BACKGROUND
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Snyder & Associates prepared a construction cost estimate for the water treatment plant for Gallatin as part of the Preliminary Engineering Report in the amount of $3,766,650. The estimate was prepared on Feb. 28, 2011. An addendum changed the treatment method from membrane technology to lime softening treatment.
The bid results on March 3, 2015, included three bidders. The low bidder, Irvinbilt, submitted a base bid of $5,909,300.
Seeing as the bids exceeded the budget available for the project, the City of Gallatin rejected all bids and Snyder & Associates concurred.
SOLUTION
Snyder & Associates met with the Gallatin City Council several times to discuss the project and possible actions to bring it within budget. Discussions were also had with USDA-RD (United States Department of Agriculture – Rural Development) and GHRPC (Green Hills Regional Planning Commission). The results of these discussions are summarized below:
- Reduce process flow from 700 gpm (gallon per minute) to 400 gpm, which results in reduction of equipment and piping sizes.
- Reduce the size of the raw water line and reroute the raw water line, decreasing the total length. This was made possible due to decreased plant capacity.
Additional changes that will be considered during design to save costs are as follows:
— Use FRP (Fiberglass Reinforced Plastic) Panels to reduce the painting cost.
— Removal of the central dehumidification unit and replace with industrial dehumidifiers.
— Change yard piping from DIP (ductile iron pipe) to PVC (polyvinyl chloride).
— Reduce the building size due to smaller settling basins and filters.
— Switch the air operated filter backwash valves to electric-actuated valves. This will eliminate air compressors and dryers and tubing.
— Make changes to reduce the painting costs.
— Move the high service pumps to the clearwell outside the building, reducing the building size.
— Move the backwash pump to the clearwell outside the building, reducing the building size.
— Use the existing aerator in lieu of purchasing a new aerator.
Consider bid alternates to reduce the base bid while giving the opportunity to add if funds are available:
— SCADA (Supervisory Control and Data Acquisition); use stand-alone panels for each piece of process equipment with provisions to add SCADA in the future for centralized control and reporting.
— Water supply well improvements; the existing wells can supply the lower flowrate. Add the well improvements as a bid alternate if funding will cover the cost.
— Liquid chlorine feed points; decrease the number of chlorine feed points.
Click to enlarge.
COST ESTIMATE
Snyder & Associates prepared an estimate to determine the impact oft hese cost saving measures.
The new schedule of values is based on the recent bid results of $5,909,300. The table is attached, showing the updated cost estimate with estimated savings.
The new construction cost, with savings, is estimated to be $4,303,314. This is a decrease of approximately $1,605,986 from the bid price. The new construction cost of $4,303,314 was then used to recalculate the anticipated total project cost. The recalculated total project cost is estimated to be $5,162,154 (a table itemizing calculations is below). The letter of conditions lists the total project funding as $4,615,490. The project short fall is $546,664 based on the new total project cost and existing funding. If additional funding for the shortfall can be acquired as a loan, the loan amount will increase from $3,296,000 to $3,842,664.
Based on the original loan amount of $3,296,000, the average increase in water rates is estimated to be $16.l5 per month. Based on the proposed loan amount of $3,842,664, the average increase in water rates is estimated to be $18.83. These calculations show an increase in water rates of $2.68 due to extra loan. This amount was determined by dividing the debt service evenly among all users. This value may vary slightly depending on interest rates.
The following table summarizes the results discussed above.
SUMMARY OF COST CHANGES
Original Cost
Total Project Cost $4,615,490
Total Loan Amount· $3,296,000
Average Debt Service/customer $16.15
Proposed Cost
Total Project Cost $5,162,154
Total Loan Amount $3,842,664
Average Debt Service/customer $18.83
CONCLUSION
In conclusion, implementation of the recommended changes will fall more closely to the budgeted dollars for the project while meeting the community’s water needs.
CONCURRENCE
The city requests concurrence from USDA-RD, CDBG (Community Development Block Grant) and MoDNR (Missouri Department of Natural Resources) with the recommendations of this memorandum.
Once concurrence is received, the City of Gallatin will authorize Snyder & Associates to begin plan and specification revisions to implement the recommended changes. Once the city has reviewed and approved these documents, the reviewed documents will be submitted for review and approval by all the jurisdiction agencies listed above.