HomeMy WebLinkAbout2007-05-08 - MinutesCity Council Water & Sewer Meeting Minutes
May 8, 2007
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Member Aldermen
Mayor Dan Coady Ward 1 Position 1 — Adella Gray
V10
Ward 2 Position l - Kyle rt Cook
CityAttorney Kit Williams � 1 Ward 3 Position 2—Robert Ferrell
Ward 4 Position 2 - Lioneld Jordan
City Clerk Sondra Smith ARKANSAS
City of Fayetteville Arkansas
City Council Water & Sewer Committee
Meeting Minutes
May 8, 2007
A meeting of the Fayetteville City Council Water & Sewer Committee was held on May 8, 2007
at 5:15 p.m. in Room 326 of the City Administration Building located at 113 West Mountain
Street, Fayetteville, Arkansas.
MEMBERS PRESENT: Alderman Kyle Cook, Chair; Alderman Lioneld Jordan;
Alderwoman Adella Gray; Alderman Bobby Ferrell
OTHER ALDERMEN PRESENT: Alderwoman Nancy Allen; Alderwoman Shirley Lucas
STAFF PRESENT: David Jurgens, Gary Dumas, Paul Becker, Ron Petrie, Tim Conklin
GUESTS PRESENT: Billy Ammons, OMI; Rob Kuta, OMI; Duyen Tran, OMI; Stan
Williams, OMI; Jim Ulmer, McGoodwin, Williams and Yates; Rick Cowdrey, MWY.
Chairman Kyle Cook called the meeting to order.
1. Approve Minutes
Alderman Jordan moved that the minutes to the April 10, 2007 Water & Sewer Committee
meeting be approved as distributed. Alderman Ferrell seconded the motion and it carried
unanimously.
2. WSIP Update
g. Blue in Green Oxygen Injection Purchase
David Jurgens asked to move this item to the top of the agenda. He said this item was discussed
at the last Water & Sewer Committee meeting. Staff has now had the opportunity to further
review the product and is recommending that the City purchase the BlueinGreen oxygen injector.
This purchase would require an ordinance with a bid waver. Staff believes that even though this
is a new process, it is a good fit for us and adds value to our plant. Also because it is all "off the
shelf' hardware and material, OMI feels comfortable with operating and maintaining it. He
introduced Steve Rust from the Fayetteville Economic Development Council to talk about the
company, B1ueInGreen, LLC.
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Steve Rust said B1ueInGreen is an emerging company out of the Arkansas Research and
Technology Park Innovation Center here in Fayetteville. They have a new and innovative way
of oxygenating water with `off the shelf' material and this is an opportunity for the City to help
launch a company that creates jobs, is "green", etc. He recommends that the Council approve
this contract.
Alderman Cook asked the Committee if they have any questions regarding the material
distributed about this contract at the last meeting.
Alderman Ferrell said it looks like a pretty good option to him.
Scott Osbourn, Chief Technology Officer from B1ueInGreen said he is the co -inventor of the
technology being discussed and a faculty member at the University of Arkansas. He said the
technology itself was invented as a better way to dissolve oxygen gas in water. He explained that
typically when you dissolve oxygen in water you create bubbles that rise up through the water.
You have to either come up with a way to mix the bubbles in the water or make the bubbles
smaller, both of which require a lot of energy. What they have done is forcing water through
oxygen in a closed container under high pressure conditions that are the most efficient, then
release the water that is supersaturated with oxygen into the effluent channel. This process
saves energy and oxygen consumption. With the system being used currently, the bubbles rise up
and most of the gas you are paying for goes right back out through the air.
Alderman Cook asked how the gas is infused into the water.
Scott Osbourn said you pump water from the effluent through a compressor booster system
(usually a pump) through a spray nozzle which is in a sealed pressure -rated container where the
water is atomized. The gas space into which this water is sprayed is pressurized at about 100 psi.
The tiny water particles become saturated with oxygen and instantaneously drop down into a
water space. It is a continual flow system, pushing the water out into your delivery target. The
water is under pressure also and you can use that to mix and distribute to recover the energy used
to pressurize. As a comparison he said that typically if you bubble oxygen through the water, you
can get it up to 30 milligrams per liter, which is pretty high. This system injects about 310
milligrams per liter. Therefore a very small stream of water can deliver a tremendous amount of
oxygen.
David Jurgens said he has included this as a WSIP project. The dollar value is easily
incorporated into the concept of what we are doing at the east plant. It is exactly in line with
other improvements we are making at the site to reduce energy and operational costs and
improve the efficiency of the operation. He requested a motion that we include this project in the
WSIP and that we send it forward to the Council for approval.
