HomeMy WebLinkAbout1988-02-15 Info Packet of 2/12V
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City of Iowa City
MEMORANDUM
DATE: February 12, 1988
TO: Memo for Record
FROM: City Manager
RE: Material Sent to Council
Notice of meeting of City Council and Metcalf and Eddy representatives. �? 544
Informal agendas and meeting schedule. ?4?
Memoranda from the City Manager
a. Meeting with Metcalf & Eddy asd
b. Miscellaneous - United Way Victory Celebration; Videotaping of 175/
Interviews.
Copy of letter from Metcalf and Eddy confirming meeting time and date. J5a
Memorandum from the Assistant City Manager regarding gas tax increase. a53
Police Department Report for January 1988. ,0 s t
Copy of letter from Youth Homes, Inc., regarding acquisition of property. ?6S
Notice of meeting of Southeast Iowa Municipal League. 'R5 G
Copy of letter from Big Brothers/Big Sisters inviting Council and Mayor
to Bowl -For -Kids -Sake on Saturday, February 20.
Status Report and discussion of option for completion of the Wastewater
Facilities Improvement Project submitted from Robert G. Bening, President,
Metcalf & Eddy.
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CITY OF
CN/IC CENTER 410 E. WASHINGTON ST.
OWA CITY
IOWA CITY, IOWA 52240 (319) 356-500C)
NOTICE OF MEETING
Meeting Of City Council
with
Metcalf & Eddy
Monday, February 15, 1988
5:00 P.M.
Council Chambers
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City of Iowa City
MEMORANDUM
DATE: February 12, 1988
TO: City Council
FROM: City Manager
RE: Informal Agendas and Meeting Schedule
February 15 1988 Monday
HOLIDAY - CITY OFFICES CLOSED
5:00 P.M. - Meeting of City Council with Representatives of Metcalf
& Eddy - Council Chambers
February 22 1988 Monday
7:00 - 8:45 P.M. Council Chambers
7:00 P.M. - City Conference Board Meeting - Separate agenda posted
7:15 P.M. - Review zoning matters
7:30 P.M. - Special Vehicle Ordinance
8:00 P.M. - Council agenda, Council time, Council committee reports
8:15 P.M. - Russian Peace March Across the U.S.
8:30 P.M. - Consider appointments to the Animal Control Advisory Board
February 23 1988 Tuesday
7:30 P.M. - Regular Council Meeting -Council Chambers
March 7 1988 Monday
7:00 - 8:30 P.M. Council Chambers
Informal Council Meeting - Agenda pending
March 8 1988 Tuesday
7:30 P.M. - Regular Council Meeting - Council Chambers
PENDING LIST
Leasing of Airport Land for Commercial Use
Airport Status Update
Stormwater Management Ordinance Review
East Side Storm Drainage Improvements
Appointment to Broadband Telecommunications Commission - March 8, 1988.
Appointments to Housing Commission and Planning and Zoning Commission - April 5,
1988.
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City of lows City
MEMORANDUM
Date: February 12, 1988
To: City Council
From: City Manager
Re: Meeting with Metcalf & Eddy
Attached is a brief outline of activities and related dates that I believe
are pertinent to the discussion planned for Monday, February 15 at 5:00 PM in
the City Council Chambers. Also attached is a copy of a recent advertisement
in my professional journal concerning Metcalf & Eddy. I think you will find
their advertising/promotion language in the advertisement most interesting.
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METCALF & EDDY OUTLINE OF ACTIVITIES
September 2. 1985
The City pays $175,000 and receives from Metcalf & Eddy the Waste-
water Plan Alternative Study - Phase III. The report is prepared by
Metcalf & Eddy and estimates the project cost to be $33,911,000.
Exhibit A1.
April 11, 1986
The Wastewater Plan - Final Report recommends the adoption of
Alternative Plan #11 which establishes a project cost of $33,911,000.
Exhibit k2.
June 17, 1986
The City enters into a contract with Metcalf & Eddy for a fee of $4.7
million to design, provide project management, and provide construc-
tion management for the Wastewater Treatment Plan #11, as based on
their recommendations.
June 24, 1986
Metcalf & Eddy completes a sewer rate study and makes rate recommen-
dations to the City based upon project costs of $33,911,000. Those
recommendations were implemented. Exhibit k3.
July 29, 1986
The City proceeds with the sale of $38,950,000 in sewer improvement
bonds based upon project construction estimates and rate schedules
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developed by Metcalf & Eddy. Exhibit #4 - excerpt from post -sale
analysis report.
October 8, 1986
Metcalf & Eddy submits to the City the Basic Project Development
Report. This report outlines schedules and other activities as-
sociated with their responsibilities, and as a special condition, the
report states "As an additional condition, the construction costs
must be held to less than $29,195,000 and the new facilities must be
substantially on line July 1, 1988". This number plus the contracted
fee for their services of $4.7 million, further substantiates the
original project cost of $33.9 million. Exhibit #5.
Anril. 1987
Estimates for the construction of the south plant are provided, the
City proceeds with hearings; however, due to the zoning dispute no
contract letting was to occur.
August, 1987
The Director of Public Works advises Metcalf & Eddy that work is not
being presented to his office in a timely fashion, such as legal
descriptions and plans for easements as well as plans for the
neighborhood sewers. The Director receives a complaint from the DNR
wondering why the "foot dragging" was occurring on the part of
Metcalf & Eddy.
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August 27, 1987
The Director initiates correspondence to Metcalf & Eddy indicating
that certain work items must be complete before further payments for
work to be done are authorized. The Director met with the Metcalf &
Eddy official, Mr. Cramer, to advise him that payments would be held
up. Exhibit k6.
September. 1987
Estimates for the north plant project were provided to the Director
of Public Works indicating a construction cost of $9.2 million.
Shortly thereafter, the City was notified by Metcalf & Eddy that the
north plant project was now estimated to be $16.7 million.
October 1. 1987 (on or about)
The Director of Public Works is provided with a project estimate of
$47.7 million for the total project plus the $4.7 million for design,
program management, and construction management, thereby indicating
the original $33.9 million project was now over $50 million. Upon
learning this information, the City staff began the process of
evaluating the performance of Metcalf & Eddy.
October 30, 1987 (on or about)
Metcalf & Eddy advise the Director of Public Works "no pay, no more
work, we will shut down project".
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November 5. 1987
Metcalf & Eddy submits a bill for $865,100 in additional design cost.
In the letter directed to the Director of Public Works the increase
in fees is identified as being for out of scone work and yet the
correspondence indicates that the work was to "defray redesign
costs". Exhibit V.
November 9. 1987
City Manager meets with City Council to discuss the performance of
Metcalf & Eddy.
November 10, 1987
The Director of Public Works and Assistant City Manager advise
Metcalf & Eddy of City's intent to terminate contract.
November 10, 1987
Mr. Maxman of Metcalf & Eddy meets with City Manager and we were told
that the $865,000 additional cost was in error and should never have
been sent, and the project was not shut down. Mr. Maxman asked for a
chance to present further information. The City Manager agreed.
November 16, 1987
The City receives a report from Metcalf & Eddy which is entitled,
"The Iowa City Wastewater Treatment - Cost Reduction Program". The
report indicates that the estimated construction cost for the work as
designed is $48.2 million. However, other alternatives were being
pursued by Metcalf & Eddy and the cost for construction could be
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reduced to $40 million. The reduction in construction costs were
reviewed, many of which were found to be unacceptable.
In this same report, Metcalf & Eddy indicates, "The effect of the
increased cost can be somewhat mitigated by the interest earned on
the bond money since August 1986". We advised them that any interest
income was to accrue to the City's benefit, not that of the
consulting engineer, and in fact, the bond sale was fashioned in a
form that the accrued interest, the substantial portion of which was
intended to be used for capital project purposes and thereby reducing
the overall indebtedness level.
The question you might raise is "where did the $12 million construc-
tion cost go?" While we do not have all details, it is understood
that Metcalf & Eddy eliminated a dewatering process as part of the
original contract to save $3 million, made reductions to the north
plant rehabilitation of $4 million, and neighborhood and interceptor
sewers were reduced from $12.9 million to $8.4 million. We are not
aware of all the details of the other reductions other than we
advised that we had originally contracted for specific programs and
reductions such as the neighborhood and intercept sewers were not
acceptable.
December 7. 1987
A series of meetings with Metcalf & Eddy were held as well as further
documents being provided. These documents were to substantiate an
approximate $36 million construction project. This estimate, plus
Metcalf & Eddy's contract fees of $4.7 million, now equal a $41
million total cost.
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January 5. 1988
City Manager directed a letter to Metcalf & Eddy indicating a
thorough review had been concluded with respect to the documentation
provided by Metcalf & Eddy, and a proposed contract addendum was in
order if we were to consider the increased construction cost. The
letter outlined the elements of an acceptable revised contract.
Exhibit N8.
January 12, 1988
City Manager receives a letter from Metcalf & Eddy indicating they
are reviewing my letter of January 5. In their letter they quote,
"While the exact wording and details of the addendum need to be
finalized, the essential points of your letter seem to be consistent
with our recent conversation". Exhibit N9.
January 26, 1988
In a letter directed to the City Manager from Metcalf & Eddy, they
propose a contract addendum. The proposed Metcalf & Eddy contract
addendum reestablishes the original payment schedule, provides for an
engineer's estimate of $36.3 million, and other elements of an
amended agreement. The contract amendment prepared by Metcalf & Eddy
fails to identify the overall concerns of the City with respect to
fixing responsibilities, our dissatisfaction with project management,
and proposes to continue a relationship with respect to construction
management. Exhibit #10.
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January 29. 1988
City Manager addresses correspondence to Metcalf & Eddy and indicates
that the proposed addendum falls short of appropriate conditions and
assurances that we believe reflect a commitment on the part of M&E to
restore confidence in their ability to provide for work product. A
proposed addendum is submitted to Metcalf & Eddy. Exhibit #11.
February 3, 1988
Metcalf & Eddy directs correspondence to the City Manager indicating
that they feel that they should not "assume responsibility for
unfounded failures to perform". They further indicate that Metcalf &
Eddy will pursue its remedies under the agreement and the law. They
ask that they be permitted to proceed to bid as that the overall
program budget of $36.36 million be established (total project cost -
$41,000,000). Following review of that correspondence and related
documents, the City Manager recommended to the City Council that the
firm of Metcalf & Eddy be found in default and action be taken to
cure the default or the City terminate their contract. Exhibit k12.
It is difficult for me to respond fully to the overall allegations
indicated in the February 9 letter to the Mayor; however, there are
critical points that I believe need to be made, specifically in point D of
their letter, they indicate that the "overall program is within the City's
stated budget of $36.36 million". Please note that the $36.36 million was
based upon our ability to come to an agreement with respect to a contract
addendum. At no time have we relieved them of their responsibilities to
develop a project that was to have a construction, design, program manage-
ment, and construction management budget of $33.9 million. If we were to
accept the $36.3 million, that plus the $4.7 million contracted amount,
the City would be obligated to $41 million worth of expenditures.
