibility Enlarge Influent Splitter Structure $5.3 $525.6 OPS Flexibility Alternative – Solids Contact Clarifiers $16.2 $541.8 Optimization Eliminate Flocculation/Sedimentation ($28.7) $513.1 Optimization Filter/Backwash/Finished Water Modification $3.9 $517.0 OPS Flexibility Eliminate 66” Slipline ($13.9) $503.1 Design Progression Enlarge Administration Building (from 10k SF – 20k SF) $5.4 $508.5 COW Preference 6/13 ECM Budget $508.5

Estimate Level

Value Running Value (M’s) Category

Scope/Price Prior to Market/Changes $528.1 Settlement/Geotech Issues (NONLOI) $9.8 $537.9 Design Progression Market Cost Impact – American Iron & Steel $12.1 $550.0 Market Impact Market Cost Impact – Labor $7.6 $557.6 Market Impact Market Cost Impact – Electrical, I&C $11.1 $568.7 Market Impact Process Equipment Increase(s) $4.2 $572.9 Market Impact Reduce Administration Building Size to (13.4k SF) ($1.0) $571.9 COW Preference Eliminate Mussel Shell Removal ($2.9) $569.0 Optimization Redundancy Optimization ($22.5) $546.5 Optimization Value Engineering Offered ($46.1) $500.4 Value Engineering EGMP – Added Escalation Costs $5.9 $506.3 Market Impact 9/12 EGMP $506.3 VE & Optimization not taken 22.5 $528.8 Value Engineering/Optimization With Project Additions to EGMP per SC $528.8

Cost Progression

September EGMP with COW Additions

Cost Progression

Current Budget Track

Estimate Level

Value Running Value (M’s) Category

Re-Baseline with Adjustments (September 15) $557.3 Additional Savings VEOP List ($61.9) $495.4 VE and Optimization WWP Contingency and Fee Reduction ($12.6) $482.8 Contingency of Fee and Reduction Add 42” $11.7 $494.5 Potential VE and Optimization Add Slipline $2.8 $497.3 Potential VE and Optimization Add Aeration $4.8 $502.1 Potential VE and Optimization Add Clarifier Piping $1.6 $503.7 OPS Flexibility Add DSC Risks – 42” Pipeline $2.0 $505.7 Potential VE and Optimization Add DSC Risks – Plant Site $2.4 $508.1 COW Preference Current Budget Track $508.1

Summary of Cost Changes

Category

Value

Design Progression ($26.0M) OPEX v CAPEX $20.60M OPS Flexibility $18.17M Market Impact $40.90M COW Preference $6.8M Optimization & Value Engineering ($71.5M) WWP Contingency and Fee Reduction ($12.6M) Additonal Optimization & Value Engineering Under Consideration ($21.3M)

$21.3 million in additional savings under consideration

Cost Takeaw ays

No risk of cost overruns No exposure to inflation Below the approved WIFIA loan amount

Operational Efficiency Goals

Contractual Requirement for 10% Operational Savings from Baseline Operations Forecast Team Goal of 13% Savings Operational Costs Include

• Chemicals
• Energy
• Sludge Disposal Costs
• Other Fixed Daily Costs and Hess Pumping

Operations Model Development

6 7 8 9 10 11 50 100 150 200 250 20 40 60 80 100 120 140 160 pH Alkalinity and Hardness (mg/L as CaCO3) Lime Dose (mg/L)

Jar Test

Alkalinity hardness pH

Chemical Baseline Projected Difference Lime $5,832 $4,146 ($1,686) Ferric $5,242 $594 ($4,648) CO2 $0 $722 $722 Soda Ash $7,926 $0 ($7,926) Polymer $475 $339 ($136) Polyphosphate $293 $577 $284 Orthophosphate $0 $598 $598 Chlorine $47 $49 $2 Ammonia $405 $207 ($198) Total $20,220 $7,232 ($12,988)

Projected Chemical Usage Costs

Daily operational costs

Energy

• Optimized Treatment Processes
• Optimized Finished Water Pumping
• Overall Reduction of Approximately 500 hp.