Alderman Cook asked for clarification as to whether the $66,460 plus $5000 contingency is the
bottom line cost or if we will see other costs associated with this.
David Jurgens said that figure is the turnkey cost.
Alderman Jordan moved that this project be rolled into the WSIP program and referred to the
City Council. Alderman Ferrell seconded the motion and it passed unanimously.
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David Jurgens gave a brief WSIP update. He said WL -1 and WL -3 are very close to
completion. They only have a couple hundred feet of pipe left to go. They have had to do a great
deal of blasting for WL -4 but are now laying pipe. When the contractor has completed the work
on WL -1 and WL -3, those crews will move over to WL -4 so there will be multiple crews at that
location.
Alderman Jordan asked what the cost is per foot to lay sewer lines.
Ron Petrie said for an 8 -inch line he would estimate about $25 to $50 per foot.
David Jurgens said he thought that was low. He said for the actual total job cost, if we engineer
and contract it out it would probably cost $75 to $100 per foot. He said one of the things he
hopes to do later this summer is figure out the in-house cost for laying pipe. He said he thinks
our staff is evolving enough that we can do more of the design and construction work in-house
for both water and sewer. Continuing on with his update, David suggested that it might be time
to make a presentation on the progress of the WSIP to the entire Council at either an agenda
session or a Council meeting.
Alderman Cook suggested that it be done at a Council meeting so the public could see it also.
David Jurgens said he would give a short presentation at the first Council meeting in June.
In response to a question from Alderman Cook, David Jurgens said the contractors have run
into very hard rock on Sycamore Street on the WL -2 project. This is the fourth project this
contractor has done for the City and this is the hardest rock they have seen in Fayetteville. The
contractor is working as hard as they can to get through it. They have broken two impacter
hammers and multiple bits on the rock. A local business has asked that we restrict the working
hours of the contractor which could cause a problem contractually. He said we will ask the
contractor if he is willing to do this without modifying the contract. At this time, the burden is on
the contractor because they are paid by volume of rock, not by density. They cannot blast
because they are too close to everything, including a 24 -inch water line and several buildings.
They may be in this area for as tong as three to three and a half weeks more. He said the
contractor is doing everything he can. Contractually we can't force him to do anything different
but we are going to see if he will cut an hour off in the evening so one business can do evening
business only.
a. Subproject WP -lb, Broyles Road Construction
David Jurgens said the lowest bid on this project came in at $1 million below our estimate. The
low bidder was Dean Crowder Construction. They have done work in this area, though none
specifically for Water & Sewer. He requested that this item be forwarded to the City Council for
approval.
Alderman Jordan moved that this item be forwarded to the City Council for approval.
Alderman Ferrell seconded the motion and it passed unanimously.
b. Subproject WP -3, West Side WWTP Change Order Number 2
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David Jurgens said this change order uses up most of what was left in the projected sales tax
savings. The change order includes a variety of items listed in some detail in the material
attached to the agenda. He said there would be some other changes coming forward which have
been identified and which are below the cut line. At this point it is still zero cost and zero days.
He expects the zero days to proceed all the way through the project. He said we are beyond a lot
of the uncertainties about subsoil and weather impacts. We do still have some of the uncertainties
coming forward for what the major contractors do, such as manufacturers making bar screens,
etc. At this point, however, we are on schedule.
Alderman Cook asked at what point we can solidify the below the line items.
David Jurgens said it is a continuous effort. Because this is a guaranteed maximum price cost
plus fixed fee project, they are getting quotes on each of the items. As they get the quotes
together and as the time comes when they will have to start construction on them, the costs will
be solidified. He said they are hoping to get all the unknowns identified within the next couple of
months. The contractor is hoping to have all hardware on site by July for water to start flowing
through the plant in May.
c. Subproject WL -7, Gregg Avenue Lift Station
David Jurgens said he will get to this item shortly. He said bids were opened on this today. He
said he was very pleased with the bids. Staff had rejected a bid on this subproject about six
weeks ago and rebid it. The low bid this time came in $600,000 under the last low bid and is
right in line with our projections.
d. WSIP Farmington Area Work
David Jurgens said design and easement acquisition is underway. He will be meeting with the
Farmington mayor on Friday (May 11) to solidify exactly where the lift station will go, what
easements are required for the lines, how we will process payments for sewer rehab and for the
WSIP business.
