Burns & McDonnell / Alberici Joint Venture History

35 design-build projects together

25 years as joint venture partnership

0 cost or schedule overruns, lost time incidents, or construction claims

City of WichitaStaff & Stakeholders

A Burns & McDonnell/Alberici Joint Venture

DESIGN CONSTRUCTIONDESIGN - BUILDER

Division of Work

Proje

ct Ad

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Desig

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WIF

IA A

pplic

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SRF

Appli

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GMP

Deve

lopme

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Oper

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s Coo

rdina

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Regu

lator

y/Per

mittin

g

Subc

ontra

ctor O

utrea

ch

MBE/

DBE/

EBE

Outre

ach

Comm

unica

tions

Utilit

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rdina

tion

Proje

ct Ad

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Cons

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on M

anag

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Safet

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Proje

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QA/Q

C

Subc

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anag

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Detai

led D

esign

–Pr

oces

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Detai

led D

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–Ut

ilities

Detai

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–Pi

pelin

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Detai

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–Fa

cilitie

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Cons

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Facil

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Cons

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Pipe

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Cons

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ivil/S

ite

Comm

ission

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Train

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Phase One (30% Design and GMP) Phase Two (Detailed Design, Construction, Commissioning, Startup)Wichita Water Partners

Alberici

Burns & McDonnell

HDR

MKEC

PEC

Dondlinger

UCI

Wildcat

DuBois Consultants

Dudley Williams

GLMV

Greteman Group

SJCF

We take very seriously our responsibility to the rate payers of Wichita. We understand how significant this project is for the people of this City.

Our Commitment

We bring a world class team of experts with tremendous experience -- here in Wichita and across the country -- to design and build this project.

We will continue to work with the City’s staff to refine plans and identify cost savings for rate payers.

We have team members who live in this community and call Wichita home.

What We Will Cover Today

Address any questions you may have

Provide an overview of the process to date

Give you a detailed overview of the project

Discuss what we are doing to find additional savings and added value to the project, the City and the rate payers

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Delivering Solutions to YourWater Supply Projects for Three Decades

ASR Surface Water Treatment PlantWichita, KS

Water Treatment Plant ExpansionFargo, ND

Water Supply, Treatment Plant Upgrades, Parallel Raw Water PipelinesFort Smith, AR

Florence Water Treatment PlantMetropolitan Utilities District, Omaha, NE

Platte West Water Treatment PlantMetropolitan Utilities District, Omaha, NE

F.J. Horgan Water Treatment Plant ExpansionToronto, Ontario CA

Integrated Pipeline ProjectTarrant Regional Water District, Fort Worth, TX

Pipeline Aerial . Tarrant Regional Water District (2018). Retrieved from https://www.trwd.com/ipl/

Alexander Orr Jr. Water Treatment PlantMiami-Dade County, Florida

Alexander Orr, Jr. Water Treatment Plant Rehabilitation and Replacement. (2018). Retrieved from https://www.hdrinc.com/portfolio/alexander-orr-jr-water-treatment-plant-rehabilitation-and-replacement

New Water Treatment PlantThornton, CO

Large Water Treatment Plant Experience MGD

Platte West WTP 100Florence WTP Improvements 160Alexander Orr Jr. WTP Improvements 215Harry Tracy WTP 180Sioux Falls Water Purification Plant 75Houston, TX East Water Purification Plant 360Detroit Waterworks Park 320F.J. Horgan WTP Expansion 211R.L. Clark WTP Chemical System Upgrades 162RC Harris WTP 250Hemphill WTP Improvements 136San Jacinto Surface WTP 120Louisville Water Crescent Hill WTP 150Missouri American Water Central WTP 200Austin AR Davis WTP 130Denver Moffat WTP 275Indianapolis White River North WTP 120Aurora Prairie Waters Project 100

