TO: Mayor and City Council
FROM: James V. Capparelli, City Manager
SUBJECT:
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Award of Professional Services Agreement for the 2024 Water System Rehabilitation Program to Baxter & Woodman Inc. in the amount of $742,300.00
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BACKGROUND:
On January 5, 2021, the Mayor and City Council approved Resolution 7613, committing to water conservation through the reduction of non-revenue water 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 previous goal was water main replacement of 1% annually.
The City prepared a plan to increase water main replacement to 3% per year for 2022 - 2030, however the 2024 program is increased in scope to 5% after discussions with the Illinois Department of Natural Resources (IDNR.) The IDNR manages Joliet’s Lake Michigan Water Allocation and manages the Lake Michigan allocation for all the other 200+ Illinois communities that receive Lake Michigan water. IDNR requires annual submittal of a Non-Revenue Water Audit which provides an analysis of what percentage of a community’s water is not accounted for (essentially a detailed “pumped vs. billed” analysis.) Upon review of the City’s water year 2022 it was decided to increase the quantity of water main replacement in 2024 and 2025. Accordingly, the 2024 water main replacement program will be a total length of approximately 32.5 miles.
In order to have contract documents ready to bid in time for the 2024 construction season, plans for the 2024 Water System Rehabilitation Program need to begin preparation at this time. Projects to be included in the 2024 program are identified in the below table. The estimated construction cost for the projects is $57,600,000.00 and will be funded using state and federal low interest loan programs.
A qualifications-based selection is required to insure reimbursement for engineering fees from potential loan funding. In Fall 2021 the City published a Request for Qualifications for water system rehabilitation for the 2023 - 2030 water main replacement program. Ten (10) qualifications were received, four (4) firms were interviewed, and the selection committee consisting of staff from both the public utilities and public works departments identified Baxter & Woodman Inc. as the most qualified firm to complete design and construction engineering services for the program. Baxter & Woodman Inc. successfully completed the City’s 2017 - 2022 water main replacement projects. Baxter & Woodman Inc. was requested to provide a proposal for design engineering of the 2024 construction projects. Due to the economy of scale that this large quantity of design work includes, our negotiations with Baxter & Woodman included lowering the standard billing rates to a 3.0 multiplier for design work, and to a further reduced survey rate, which will save the City over 10% compared to standard billing rates. The Public Service Committee will review this matter.
CONCLUSION:
Baxter & Woodman Inc. has provided a proposal to complete preliminary design engineering for the 2024 Water System Rehabilitation Program. The Professional Services Agreement for the project, for an amount not to exceed $742,300.00, represents the cost of surveying, survey breakdown, preparing CAD base sheets, and utility coordination for 15 projects. This fee is approximately 1.3% of the construction costs which is within industry standards for a project of this magnitude. As this preliminary design phase of the project is completed, and the scope of the detailed design is determined, a proposal to complete detailed design and bidding services will be provided as an amendment to this contract.
Section 2-438 of the City of Joliet Code of Ordinance states that purchases over $25,000.00 may be awarded without written specifications 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 Water Main Replacement Fund / Professional Services (Org 53880400, Object 557200, $742,300.00).
RECOMMENDATION:
recommendation
Based on the above, it is recommended that the Mayor and City Council approve the Professional Services Agreement for the 2024 Water System Rehabilitation Program, in the amount of $742,300.00, on behalf of Baxter & Woodman Inc.
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