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HomeMy WebLinkAbout11583RESOLUTION NO. 11583 A RESOLUTION AWARDING A PROFESSIONAL SERVICES AGREEMENT IN THE AMOUNT OF $4,500,000.00 TO THE BLACK & VEATCH CORPORATION TO PERFORM FACILITY DESIGN AND CONSTRUCTION MANAGEMENT SERVICES FOR THE AMMONIA REMOVAL PROJECT AT THE JAMES R. DIIORIO WATER RECLAMATION FACILITY AND THE AIRPORT INDUSTRIAL PARK LIFT STATION REHABILITATION PROJECT, AND AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME WHEREAS, the City of Pueblo owns, operates and maintains a wastewater system subject to the requirements of the federal Clean Water Act and the Colorado Water Quality Control Act; and WHEREAS, upgrading the James R. Dilorio Water Reclamation Facility is necessary to allow compliance with new effluent limits for ammonia, as well as to position the facility for compliance with future nutrient removal requirements, and WHEREAS, rehabilitating the wastewater lift stations service the Airport Industrial Park is needed to assure continued operation and compliance; and, WHEREAS, converting the existing chlorine disinfection process at the James R. Dilorio Water Reclamation Facility would eliminate certain risks of the existing process and improve the likelihood of continued compliance; and, WHEREAS, the City has selected Black & Veatch Corporation to provide certain engineering services in connection with the Project; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. The Agreement for Professional Engineering Services by and between Pueblo, a Municipal Corporation, and Black & Veatch Corporation, a true copy of which is attached hereto and incorporated herein by reference (the "Agreement') having been approved as to form by the City Attorney, is hereby approved. SECTION 2. The President of City Council is hereby authorized to execute the Agreement in the name and on behalf of the City and the City Clerk is directed to affix the seal of the City thereto and attest same. SECTION 3 Funds for payment for professional services under said Agreement in an amount not to exceed $4,500,000.00 shall be paid from appropriated funds from the reserves of the Sewer User Fund. SFrTinN 4 The Sewer User Fund shall be reimbursed for professional services costs incurred under said Agreement from State Revolving Fund loan monies and monies from the American Reinvestment and Recovery Act of 2009. INTRODUCED: April 13, 2009 F-W Barbara Vidmar COUNCILPERSON A77TSTFD SY: CITY CLERK APPR 0' } �, PRESIDENTaf Cfty Council L) 4 Background Paper for Proposed RESOLUTION AGENDA ITEM # 12 DATE: APRIL 13, 2009 DEPARTMENT: WASTEWATER DEPARTMENT GENE MICHAEL, DIRECTOR TITLE A RESOLUTION AWARDING A PROFESSIONAL SERVICES AGREEMENT IN THE AMOUNT OF $4,500,000.00 TO THE BLACK & VEATCH CORPORATION TO PERFORM FACILITY DESIGN AND CONSTRUCTION MANAGEMENT SERVICES FOR THE AMMONIA REMOVAL PROJECT AT THE JAMES R. DIIORIO WATER RECLAMATION FACILITY AND THE AIRPORT INDUSTRIAL PARK LIFT STATION REHABILITATION PROJECT, AND AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME ISSUE Should the City Council award an agreement in the amount of $4,500,000.00 to the Black & Veatch Corporation to perform facility design and construction management services for the Ammonia Removal Project at the James R. Dilorio Water Reclamation Facility and the Airport Industrial Park Lift Station Rehabilitation Project? Approve this Resolution. BACKGROUND The James R. Dilorio Water Reclamation Facility was constructed in 1987 to provide wastewater treatment at a level designated as "secondary treatment," providing wastewater screening, reducing biochemical oxygen demand and suspended solids, and providing for disinfection via chlorination. In 2005, Colorado adopted federal water quality control criteria for ammonia. Discharge permits are renewed every five years, and Pueblo's permit expired in July 2007. The renewed permit will contain effluent limits for ammonia that the existing treatment facility cannot attain. The Ammonia Removal Project will convert the existing treatment process to one that can achieve the new effluent ammonia limits by adding aeration basins, increasing aeration capacity, changing solids handling procedures, adding a digester centrate flow equalization tank, and de- commissioning the existing high -rate trickling filter. Additional improvements will include a dewatering system to lower the water table temporarily to allow for maintenance on in- ground concrete tanks, and adding the conduits and hydraulic control structures associated with the new treatment processes. These modifications will also serve to position the Water Reclamation Facility to meet additional water quality regulations for nutrient removal that are anticipated within the next 10 years. The project also includes rehabilitation of the five wastewater lift stations that serve the Airport Industrial Park. These lift stations were constructed in the early 1990s, and have been severely degraded by corrosion. In additions, the electronic control panels contain obsolete components for which parts can no longer be obtained. The project will rehabilitate corroded concrete in the lift stations, replace corroded pipes and valves, and replace the electronic control panels with new panels that incorporate modern components and network the lift stations into a Supervisory Data Acquisition and Control (SCADA) system to permit remove monitoring and improved alarm capabilities. A final, optional element of the project will convert the existing chlorine disinfection system to an ultraviolet disinfection system. The existing chlorine system, and the associated dechlorination system that uses sulfur dioxide gas, involves bulk storage of toxic gases in buildings that do not meet modern codes for chemical storage. Conversion to ultraviolet disinfection will eliminate bulk chemical storage, making the process safer both for City employees and for the community. It will also eliminate the potential for violating the effluent limit for residual chlorine, making it easier to maintain full compliance. However, the ultraviolet disinfection will add an estimated $5,500,000 to the cost of the project. $4,000,000 of that cost is for the ultraviolet disinfection equipment itself, and $1,500,000 is for a solar photovoltaic array that would provide an alternative form of energy to power the ultraviolet disinfection system. This component of the project was added at the recommendation of the Colorado Department of Public Health and Environment to increase the likelihood that the project would be approved to receive funding under the American Reinvestment and Recovery Act of 2009 (ARRA). The disinfection conversion can be constructed only if Pueblo receives ARRA funding. If such funding is not approved, the disinfection conversion project will be removed from the project scope. The Black & Veatch Corporation was selected in 2005 through a competitive bidding process to serve as the Wastewater Department's Engineer of Record, and will be responsible for providing these engineering services. In addition, these projects will entail large -scale industrial construction that exceeds the scope and expertise of the City's inspectors. The City will need to retain expert construction management assistance to ensure these projects are constructed properly, timely, and within budget. Black & Veatch will also provide construction management services. FINANCIAL IMPACT The Sewer User Fund has a reserve balance of approximately $6,500,000. Funds are available for appropriation. Costs for facility design and construction are reimbursable through State Revolving Fund Loans and through loans made under the American Reinvestment and Recovery Act of 2009. Pueblo is included in Colorado's Intended Use Plan for funding through a conventional State Revolving Fund loan in 2009. In addition Pueblo is eligible for a principal - forgiveness loan in the amount of $2,000,000.00 under the American Reinvestment and Recovery Act of 2009, and for additional interest -free loans under the American Reinvestment and Recovery Act of 2009. These loans will be used to reimburse the Sewer User Fund for the cost of final engineering design and construction management.