Water Transmission Pipeline Experience D

iam

eter

Leng

th

Fort Smith Water Transmission Main 48” 129,400 ft.Tarrant Regional Integrated Pipeline 84” 110,880 ft.Amarillo 24th Street & Arden Road 48” 79,200 ft.Thornton Water Project 48” 38,175 ft.Broomfield South Outfall Interceptors 54” 42,240 ft.Gillette Madison Pipeline 60” 274,560 ft.Wichita 66” Raw Waterline 66” 26,516 ft.Wichita Northeast Transmission Line 48” 25,422 ft. Nevada Groundwater Development Project 96” 1,478,400 ft.Tacoma-Cascade Pipeline 72” 264,000 ft.San Diego North City Conveyance System 48” 147,840 ft.Nevada Treatment and Transmission Project 144” 528,000 ft.Oregon SW 124th Street Avenue 72” 105,600 ft.Tacoma Second Supply Project 90” 179,520 ft.Lewis & Clark Rural Water Transmission 60” 2,112,000 ft.Miami Dade Area N. Water Transmission Main 48” 132,000 ft.

Aurora Prairie Waters Project 60” 195,360 ft.Brightwater Conveyance 168” 63,360 ft.

Platte West Water Treatment PlantMetropolitan Utilities District, Omaha, NE

Design Update

Northwest Water FacilityWichita, KS

Northwest Water Facility – Aerial View Looking NortheastWichita, KS

Northwest Water Facility – Aerial View Looking EastWichita, KS

LOI Pipeline Concept

Alternate 1: 42” Pipeline – Raw Water Supply

Existing Unused 42” Pipeline

Existing 64” Pipeline – New Finished Water Supply

Existing 66” EBWF Pipeline – Raw Water Supply

Existing 60” Cheney Pipeline –Raw Water Supply

Alternate 2: 66” Repurposed Pipeline – Raw Water Supply and Finished Water Emergency Use

Current Pipeline Concept

Design Takeaways

Redundancy in every system

Maximum flexibility

Plant that lasts multiple

generations

Progressive Design-Build Process

1 Concept Design Development 5%

2 Early Cost Model

3 Preliminary Design 30%

4 Pricing Cost Model

5 Project Optimization Period

Phase 1 | Preliminary Design and Project Cost Development

Progressive Design-Build ProcessPhase 2 | Detailed Design, Procurement and Construction

6 Work Package Development

7 Detailed Design

8 Material and Work Package Procurement

9 Construction Activities

10 Start-up, Operations and Plant Commissioning

Delivering a Reliable and Accurate GMP at 30% Design

Concept Design

(5% design and WIFIA LOI)

Preliminary parametric

cost estimate(LOI budget)

Design Optimization(GPSX processes

and operations model)

Updateparametric

cost estimate

30%Design

(Plant, pipeline, utilities)

Market based cost model (open book

self platform, competitive

subcontractor and supplier pricing, GCs, insurance

and bond warranty)

Risk-based contingency(risk register)

GMPprice

GMPproposal

Value-basedDesign

refinement

Design/scopereconciliation

GMP proposal delivered by Oct 28, 2019

We are here

Quick Statistics

1.6 million trade manhours

350 peak onsite staffing

70,000 cubic yards of concrete

18 million pounds of rebar

662,000 cubic yards of dirtwork

$35 million in process equipment

$60 million in pipe, valves and fittings

17 miles of pipe on the plant site (1” – 96”)

Over 200 firms provided market proposals for estimate

90% direct cost has been market priced to date

Status of Cost DevelopmentNorthwest Water Facility Cost Variances May 2018 to Current Trend

Re-baselined EGMP estimate

Conversation to Actual Pricing

Cost ProgressionLOI Estimate to May 2019 Early Cost Model

Estimate Level Value Running Value (M’s) CategoryLOI Budget – May 2018 $524.2Eliminate 72” Pipeline ($87.0) $437.2 Design ProgressionFlocculation/Sedimentation from Settlers $14.7 $451.9 OPEX v CAPEXAeration Process $5.9 $457.8 OPEX v CAPEXEnlarge Backwash Basin $10.3 $468.1 Design ProgressionFiber Optic $1.0 $469.1 Design ProgressionOffsite Pipe Configuration (72” Alternative) $53.8 $522.9 Design ProgressionMay 2019 ECM Budget $522.9