ED
Accordingly, if we were to continue and accept their proposals, the City
would be obligated to an additional $7 million in constructio d
related costs.
n an other
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ALTERNATIVE #11
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Summary
Item
Cost
Existing Plant Rehabilitation
j 2,233,0001
Existing Plant Expansion2
Equalizations
5,454,000
Stormwater Treatment System
Sand Road Treatment Plant
7,161,000
Lift Station and Force Main
1,170,000
Sewers
10,067,00
Subtotal
$26,085,000
Contingency (15$)1
3,913,000
Administrative, Legal Engineering (15%)1
3,913,000
TOTAL Construction Cost
000
12"160-00
'From M&E's Phase II Report
2Includes new grit removal facilities, excludes new bar screens.
sAssumed intermittent use of basin would render unlined basin
acceptable. If liner is required by regulatory agency and/or the
City, add $52,000.
"Fluor assumed the two digesters to have fixed roofs. If floating
roofs are required, add $150,000 per digester.
s Add $165,000 for basin and lagoon liners.
041/26280
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CHAPTER 4 •
EVALUATION OF ALTERNATIVES
The evaluation of alternatives was defined to be a three step
process. In Phase I fourteen alternatives were defined and
' narrowed down to four. This reduction was based primarily on
cost and local preference. In Phase II the four alternatives
were reduced to three. This reduction was based on a ranking of
factors including financial, technical, environmental,
implementation and flexibility. In Phase III the recommended
plan was presented.
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During the
preparation of
the Phase III Report an independent
'
construction
cost estimate
was prepared. This cost estimate was
prepared by
Fluor and was more detailed than previous cost
estimating
methodologies.
Table 4.1 summarizes the final
construction
cost estimate
used to evaluate alternatives.
Table 4.1 Construction
Cost Estimate
Alternative
Estimated Value
2
$49,272,000
g
$31,696,000
11
$33,911,000
1. Based on
ENR cost index of 5400
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IOWA CITY RATE STUDY 3
June 24, 1986
I. STATEMENT OF OBJECTIVES
The objective in this report is to present the selected
sewer rate alternative for recovering the expenses
associated with the proposed expansion and upgrading of
wastewater conveyance and treatment facilities.
II. ASSUMPTIONS
For the purpose of this study, it was assumed that the
population of Iowa City increases linearly during the study
period. Figure 3.3 of the "Report on Wastewater Plan -
Alternative Study Phase III" was used to obtain the
population projection. The 1983 Comprehensive Plan, low
estimate line, was used for growth projection. Figure 1
represents the projected population growth trend. Other
rate determining parameters including the number of sewer
accounts, base flow rate, and total billable wastewater flow
rate were assumed to increase linearly from current levels
at the same rate as the population growth. The billable
base sewage flow rate was estimated to be equal to the total
number of accounts times the current base flow rate of 200
cu.ft./mo. Table 1 projects the parameters related linearly
to population from their current numbers to the Year 2012
(last year of the study period).
Table 1. Projections of Rate Controlling Parameters
PARAMETER �7
Population 53,500 61,850
Number of Accounts 13,845 16,020
Total Billable Flow ft3/mo 31,062,0381 35,913,138
Per Capita Flaw, fti/person mo 581 581
Base Flow, ft /mo 2,769,000 3,204,000
Flow Above Base, ft3/mo 28,293,038 32,709,138
1. Billable flow obtained from the Iowa City Financial
Department
Billing records of the City were evaluated to determine the
ratio between volume of flow billed at base rate to volume
of flow billed at above base rate. It was also assumed that
the ratio of base rate to rate per 100 ft3/mo. above the
base would remain the same. This ratio is currently 4.58
($1.625/mo and $0.355/100 ft3)• The assumed funding method
used in the rate study was a revenue bond issue. One
revenue bond issue was evaluated. This issue was for
$38,950,000 and was repaid at a constant rate with the first
interest and principal payment due in 1989. Table 2
summarizes the annual payment for bond retirement and
interest payment for the revenue bond issue. Table 3
summarizes the financial assumptions used to determine the
size of the bond issue. The annual sewer bond debt was
obtained from Evensen Dodge, Inc. for these combinations.
Table 3. FINANCING ASSUMPTIONS
$38,950,000
Issue
Sources:
Bond Proceeds $38,950,000
Investment Earnings 3,375,712
$42,325,712
Uses:
Project Costs $33,911,000
Issuance Costs 175,000
Discount 779,000
Debt Service Reserve (Maximum 3,717,300
Annual Debt Service) 1,669,200
Refunding of G.O. Debt 2,030,233
Capitalized Interest (18 months) 43,979
Rounding
$42,325,712
1. Interest Rates - Current market rates plus 35 basis points.
2. Investment Rates:
Construction and Capitalized Interest Funds: 7878
Debt Service Reserve Fund:
III. RATE CALCULATIONS
The rate was calculated so that the total projects revenue
over the study period would offset the total projected system
expense. The sewer revenue is the sum of the base charge
multiplied by number of accounts and the user rate multiplied
by the flow rate above the base flow rate. The total expense
is the sum of the bond debt and the projected system
operating cost. The projected system operating costs were
obtained assuming 68 annual inflation and a 1987 operating
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cost of $984,000. Operating costs were adjusted in 1989 to
reflect operation of additional facilties. The revenue
dollars were maintained at levels greater than 1.1 times the
annual bond debt. It was assumed that the fund balance could
be invested at a return rate of 68 annually.
IV. RATE ALTERNATIVE
The selected alternate consists of a
charge of $3.00/mo, and a user charge
the base volume of 200 ft3/mo. This
the current rate. The rates are then
1988 (588) and $5.75 in 1989 (218).
analysis for this rate structure.
V. CONCLUSION
1987 base rate sewelr
of $0.0066/100 -ft over
is an 858 increase over
increased to $4.75 in
Attached is a cash flow
The selected rate will provide the funds necessary to repay
the revenue bonds. It is recommended, that the user charge
rate be increased to the base rate of $3.00/month and
$0.006/cu. ft. for usage over the base rate as soon as
possible. If implemented during July or August of 1986, the
sewer fund can begin to accumulate reserve funds.
IOWA CITY, IOWA
11,747,268
13,694,838
15,442,106
15,611,590
CASH FLOW ANALYSIS
1992
11,852,104
13,699,162
15,551,266
t38.95MM BOND
1296,232
1993
11,963,230
13,898,400
15,661,630
INVESTMENT
TRANSFER.
1994
12,0111,024
$3,717,300
INCOME
T8
TRANSFER CUMULATIVE
CUMULATIVE
OPERATION DEBT
TOTAL REQUIRED SYSTEM INVESTMENT IFUNO PAL TOTAL
CAP IMP
TO FUND CAP IMP
FUND EASE USE
YEAR COST SERVICE
COST REVENUE REVENUE INCOME 4 IMP RES) REVENUE
RESERVE
BALANCE P.ESEEVE
BALANCE RATE RAT'_
19B1 1984,000 (761,337 $1,745,337 $1,B21,471 12,723,559
1988 $1,043,040 13,045,350 14,088,390 $4,392,925 14,339,256
1989 11,555,062 $3,695,350 15,250,412 0,619,947 15,567,621 1296,232
1990 $1,648,366 13,632,650 15,2111,016 15,644,281 15,604,884 1296,232
1991
11,747,268
13,694,838
15,442,106
15,611,590
1286,232
1992
11,852,104
13,699,162
15,551,266
15,921,182
1296,232
1993
11,963,230
13,898,400
15,661,630
16,031,470
$28&,232
1994
12,0111,024
$3,717,300
15,798,324
1b, 170,054
1286,232
1995
12,205.006
13,703,850
15,909,736
16,280,121
1296,232
1996
12,338,239
$3,684,500
16,022,739
16,391,1119
$286,232
1997
12,470,533
13,709,500
16,168,033
16,558,983
1286,232
1998
12,627,245
13,700,900
$6,328,145
16,698,235
12116,232
1999
12,784,880
13,686.600
16,471,480
16,840,140
1286,232
2000
$2,951,973
$3,690,350
16,642,323
17,011,358
1286,232
2001
13,129,091
13,695,050
16,814,141
17,192,646
1286,232
2002
13,316,037
13,695,500
17,012,337
17,3111,BB7
1286,232
2003
13,515,847
13,696,075
17,211,922
17,581,529
$286,232
2004
13,726,798
$3,685,075
17,411,973
17,780,380
$206,232
2005
13,950,405
13,698,163
17,639,568
18,007,385
1286,232
2006
14,197,430
13,678,107
17,865,617
$9,233,435
1266.232
2007
14,438,675
13,691,063
18,(19,738
18,487,845
1286,232
2008
$4,704,996
$3,694,762
18,399,158
19,769,234
1206,232
2009
$4,987,296
13,692,263
18,679,559
19,048,705
$286,232
2010
$5,206,534
13,697,212
18,983,746
$9,353,467
$286,232
2011
$5,603,726
13,683,825
19,287,551
19,655,933
$286,232
2012
15,939,949
13,677,100
19,617,049
$9,984,759
$286,232
a
$2,723,559
1970,222
$0
1978,222
$0
3.00
0.0066
158,693 $4,397,949
$240,000
$69,559
$1,218,222
$69,559
4.75
0.0104
$77,267 $5,931,120
1240,090
$440,701
51,458,222
1510,267
5.75
0.0126
1113,936 $6,005,052
$240,000
1484,036
11,696,222
1994,302
5.75
0.01:6
A1QAL4t 17 PW Pc,%s
744 ) mQ r.
the sale of the Bonds. Hypothetically, if the sale
negotiated, the managing underwriter could have had beeneen the
underwriter whose perception of the market and de
Bonds resultdemand for the
ed in a pricing yielding an 8.059 net interest rate,
rather than the winning 7.899. This could have cost the City a
additional $1,141,637 in net interest cost. n
The proceeds of the Bonds are planned to be used as follows:
Issuance Costs $ 220,000'
Discount 775,992
Refunding of General
Obligation Bonds 1,721,200 *4
Capitalized Interest 2,015,033
Debt Service Reserve Fund 3,672,550
Project Costs _30,545,225
Total $38,950,000
Project costs for the improvements to the system are projected to
total $33,911,000.
The balance of the funds required for the project are expected to
be generated by investment earnings during the construction
period. The City is investing bond proceeds in a manner which
Will yield the highest interest earnings in light of market
conditions and legal and prudential restrictions upon the types
of securities in which the City can invest.
The results of sale with a list of bidders and the bids received
is included as Exhibit A. Exhibit B is a debt service schedule
for the issue, showing the principal and interest payments on the
Bonds.
RATING
A rating was applied for from Moody's Investors Service, Inc., in
response to which Moody's assigned an "A" rating to the issue.
