Oversight Steering Committee Public Works & Utilities November - PowerPoint PPT Presentation

Northwest Wichita Water Facility (NWWF) Oversight Steering Committee Public Works & Utilities November 19, 2019

GMP R EVIEW 2  WWP submitted $494.2m Guaranteed Maximum Price (GMP) on October 28 for final design and construction  City staff & Owner’s Representative have since reviewed the submittal Design Contract Unit Costs • Basis of Design • GMP Scope • Pricing from Report Suppliers • Negotiated Risk • 30% Engineering Assignment • Pricing from Drawings Subcontractors

GMP R EVIEW 3  WWP value engineering proposal from 10/11 has been refined and accepted  Dual-purpose functionality utilizing existing asset  Delivers raw water from in- town wells to the NWF Acts as redundant drinking  water pipeline in an emergency Reduced cost by $14 million 

4 PHASE 2 STAFF RECOMMENDATIONS

W ICHITA W ATER P ARTNERS 5  Competitive price that’s under budget and meets all requirements  Locks the City into a lower risk position and minimized contingency  Protection against future cost escalation  More certainty of WIFIA/SRF financing by proceeding with Phase 2 and Wichita Water Partners  Highly qualified team with a contractual obligation to meet the City’s needs for redundancy and water quality

W ICHITA W ATER P ARTNERS 6 AVERAGE ANNUAL RESIDENTIAL BILL COST INCREASE POTENTIAL Without WIFIA/SRF With WIFIA/SRF $891.09 2020 $880.99 Other Market $983.48 Impacts 2021 $3,000,000 $926.20 Risk-Based $1,087.08 Contingency 2022 $973.99 $25,000,000 Construction Inflation $1,203.35 $6,000,000 2023 $1,023.00 $1,325.99 2024 $1,074.72

G ARVER E NGINEERING 7  Scope revised to match construction workloads  2020 responsibilities would primarily be focused on design reviews  Future work would be centered on construction management and inspection  Likely to need multiple personnel on site monitoring construction  Would be supported by a diverse set of technical experts

WIFIA E LIGIBLE C OSTS 8  WIFIA application inclusive of all eligible expenses, not just core project costs to design and construct the plant, pipelines, and power  Maximizes WIFIA benefits; all costs included in previous rate projections $600 CORE PROJECT OTHER ELIGIBLE ITEMS FEES $500 $494 $400 Millions $300 $200 $100 $44 $21 $10 $12 $10 $6 $2 $2 $1 $0 Phase 1 Phase 2 Evergy Power Owner's Additional Hess ROW & Site Capitalized Misc Fees Design Design & Substation Distribution Representative Sites Improvements Improvements Interest Construction

C OMBINED R ATE I NCREASES 9 12% 10% 8% 6% 4% 2% 0% 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 Current Projection National Average No WIFIA/SRLF for NWWF Last Year's Projection

O UTCOMES 10    UNDER BUDGET ON SCOPE ON TIME  Fully redundant plant  Final Phase 2 price is  WIFIA application that can operate with $494.2 million submitted on time any single asset out of service  Total cost for plant,  Early works package power substation, to begin in January  High water quality, and pipelines is water source $14.1 million under  Startup and flexibility, and 120 commissioning the budget MGD capacity begins March 2024

P ATH F ORWARD 11 Recommendations Upcoming Actions  November 26 th City Council Workshop  City staff recommends approval of the following package:  December 3 rd City Council Meeting  Phase 2 amendment for Wichita Water  Phase 2 with WWP to construct the NWWF Partners to build the NWWF  Phase 2 with Garver  Phase 2 contract with Garver for Owner’s  SRF application Representation  2020 rates  2020 combined utility rate increase of 5.0%  SRF application submittal  December 17 th SRF Application  Submit to state following approval of Phase 2  Owner’s Representative recommends amendment and public hearing on Dec. 3 rd Phase 2 amendment  Jan – Oct 2020: Early Works Package  Garver Engineering  Design completion & site preparation What path does the Steering Committee   Sept. 17, 2024: Substantial Completion recommend to the City Council?