Cost ProgressionMay 2019 ECM to June 2019 ECM

Estimate Level Value Running Value (M’s) Category05/2019 ECM Budget $522.9Cox Property Change ($10.0) $512.9 Optimization Aeration Bypass Loop $2.0 $514.9 OPS Flexibility Enlarge Pressure Reduction Building $1.9 $516.8 OPS FlexibilityEnlarge Mussel Shell Building $3.5 $520.3 OPS Flexibility Enlarge Influent Splitter Structure $5.3 $525.6 OPS Flexibility Alternative – Solids Contact Clarifiers $16.2 $541.8 Optimization Eliminate Flocculation/Sedimentation ($28.7) $513.1 Optimization Filter/Backwash/Finished Water Modification $3.9 $517.0 OPS Flexibility Eliminate 66” Slipline ($13.9) $503.1 Design Progression Enlarge Administration Building (from 10k SF – 20k SF) $5.4 $508.5 COW Preference6/13 ECM Budget $508.5

Estimate Level Value Running Value (M’s) CategoryScope/Price Prior to Market/Changes $528.1Settlement/Geotech Issues (NONLOI) $9.8 $537.9 Design ProgressionMarket Cost Impact – American Iron & Steel $12.1 $550.0 Market Impact Market Cost Impact – Labor $7.6 $557.6 Market ImpactMarket Cost Impact – Electrical, I&C $11.1 $568.7 Market ImpactProcess Equipment Increase(s) $4.2 $572.9 Market ImpactReduce Administration Building Size to (13.4k SF) ($1.0) $571.9 COW Preference Eliminate Mussel Shell Removal ($2.9) $569.0 Optimization Redundancy Optimization ($22.5) $546.5 Optimization Value Engineering Offered ($46.1) $500.4 Value EngineeringEGMP – Added Escalation Costs $5.9 $506.3 Market Impact9/12 EGMP $506.3VE & Optimization not taken 22.5 $528.8 Value Engineering/OptimizationWith Project Additions to EGMP per SC $528.8

Cost ProgressionSeptember EGMP with COW Additions

Cost ProgressionCurrent Budget Track

Estimate Level Value Running Value (M’s) CategoryRe-Baseline with Adjustments (September 15) $557.3Additional Savings VEOP List ($61.9) $495.4 VE and Optimization WWP Contingency and Fee Reduction ($12.6) $482.8 Contingency of Fee and ReductionAdd 42” $11.7 $494.5 Potential VE and Optimization Add Slipline $2.8 $497.3 Potential VE and Optimization Add Aeration $4.8 $502.1 Potential VE and Optimization Add Clarifier Piping $1.6 $503.7 OPS Flexibility Add DSC Risks – 42” Pipeline $2.0 $505.7 Potential VE and OptimizationAdd DSC Risks – Plant Site $2.4 $508.1 COW Preference

Current Budget Track $508.1

Summary of Cost Changes

Category ValueDesign Progression ($26.0M)OPEX v CAPEX $20.60MOPS Flexibility $18.17MMarket Impact $40.90MCOW Preference $6.8MOptimization & Value Engineering ($71.5M)WWP Contingency and Fee Reduction ($12.6M)

Additonal Optimization & Value Engineering Under Consideration ($21.3M)

$21.3 million in additional savings

under consideration

Cost Takeaways

No risk of cost overruns

No exposure to inflation

Below the approved WIFIA

loan amount

Operational Efficiency Goals

Contractual Requirement for 10% Operational Savings from Baseline Operations ForecastTeam Goal of 13% SavingsOperational Costs Include

• Chemicals• Energy• Sludge Disposal Costs• Other Fixed Daily Costs and Hess Pumping

Operations Model Development

6

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11

0

50

100

150

200

250

0 20 40 60 80 100 120 140 160

pH

Alka

linity

and

Har

dnes

s(m

g/L

as C

aCO

3)

Lime Dose (mg/L)

Jar Test

Alkalinity

hardness

pH

Chemical Baseline Projected DifferenceLime $5,832 $4,146 ($1,686)

Ferric $5,242 $594 ($4,648)CO2 $0 $722 $722Soda Ash $7,926 $0 ($7,926)Polymer $475 $339 ($136)Polyphosphate $293 $577 $284Orthophosphate $0 $598 $598Chlorine $47 $49 $2Ammonia $405 $207 ($198)

Total $20,220 $7,232 ($12,988)

Projected Chemical Usage Costs

Daily operational costs

Energy• Optimized Treatment Processes• Optimized Finished Water Pumping• Overall Reduction of Approximately 500 hp.

