Project Update Public Works & Utilities November 6, 2018 EPA - PowerPoint PPT Presentation

Northwest Water Treatment Facility (NWWTF) Project Update Public Works & Utilities November 6, 2018

EPA LOI H IGHLIGHTS 2  Regional/National Significance:  Asset Management and Utility Optimization:  The City of Wichita is the largest provider of  The City’s proactive asset management regional drinking water in the state of Kansas, program will extend the expected life of providing drinking water to more than 500,000 project assets. people.  Adaptive Resource Management:  Aging Infrastructure and Utility Risk:  The adaptive management practices focus on  The single MWTP and the overall poor maintaining the viability of all sources during condition of the MWTP constitute an extended drought periods. unacceptable level of risk to the City of Wichita and the region.  Project Timing and Risk Mitigation:  The NWWTF project would be delayed a minimum of 7 years in the absence of WIFIA financing.

B ACKGROUND 3  Council approved release of NWWTF RFP on July 10th  Two-phase process to construct a new water treatment plant using a DBo model  Nearly 80 years old  Existing treatment plant is at risk of failure; needs replaced to avoid catastrophic outages  Greater delays in project create greater risk to providing water service to approx. 500,000 people

P ROCESS & S CHEDULE 4 7/1/18 8/30/18 10/29/18 12/28/18 2/26/19 4/27/19 6/26/19 8/25/19 10/24/19 12/23/19 2/21/20 Council Approval of Letter of Interest(LOI) and NWWTF RFP RFP Proposals Due September 7, 2018 EPA Letter of Interest Process RFP Interviews to Council Approval Application Development* EPA WIFIA Loan Negotiation & Closing to Start of Construction  WIFIA timeline identified by EPA and drives project schedule  Need to have 30% design, GMP, O&M Plan, Environmental Assessment and other information to fulfill WIFIA application requirements  Design process for application requirements expected to take 12 months*  Delays jeopardize ability to complete the application process in time for WIFIA

S UMMARY OF P ROPOSERS 5 D B O (Operate – short (Design) (Build) term) Jacobs Treatment: Non-Local Appx 70% Local Identified O&M Team Pipelines: Non-Local * Wichita Treatment: Non-Local Significant Local No Identified O&M Water Construction Team Pipelines: Local Partners Planned * In contract discussions, Jacobs has indicated its preference to utilize local design firms for aspects of the pipelines

S UMMARY - D ESIGN 6 Jacobs Wichita Water Partners  Treatment Plant Design, Modeling, and Asset  Treatment Plant Design led by sub firm HDR Management all by one firm out of Denver and out of Omaha. Modeling and Asset Corvallis offices Management by HDR and B&M out of Kansas City  Pipeline and Supporting Assets Design by  Pipeline and Supporting Assets Design by sub Wood Engineering Wichita office. Jacobs working with other local firms on supporting firms PEC, MKEC, GMLV, SJCF all of Wichita designs  Overlap of individuals involved in design and  Identified separation between design and design QA/QC design QA/QC  Discussed need for further risk allocation  Risk management integrated in all design discussions during design decisions  3-D Modelling for Designer and Builder to  3-D Modelling integrated & used in all of project confirm constructability Both teams would review previously identified design concepts

S UMMARY - B UILD 7 Jacobs Wichita Water Partners  Will issue competitive bid packages for at least  Alberici Construction part of joint venture with 70-80% of project locally. Sub contractor sub contractors of three local firms with McCarthy planning to hire locally as competitive bid packages to decide about 80% demonstrated on current project in Kansas of construction responsibilities.  Targeting a projected completion three months  Lack of discussion on construction early management and commissioning of facility  Identified potential areas of impact on  Can meet overall schedule surrounding properties and mitigation measures to be utilized  Identified labor needs and ability to work with design to flatten the need rather than short term spikes in labor force

