Memorandum

City of Lawrence

Utilities Department

TO:	David L. Corliss – City Manager Diane Stoddard - Assistant City Manager Casey Toomay – Assistant City Manager
FROM:	Melinda Harger – Utilities Engineer
CC:	Dave Wagner – Director of Utilities Mike Lawless – Deputy Director of Utilities
Date:	December 31, 2014
RE:	January 6, 2015 Agenda Item – Project Update for UT1304 Wakarusa WWTP and Conveyance Corridor Facilities

Project Overview

The Wakarusa Wastewater Treatment Plant (WWTP) and Conveyance Corridor facilities will:

1. Address current wet weather overloading of major sanitary sewer lines along the 31^st Street corridor that serve much of the Wakarusa drainage system west of Iowa and north to 6^th Street as shown on the attached service area map.

2. Help reduce and manage wet weather flows at the Kansas River WWTP. Peak flows exceed the 65 million gallon per day (MGD) peak treatment capacity by 20 MGD.

3. Provide 20 percent additional treatment capacity for growth of the community. The current treatment plant is at or near its’ rated capacity for treatment of organics.

4. Take the first step as adopted in the City’s Integrated Plan, and as required by the latest NPDES permits, to meet new environmental regulations that require reduction of nutrients from treated effluents, specifically nitrogen and phosphorous. The current treatment processes do not reduce nutrients.

Consequences of not proceeding with timely execution of the project include a potential of formal regulatory enforcement actions and an inability to serve current customers without sewer overflows (especially for those areas mentioned above served by the 31^st street sewers). Expanded services for new housing, commercial and industrial uses throughout the community would be limited or not available. There are also environmental and human health drivers for the reduction of nitrogen and phosphorus on local, regional, and national levels.

Project UT1304 includes the Wakarusa WWTP, Pump Station 10 in the area of 31^st and Louisiana, and required force mains and gravity sewers to convey sewerage to and from this point to the Wakarusa WWTP. The project also includes improvements to the existing Kansas River WWTP. All three locations are identified on the attached facility map.

Project UT1304 exceeds the recommendations in the 2012 Wastewater Master Plan. The Wakarusa WWTP has been designed as a 2.5 MGD biological nutrient removal (BNR) treatment facility with the option to add a second 2.5 MGD train if Contractors’ bids come in lower than the budget for the project. The Wakarusa WWTP was designed above the 2.0 MGD capacity recommended in the Master Plan in order to optimize equipment and basin sizing for operation and future growth. Also, the final clarifier sized at 2.5 MGD is more suitable for future expansion than one sized for a 2.0 MGD plant. Other project enhancements beyond the scope of the Master Plan include the operational flexibility of Pump Station 10 as well as laboratory expansion and final clarifier equipment replacement at the existing Kansas River WWTP.

Project History

The 2003 Wastewater Master Plan recommended the construction of a Wakarusa WWTP as the preferred and most cost effective alternative to expansion of treatment capacity for the community. The plan based treatment needs on a 2025 projected population of 150,000. That drove the estimated capacity of the new facility to 7.0 MGD that, in combination with the City’s existing wastewater treatment plant, would accommodate that total estimated future population. The plan estimated the cost of the 7.0 MGD facility at $88 million in 2007 dollars. In late 2007 pending analysis of changing economy and population growth, the City put the project on hold.

The following steps took place between the adoption of the 2003 Wastewater Master Plan and through 2009:

2005 – Solicited proposals for services for the site identification, evaluation, and acquisition.
2006 – Completed the Siting Study that evaluated 7 potential sites and recommended the area at what is now 41^st and O’Connell Road.
2007 – Acquired the Wakarusa WWTP site encompassing 538 acres. See attached property map.
2007 - NPDES permit issued by KDHE for a 7.0 MGD facility.
2007 – City Commission adopts Resolution 6717 for the construction of a new wastewater treatment plant, pump stations, and other improvements at an estimated cost of $88 million.
2007 – Basis of Design report for the 7.0 MGD Wakarusa WWTP and improvements to the Four Seasons Pump Station and Excess Flow Storage Facility is completed.
2007 – Approved the annexation and zoning of the Wakarusa property.
November 2007 – Project is placed on hold.
November 2009 – Issued Notice to Proceed for an engineering services contract for a new Wastewater Master Plan to review the timing of the construction and initial capacity of the new wastewater facility, a comprehensive Capital Improvement Program (CIP), a rehabilitation and replacement program, and a review of the wastewater rates necessary to support all of the needed projects.

In July 2012, the 2012 Wastewater Master Plan was completed and recommended that the Wakarusa WWTP and conveyance facilities be in operation by 2018. The new plan used a revised population estimate of 120,000 capita in 2030 for estimating treatment capacity needs. The plan suggested an the initial size of 2.0 MGD for the Wakarusa WWTP and provided a plan level estimate of expenditures at $64 million over the course of the 5 year Capital Improvement Plan (CIP) for the project.

Project Schedule

The City Commission will be requested to set a bid date for UT1304-Contract 4 Wakarusa WWTP and Conveyance Corridor at the January 13^th CC meeting. The anticipated bidding schedule for Contract 4 is as follows:

The force main installation (Contract 2A) will continue through August 2015. The Wakarusa WWTP access road construction (Contract 3) will be complete by June 2015.

Attached is an updated list of anticipated milestones for the UT1304 project. Tentative dates for City Commission agenda items are shown for the numerous design and construction contracts associated with this project. The Project Timeline and Project Details are provided as attachments.

Project Funding

The project is included in the Department of Utilities CIP and Rate Plan. The City Commission approved the 2015 Rate Scenario 1 on May 20, 2014. This rate plan sets out cost increases over a five-year period. The planned rate increases for 2016 and 2017 as well as future years would be necessary to complete the construction of this project plus cover the additional operation and maintenance for these new facilities. The rates to support the Operating and Maintenance Budget, including the new Wakarusa WWTP, and the existing and future CIP debt service are considered each year during the budget process.

The engineer’s total project cost estimate for the base bid of the 2.5 MGD capacity WWTP and conveyance corridor facilities, including engineering costs and a 4 percent contingency on Contract 4, is $65 to $70 million. The estimated base bid project can be delivered within the projected expenditures of the $161 million 2013 to 2017 CIP.

Several construction alternatives are contained within the bid and can be added to the base project. These alternatives are

An additional 2.5 MGD BNR Treatment Train. This would double the base bid capacity.
Solar Photovoltaic Panels - 100kW or 200kW options. These are not included in the base bid, but would reduce ongoing energy costs at the facility.
Large Meeting Room addition to the Administration Building. This would create multifunctional space that could be used for a variety of City functions, including public meetings and educational events.

The expenditures of the 2013 to 2017 CIP may or may not fund these alternatives. Analysis of the funding for these alternatives will be completed after bids are opened on February 17, 2015. The analysis and recommendations of the alternatives will be presented for City Commission consideration and direction during the award of Contract 4.

Action

Receive staff briefing on Project UT1304 Wakarusa WWTP and Conveyance Corridor. Staff plans to request a bid date for UT1304-Contract 4 at the City Commission Meeting on January 13, 2015.

Please advise if you have any questions.