Sludge Disposal

• Directly Related to Chemical Reduction
• Reduction of 38,200 lbs/day of sludge generated

Item Baseline Projected Difference Sludge Generated (lbs/day) 173,900 135,700 (38,200) Daily Operational Costs ($) $15,216 $11,874 ($3,342)

Projected Energy Usage and Sludge Disposal Costs

Item Baseline Projected Difference Daily Costs $7,581.72 $7,581.72 $0 Hess Pumping $13,276.57 $13,276.57 $0 Chemicals $20,220 $7,232 ($12,988) Energy $8,222 $7,653 ($569) Sludge Disposal $15,216 $11,874 ($3,342) Total $64,516.29 $47,616.29 ($16,899) Percentage 26.2%

0% 5% 10% 15% 20% 25% 30%

Contractual Requirement Team Goal Actual

Projected Daily Operational Cost Savings

Daily operational costs

Item Baseline

Total Daily Savings (%) 26.2% Total Daily Savings $16,899 Annual Savings $6.18 M 20-Year Savings $123 M

Projected Long-Term Operational Cost Savings

$123 million in future

• perational

savings over 20 years

Operations Takeaw ays

Better for the environment More efficient to

• perate

Maximum value to rate payers

NWWF Funding Strategy

51% Kansas State Revolving Loan Fund (SRF)

• Low interest loan administered by state
• Current interest rate 2.12% (Aug. 2019)
• Typical repayment term 20 years

49% Water Infrastructure Finance Innovation Act (WIFIA) Loan

• Low interest loan administered by EPA
• Interest rate similar to US Treasury Rate for similar term
• Flexible repayment terms
• Up to 35-year repayment term

WIFIA Application

Applicant Information: Expanded from LOI Detailed Project Information: City’s plan for project construction, including estimated project costs, procurement documents, and project schedules. Operations and Maintenance Plan: City’s plan to operate the facility after

• construction. The plan needs to cover full duration of WIFIA financing.

Financing Plan: A comprehensive plan describing how the project will be financed and how financing will be repaid over the tenor of the requested WIFIA credit assistance Certifications: Show compliance with NEPA, Davis-Bacon, American Iron and Steel, etc.

2022 2023 2019 2020 2021 2024 2025 Project Priority List Intended Use Plan (June 2019) SRF Loan Close no later than October 2020 KDHE Review and Approval Administrative Review Technical Review Financial Review Environmental Clearance Commissioning/ Training 12 Months

KDHE SRF Loan Activities Timeline

December 2019

SRF Loan Application

Spring 2020

Begin Site Prep & Piling

Construction KDHE Compliance Reviews September 2024

Substantial Completion

2022 2023 Spring 2020 2019 July 2020 Construction 2021 2024 Commissioning & Training 12 Months 2025 2018 Notice of WIFIA Funding Availability WIFIA LOI Submitted April October EPA Invites City of Wichita to Apply GMP Proposal October 28, 2019 WIFIA/SRF Close November 1, 2020

WIFIA Application

Detailed Project Information Operations & Maintenance Plan Financing Plan Certifications

EPA Review and Approval

Begin Site Prep & Piling Substantial Completion

WIFIA Loan Activities Timeline

October 30, 2019 September 2024

Schedule Takeaw ays

Opportunity to accelerate Project is on schedule Less risk for the City

Next Steps

October 24, 2019 – Steering Committee October 28, 2019 – Wichita Water Partners Price Submittal October 30, 2019 – WIFIA Application Submittal November 19, 2019 – Steering Committee Meeting November 26, 2019 – City Council Workshop December 3, 2019 – City Council Review December 3-17, 2019 – SRF Application Submitted

Summary

Thank you for your time and leadership in this effort.

Thank You

We will continue to work with staff to optimize this project and deliver the best value to the rate payers of Wichita. We have a world-class team working on your behalf. We will deliver this project on time and within budget. We are committed to answering your questions throughout this effort.