e. WSIP Easement Update
David Jurgens attached a matrix to information given to the Committee. Significant progress
has been made in the last few weeks. There are still thirteen easements required on EL -2. Some
of these owners have no interest in talking to us so there will be some that will come forward to
the Committee and Council for condemnation. The EL -1 and EL -2 project was scheduled to bid
in June. He would like to open the bids in July because he will have one more tour of duty
covering the last half of June through July 3. Because these two lines together will total a $16
million project he wants to make sure he is here to answer any questions that come up during the
advertising and bidding process. He said he expects to bring the condemnations for the
easements not yet acquired to the Council as soon as he returns from his military tour of duty. He
said this Committee might see them before he returns. Final letters have been sent out to the
landowners with deadlines for response before the issue is forwarded to the City Attorney for
condemnation. He said there are eleven easements remaining for EL -3, many of which are just
temporary construction easements. Because we knew we weren't bidding this project until last,
efforts have just begun on obtaining these easements.
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f. Property Sale to Ozarks Electric
David Jurgens said he is expecting to receive a letter from Ozarks Electric soon. He said they
have walked the ground and they are proposing a slightly different area than what we had
originally thought. They want it to be closer to 54th St. and Mr. Jurgens agrees with that. The
property lines have been inset a little from 54th St. to leave enough room for a trail and a double
row of trees that will block the Ozarks Electric substation when it is built.
In response to a question from Alderman Ferrell, David Jurgens said we have already had the
property appraised and got a good price so we don't want to spend money on appraisals we don't
need. He is requesting that when the letter is received from Ozarks Electric that the sale with a
waiver of Ordinance 4358 be forwarded to the City Council.
Alderwoman Gray moved that the sale of property to Ozarks Electric (with waiver of
Ordinance 4358) be forwarded to the City Council. Alderman Ferrell seconded the motion and
passed unanimously.
h. Beaver Lake Watershed Nutrient Reduction Study
Ron Petrie said he has little to report other than that we are expecting their revised contracts
back this week. It should be an item on the next Committee agenda.
i. WSIP Construction Schedule and Cost Update
David Jurgens distributed an updated schedule to the Committee. He said the schedule had
been updated as of about 30 minutes ago. One thing that has changed from last time a schedule
was distributed is the amount of work that has moved from the "estimated" column to the "bids
opened" column. He pointed out that the Fayetteville area project total has not changed and his
objective is that it will not change. He also pointed out that the contingency amount is now at
$8.1 million, a much higher number than it was two weeks ago because of the bids that have
been opened in the last couple of days, putting money back into the contingency pot. At this
point the project is totally on budget. The market will control whether it stays that way but he
feels that given how much has already been completed we have done very well. He said at this
point $142 million worth of work has already been bid and is now under contract. We have $28.5
million left to go. We have two big bids left to go. One is the EL -1 and EL -2 which is estimated
to be a $16 million project. The next one is a $6 to $6.5 million project to be bid next January or
February.
3. Sanitary Sewer Rehabilitation Project Update
a. Basins 1-5, 18 & 19 Sewer Rehab
David Jurgens said we got the AHTD permit for Doc Murdocks yesterday (May 7). He said the
contractor is TG Excavating and they are the same company that is beating the rock on Sycamore
(WL -2 project) so they won't be starting on this project immediately.
4. Farmineton Area
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David Jurgens said we just opened bids on this item this afternoon and he will cover it a little
later in the meeting. The bid came in $350,000 under what was estimated
4. 36" Water Transmission Main Rehabilitation
David Jurgens said work is continuing on this. We are considering not doing the epoxy work
underneath. He said staff has looked at several ways of doing the work and talked to some other
structural folks. The tank has been painted and since it usually only carries six to ten feet of
water, it can be drained and inspected easily so they may not go through the process of getting
the epoxy coating. It has been difficult getting the quotes because the project is so small and the
prices they are getting are high. It meets all requirements as it is.
In response to a question from Alderman Ferrell, David Jurgens said the epoxy is more of a
structural coating. The paint is just a layer on top. The paint will probably last ten to fifteen
years.
5. Mt. Seguoyah Water and Sewer Improvements
David Jurgens presented a draft contract for the final engineering and design on this project.
The contract presented does not include numbers because staff has been working with Garver
Engineers to get the numbers down. A proposed contract was received from Garver Engineers
this afternoon but he has not yet had time to look at it. He also presented the Committee a project
map. He pointed out where they will be putting water lines in — on Assembly, Dogwood,
Crescent, Summit, the west side of Skyline and also on the east side of Skyline. He said a lot of
what is being done on the east side of Skyline is abandoning the old water line (the houses have
been built on top of the line) and doing the plumbing and reconnection with the new larger line.