The City's prior sewer revenue bond issues were also rated "A"14 ,
but it had been 20 years since those bonds were issued. For this
reason and because of the size of this project, it was determined
that a special rating presentation should be made to Moody's at
their offices in New York. Primarily because of the following
security features, Moody's confirmed the City's "A" rating on the
Bonds:
1. The bond resolution established out of bond proceeds a
debt service reserve fund equal to the maximum annual
debt service requirement.
2. The resolution required that rates be established at a
level which would produce 1109 of the revenues needed
for all operating and debt service requirements of the
system.
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IA27.86B/52 2
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August 18, 1980
Revised: September 29, 1986 5�
iAvailable Information
The following documents are available for design outline and
record information pertaining to the existing facilities.
1. All Metcalf & Eddy Study Reports to the City recommending
Iproposed facilities
2. Contract and Record Drawings for original construction
and the expansions in 1964 and 1973.
Proposed Schedule
Until final approval of the program schedule by the City the
following milestones will provide a basic outline of work:
Agreement Execution June 18, 1986
Conceptual TAT Sept. 22, 1986
Basic Project Development Report Oct. 8, 1986
Design Outline Document Report Nov. 7, 1986
Award Design Subcontracts Nov. 10, 1986
Submit North WWTP Stormwater
& South WWTP Documents March 1987
Submit Interceptor & Lift Sta. Documents March 1987
Award North WWTP Stormwater
& South WWTP Contracts May 1987
Award Interceptor & Lift Sta. Contracts May 1987
Submit North WWTP Rehab Documents July 1987
Award North WWTP Rehab Contract Sept 1987
Begin 0&M Manual & Training Jan. 1988
Substantial Completion July 1988
Complete Construction Dec. 1988
Warranty Review July 1989
Warranty Review July 1990
Project Completion Jan. 1991
Similar Projects
Available contract documents in the Arlington Heights office for
similar projects include:
1. Elmhurst Sludge Facilities
2. Auburn — H.C. Morgan PCF
3. Fond du Lac PCP
4. Fond du Lac Interceptors
5. Misc. projects designed outside of region
Special Conditions
As previously noted a major portion of both design and resident
efforts must be subcontracted. As an additional condition, the
construction costs must be held to less than $29,195,000 and the
new facilities must be substantially on line July 1, 1988.
CITY CSF IOW,
CITY
CIVIC CENTER 410 E. WASHNGTON ST. IOWA CITY, IOWA 52240 (319) 356-5C00
August 27, 1987
Paul Kramer
Metcalf & Eddy
Engineers & Planners
85 W. Algonquin Road
Suite 500
Arlington Heights IL 60005-4422
RE: Iowa City Wastewater Facilities Project
Dear Mr. Kramer:
I want to thank you for visiting Iowa City on August 25, 1987. I think,
as a result of our meeting, lines of communication between our two agencies
will improve significantly.
One year has passed since the City entered into an agreement with Metcalf
& Eddy for project management services for Iowa City's wastewater facility
improvements. It is therefore appropriate, at this time, to review and
evaluate the work effort, level of communication, response to requests from
the City and various review agencies, and overall compliance with the terms
of the contract.
The following comments should not be taken as a criticism of Metcalf & Eddy's
work effort, although it appears that payment for work to date exceeds work
effort, but rather as a constructive evaluation of work effort to date and
the establishment of objectives to insure that the terms and conditions of
the contract are carried to fruition within allotted budgets and time
constraints.
The next thirty days are very critical with regard to meeting state mandated
deadlines and completing all facility improvements. All design work must
be completed and all plans, specifications, easement plats and contract
documents necessary to award contracts must be submitted to the City no later
than October 1, 1987. In addition, the State of Iowa should be encouraged
to complete necessary reviews by October 1, 1987.
In addition, the City requests the following information be submitted by
October 1, 1987:
1) A network flow diagram indicating professional engineering services
yet to be performed, estimated time of completion, and projected fee
for each segment.
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Paul Kramer
Metcalf & Eddy
August 27, 1987
Page 2
2) A revised construction cost estimate.
3) An estimated contractor payment schedule for the project.
It appears that over the past year, written communication such as monthly
progress reports has not been sufficiently adequate, from the City's stand-
te a positive attitude regarding progress
point, to insure confidence and promo
of the program to date.
If you have any questions concerning this letter, please feel free to contact
me.
Respectfully,
Charles J. Schmadeke
Director of Public Works
cc: Dale Helling, Assistant City Manager
November 5, 1987
City of Iowa City
Suite 300
103 E. College
Iowa City, IA 52240
Attn.: Mr Charles Schmadeke
Director of Public Works
Re: Program Engineering Costs
Dear Mr. Schmadeke:
Metcalf & Eddy, Inc.
Engineers & Planners
103 E. CalleW Slreea
Sule 206
1w 01y, LA 52240
(319) 338.8206
During recent discussions between Dale Helling, Chuck
Schmadeke, Paul Kramer, and Bob Severance, we have informally
presented a number of identified costs which we have formalized in
the two (2) attached letters of November 4, 1987.
These costs are significant and startling.* Since our
contract is based on actual costs, any agreement regarding scope
change items would be received as adding to the limiting fee, and
not as a sum due and payable. Our hope is that monies authorized
will defray, or help defray, our redesign costs.
When reviewing these figures, we request that you not accept
them as a hardline demand by Metcalf & Eddy. The purpose of these
summaries is to provide background data to prepare the City for
renegotiation of our contract to reflect the true changes in
program content.
At this time, our only outstanding request is release of our
August payment so we may continue on the program. This payment
u— by the Citv as oavment for
contractual work com tete*, or as an aavance a aiaaea� a aa:! ...
ou -o -s co a work. We be eve o e City and Metcalf & Eddy
acknowledge that out -of -scope work has been performed, such as the
disinfection facilities, and that payments will be forthcoming at
some point in time.
r.,a, C^u,;) N,„,.... ,
Boston, Nen York, Pak, Allo I San Serna,a.ro I erne Ca - 3mlo-s. 'e !'0 r Cn¢s•c C- — w
We welcome the chance to work with you and the City to
complete this program successfully. At this stage of the program,
it is very important that we proceed with positive action to
indicate to the IDNR that the goal of meeting the July 1, 1988,
and sludge deadlines is being pursued.
We would like to meet with you on Monday, November 9, 1987,
to discuss the costs, and to develop a schedule for accomplishing
the redesign work.
Very truly yours,
ME CALF & E}1DY, INC.
�,�Gt�' .2Cttian4�
Paul Kramer
Project Director
PK/di
J-2106
0
01 J-0
CITY OF
CIVIC CENTER 410 E. WASHNGTON ST
January 5, 1988
OWA CITY
IOWA CITY. IOWA 52240 (319) 356-5CCC
Mr. Robert Maxman
Metcalf b Eddy, Inc.
85 W. Algonquin Road, Suite 500
Arlington Heights, Illinois 60005-4422
Dear Bob:
After a thorough review of the documentation that has been submitted by
Metcalf 8 Eddy, and conversations with City staff concerning the results
of recent meetings, the following represents the City's position if we
are to continue the relationship with Metcalf b Eddy concerning design,
project management and construction management for our wastewater treat-
ment plant and other related sewer system improvements. We propose that
the existing contract between the City of Iowa City and Metcalf 8 Eddy,
Inc. be amended by'a formal addendum. This addendum should identify
causes for the delay in the project, should provide for Metcalf 8 Eddy's
performance with respect to compliance with terms of the existing con-
tract, should establish an alternate schedule for completion of work
originally contracted, should provide for terms of payment for work
completed, and should reflect the various terms and conditions hereafter
specified. This addendum must provide that it will not serve to relieve
Metcalf b Eddy of any of its responsibilities under the original agree-
ment, nor will it constitute a waiver by the City of any of its rights
of claim against Metcalf E Eddy for prior lack of performance. If
Metcalf b Eddy would be willing to execute such an addendum containing
the terms and conditions so indicated in the following list, Metcalf 8
Eddy would also be expected to proceed immediately to conclude those
elements of the project as identified.
I would ask that you review this proposal, including the specific terms
and conditions which follow, and offer a response. My intent in ap-
proaching the matter in this fashion is to obtain assurance that your
company can fully comply with our proposal and is willing to amend the
contract accordingly. If all elements identified herein cannot be
satisfied, it would be my judgement that it would be futile to pursue an
amended contract and continue delays in the completion of the Iowa City
project. Please review the following list and once again a prompt
response would be appreciated.
Mr. Robert Maxnan
January 5, 1988
Page 2
TERMS AND CONDITIONS
Phasing of design and construction work. The project will be divided
Into five separate elements, each element to be bid separately for con-
struction, as proposed by Metcalf & Eddy as a part of the 'implementa-
tion strategy' submitted to the City as a part of and referenced in a
letter dated November 16, 1987, from Metcalf & Eddy. The elements will
be as follows:
1. Element 1 - North plant compliance. Includes construction of addi-
tional clarifiers, disinfection facilities, necessary connecting
piping and pumping facilities, and all other components necessary
for modification of the facility to satisfy requirements of the Iowa
Department of Natural Resources for compliance by July 1, 1988, as
specified in administrative order B87 -WW -52 dated August 11, 1987.
As you are aware, this is the initial and most critical component if
we are to fully satisfy DNR orders and therefore it would be ex-
pected that this work would be undertaken and concluded
immediately.
2. Element 2 - South plant. An activated sludge wastewater treatment
facility which includes influent pumping facility, screening and
grit removal, an equalization basin, two primary clarifiers, four
mechanical aeration basins, two secondary clarifiers, chlorination
and sulfination facilities, including contact tanks, two anaerobic
digesters, sludge lagoons and all other components necessary to make
the facility functionally complete.
3. Element 3 - Major sewerage. Includes outfall sewer from the South
Plant to the Iowa River and all segments of the Southeast Intercep-
tor Sewer from the South Plant to First Avenue along with all
appurtenances.
4. Element 4 - Relief sewers. Includes the Benton Street relief sewer
and all other sewers included in the project north and east of First
Avenue, along with all appurtenances.
5. Element 5 - North Plant -Excess Flow. Includes influent pumping,
facilities, new screens and grit removal, equalization basins, new
trickling filters, effluent pumping station, clarifiers, filtration
facilities, belt filter Press facility and all other components
necessary to make the facility functionally complete.
Metcalf & Eddy will provide the City with a complete breakdown of design
costs for each of these elements. These design costs shall not include
project management costs which will be listed separately for the design
phase of the project. Billings for the remainder of the design work, as
well as for services during construction, shall separate design, con-
struction management and project management costs and all information,
invoices, and cost related data submitted by Metcalf & Eddy to the City
shall reflect these costs separately.
Mr. Robert Maxman
January 5, 1988
Page 3
Procedure
Metcalf & Eddy will immediately proceed with the final design of the
North Plant compliance to be bid as early as possible in the spring of
1988 with construction to begin imnediately upon contract award.