Sludge Disposal• Directly Related to Chemical Reduction• Reduction of 38,200 lbs/day of sludge generated

Item Baseline Projected DifferenceSludge Generated (lbs/day) 173,900 135,700 (38,200)Daily Operational Costs ($) $15,216 $11,874 ($3,342)

Projected Energy Usage and Sludge Disposal Costs

Item Baseline Projected Difference

Daily Costs $7,581.72 $7,581.72 $0

Hess Pumping $13,276.57 $13,276.57 $0

Chemicals $20,220 $7,232 ($12,988)

Energy $8,222 $7,653 ($569)

Sludge Disposal $15,216 $11,874 ($3,342)

Total $64,516.29 $47,616.29 ($16,899)

Percentage 26.2%0%

5%

10%

15%

20%

25%

30%

ContractualRequirement

Team Goal Actual

Projected Daily Operational Cost Savings

Daily operational costs

Item BaselineTotal Daily Savings (%) 26.2%

Total Daily Savings $16,899

Annual Savings $6.18 M

20-Year Savings $123 M

Projected Long-Term Operational Cost Savings

$123 million in future

operational savings over

20 years

Operations Takeaways

Better for the environment

More efficient to operate

Maximum value to rate payers

NWWF Funding Strategy 51% Kansas State Revolving Loan Fund (SRF)• Low interest loan administered by state • Current interest rate 2.12% (Aug. 2019)• Typical repayment term 20 years

49% Water Infrastructure Finance Innovation Act (WIFIA) Loan • Low interest loan administered by EPA • Interest rate similar to US Treasury Rate for similar term• Flexible repayment terms • Up to 35-year repayment term

WIFIA ApplicationApplicant Information: Expanded from LOI

Detailed Project Information: City’s plan for project construction, including estimated project costs, procurement documents, and project schedules.

Operations and Maintenance Plan: City’s plan to operate the facility after construction. The plan needs to cover full duration of WIFIA financing.

Financing Plan: A comprehensive plan describing how the project will be financed and how financing will be repaid over the tenor of the requested WIFIA credit assistance

Certifications: Show compliance with NEPA, Davis-Bacon, American Iron and Steel, etc.

2022 20232019 2020 2021 2024 2025

Project Priority List Intended Use Plan(June 2019)

SRF Loan Close no later than October 2020

KDHE Review and Approval

Administrative ReviewTechnical Review Financial ReviewEnvironmental Clearance

Commissioning/Training

12 Months

KDHE SRF Loan Activities Timeline

December 2019

SRF Loan Application

Spring 2020

Begin Site Prep & Piling

ConstructionKDHE Compliance

Reviews

September 2024

Substantial Completion

2022 2023

Spring 2020

2019

July

2020

Construction

2021 2024

Commissioning & Training

12 Months

20252018

Notice of WIFIA Funding Availability

WIFIA LOI Submitted

April

October

EPA Invites City of Wichita to Apply

GMP ProposalOctober 28, 2019

WIFIA/SRF CloseNovember 1, 2020

WIFIA Application

Detailed Project InformationOperations & Maintenance PlanFinancing PlanCertifications

EPA Review and Approval

Begin Site Prep & Piling Substantial

Completion

WIFIA Loan Activities Timeline

October 30, 2019 September 2024

Schedule Takeaways

Opportunity to accelerate

Project is on schedule

Less risk for the City

Next StepsOctober 24, 2019 – Steering CommitteeOctober 28, 2019 – Wichita Water Partners Price SubmittalOctober 30, 2019 – WIFIA Application SubmittalNovember 19, 2019 – Steering Committee MeetingNovember 26, 2019 – City Council WorkshopDecember 3, 2019 – City Council Review December 3-17, 2019 – SRF Application Submitted

SummaryThank you for your time and leadership in this effort.Thank

You

We will continue to work with staff to optimize this project and deliver the best value to the rate payers of Wichita.

We have a world-class team working on your behalf.

We will deliver this project on time and within budget.

We are committed to answering your questions throughout this effort.