6.3 Downtown Wellfield Improvements Supplemental Agreement
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
04/23/2012 4:00 P.M.
AGENDA SECTION ORIGINATING DEPARTMENT: FISCAL APPROVAL:
6
NO:
BY:
UTILITIES DEPARTMENT
FINAL APPROVAL:
ITEM
NO:
3
BY: Martha Tasker BY:
Page 1
ITEM:
Authorize Supplemental Agreement No. 2 with HDR Engineering, Inc. for the Kansas Public Water
Supply Loan Fund (KPWSLF) Services for Phase I - Downtown Wellfield Improvements, Project No.
10-2840.
BACKGROUND:
On August 23, 2010, the City Commission authorized HDR Engineering Inc. to design the Phase I –
Downtown Wellfield Improvements. On June 6, 2011, the original Agreement was supplemented to
change the alignment of the wellfield piping and revise the 100% bid ready plans to August 15, 2011.
The Phase I - Downtown Wellfield Improvements include:
Increase supply capacity of the Downtown Wellfield from 10 MGD to 13 MGD.
Re-drilling of four wells.
Replacement of approximately 4,900 linear feet (lf) of undersized wellfield piping.
Retrofitting of the existing air stripping facilit ies at the existing Water Treatment Plant to
increase capacity from 10 MGD to 15 MGD, which includes replacement of three blowers and
three pumps at 5,278 gallons per minute each.
In July and August of 2011, the Kansas Department of Health and Environment (KDHE) notified the
City of Salina of projects identified on the KDHE 2012 Intended Use Plan, in which loan fund money
was available at 60% of market interest rates. Staff discussed the identified projects and availability
of dollars with KDHE, and it was agreed that the Phase I – Down town Wellfield Improvements
(Estimated Construction Cost of $4.3 million) could be funded through the KPWSLF. The comparison
of the market interest rate of 4.0%, with 2.4% (60% of market rate), results in approximately $1.0
million in savings over the 20 year life of the loan. The current KPWSLF rate for April is 2.27%.
To utilize the KPWSLF, the following steps must be completed and all su pporting documentation
provided to the KDHE:
Submit a D-U-N-S number
Submit a completed loan application
Conduct a public hearing
Initiate on environmental review for the project
Enact a resolution authorizing the submittal of an application for a loan from the KPWSLF
Supplemental Agreement No. 2 – Scope of Services defines the services to be provided by HDR
Engineering, Inc. and the City’s responsibilities to apply for and utilize the KPWSLF. Exhibit SA-4 –
KPWLSF Contract Provisions for Consultant Contracts is included in the event the City would choose
to include the engineering services fees in the loan.
The attached Supplemental Agreement No. 2 increases the fee as follows:
Original Agreement Estimated Fee $179,900
Supplemental Agreement No. 1 Estimated Fee $ 6,000
Supplemental Agreement No. 2 Estimated Fee $ 43,200
(1)
Revised Estimated Fee $229,100
(1)
Amount not-to-exceed without prior approval from the City Commission.
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
04/23/2012 4:00 P.M.
AGENDA SECTION ORIGINATING DEPARTMENT: FISCAL APPROVAL:
6
NO:
BY:
UTILITIES DEPARTMENT
FINAL APPROVAL:
ITEM
NO:
3
BY: Martha Tasker BY:
Page 2
In addition, Supplemental Agreement No. 2 revises the completion of 100% bid-ready plans and
specification of August 15, 2011 to June 30, 2012.
FISCAL NOTE:
A budget allocation of $180,000 for the Downtown Wellfield Improvements is included in the 2010
Capital Improvement Program under the category of System Enhancements. The additional funds for
the Supplemental Agreements are available from reserve funds or through the KPWSLF.
CONFORMANCE WITH STRATEGIC PLAN:
Related Strategic Plan goals may include:
GOAL #3: The City will provide t he highest quality of services, c onsistent with governing body
direction, available resources and staff commitment to quality.
Action Item: The City Commission will maintain it s commitment to the municipal organization by
providing direction and resources that will allow them to meet established expectation.
COMMISSION ACTION:
Staff has identified the following options for the City Commission’s consideration:
1. Authorize the Mayor to sign the Supplemental Agreement No. 2 with HDR Engineering, Inc. of
Kansas City, Missouri, for the Kansas Public Water Supply Loan Fund Services for Phase I-
Downtown Wellfield Improvements, Project No. 10-2840, with a not-to-exc eed amount of
$43,200 (Revised Estimated Fee $229,100).
2. Do not authorize the Mayor to sign the Agreement and give further direction to staff.
Staff recommends Option 1.