Metcalf & Eddy will immediately proceed with final design on the South
Plant, Major Sewers and Relief Sewer contract segments, these to be bid
simultaneously and/or in some manner so that the contracts may be
awarded simultaneously at the earliest opportunity in the spring of 198B
with construction to begin immediately upon award of contract.
Metcalf & Eddy will proceed immediately to complete design outline
documents and preliminary cost estimates for the North Plant Excess Flow
contract segment, with this information to be provided to the City prior
to the approval by the City Council of plans, specifications, form of
contract and final cost estimates for the South Plant, Major Sewers and
Relief Sewers contract segments. Metcalf & Eddy will proceed immedi-
ately on the basis of estimates to date to prepare a Revised Project
Budget for all phases of the project for review and approval by the
City. The revised project budget for construction of all five phases of
the project shall not exceed $36.36 million, except upon approval by the
City for further cost additions to the project. This amount will in-
clude a 7.5% cost contingency item for construction of the total pro-
ject. In the event that the bids received and the contracts awarded for
construction of any phase of the project are below the final cost esti-
mates, the City shall retain the right to determine and direct how such
funds are to be spent.
Upon award of contracts for the first four elements, Metcalf & Eddy
will, upon direction by the City, proceed to complete design plans and
specifications and final cost estimates for the North Plant - Excess
Flow element based upon design decisions by the City and Metcalf & Eddy.
Parties agree that the City will retain an option to delete from the
June 17, 1986 agreement with Metcalf & Eddy construction management
and/or secportion of the project (Phases 3naement services for the oandr4). Upon selection n of ll ora
rt
ofthe
by
the City of those portions to be deleted from the agreement, the parties
agree that a proportional amount shall be deleted from the appropriate
construction management and/or project management total fees for serv-
ices as provided in the agreement.
Payment:
a. Design- Services. Actual cos
deve opmen es gn outline a
$2,577,000 as per the existing
shall make payment to Metcalf &
cost as follows:
to the City for design (basic project
d final design) shall not exceed
agreement between the parties. City
Eddy for the remainder of the design
Upn form
ofocontractryto the a d finalCity costfthe estimateslforaeachspecifications,
four
segments (excluding North Plant - Excess Flow) the City shall place
ONO W
Mr. Robert Maxman
January 5, 1988
Page 4
in escrow 100% of the remaining amount as specified below owed to
Metcalf b Eddy for that respective segment, which amount plus inter-
est accrued, shall be released by the City for payment to Metcalf d
Eddy upon receipt and acceptance of bids and award of contracts as
follows:
Element 1: North Plant Compliance - $93,390 to be released upon
receipt and acceptance of bids and award of contract.
Elements 2, 3 and 4: South Plant, Major Sewers and Relief Sewers -
The amounts of $107,400; $45,000 and $45,000 respectively, to be
released upon receipt and acceptance award of all three bids, such
that they can be awarded simultaneously and provided that north
plant compliance bids have been received.
Element 5: The North Plant - Excess Flow: The amount of $54,800 to
be paid upon receipt of design outline documents, preliminary de-
sign, preliminary cost estimates and ;300,000 upon receipt and
acceptance of bids and award of the contract.
The City shall not be required to accept a bid or bids and award a
contract or contracts for any phase of the project unless and until the
following:
1. The bids for that element of the project are within the estimated
construction cost for that element as identified in the Revised
Project Budget.
2. All necessary documents are prepared by Metcalf d Eddy, submitted to
IDNR, and a construction permit is issued by IDNR; and
3. Acquisition of all land and easenllemt;s which are necessary to allow
for construction by the contractor on schedule have been acquired or
can be acquired in a timely fashion.
Assuming these terms are acceptable in concept, it is imperative that
representatives of the City and Metcalf b Eddy meet as soon as possible
to finalize the contract addendum language in order that work may pro-
gress without further delay. .
Sincerely yours,
Stephen Atki s
City Ma ger
/sp
he. &-p-
January 12, 1988
Stephen J. Atkins
City Manager
City of Iowa City
Civic Center
410 E. Washington Street
Iowa City, Iowa 52240
Dear Steve:
�I
Metcalf & Eddy
SSW AIOonown Road. Sude 500
A,hnglon Ho;pnl:, Ilhnoi, 60005-4422
0121220.0900
RECD
JAN 13 1988
Metcalf & Hd Iy, lac.
lora CRY, IA
We are in receipt of your letter of January 5 and have nearly completed
a draft contract addendum for your review. we expect to transmit the
draft to you no later than,Priday of this week.
While the exact wording and details of the addendum need to be finalized,
the essential pointe of your letter seem to be consistent with our recent
discussions.
I would like to suggest therefore, that while the negotiations are under-
way on the details of the addendum, we take a parallel track to finalize
the design of the highly time critical North Plant Compliance. Your staff
has reviewed the proposed improvement in detail. If you can authorize
commencement of final design of the improvement as now described, we could
complete the design and cave precious weeks in the design/bid/cone truce ion
process.
in any case, after review of our draft addendum we can proceed with the
approval process ao that the project can again begin in earnest.
Metcalf & Eddy remains committed to support Iowa City in this critical
endeavor and we look forward to seeing this project through to completion.
Very A
yours,
le.Maxman
Regional Vice President
cc: R, Bening
C. Bicher
R. Severance
P. Kramer
a
�:f
January 26, 1988
Mr. Stephen J. Atkins
City Manager
City of Iowa City
Civic Center
410 E. Washington Street
Iowa City, Iowa 52240
Dear Steve:
Metcalf & Eddy
65 W. Algonquin Road. Suite 500
Arlington Heights. Illinois 60005-a422
131 21 228-0900
Bio
Attached is the proposed addendum to our Agreement for services
on the Iowa City Wastewater Facilities Improvement program. The
addendum confirms the committment of M&E to the following:
Proceeding immediately with the final design of the
following elements as defined jointly by the Iowa City and
M&E staffs:
- North Plant Compliance
- South Plant
- Major Sewerage
- Relief Sewerage
- Proceeding with the preliminary design of the North Plant
Excess Flow element after receipt of bids for the first
four design elements and receipt of written authorization.
- Providina for final
fi
thin
- Providing final designs with an engineers estimate within
the agreed upon $36,361,000 construction cost budget.
- Relating design payments to submittal of design documents.
In addition, we commit to weekly progress meetings between M&E
and Iowa City staff and I personally commit to weekly briefings
with you to report on and document progress.
I believe our efforts over the past two months reflect our
dedication: I trust that the commitments indicated in this letter
and the attached addendum demonstrate our continued support for
your program.
Boston I New York I Palo Apo I Sen Bernardino I Irvine. CA I Bunenwile. AID I Chcagc 0 Colu.ws I DetlWt I Houston I Atlanta I Branchburg. NJ 1 Honolulu I San Juan
Mr. Stephen J. Atkins
January 26, 1988 2
I would request that we meet next Monday or Tuesday, February 1,
or 2, 1988 at your convenience, to discuss this proposed
amendment.
We look forward to completing a successful project with Iowa City.
Very truly yours,
METCALF & EDDY, INC.
eb/-Maxman
.
Regional Vice President
RJM/edc
Encl.
W
ADDENDUM NO. 2
TO
AGREEMENT BETWEEN THE CITY OF IOWA CITY
AND
METCALF & EDDY, INC.
This is an ADDENDUM NO. 2 entered into this day
of , 1988, by and between the City ofIowa My, a
munlc pal corporation (herein referred to as OWNER) and Metcalf &
Eddy, Inc., a Delaware corporation (herein referred to as M&E),
WITNESSETH
In consideration of the mutual promises, covenants and agreements
herein contained, the parties agree as follows:
WHEREAS, the OWNER desires to amend the existing AGREEMENT dated
17 June 1986 for performance of professional engineering and
project management services in connection with a project known as
IOWA CITY WASTEWATER FACILITY IMPROVEMENTS; and
WHEREAS, M&E desires to continue service under the original
AGREEMENT as amended by these terms;
NOW THEREFORE, in consideration of the terms of the original
AGREEMENT, the premises hereof, the mutual promises, covenants
and agreements contained herein, and other good and valuable
consideration, the receipt of which is hereby acknowledged, the
parties agree as follows:
A. Replace Article 1.3 with the following:
1.3 The Project consists of completion of final design,
preparation of contract documents, and provision of
construction management and operation and maintenance— serves
or the -following elements, specifically:
1. Element 1 - North
additional primary
facilities, connecting
pumping facilities.
Plant Compliance including
clarifier, disinfection
piping, and connection to
2. Element 2 - South Plant including influent
pumping facilities, screening and grit removal
facilities, equalization basin, primary
clarifiers, mechanical aeration basins, secondary
clarifiers, disinfection facilities, anaerobic
digesters, and sludge lagoon.
a
ADDENDUM NO. 2
3. Element 3 - Major Sewerage including South
Plant outfall sewer to the Iowa River, the
Southeast Interceptor and the Rock Island
Interceptor.
4. Element 4 - Relief Sewers including Benton
Street relief and storm sewers, Ralston Creek
sewer, and Friendship Street sewer.
5. Element 5 - North Plant Excess Flow including
influent pumping facilities, screening and grit
removal facilities, equalization basins,
intermediate pumping facilities, secondary
clarifiers, sand filtration facility and belt
filter press facility.
B. Add the following sentences to the end of Article 2.3.4: ✓
The Project Budget for construction costs is established as
$36.361 million including a contingency allowance of 7.5
percent. The M&E estimate of the Probable construction cost
udget shall not exceed this amount exce t b OWN
aaarova a Id&E estimate of the probable construction cos
of Benton Street storm sewer is $430,000. This amount is not
included in the Project Budget.
C. Add the following sentence to the end of Article 2.6.6:
The current Master Project Schedule is included as Attachment
A which is based upon execution of this ADDENDUM NO. 2 by
February 9, 1988.
D. Replace Section 3 with the following:
SECTION 3: TIME OF COMPLETION
M&E shall immediately proceed with Element Nos. 1-4, as
defined herein, upon execution of this ADDENDUM NO. 2.
Metcalf & Eddy will proceed with Element No. 5 after receipt
of bids on Element Nos. 1-4 and written authorization to
proceed. M&E shall use its best effort to complete each phase
of this Project by the time identified on the Master Project
Schedule included as Attachment A.
E. Revise Article 5.3, Time Table For Response, to show that the
Time For Response for all submissions is 10 working days from
submission.
F. Replace Article 5.6 with the following:
The OWNER shall pay to M&E all amounts due to M&E in
accordance with the terms of the AGREEMENT except that all
amounts due to M&E on completion of work defined by Articles
2.2, 2.3, and 2.4 shall be completed and paid as shown on t rb
Attachment B. aw
V
ADDENDUM NO. 2
G. Add the following to the end of Article 7.1:
Payments of Project Management F .o M&E for work tasks
listed under Articles 2.2, 2.3, and 2.4 shall be based on the
Attachment B. All other Project Management Fee payments due
to MSE shall be paid in accordance with the terms of the
original AGREEMENT.
