TO: Mayor and City Council
FROM: Allison Swisher, Director of Public Utilities
SUBJECT:
title
Award of Professional Services Agreement for Construction Related Engineering Services for the 2025 Water Main and Lead Water Service Line Replacement Programs to Burns & McDonnell Engineering Company, Inc. in the Amount of $4,584,963.79
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BACKGROUND:
On January 5, 2021, the Mayor and City Council approved Resolution No. 7613, committing to water conservation through the reduction of non-revenue water in order to comply with the allocation requirements of the Level of Lake Michigan Act, 615 ILCS 50, and the corresponding State regulations. A condition of the City’s Lake Michigan water allocation permit is completion of the City’s Non-Revenue Water Reduction Plan. A major component of this Plan is water main replacement. The water main replacement, estimated at approximately 3% per year, must be sufficient to achieve the reduction of non-revenue water from the City’s water system to not more than 10 percent by the year 2030.
The 2025 Water Main Replacement Program consists of 16 contracts to replace a total of approximately 29 miles of water main, at an estimated cost of $74,500,000.00. The scope of work for these contracts also includes:
1. Lead water service line replacements. Any lead water service lines encountered during water main construction will be replaced and these costs will be charged to the 2025 Lead Service Line Replacement Fund for which the City has secured State Revolving Fund financing with principal forgiveness. In addition to replacing any lead services encountered in the 2025 water main replacement projects, the City also bid a separate lead service line replacement project that will replace approximately 40 lead service lines encountered in locations outside of the water main replacement work.
2. Sanitary sewer repairs. Sanitary sewers with known defects will be repaired on the streets where water main work is being completed. The sanitary sewer work will be charged to the Sewer Collection Fund.
The locations of the projects are shown on the attached exhibit. Given the volume of the work to be completed, outside resources are required for construction management.
In the summer of 2023, the City published a Request for Qualifications for water system rehabilitation construction engineering for the 2024 - 2030 water main replacement program. A qualifications-based selection is required to insure reimbursement for engineering fees from potential loan funding. Eleven (11) qualifications were received, three (3) firms were interviewed, and the selection committee identified Burns & McDonnell Engineering Company, Inc. as the most qualified firm to complete the construction engineering services for the program. Burns & McDonnell Engineering Company, Inc. has successfully completed the construction engineering work for the City’s 2024 water main replacement program. They have a team of seasoned resident engineers, inspectors, and construction management professionals which has significant experience in water main construction, lead water service line replacement, constructability reviews, and fulfillment of the requirements for the IEPA state revolving fund loans being utilized for these projects. Burns & McDonnell Engineering Company, Inc. was requested to provide a proposal for construction engineering for the 2025 water main rehabilitation projects. The Public Service Committee will review this matter.
CONCLUSION:
Burns & McDonnell Engineering Company, Inc. has submitted a proposal to perform construction related services for the 16 water main rehabilitation projects that comprise the 2025 Water Main Replacement Program and the 2025 Lead Service Line Replacement program in the total amount of $4,584,963.79. The value of the total awarded construction projects is approximately $74,500,000 which yields a construction engineering fee of 6.2% of the awarded construction cost. This cost is consistent with the industry average for construction engineering which is generally 6-8%.
The Burns & McDonnell Engineering Company, Inc. proposal includes four different scopes of work:
1. 2025 Water Main Replacement Design Engineering. This scope of work includes managing the construction contracts from council approval to notice of award with deliverables which include issuing the notice of intent to award, preparing contracts, reviewing contract documents, reviewing IEPA funding documentation, and issuing the notice of award.
2. 2025 Water Main Replacement Construction Engineering. This scope of work includes pre-construction meetings, project layout, weekly progress meetings, schedule coordination with contractors, full time field observation, tracking quantities, reviewing pay requests, GIS support, and project closeout.
3. 2025 Lead Water Service Line Replacement Construction Engineering. This scope of work includes managing and overseeing proper procedural workflows of lead service line replacement, documentation of proper workflow of lead service line replacements and completion of project agreement forms with residents, coordination with the City’s lab for post replacement water quality sampling, GIS updates and tracking of work in the City’s VueWorks asset management system.
4. 2026 Water Main Replacement Design Engineering: This scope of work includes completion of constructability reviews at the 60% design stage for the 10 water main projects being designed by Baxter & Woodman Inc. These reviews will be completed by Burns & McDonnell Engineering Company, Inc. employees who work in the construction division and will identify potential issues that would impact construction feasibility and cost.
Section 2-438 of the City of Joliet Code of Ordinances states that purchases whose estimated cost is in excess of twenty-five thousand dollars ($25,000.00) may be awarded without written specifications or bidding under certain circumstances. Two (2) of these circumstances apply:
(f) Purchases when authorized by a concurring vote of two-thirds (2/3) of the Mayor and City Council;
(g) Purchases of professional services.
Funds will be charged to the 2025 Water Main Replacement Fund / Professional Services (Org 53880000, Object 557200, $4,451,646.73), the 2025 Lead Water Service Line Replacement Fund (Org 53880000, Object 557200, $103,317.06), and the 2026 Water Main Replacement Fund / Professional Services (Org 53880000, Object 557200, $30,000.00).
RECOMMENDATION:
recommendation
Based on the above, it is recommended that the Mayor and City Council approve the Professional Services Agreement for construction related engineering services for the 2025 Water Main and Lead Water Service Line Replacement Programs, in the amount of $4,584,963.79, on behalf of Burns & McDonnell Engineering Company, Inc.
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