Memorandum

City of Lawrence

Utilities Department

TO:	David L. Corliss – City Manager Cynthia Wagner - Assistant City Manager Diane Stoddard - Assistant City Manager
FROM:	John Shutak – Utilities Engineer
CC:	Dave Wagner – Director of Utilities Mike Lawless – Deputy Director of Utilities Philip Ciesielski – Asst. Director of Utilities Beth Krishtalka – Assistant to Director Bob Brower – Utilities Operations Superintendent
DATE:	April 24, 2014
RE:	May 06, 2014 Agenda Item – Approve, and authorize the City Manager to execute, the Memorandum of Agreement with the University of Kansas for City participation in the construction cost of waterline improvements required by the reconstruction of McCullom Hall.

Background/Project Description:

The University of Kansas has designed and competitively bid a project to reconstruct McCullom Hall and realign Engel Road, as shown on the attached exhibit. The project will require the construction of a new 12” waterline along realigned Engel Road and the relocation of the existing 8” waterline that currently serves the student housing complex.

Project History:

The waterline serving the Daisy Hill Residence Halls is an 8” cast iron (1958) waterline with a history of breaks and low serviceability. It is a dead end line with minimal in-line valves, thus service interruptions due to breaks tend to impact multiple facilities within the housing complex. City staff had identified waterlines that service the University of Kansas Residence Halls between 15^th Street and 19^th Street for replacement as part of assessment studies performed in 2009 and 2012, however, no project was initiated due to uncertainties associated with redevelopment of the University housing complex.

City staff has coordinated with University and design team personnel on the McCullom Hall reconstruction project to ensure that proposed waterline improvements have been designed to accommodate future extensions, provide redundant service to the housing complex, and minimize costs to the project.

Project Details:

University staff requested that the City participate in funding the waterline improvements for the McCullom Hall Reconstruction project based on the previously City identified need for the waterline to be replaced, the benefit to the City in reduced operational and maintenance costs, and improvements in service redundancy and fire fighting capabilities. Through discussion with University staff, it was determined that the appropriate portion of the project for the City to participate in would be waterline-2, the proposed 8” waterline from 15^th Street to the intersection of Engel Road and Irving Hill Drive, as shown on Exhibit A of the attached Memorandum of Agreement. The proposed 8” waterline is approximately 1315 feet in length and replaces approximately 80% of the original 8” cast iron (1958) waterline currently serving the housing complex.

University staff prepared the attached Memorandum of Agreement for review and execution by the City. City legal staff has reviewed the agreement and did not require any revisions to the document. As previously noted, The University has publicly bid the project thus assuring that the City would receive competitive pricing for the work in accordance with adopted purchasing policy. University staff has provided documentation indicating a lump sum construction cost of $185,187.00 for this portion of the work, however, no contractors schedule of values is available for the project. City staff reviewed historical bid tabulations for completed projects at numerous locations throughout the City and determined the average cost for the installation of an 8” waterline is approximately $130/ft. Based on the 1,315 foot length of the proposed 8” waterline for the McCullom Hall Reconstruction project this equates to a construction cost of $170,950.00. Anticipating that the installation of the new 8” waterline will encounter some unknowns, which will incur additional costs during construction, it is reasonable to allot a 15% contingency to the estimated construction cost thus bringing the total estimated construction cost to $196,592.50.

The Memorandum of Agreement limits City participation in construction costs for waterline-2 to a total of $200,000.00. Based on City staff’s opinion of probable cost and lump sum bid information provided by University staff as discussed above, this appears to be a reasonable and acceptable upper limit to City participation in the project.

Project Funding:

The project will be funded from the Department of Utilities bonded construction fund. Resolution 7019 authorized the sale of general obligation bonds and/or revenue bonds for water system improvements and capital from the 2013 bond issuance is available to complete the project.

Action:

Approve, and authorize the City Manager to execute, the Memorandum of Agreement with the University of Kansas for City participation in the construction cost, capped at $200,000.00, of waterline improvements required by the reconstruction of McCullom Hall.