H. Revise Article 7.2 as follows:
a. Increase the total compensation amount of $4,716,000 to
$4,770,000 to reflect the previous contract increase of
$54,000 for Benton Street Storm Sewer design and construction
management.
b. Revise the estimated fee for final design from $2,279,000
to $2,306,000 to reflect inclusion of the Benton Street Storm
Sewer design cost.
C. Revise the estimated fee for construction management from
$1,136,000 to $1,163,000 to reflect inclusion of the Benton
Street Storm Sewer construction management.
d. Add the following to the end of the article:
Payments to M&E for work tasks listed under Articles
2.2, 2.3, and 2.4 shall be based on Attachment B. All
other compensation due to M&E shall be paid in
accordance with the terms of the original AGREEMENT.
I. Except for the replacements, revisions, and additions
contained in paragraphs A through H and Attachments A and B
of this ADDENDUM NO. 2, the terms and conditions of the
original AGREEMENT as amended by ADDENDUM NO. 1, dated
April 21, 1987, shall remain in full force and effect.
Executed as an instrument on the day and year first written above
THE CITY OF IOWA CITY:
By:
Mayor
ATTEST:
By:
City Clerk
METCALF & EDDY, INC.
By:
ADDENDUM NO.2 Iowa City Program Management ATTACHMENT A
Wastewater Facilities
MASTER PROJECT SCHEDULE
1988
DasorlOtlo Dur
OWNER AUTH & APPROVE
APPROVE ASR AWENIAEtIT 1
COMPLETE OEM
41
CITY REVEM k APPROVAL
11
STATE APPROV PERMIT
x
ADVERISE/Bm/AXARD
75
CpeTRUCRON
771
COMPLETE DESIGN 5/
CITY REVEW ! APPROVAL 1S
mm APPIIOVAL aw Z.
MIERISE/W/AwMm 75
OOMSIINUICIpN 774
COMPLETE DESIGN
35
CITY RLVEW • APPROVAL
IN
SPATE APPWW ERMO
y
AOYOnIr✓ND/AIAIO
78
COMITTRUCOON
310
SEWERS
75
COMPLETE DESIGN
41
CITY RLVER & APPROVAL
1S
STALE APPROW41POW 1
70
AOVE1ME/EtD/AWMI
1
a
CauTRILIM
M
Foam rt1OIV / cost am
COMPLETE OWN N
zr
TS
dd�OII Off Ww a APPROVAL
1S
STATE APPROVNL/POW
v
1�AOatRnSE/!D/AWARD
75
CONSTRUCTION
777
0 &. M SERVICES
0 • M SORA
5110
Y
N
ADDENDUM NO. 2
ATTACHMENT B
PAYMENT AMOUNT SUMMARY
for
Articles 2.2, 2.3, and 2.4 work Tasks
This attachment shows the remaining payments clue to M&E and the
date for submission of documents and release of payment for work
tasks listed in Article 2.2, Article 2.3, and Article 2.4.
Element
1. North WWTP Compliance
2. South WWTP
3. Major Sewerage
4. Relief Sewerage
5. North WWTP Compliance
- DOD
- Final Design
Deliver
Deliver
Deliver
858
958
Final
Documents
Documents
Documents
$106,967
$15,281
March 29
April 12
$105,450
$17,,575
$17,575
Feb. 23
April 12
April 26
$44,175
$7,363
$7,362
Feb 23
March 8
March 22
$64,425
$10,738
$10,737
Feb. 23
March 29
April 12
$62,738
$8,962
July 26
Aug 9
$343,613
$49,087
Nov. 1
Nov. 22
CITY OF IOWA CITY
CIVIC CENTER 410 E. WASHINGTON ST IOWA CfTY, IOWA 52240 (319) 356-5000
January 29, 1988
Mr. Robert J. Maxman
Regional Vice President
Metcalf & Eddy
85 W. Algonquin Road, Suite 500
Arlington Heights, IL 60005-4422
Dear Bob:
I have received your letter of January 26, 1988, and I have reviewed the
accompanying draft of Addendum No. 2 to the agreement between the City of
Iowa City and Metcalf & Eddy, Inc. Your proposed addendum fails to take
into account several major elements which I addressed in my letter of
January 5, 1988, and which were discussed during your meeting with staff
on December 14, 1987. Among these are revised project schedules, inclu-
ding escrow accounts, for each element design, option by the City to
assume certain construction and project management responsibilities with
reduced fees to M&E, and submittal of design outline documents and
preliminary cost estimate for Element 5 prior to approval of final plans
and specifications and final cost estimates for Elements 2, 3, and 4 (and
Element 1 if not yet approved).
In short, the proposed addendum fails to provide appropriate conditions
and assurances which reflect a level of commitment on the part of M&E
necessary to restore the City's confidence in your firm to continue our
relationship as your client.
Enclosed please find a copy of a proposed addendum which I feel much more
closely reflects the terms and conditions stated in my letter of
January 5, 1988, and the issues discussed at the December 14, 1987,
meeting referenced above. Any agreement between the City and M&E to
continue our contract for services must incorporate these essential
elements. I request that you review the enclosed document and that
representatives from the City and your firm meet early in the week of
February 1, 1988, to further discuss these issues with a deadline of
Friday, February 5, 1988, for reaching final agreement. If such an
agreement cannot be reached, it is the City's intent to formally terminate
the contract for services with M&E and I will recommend that the City
Council take this action at its next regular meeting.
The City remains interested in resolving the existing problems with M&E,
if possible. However, any such resolution must be immediate. We are
threatened with accelerated enforcement action by the Iowa Department of
Natural Resources and the City must be prepared to move ahead with this
project.
January 29, 1988
Page 2
Please let me know as soon as possible if you feel there is anything to be
gained by continuing our discussions.
Sincerely yours,
/tephen At
City Ma ger
cc: Dale Helling
Chuck Schmadeke
Terry Timmins
Enc.
bj/pc
FIE
M
February 3, 1988
Mr. Stephen J. Atkins
City Manager
City of Iowa City
Civic Center
410 E. Washington Street
Iowa City, Iowa 52240
Dear Steve:
Metcalf & Eddu
85 W. Algonquin Road. Su4e 500
Arhnglon Heights, Illinois 600054422
(312) 228.0900
0)7j
I have your letter of January 29, 1988 and the attached draft
Addendum. Metcalf & Eddy has been and remains committed to the
completion of a successful Improvement Program for Iowa City's
Wastewater Facilities. The letter and draft Addendum No. 2 which
I sent you on January 26, 1988 reflects that commitment.
It is disheartening to receive in reply a letter which seems to
mandate that Metcalf & Eddy assume responsibility for unfounded
"failures to perform" and which suggests that unilateral options
and benefits accrue to the City which are not part of the
existing Agreement.
With all respect, you should know that if you pursue "formal
termination" of the contract, as suggested in the third paragraph
of your letter, Metcalf & Eddy will pursue fully its remedies
under Sections 12 and 7 of the Agreement and under law.
Metcalf & Eddy remains committed to meeting our obligations in a
manner consistent with the intent of our original agreement. In
this regard, we have reevaluated the Engineers Estimate of
Probable Construction Costs based upon construction bids received
last week for similar facilities for which we are providing
engineering and construction services in Des Moines. On a
current construction pricing basis, we have reestimated a
probable construction cost of $13.03 million inclusive of a 7.58
contingency for the North Excess Flow and Wastewater Treatment
Facilities. This estimate is within the budget of $13.75 million
for these elements as developed in the November Work Shop and
upon which the overall program budget of $36.36 million is based.
Y
Bouon New Yor. , s'ao Ano r San Bemndmo i bv.na. CA r Bunonsvme MO r Cnaapo r CoWmous OcnoA I Ha:non r Anama I Brancnburg, NJ r Hanoiv Juan
Mr. Stephen J. Atkins
February 3, 1988
In view of the above, we recommend that you submit the revised
construction cost estimate to Council for approval recommending
that the project go out for bid. Metcalf & Eddy will provide a
construction contract Addendum with revised bid and award
dates. You now have in your possession 100 sets of all necessary
bid documents. An addendum with revised bid and award dates can
be provided to you within two days. If bids are acceptable,
Metcalf & Eddy and the City staff can complete the permit process
prior to award.
We believe the above recommendation is consistent with our
existing agreement and in the best interest of both parties. I
am prepared to meet with you immediately to discuss further its
implementation.
Very truly yours,
MET & EDDY, INC.
Obert J Maxman
Regional Vice President
RJM/edc
emu
City of Iowa City
MEMORANDUM
Date: February 10, 1988
To: City Council
From: City Manager
Re: Miscellaneous
1. United Way VictorZ Celebration. You have all been invited to the
victory celebration on Thursday, February 18, from 5:00 p.m. to 7:00
p.m. at the University Athletic Club,
2. Videotaped Interviews. In an effort to improve the interview and
selection process, our personnel staff has arranged for a videotaping
of interviews. We are currently undergoing an interview process for a
promotion within the Fire Department. Each candidate interview was
videotaped as well as the discussion process, by the interviewing
panel. Each candidate was afforded an opportunity to view their
performance. Many have chosen to do so and from the feedback were
pleased with the process and learned by seeing themselves interviewed.
SJA/sp
w
aqS/
February 11, 1988
John McDonald, Mayor
City of Iowa City
Civic Center
410 Washington Street
Iowa City, Iowa 52240
Dear Mayor McDonald:
RECEIvGr) ---, 121988
Metcalf & Eddy
10 Har,2rd ME', Square
Wakef,eid. Massachu5ens
Mnd-ng Address PO 80. 404.3
Woburn. MA 01888.4043
This is to confirm our meeting in the Civic Center at 5:00 PM on Monday, 15
February in Iowa City. I will be accompanied by Ms. Leslie Forestier, my
administrative assistant.
I appreciate this opportunity to meet with you and the Council. I look forward to
a productive session which will serve our mutual interest.
Sincerely,
Robert G. Benin
RGB:pts
4
I
City of Iowa City
MEMORANDUM
Date: February 10, 1988
To: City Council
From: Assistant City Manager
Re: Gas Tax Increase
Attached is a copy of the latest "Action Call" memorandum from the League
of Iowa Municipalities regarding a proposed compromise on collection and
distribution of a state fuel tax increase. It seems to represent the best
compromise that can be expected during the current legislative session.
If it is the position of Council to support a 4� per gallon increase in
gasoline tax state wide, the bill as outlined on the attached should be
endorsed and Councilmembers may wish to make known your support to state
legislators.
bi/pc
6;S3
V
0
vctrion4A
ct
Iowa Municipalities a 100 Court Ave.
