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Exhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement & Compliance ACM: David Gaines DATE: September 22, 2020 SUBJECT Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the City Manager to execute a Professional Services Agreement with Freese and Nichols, Inc., to provide regulatory permitting, process evaluation, design services and Texas Water Development Board funding assistance in support of the Lake Ray Roberts Water Treatment Plant Capacity Uprate, Regulatory and Performance Upgrades Project as set forth in the contract; providing for the expenditure of funds therefor; and providing an effective date (RFQ 6590-093 – Professional Services Agreement for evaluation and design services awarded to Freese and Nichols, Inc., in the not-to-exceed amount of $1,472,700). The Public Utilities Board recommends approval (7 - 0). INFORMATION/BACKGROUND The Ray Roberts Water Treatment Plant (RRWTP) was constructed and placed into service in 2002, with a capacity of 20 million gallons per day (mgd). Since the in-service date, the facility has received no major maintenance or upgrades and numerous components are reaching their design life and need replacement or repair. Water Utilities staff engaged Freese and Nichols in 2019 to prepare a Preliminary Design Report to evaluate the condition of equipment, structures and processes at the RRWTP and make recommendations for work to be included in a Regulatory and Performance Upgrade project. The report was completed in August 2019, at which time staff began forming a scope of work and negotiating a professional services fee. Final negotiations and award were postponed due to work on the Hunter & Cole Ranch MMD’s, as they had the potential to affect the City’s water production capacity needs. In the winter/spring of 2020 staff developed a plan to defer the major capacity expansion at RRWTP by completing a treatment capacity uprate study and permitting through the Texas Commission on Environmental Quality (TCEQ). As a result of the findings in the Preliminary Design Report, and to better meet regulatory and performance needs, a design scope was prepared including major maintenance, plant upgrades, life safety improvements, mechanical system, pump, chemical feed, and valve replacements, piping improvements, laboratory improvements, and conversion from gaseous chlorine and ammonia to liquid chemicals for disinfection. Additionally, the consultant will provide an evaluation of the solids handling process and prepare updated operations and maintenance manuals. In addition to the plant improvements, the consultant will assist the Utility with the preparation of a capacity uprate protocol, execution of the required piloting study, data review, report preparation and submittal of the report to the TCEQ for approval. Staff expects the plant capacity to be uprated from 20 mgd to 25-30 City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com mgd using existing process systems. This uprate capacity increase allows the 30 mgd expansion to be delayed by several years. Finally, the Utility intends to pursue low-interest Texas Water Development Board (TWDB) financing for this project. The consultant will assist the City with the TWDB funding process from pre-application through post-application activities. The Utility expects to realize additional debt service savings through subsidized funding available. The current total opinion of probable construction cost for this project is approximately $17,619,000. Staff evaluated the qualifications and ability of Freese and Nichols to complete this critical infrastructure project. Based upon the firm’s experience and staff assigned to the project staff have determined that Freese and Nichols is highly qualified to perform this work. Freese and Nichols is prequalified by RFQ 6590 received by the Purchasing Department and was selected as the most qualified firm for this project. Staff elected to solicit a formal scope and fee proposal from Freese and Nichols. A formalized scope of work was developed based upon the results of the Preliminary Design Report and the consultant submitted a fee proposal for regulatory permitting, process evaluation, design services and Texas Water Development Board Funding assistance services in the amount $1,472,700 to be billed on a lump sum or hourly time and materials not to exceed basis depending upon the task. The services contained within this contract presently end with the design phase, and no bidding or construction assistance is currently included, due to budgetary constraints resulting from bond sale reductions in FY2020. The Water Utility intends to return with a Contract Amendment in FY2021 for additional services to include bid phase and construction phase services, with an expected additional fee of approximately $800,000. Request for Qualifications for professional engineering services was solicited using the City’s formal solicitation process. City Council approved a pre-qualified list of engineering firms on March 6, 2018 and June 5, 2018 (Ordinance 2018-331). PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On March 6, 2018, and June 5, 2018, Council approved RFQ 6590 for a prequalified list of professional engineering firms (Ordinance 2018-331). On September 14, 2020, the Public Utilities Board (PUB) recommended this item to the City Council for consideration. RECOMMENDATION Award a contract with Freese and Nichols, Inc., to provide regulatory permitting, process evaluation, design services and Texas Water Development Board Funding assistance in support of the Lake Ray Roberts Water Treatment Plant Capacity Uprate, Regulatory and Performance Upgrades Project, in a not-to-exceed amount of $1,472,700. PRINCIPAL PLACE OF BUSINESS Freese and Nichols, Inc. Fort Worth, TX ESTIMATED SCHEDULE OF PROJECT This project will be started upon approval with a completion date within 12 months. FISCAL INFORMATION These services will be funded from Water Fund Impact Fees and Water Fund Revenue as part of the Capital Improvement Program. EXHIBITS Exhibit 1: Agenda Information Sheet Exhibit 2: Ordinance and Contract Respectfully submitted: Lori Hewell, 940-349-7100 Purchasing Manager For information concerning this acquisition, contact: Frank Pugsley, 940-349-8086. Legal point of contact: Mack Reinwand at 940-349-8333.