S UMMARY - O PERATE 8 Jacobs Wichita Water Partners  Multiple project examples of short term  One municipal utility and two private operations and transition to City operations firms as subs during design and construction narrowed to one prior to  Extensive training plan developed and operations period demonstrated  Provided a general approach and methods to  Training includes ‘flight’ simulator and other operations, training, and transition but with lack tools that transition to City for training of new of detail staff and refresher training  Three sub-contract operators conduct  Jacobs operates more than 200 operations for more than 200 water treatment United States water and wastewater facilities plants  Competitive procurement part of this DBo RFP  Competitive procurement would occur summer process of 2019

S UMMARY - E XPERIENCE 9 Jacobs Wichita Water Partners  Proven DB and DBO and DBo experience  Proven DB experience  Identified DBO projects of 30MGD, 100 MGD,  No DBO projects identified and 180MGD  Identified three water treatment plant projects  Identified at least nine water treatment plants NWWTF size or larger – one as designer, one NWWTF size or larger as builder, and one as DB  Developed and/or reviewed 8 of the 12 WIFIA  Sub-engineering firm developed one 2017 Applications from 2017 WIFIA Application

S UMMARY - E XPERIENCE 10 Jacobs Wichita Water Partners  As DBO  No DBO projects identified  180 MGD; Renton, WA  100 MGD; San Diego, CA  As DB  30 MGD; Woodlands, CA  Wichita ASR Surface Water Treatment  Wichita Chemical Feed Replacement  As DB  20 MGD; Thornton, CO (Burns &  80 MGD; Phoenix, AZ McDonnell)  15 MGD; Santa Fe, NM  24 MGD; Brighton, CO  Involved in some aspect of project  320 MGD; Houston, TX (joint venture  100 MGD; Omaha, NE; HDR Designer and partner) Alberici Builder  50 MGD; Colorado Springs, CO  160 MGD; Omaha, NE; HDR Designer  Membrane WTP; Fargo, ND; Alberici Builder

S ELECTION P ROCESS 11 Committee Membership Jacobs Wichita Water  11 committee members Partners Average 89 80  1 member from wholesale Selection community Score  175 years of combined No. Members 11 0 experience with the City Ranking as  Senior and mid-level Preferred management Proposer  Multiple departments

C ONSTRUCTION S EQUENCING 12  Simultaneous construction in separate work areas  Speeds up construction and levels out skilled labor needs  Creates competitive bid packages for local subcontractors Sequence #1 Sequence #2 Sequence #3 Sequence #4 Sequence #5 Sequence #6 Sequence #7 7/20 – 1/21 12/20 – 1/23 12/20 – 8/23 12/20 – 7/23 1/21 – 11/22 7/21 – 11/22 5/21 – 7/22 Site Clearing & Clearwells Filters Raw Water Sed. Gravity Operations Switchgear Preparation Thickeners Building BW Tank / CCB / Sedimentation Generators CCB PS Basins Solids Pump Maintenance Station Facility Fuel Tank Finished Water Solids Contact PS Clarifiers Chem. Facility

R ISK -B ASED GMP 13  Design and construction cost a primary driver of rate increases  Lowest possible GMP would minimize water rate adjustments  “Risk and Opportunity Management Tool” tied to project scheduling would be used to conduct probability analysis of costs and schedule changes  Identifies risks with potential to add the highest costs  Develops strategies to eliminate, minimize, and offset cost impacts

O&M P LAN 14  WIFIA Application requirement for defined O&M Plan  Experience with having O&M integrated into their organization  Experience with O&M integrated into Design and Construction  Defined O&M Transition Plan that includes staffing options  O&M Plan that includes simulators and other tools for ongoing training

C ONCLUSION 15 Key Takeaways Recommended Future Actions  November 20 th Council Meeting 1) City received two strong proposals  NWWTF Design 2) Delays to the schedule endangers WIFIA  Phase 1 DBo contract with Jacobs 3) Selection Committee unanimously  Financing recommends Jacobs  Development of SRF Loan Application  Experience with O&M in organization  Development of WIFIA Loan Application  More experience with similar projects  Risk-based GMP should lower costs  2019 Rate Adjustments  Advantages with construction sequencing  Increase of 7.7%  Owner’s Representative Contract 4) Represents the best team and schedule to  Staff return for Council approval minimize rate increases through a lower GMP and successful WIFIA application