February 5, 1988
Suite 209 a Des Moines, Iowa a 50309 a (515) 244�7282
AGRE MBt7r O8 GAS TA — CORrACT YOUR LRGISLATORSI
An agreement on gas taxes has been reached and it is now critical that
you
contact your legislators and urge them to support the package, Call (515)
281-3221 for Representatives; (515) 281-3371 for your Senator.
The League, Iowa State Association of Counties, County Engineers, and the
Department of Transportation have agreed on a 4 cent per gallon fuel tax and
$20 pickup registration increase package. The Governor has also endorsed.this
approach and numerous other statewide groups have either already -- or will
strongly support the package.
A general overview of the proposal is enclosed, but it is nearly identicaltto.
that outlined in our January 29 Lielative Bulletin. The only difference: is
the amount and manner in which monies would be frozen" if the '89 Legialature
fails to take some kind'of action on the allocation formula. (We don't expect
that to happen.)
Key points to stress with your legislators:
1. The 4 cent increase must be enacted all at once on April 1, 1988. The
agreement falls apart if the increase is "phased -in" (2 cents July 1
and 2 cents January 1 for example).
2. Pumps $17 million of new money directly to cities over the next 18
months.
3. Provides an ongoing commitment of $30 million annually to the
commercial/industrial network which has positive "spin-off" effects to
several cities. _
4. Maintains',the'RIBbuptojeam.
5. Sees in emotionprocess to objectively study the Allocation formula
which villsraeult; hopefully, in a more realistic formula, and
6. Double@ revenues;.to„teaneit Systems.
It is urgent that &4t.ofPicinls Hake le islatore aware oP she etron
broad-based support for this agreement. If you have questions, please call
Peter Ring at 515-244-7282.
The League's Legislative Conference on February 25 will be an excellent time
to push for this program. If you have not registered yet, please do so as soon
as possible. If you need information, call the League office.
PBK:dh
M
LEAGUE AP-MI/l/
OF /IOWA MI/l//IOWA
OF STATE
IOWA ASSOCIATION
MUNICIPALITIES OF COUNTIES
`,.� Iowa Department of Transportation
Over the past few months representatives from the cities, counties and the state
have met in an effort to arrive at an agreeable approach to a fuel tax increase.
From those meetings the following proposal was agreed upon. The proposal has
three essential elements: a research study, appropriations, and a necessary
revenue increase.
THE PROPOSAL
Research Study
—A study completed by independent, objective researchers, to be reported to
the Legislature before the end of January, 1989.
—The study will provide an analysis of the most valid information available to
enable funding allocations to be made focusing upon Iowa's future transporta—
tion system needs.
—Future revenue distributions will be made after legislative review of the
study's results. If there is no Legislative decision on how road use tax
revenues will be distributed by January 1, 1990, $50 million of revenues
will be escrowed according to the pattern of distribution for new monies
until such a decision is rendered.
—The study will be coordinated by representatives of city, county and state
transportation officials.
Appropriations
Targeted expenditures for new revenues for the next two construction seasons
totaling approximately $121 million:
—To offset the loss of federal highway funds, ($41.864 million to DOT,
$13.082 million to counties, $2.324 million to cities).
—To finance improvements to a commercial/industrLal network of highways,
($30 million to DOT).
—To offset local street and road revenue losses due to property value
decreases ($25 million to counties, $15 million to cities).
—Additional funding for mass transit.
—New funding for trail program.
(OVER)
�M�RW
POLICE DEPARTMENT REPORT
January, 1988
The Iowa City Police Department received a total of 1888 citizen
generated requests for service during January, 1988 as compared to 1796
for the same month of the past year. A total of one hundred fifty seven
arrests were effected in January, 1988 and one hundred sixty in January,
1987. Six hundred ten traffic citations were written in the first month
of 1987 and four hundred ninety-four in 1988. Officers also wrote 3608
parking tickets in January of this year.
No significant changes in the types or numbers of complaints received by
the department, although a slight upward trend in numbers was noted. A
table comparing the numbers of complaints by classification of offense,
January, 1987 to January, 1988 appears below.
CLASSIFICATION OF OFFENSE
JAN '87
JAN '88
Homicide
0
0
Rape
0
2
Robbery
1
2
Agg. Assault
21
21
Burglary
30
38
Shoplifting/Petty Theft
121
131
Theft MV
10
12
Simple Assault
8
6
Arson
0
2
Check Forgery
6
6
Fraud
15
24
Embezzlement
1
1
Vandalism
86
94
Weapons Carrying/Possession
4
4
Sex Offenses
0
1
Misc. Sex Abuse
11
5
Narcotics
1
11
Offenses Against Family
25
38
O.W.I.
37
54
Liquor Law Violations
7
17
Intoxication
45
34
Disorderly Conduct
190
258
Vagrancy
6
0
Other Offenses
53
69
Suspicious Persons
62
61 '
Juvenile
28
32
Mental
g
17
Suicide Misc.
5
11
a✓ w
CLASSIFICATION OF OFFENSE
JAN '87
JAN '88
Snowmobile
1
0
MV Accidents
208
217
Other Accidents (bike)
2
1
Assists
191
197
Fire
Alarms
33
26
Attempt to Locate
119
96
136
115
Civil Complaints
8
19
Dead Bodies Found
1
3
Gunshots
2
3
Misc. Investigation
18
23
Misc. Information
102
122
Lost/Found Property
73
85
Recovered Stolen Property
13
12
Animal Complaints
23
28
Misc. Hazards
3
4
Traffic
59
38
Towed Vehicles
3
9
Illegal Parking
3
6
A11 Other
5
5
The number of investigations assigned to the Division. of Criminal
Investigations for the month remained nearly the same as the same month
one year ago.
Two sessions of in-service training, twenty-four hours of refresher type
of hands-on training, were offered to one-half of the force during
January. The remaining officers will receive similar training during
February.
Animal Control activities continued at about the same level this month
as in January of the past year. However, the lack of sufficient numbers
of personnel to adequately staff the shelter coupled with the demands of
licensing, relicensing and furthering the progress on the
Coralv17le/Iowa City joint facility led to a decrease of open shelter
hours for the public. Unless necessary staff is added in the near
Future, open hours will be further reduced or substantial amounts of
money for overtime payments will be required.
ASO
4
RECEIVEDFE8 11 1988
YOUTH HOMES, INC. o N. Dubuque
Dubuqu
Box 324
William McCarty, Executive Director Iowa city, Iowa 52744
Phone: 319/337.4523
A United Way Agency Emergency Sheller Care
Phone: 319/337.5080
ReAdendal Treatment
j Phone: 319/337.7538
February 9, 1988 Independent Llvie g
/ Phone: 319-0374523
TO:
Marianne W rJ
FROM: sill
I CMG PzOgrea8
Pursuant to
for a Your request, Z am writing'to advise you of our time table .
o3uiaition of our group harie property. ,After months of negotiations„
and continuous review of the local real estate marignet
ket, we have a s
Pr acceptance of,our offer to buy the property at 402 S. Linn Street,
agreed -to rThe,
is . to
ice $104,000The sale is, of
and all of the necessary approvalrose, subject to financing
S.
We are moving ahead with all of the necessaryI
Possible. We anticipate approval of our lan rk, squickl.yBank
as
agenda.slithin WeWe expect to be on the March 9th Board of Adjusbnent
meet decisiowill n as be Prepared to Vose as soon after the Board of Adjust -
on the rehabilitation of the aanbe �� We will Yeceive bids
necessary work imaediately after �9e��• and hope to begin the
3litations, 2 would Absent any unanticipated
expect the closing tli occur amund'April let.
I will keep you fully advised as these matters rows aloe
again for your assistance and patience, g• .Thank you
I
cc: Steve Atkins
1
I
a JrJT
Y
s
notratllsurfotr.
MIINICI►AL.
- `tAGVf 5
- nrstoan -
JIM ago=
Ce ftmeber of Mrtfnatm
LMW AETEIpOM
C%M1Lm dmw of OAstooea
• Nasran -
NOWA $mom
frw of Mttetot.
a WITa
nvtw of wwt cher
1 •• ►NILIr VOM
CGUMH r' of afrrfeld
O wLawr
bandlonin of Eeohk
- 11MIATE VAST MUN K -
NICKAEL CATUREE
ftrw of Coretvttte
• a =Aa7-7aEARR" -
om UMM
flr Dfreetor of kwtfrotm
SOUTHEAST IOWA MUNICIPAL LEAGUE
400 WASHINGTON -- BURLINGTON, IOWA 52601
February 5, 1988
ATTENTION: Southeast Iowa City Officials and Associate Members
The February, 1988, meeting of the Southeast Iowa Municipal
League will be hosted by the City of Ottumwa.
Meeting Date: February 17, 1988
Where: Parkview'Plaza, 107 E. Second Street
(Map enclosed)
Social Hour & Registration: ' 5:30 P.M.
Buffet Dinner: 6:30 P.M. (Cost $8.25)
Program: As longus the legislature is. in session the
program will involve the discussion of legislative
issues.
To the erson receivin this notice, please distribute to
the ayor, Councf a er, City Clerk, and Manager or
Administrator. Thank you.
-- - - - - - -- ---- --- -------- -- - - - -
Please fill out and mail (or telephone) your reservation by
February 12, 1988.
Send reservation to: City of Ottumwa
Attn: Ann Cullinan
P. 0. Box 518
Ottumwa, IA 52501
Telephone: 515-683-0620
Number of Reservations '
City of Associate Member
np
Dous J. Norden
,Secretary/Treasurer
Finance Director of
Burlington
V
$ro\sF
PF
4
'r Sez
5
sy do
°o
od
^` sF
WASUINGTON ST.
PARKING LOT
cfty
N
�L.
US 34 Ease
11
0
Big Brothers/Big Sisters
of Johnson County
3149 Old Highway 218 South Iowa City, Iowa 52240 Phone 319/337-2145
February 5, 1988
Mayor John McDonald & Members of the Iowa City Council
Civic Center
410 East Washington Street
Iowa City, Iowa 52240
Dear Mayor McDonald,
You are cordially and heartily invited to ,join us on Saturday, February
20th at Colonial Lanes for our fifth annual Bowl-For-Kids-Sake/Superstrikes.
We invite you to be with us at noon to officially open this event by throwing
the first balls of the day.
We look forward to your good company on February 20th.
J
Passserii
e Director
MP/cm
A YOUTH PROGRAM OF THE JOHNSON COUNTY EXTENSION SERVICE
AND JUSTICE FOR ALL... The Iowa Cooperative Extension Service's programs and policies are consistent with pertinent federal
and state laws and regulations on non-discrimination regarding race, color, national origin, religion. sex, age, and handlcap.
