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AMENDMENT NO. ONE TO CONTRACT K-1112-124: BY AND BETWEEN THE NORMAN UTILITIES AUTHORITY AND CAROLLO ENGINEERS, INC., INCREASING THE CONTRACT AMOUNT BY $3,616,270 FOR A REVISED CONTRACT AMOUNT OF $5,162,870 TO PROVIDE ADDITIONAL ENGINEERING SERVICES FOR THE PHASE II WATER TREATMENT PLANT IMPROVEMENT PROJECT.
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BACKGROUND: On July 25, 2006, the Norman Utilities Authority (NUA) approved Contract K-0607-35 with Carollo Engineers (Carollo) to perform a Water Treatment Plant (WTP) Expansion Evaluation. The summary of the results from that report were presented to the NUA at a study session on May 22, 2007. On September 25, 2007 the NUA approved Amendment No. 1 to Contract K-0607-35 to perform additional studies as part of the preliminary design. Carollo performed a chlorine pilot study, an ozone pilot study, and a detailed evaluation of the existing electrical system. The findings and options were presented to the NUA at a study session on December 18, 2007.
On June 24, 2009, the NUA approved Amendment No. 2 to Contract K-0607-35 to perform final design services for the Phase I WTP Expansion. The first phase was to increase WTP capacity from 14 MGD to 17 MGD, rehabilitate essential existing process and electrical equipment to allow the future installation of an ozone treatment unit. Generally, Phase I included a new solids contact clarifier, the replacement of existing filter media, replacement of lime and carbon dioxide feed systems and installation of an emergency generator.
During final design, the opportunity to apply for American Recovery and Reinvestment Act (ARRA) funds arose. With the help of Carollo, staff was able to secure a low interest loan for up to $14 million dollars with $2 million in principal forgiveness (grant). On August 25, 2009 the NUA approved Amendment No. 3 to Contract K-0607-35 to perform the final design and construction oversight services associated with Phase I Construction. Phase I construction began on August 26, 2009 and was completed February 28, 2011 by Wynn Construction of Oklahoma City.
On May 22, 2012, the NUA approved Contract K-1112-124 to perform final design services for the Phase II WTP Improvements. An 8-month ozone pilot project was performed as a part of that contract with the intent of finalizing the ozone design once the pilot project was complete. The ozone process will be used as a primary disinfectant and to control taste and odor events. Three alternatives for using ozone were evaluated during the ozone pilot project. Alternatives evaluated were 1) using dissolved air floatation in front of ozone, 2) using ozone only, and 3) using ozone accompanied with ultra-violet (UV) treatment.
Ozone with UV treatment was the alternative selected by the NUA Trustees, as it had the lowest capital and operational cost. The estimated construction cost for the selected alternative is approximately $26,000,000. With this alternative, ozone will be used to address taste and odor concerns and pharmaceutical/algal toxin reduction while UV will function as the primary disinfectant.
DISCUSSION: Staff and Carollo have negotiated the scope and fee for the remaining engineering services associated with the Phase II WTP Improvements. As detailed in Exhibit A of Amendment No. 1 to Contract. K-1112-124, the scope includes final design, bidding, construction administration and inspection, preparation of operation and maintenance manuals, and start-up training. The agreed-to fee for these services is $3,616,270. The proposed fee is broken down in Exhibit B to the amendment; Task Order No. 2 is the new work.
Final design is expected to be complete 58 weeks from approval of this amendment or about April 2016. Upon regulatory approval of the final design, the bidding process will consume about 3 months and the construction phase will consume about 24-30 months.
Funding in the amount of $3,999,999 is currently available in Phase II WTP Improvements Design (account 031-9939-462.62-01; project WA0291).
RECOMMENDATION: Staff recommends approval of Amendment No. 1 to Contract K-1112-124 with Carollo Engineers in the amount of $3,616,270.