In order to keep things within the time schedule of his travels, he would like to get the finalized
contract and send it out to the Committee and ask for permission, if the Committee is
comfortable with the contract, to put it on the next Council meeting agenda. He said he will ask
for a proxy motion by email when he sends out the contract.
Supplemental Agenda
1. WSIP
a. Subproject WL -7, Gregg Avenue Lift Station
David Jurgens said the low bid came in at $1.53 million. The bid we rejected about six weeks
ago was over $2 million. The low bidder was Crossland Heavy Contractors and they do a lot of
different work in the area. Given that this is a very good number and they are a well known
contractor, he requested that this item be sent forward to the next Council meeting.
Alderman Jordan moved that the contract be forwarded to the full Council. Alderwoman Gray
seconded the motion and it passed unanimously.
2. Farmington Area Sewer Rehab
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David Jurgens said there are two separate units to this contract. Unit one includes dig and
replace work and some pipe bursting. Unit two includes installing cured -in-place lining. Both
components came in below the engineers' estimates and below what we really expected. T -G
Excavating (the low bidder on Unit 1) specializes in sewer rehab. He said he will be discussing
the bids with Farmington on Friday. We are planning on funding this partially with Farmington
money, partially with STAG grant funds and the rest with City funds.
Alderman Jordan moved that these contracts be moved forward to the Council. Alderman
Ferrell seconded the motion and it passed unanimously.
3. Hiehway 265 Widenine AHTD Audit and Reimbursement
David Jurgens said after we do the water and sewer relocations relating to a highway project,
the Highway Dept. has the right to come back and audit what they reimburse to us for on the
project. The rule of thumb is, if it is outside the existing right-of-way but inside the expanded
right-of-way, then they pay for the relocation. If it is inside the existing right-of-way, we pay for
it. With the Hwy 265 widening which was done four years ago, they were paying around 50%.
They have since audited the project and say we need to repay them $884,000. Sid Norbash, one
of our engineers, and Vickie Deaton, our internal auditor went through the material in great
detail with the state engineer and other staff in an effort to improve that number. It now appears
we will need to reimburse only $254,000. The Highway Dept. has agreed to that reduced
number. The Committee was given copies of information in explanation of all of this. Mr.
Jurgens explained that we upsized the pipe installed from a 12" to a 24" pipe and did not apply
all of the difference to the percentage. What we did was in agreement with the AHTD utility
section but the AHTD auditors didn't agree with the utility section's concurrence on that
percentage. What we submitted to the Highway Dept. back then was for them to reimburse us the
full cost, including the increase in the pipe capacity. They have now rejected that and are saying
we should pay for the capacity improvement which is the normal way of doing business.
Alderman Ferrell said he doesn't like this but asked if staff thinks it is a fair charge. He said it
looks like we got the use of an interest free loan in a sense, assuming we agree with their
assessment of the situation.
David Jurgens agreed that we did in effect get an interest-free loan which has saved us money.
Also, he believes we got a good deal in the first place. We were able to increase the capacity
from 12" to 24", a very large capacity increase for a very cheap price. We were not comfortable
with the $884,000 but he thinks the reduced amount is a good deal for the City. We got a lot of
water line capacity for what ends up being a very good price.
Ron Petrie said he thinks the State simply made a mistake and caught it four years later. He said
there has been a lot of magic in this to get it down to the amount finally agreed upon. It was not
an easy job and there were some people who really earned their paychecks with this. He said he
is comfortable with this price. He feels it is unfortunate but a fair price for the work.
Alderman Cook said he noticed that we are pulling the money out of contingencies for two
other projects. He asked if the contingency money was just sitting in the two projects.
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David Jurgens said both of those projects are wrapping up right now and this is money that we
believe is available for reuse somewhere else. One of the projects is the Hwy 62 water relocation,
a highway widening project. The second is the North College water line replacement.
Ron Petrie said both projects have been finishing up in the last six months. These are the
contingencies for those projects that were not used.
Alderman Ferrell moved approval of this payment. Alderwoman Gray seconded the motion
and it passed unanimously.
SchedulinE Next Water & Sewer Committee Meetine
The next Water & Sewer Committee meeting was scheduled for Tuesday, June 12, 2007
following the Council Agenda session.
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