4
STATUS REPORT
AND
DISCUSSION OF OPTIONS
FOR
COMPLETION
OF
WASTEWATER FACILITIES IMPROVEMENT PROGRAM
IOWA CITY, IOWA
PRESENTED TO
MAYOR JOHN McDONALD
AND
MEMBERS OF THE CITY COUNCIL
m
ROBERT G, BENING
METCALF & EDDY, INC
15 FEBRUARY 1988
0
OVERVIEW
• THE GOAL
• THE SITUATION TODAY
• CURRENT STATUS OF DESIGN
• ESTIMATED CONSTRUCTION COST
• OVERALL PROJECT SCHEDULE
• OPTIONS AVAILABLE TO THE CITY
• RECOMMENDED APPROACH
• DISCUSSION
i
1
P
P
M&E GOAL
TO SUPPORT OUR CLIENT, THE CITY OF IOWA CITY, BY DELIVERING
THE DESIGN AND CONSTRUCTION OF HIGH QUALITY WASTEWATER FACILITY
IMPROVEMENTS THAT WILL MEET IDNR COMPLIANCE REQUIREMENTS AND THAT
CAN BE CONSTRUCTED WITHIN THE AVAILABLE BUDGET IN THE SHORTEST
POSSIBLE TIME.
A
a
THE SITUATION TODAY
• CITY COUNCIL HAS APPROVED CONTRACT TERMINATION
• MAYOR HAS AGREED TO MEET AND DISCUSS WITH M&E PRIOR TO
TAKING ACTION
• CONTRACT EXECUTION SEVERELY IMPACTED BY BREAKDOWN IN
COMMUNICATIONS AND FAILURE TO DOCUMENT ACTIONS BY BOTH
i
PARTIES
i
i
• M&E RECOGNIZES PROBLEM AREAS AND IS PREPARED TO TAKE
I
STEPS TO CORRECT
I
• DISCUSSION IS REQUIRED TO FIND APPROACH WHICH WILL i
SERVE THE MUTUAL INTEREST (WIN - WIN)
• DEFAULT AND SUIT FOR DAMAGES WILL LIKELY RESULT IN
DISASTER FOR BOTH PARTIES (LOSE - LOSE)
3
467
DESIGN STATUS
• ALL FACILITIES NEAR 100% COMPLETE
• DESIGNS COORDINATED WITH CITY THROUGHOUT DESIGN PROCESS
• SEWER CAPACITY AS SPECIFIED BY DIRECTOR OF PUBLIC WORKS
(SUBSTANTIAL GROWTH CAPACITY INCLUDED)
• NORTH WWTP APPROVED BY CITY EXCEPT FOR ESTIMATED COST
(ACTUALLY ADVERTISED)
• SOUTH WWTP APPROVED BY CITY EXCEPT FOR ESTIMATED COST
(CONSTRUCTION PERMIT REQUEST SIGNED)
e SOUND TECHNICAL APPROACH WILL PRODUCE HIGH QUALITY
FACILITIES
• INITIAL ESTIMATED COST OF CONSTRUCTION EXCEEDED CITY
BUDGET OF $36.36 MILLION
• REVISED SCOPE/REVISED ESTIMATE WITHIN CITY BUDGET OF
$36.36 MILLION
M
4
IOWA CITY PNWMAN MMbLMtNI
Uk1UINAL EASIIM $IAIVS suwkr
.................................. ......SIGN._...._ _ ------------
M0.1 I SIAiUi of I WkRkNI WSICN ) MUNn
ELEMENT
_
—..............................................
IIAt
i DE51CN I SAS( I RfWIkib IU
I Uxk1SLkYLU Ut51la
_...L................._L..__.._._._.______.__LuroLFlk
I ktVU1kEV I IN IO/PALKAbt)
IO
------------------------ ........................ _._.._
---.-_.I
I LIMPLLIL I ISSUES
INVUR IDNAMIN's R(D• FINAL REV.I12,000 fl. CARDS DIA. ISUIL NUNINVS,
I INUNCEPIWS IL LUUN. CHECK by ME IM R
............ .� - _._..I __...-•---•---'--"-""_-'�
IWI 15 DAYS IYUNINGS MY OICIAIE
IIa t0 IN) PIPE, ISPUNLATIUMS,
I ISPFCS MIST BE AMIE ISIDNIf ICANI EXTRA CAD. INk KALE
IVLUSUil1 YfINS IU LXAxUE I
I SNI YF-NAIILky I L EDDY AND
IfiMALIEE CW INALI M. iUk51uN
ICLIEMI IINAL REVIEW
I I MLS CLNSUlIAN15 I UMMINGS 95 1
1
1 ICIIY MIST ACQUIRE ALL
ISMULMAIN L HMLAMD I SPECS 50{ I 1
1
190 DAYS IEAStMN15. MFF TO I
1 1 I
I 1 W IAIN STATE TWIT I
I
IN5160 APPROVED of I I
1 IWRINI ADI PERIOD. SET I
ISl1N40EAE I
I IUP PIPE SIZE RIO I
------•"-•------•I .......... ••---•--•--_ . 1
- I -•----•---•---------•--I--•--•--•---._
TAI IfMATf.
I I
I RELIEF IUMNIMIS RED. FINAL REY.11f,000 ff. VAR. DIA.-•-______I
ISUIL WARIMUS,
I INIERCEPTuks It LOCH. CMEcx, IE 11 IM- SI IM)
........................I_-___.___--_____..______I
IM/ BURINIS: LO -IS DAYS ISUIL VOWINiJ NAY OICIAIEI
PIPE
I IsP![S NISI BE DONE I ISPICI{ICAIIONS,
IPLUS 1-1 MELAS lu IDESIBN CHANGE. INAFFIC
I MLS LtNSUl IAN15 I I INEICALF t ENT t
I
I/INALIIE CCNI"CI WCS. ICyNIMA ADVICE RQUIREU I
1 ISIMIEMKfk s MMLAND I OMAN ImCs 90 1 I 1LL1EM1 FINAL REYIEM
I If" city. RENTON SIA, I
I SPECS 151 I i
190 DAYS IPAYE. WIDTH COORD. I
I I
I IN/cur
1I) AYDAUYfU by I I
1 1
ISDIl1501M0fKE I
1 ICITY MOST ACQUIRE ALL I
Iw
I 1 I
I IEASEMMIS. ME 10
1
1LNIAIM STATE PERMIT I
I I 1
1 ICURIMO ADY PERIOD, SEI I
I I
I IUP PIPE SITE Rio I
I
-------------------- I........................ I ---------------------- __I________________________I.___._
I IALIERMAIf. I
I SWIM NIP IDESIEN COMPLETE. 111140 PEAK CAP. TAC. IPIMAL CXWA
... _._.__.___..__I........................
1 It"UNNIS kill. FINAL SIA.
SNIPE-MAiIFAY IMYItY R LOOK. CHECK By 11
I I VEERS ICI1y MIST DEC lg11Mf
IUUNAWN IV REVISE BID IYANIANCF FALX CWNIY,
AD ECUAL. BASIN TISSUElktvlLAUUfNWN
INk ICALF s IWY IS:NElN AND GNII IAL.
I
IUkkxlw AND COMPLETION IME TV DEI 11111. STATE I
1 11 -Is fl. PRIMARY LLANIL.I
IL PLACE ADYFAiI5lMM15) IVlRMII (CONDITIONALI
I ID15IGN APYWVEU by I/•f0 fI. $p, AEN. RASIMSI
I IPkRMIT IN PEACE). I
ISCxMUEME I1 -I5 FT. SEC. CLAMIIIIRSI
1 I
1 111 IPA DISINFECIICN kLL.I
I 1
1 IA -1 NEIFA BIP FAC. I
I 1 I
I I1 -Is FI. o1MSIFks I
1 I
I IIS FL SIUWE SIOM. IAMAI
I --------------------I ........................I............_.......
I I
I
__.....I
I ..................
LIIMYLtIk, 111 MiD YIAx CRY. ML'. INUIF,I.._."'--__"".--"••"_"•I
........................
I LUNPLTAALE JAVA101:5IDA
IAYAILABLE TUM NEM 71 M,U INT. PUMA SIA NINUN REVISIUYS IO
1 YU
1 0 IAUYINI ISW. 5IUYDl0
IIMMEDIATE BIWINI I5 NO EQUAL. BASIN IRE ISSUED BY AUUkMWM
1 FAtM ICON
IUVtN IN4UANUULUIYISL BUDGETI
"DLtADVjkIISIMkRIS)
IAC, I NIM SCNILM AMU Dkll IAC.1
1
IBID ICUIIX10
UWLD MOIIMIF.
L I I(ISIU AVYAUYtU by 11.10 11. CLARIHENS I
1 MIILxII A EDDY IkMMUTAI Ilb MN SMD FlUlk IAL, I
It YLAU IAYVACIL
TWILL IAnk IMC MILKS I I
1 I IIP M,U DISINqIkaSlik Pu bill
1 i ISIUWF INAN5I LN WMP Slq
I I
I I I
010
UIHlk ISSUES: ICNN LMSI WLI ION Vtk11111
5LVU%l IURLI MIN TNM xUk IH VIANI IU SIMM VIANI
O
M
ESTIMATED CONSTRUCTION COST
ESTIMATE
I (35.7)
(M&E-SEPT 84)
II (30.0)
(FLUOR -SEPT 85)
III (48.2)
(M&E-SEPT 87)
IV (36.4)
(M&E-DEC 87)
EXPLANATION OF VARIATIONS
BASIS
ROM PREPARED USING CAPACITY/COST CURVES
CONCEPTUAL ESTIMATE PREPARED BY FLUOR
CONSTRUCTORS
(CHECK ESTIMATE)
DETAILED TAKE -OFF USING GRANT BASED
ESTIMATING PROCEDURES AND FULL PROJECT
SCOPE
DETAILED TAKE -OFF USING GRANT BASED
ESTIMATING PROCEDURES AND REDUCED
PROJECT SCOPE
V (36.4) DETAILED TAKE -OFF USING OPEN SHOP RATES
(M&E-FEB 88) FOR IOWA CITY - REDUCED SCOPE FOR
INTERCEPTORS ONLY - FULL SCOPE FOR NORTH
AND SOUTH WWTP'S
O R I G E S T I M A T E S I N A L P R O G R A M
CONTRACT
MAJOR INTERCEPTORS
SOUTH WWTP OUTFALL
LOWER SOUTHEAST INTERCEPTOR
MIDDLE SOUTHEAST INTERCEPTOR
UPPER (ROCK ISLAND) S.E.INTER.
RALSTON CREEK
FRIENDSHIP
BENTON STREET (UNIV HTS)
LIFT STA./FORCE MAIN
SOUTH WWTP
LIQUID PROCESS
SLUDGE PROCESS
DISINFECTION
NORTH PLANT
COMPLIANCE
EXCESS FLOW
DISINFECTION
REHAB
SLUDGE FORCE MAIN
CONTINGENCY
IM&E ESTIMATE I ESTIMATE
I (SEE NOTE)
I SEP000) T 84I SEPT 85
I (000)
11,321 I 10,067
I
I
I
I
I
I
I )
1,091
--------I -------------I
1,170
I
12,412 i
I
11,237 1
I
I
I I
7,534 i
I
I
7,161
I
I
I _ �
I I
I
7,161 I
I
Dj
I
I I
5.454
5,045
3,837 )
1-8,88
I
I 1
I
454 1
I
I
2,233 I
I
2,233 �
I
2,233�2,233I
4,659 1
I
3,913 1
1
35,720
29,998 I
wvmrftmAT1VE COST ESTIMATES FOR EVALUATION OF
ALTERNATIVES, NOT A CONSTRUCTION ESTIMATE.
Fri
CONTRACT
-------------------------------
I. MAJOR INTERCEPTORS
SOUTH NIP WIFALL
LONER SOUTHEAST INTEN'CEPIOR
MIDDLE SOUTHEAST INTERCEPTOR
UPPER (ROCK ISLAND) S.E.INIER.
LIFT SIA./FORCE RAIN
1. RELIEF SEWERS
RALSTON CREEK
FRIENDSHIP
BENTON STREET (UNITY NIS)
1. SWIM MNP
LIQUID PROCESS
SLUDGE PROCESS
DISINFECTION
I
1. NORTH PLAN[
CONPLIANLE
EXCESS FLUE
DISINFECTION
REHAB
SLUDGE FOKI PLAIN
W
CION ...............................
IUTAL ESI INA IED URI IN MILLIONS
P
CUNNINI
CO N5I XU C II UN
VN0UkAN
FS I 1 9 A I E5
............................................................................................................
I 11001
Ok51UN
XEVUNI
LD51
NkUUCIION VNUUXANI
'BASE
LIN k'
I
NURASH0 P'
1kMPINFEA 1
5(V 91
DEC a)
I
I
----------------- -----------
(000)
--------•....................I_.........I.............._.....__.............
1------------------------------
NfMANAS
I (000)
..........
SONDE CHANGE I
...................................
I
I I
ISHIVE-HAITfNY 1
2,100
I
171'
LINE
I
I 1,155
I
151' LINE (REDESIGN) I
ISHIVE-HAIIINY I
1,700
111'
LINE
I 1.191
177' LINE
IIaS I
7,700
160'
LINE
1 7,155
160' LINE I
ISHUENAKEN-HAALANDI
1.100
160'
LINE
I 1,100
160' LINE 1
I1___.1,600
I ....................
.101..........i __..6
�__...._.._.......___._.._._. • .
I
ISMOWhfR-NULAX01
7.000
I
ISI'
LINE
I 1.567
IJO'gt' LINES (REDESIGN)
ISHUE"KIN-HAALUIDI
900
151'
LINE
I 519
111' LINE (REDESIGN)
Imms I
900
111'4
21- LINES
1 900
111'. 71' LINES
I I
100
160'
LINE
I 0
160' LINE
II_ ----
I I
j••
........................•••-�----isbis--j_-...------.....----•-•------.....-I
I
I I
I I
1SHIVE•HAIIENY [
10,100
I
1
I
I 0,965
1 1
I I
IAS DESIGNED SCOPE
114E I
I I
5,100
1
I
I ?,300
I
IELIN BFP'I, DIUESIORS
I
II...........
16,500
1 ..............................
I
1 ..........
1 11,765
1---------•------••--------------I
I I
ISHIVE-NAI IfXY I
.,000
I
1
I 0
11NCLUDEO IN SWIH WIP ESI.
II......i
I I
I I
1,000
..............................
I
i....__...i..._......_._......""
b
I
-
I
15,700
I
INEFLECIS REDUCED SCOPE
1MIE I
I
I 4.030
1 SMALIkk CLARIFIERS
IME I
I
I 9,711
1 SLUDGE TRUSTER STAIION
II...........
1 I 15.700
[ ........................................117.111
I
I
i..............................._...
I
1,500
I
I 0
11NCLUDED IN NORTH NOW IP CONVL I ANCE
I I
1,600
I
0
IPONIIXXS INCLUDED IN RONIN IX. IIIA
I
600
I
I 0
I IXCIUOfU
II .........
I I
I I
.
..............................
I
. i........
i...................._........._....
I I
.L.......................•---I_.....----••----•------...--1--•-•--..
I I
I
40,200 I
I
I 3e, 1e1
I
L ........ ..........................
1
...—.............I...........I................---.........--1..---.....I...........------------....------•.
61,000
Je.000
AI IENN AI I V t DCUYt
I V 1 5 E 0 COSI E511ITA IE
118 as
(000) SCOPE CHANGE
1,155 151' LINE (REDESIGN)
1,197 111' LINE I
7,155 160' LINE [
1,100 160' LINE I
.......... I...................................
I
6,107 I
I I
I [
I
1,561 130'111' UNES(NEUESIGNALIERNAIf) I
579 146' LINE (AEDESIGY/ALIEVNAIE) I
900 111'411' LINES I
01 I
.......... ...................................
1.016i
I I
I 1
I I
9,567 INEFLECIS FULL AS DESIGNED SCOPE I
9,911 IINCLUDE5 I BFP I I POLYMER SYSTEM 1
1A5 OPTIONS, 750K NEDUCIRAM. I
IJ.501
$11
11,911 [FULL AS-DISIGNEU SCOPE
16.000
u
P
Overall Project Schedule
Critical Milestones
(Months After Decision to Proceed with MSE)
Milestone Definition
1. Complete Design/Award
North Plant (0 + 1.5) - 1.5
South Plant (1 + 1.5) - 2.5
Interceptors (3 + 1.5) -4.5
Months After
Decision
4.5
2. Complete Construction 19.5
North Plant Compliance (1.5 + 9) - 10.5
North Plant Upgrade (1.5 + 18) - 19.5
South Plant (2.5 + 18) - 20.5
Interceptors (4.5 + 12) - 16.5
Relief Sewers (4.5 + 12) - 16.5
Critical date for North Plant Compliance Work -
1 July 1988
If work has started high probability that state will
extend compliance date.
M
Jim 0
How
M
OPTIONS AVAILABLE TO CITY
A. TERMINATE M&E FOR DEFAULT/SUE FOR DAMAGES
B. CONTINUE WITH M&E THROUGH DESIGN -
COMPLETE CONSTRUCTION MANAGEMENT WITH
CITY FORCES OR OTHER CONTRACTORS
C. CONTINUE WITH M&E THROUGH DESIGN TO INCLUDE
ENGINEERING DURING CONSTRUCTION - COMPLETE
CONSTRUCTION MANAGEMENT WITH CITY FORCES OR
OTHER CONTRACTORS
D. CONTINUE WITH M&E ON FULL SCOPE
E. TERMINATE M&E FOR CONVENIENCE UNDER SECTION 12
OF CONTRACT
ANALYSIS OF OPTIONS
A - TERMINATE M&E FOR DEFAULT/SUE FOR DAMAGES
• IMMEDIATE LITIGATION
• DELAY IN CONTINUATION OF WORK
• BREAK IN ENGINEERS LIABILITY CHAIN
• NO VERIFICATION OF CONSTRUCTION COST
• REPROCUREMENT COST
• DELAY IN PROCEEDING WITH WORK
• POTENTIAL FINES BY IDNR
• UNQUANTIFIED LITIGATION COST TO BOTH PARTIES
• DIVERSION OF TECHNICAL RESOURCES TO SUPPORT LITIGATION
PROCESS
• POTENTIAL INCREASE IN TOTAL COST OF PROGRAM TO CITY
M
�M
►1 6; 6-1
V
a
ANALYSIS OF OPTIONS
B - CONTINUE WITH M&E THROUGH DESIGN - COMPLETE CONSTRUCTION
MANAGEMENT WITH CITY FORCES OR OTHER CONTRACTORS
e NO LITIGATION
• NO FURTHER DELAY IN WORK
• NO BREAK IN DESIGN LIABILITY CHAIN
• IMMEDIATE VERIFICATION OF CONSTRUCTION COST
• NO ADDITIONAL PROGRAM COST TO CITY BEYOND CURRENT
CONTRACT
• NO FURTHER DELAY IN PROGRAM
• STRONG DEFENSE TO IDNR ENFORCEMENT ACTION
13
4958
A
M
ANALYSIS OF OPTIONS
C AND D. VARIATIONS OF CONTRACT SCOPE
• RESULTS THE SAME AS OPTION B
E• TERMINATION UNDER SECTION 12
• NEGOTIATED PROCESS
• NO COMPLETED WORK
• REPROCUREMENT COST
+. • DESIGN LIABILITY CHAIN BROKEN
14
RECOMMENDED APPROACH
• PROCEED THROUGH DESIGN COMPLETION TO CONTRACT
AWARD WITH M&E
• IMMEDIATELY ADVERTISE THE NORTH TREATMENT PLANT
• FINAL PAYMENT FOR NORTH PLANT DESIGN UPON RECEIPT
OF BIDS
• ADVERTISE SOUTH PLANT WITHIN 30 DAYS
• FINAL PAYMENT FOR SOUTH PLANT DESIGN UPON RECEIPT
OF BIDS
• COMPLETE FINAL DESIGN OF INTERCEPTORS, RELIEF SEWERS
WITH PIPE SIZE ALTERNATIVES TO INCLUDE SOIL BORINGS
AND LEGAL DESCRIPTIONS FOR ALL WORK
• ADVERTISE INTERCEPTORS AND SEWERS WITHIN 90 DAYS
• CITY AGREES TO RELEASE PAYMENTS FOR SELECTED ITEMS
ON SPECIFIC SCHEDULE
• M&E AGREES TO TERMINATE ANY OR ALL OF FOLLOWING
PORTIONS OF THE CONTRACT WITHOUT PREJUDICE TO
EITHER PARTY
PROGRAM MANAGEMENT (33.3$) - $ 278,000
EQUIPMENT PROCUREMENT - $ 54,000
CONSTRUCTION MANAGEMENT - $1,163,000
° OPERATIONS & MAINTENANCE - $ 95,000
r
jS
4
'to AST
Proposed Payment Schedule
Through Construction Contract Award
Contract
Payment Schedule
Document
Total
ImmediateDelivery
--(Tee-Note
Award
North Plant
0
0 509,448
509,448
South Plant
Shive-Hattery
30,000
5,000
M&E
0
0
65,000 40,000
35,000
105,000
Major Interceptors
Shive-Hattery
46,000
81000
MMS
Shoemaker
16,0004
10,000
000 0
0
54,000
20,000
Terracon
0
18,000 0
15,000
M&E
0
0 13,000
18,000
13,000
Relief Sewers
MMS
Shoemaker
25,000
30,000
30,000 0
55,000
Terracon
0
14000
, 0
44,000
M&E
0
7,000 0
7,000
0 19,000
19,000
Total Payment
$157,000 $156,000 $581,448
$894,448
Note: M&E
Subcontractor
Payments contingent on
M&E
receiving payment
from Iowa City.
This is a standard
provision in all M&E
subcontracts.
'to AST