Agenda - Council Work Session - 09/13/2022

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numerous proposed improvements required to switch chemical treatment processes from individual pump houses to the Water Treatment Plant before the plant is commissioned, which significantly increased project costs. Based on SEH's current revised plans, the engineer's project cost estimate is $8,950,000. The anticipated construction schedule for this work is 3 to 4 months, depending on weather and material availability. Work on this project can therefore start well after the Water Treatment Plant improvements are under construction. However, keep bid prices as low as possible Staff is proposing to re -bid this project this Fall to allow bidders to order materials many months before construction needs to start. Water Treatment Plant On May 20, 2021, the city issued a Request for Proposals (RFP) for Design/Bid/Build services for a centralized Water Treatment Plant. Five firms submitted proposals and the firm of AE2S was selected based on experience in designing water treatment facilities, proposed work plan, ability to meet construction time lines, and proposed fees for services. AE2S recently completed the final plans and specifications and Staff is preparing to present the plans to the City Council for approval on September 27, 2022, and to request authorization to advertise bids for the Water Treatment Plant project. The engineer's Preliminary Opinion of Probable Total Project Costs for the Water Treatment Plant is $38,648,644. Funding Total estimated project costs for both the Water Treatment Plant and the Trunk Watermain Improvements total $47,598,644. It is worth noting that these costs include indirect costs for administrative, engineering, finance and legal fees so several hundred thousand dollars in engineering fees were previously paid. Funding for these improvements is proposed to include a mix of internal funds and bonding. Staff will explain the proposed funding sources and amounts in more detail at the work session. The 2022 - 2031 CIP identifies a total project cost of $32,000,000 based on the SEH Feasibility Study. Project Schedule This project is intended to reduce Manganese concentrations in our water supply system. In 2019, the Minnesota Department of Health (MDH) recommended that the City of Ramsey develop short and long-term plans to reduce manganese concentrations in our water supply system. In April of 2019, the City began supplying water to municipal water users using only the three wells with the lowest manganese concentrations to make sure manganese concentrations throughout the water supply system would not exceed the MDH Health Based Value (HBV) for manganese of 0.100 mg/L, which addressed the City's short-term plans. The City's long-term solution requires construction of a water treatment plant to remove manganese from the municipal water supply system. Since the Spring of 2019, the City of Ramsey has been collecting water samples from random locations and has had the samples tested for Manganese. In general, these test results have indicated that utilizing municipal wells with the lowest historical Manganese concentrations has allowed Manganese concentrations in the City's water supply system to remain below 0.100 mg/L the vast majority of the time, and no tests to date have exceeded 0.300 mg/L, which MDH has identified as the highest concentration of Manganese fit for adult consumption. However, the City is planning to construct its next municipal water supply well (well #9) within the next few years and it is not known how much Manganese will be produced by that well. Originally, the intent was to have the WTP operational before the high-water use season started in the Summer of 2024. However, due to current supply chain issues, Water Treatment Plants are now averaging approximately 2 years to construct. Bidding the WTP project in October/November 2022 will allow the plant could be operational by the Summer of 2025. Timeframe: