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Home My WebLink AboutContract - Burns & McDonnell Engineering Company Inc.- Engineering Services Water Works Properties $68,782 6.15.25-12.31.25 Memorandum To: Honorable Mayor and Members of the City Council CC: Members of Administration and Public Works Committee From: Darrell King, Water Production Bureau Chief CC: Edgar Cano, Public Works Agency Director Subject: Approval of a Single-Source Contract with Burns & McDonnell Engineering Company, Inc., for Engineering Services to Prepare the Valuation of the Water Works Properties Date: May 12, 2025 Recommended Action: Staff recommends that the City Council authorize the City Manager to execute a single- source agreement with Burns & McDonnell (9400 Ward Parkway, Kansas City, MO) to provide the water works properties valuation services in the not-to-exceed amount of $68,782.00. A single-source purchase requires a two-thirds vote of the City Council. Funding Source: The Water Fund, Water Production Business Unit (Account 510.40.4200.62185), provides funding. The FY 2025 budget request is $300,000.00, and the YTD balance is $300,000.00. CARP: Municipal Operations, Emergency Preparedness & Management Council Action: For Action Summary: The Wholesale Water Supply agreements between the City of Evanston, Northwest Water Commission (NWC), Village of Skokie, Morton Grove Niles Water Commission and the Village of Lincolnwood stipulates that an independent valuation of the water works properties be performed by a consulting engineering firm to develop the Original Cost Less Depreciation (OCLD) and Reproduction Cost New Less Depreciation (RCNLD) values annually every five years. Every fifth year, a comprehensive valuation exercise is performed to observe above- ground treatment and pumping assets at the water treatment plant facility, and interview City personnel who are knowledgeable of the engineering, operations, and maintenance of the facility. Doc ID: 4f2a584904983cb0b4b185110ebba586d4c607a1 Page 2 of 6 Doc ID: 4f2a584904983cb0b4b185110ebba586d4c607a1 9400 Ward Parkway \ Kansas City, MO 64114 O 816-333-9400 \ burnsmcd.com March 24, 2025 Mr. Darrell King Bureau Chief – Water Production City of Evanston 555 Lincoln Street Evanston, IL 60201 Re: 2025 Valuation Dear Darrell: As a follow-up to our conversations last week, I am pleased to submit this letter proposal to complete a 2025 Valuation (“Study”) for the City of Evanston, Illinois (“City”). This proposal is organized in the following sections: • Scope of Services • Timeline • Agreement • Level of Effort and Fee We appreciate the opportunity to serve the City on this project. If you would like to discuss any of this further, please call. Sincerely, Burns & McDonnell Engineering Company, Inc. David F. Naumann Senior Project Manager Page 3 of 6 Doc ID: 4f2a584904983cb0b4b185110ebba586d4c607a1 Mr. Darrell King City of Evanston March 24, 2025 Page 2 9400 Ward Parkway \ Kansas City, MO 64114 O 816-333-9400 \ burnsmcd.com Proposed Scope of Services Task 1 – Site Visit and Field Observations Burns & McDonnell will perform a site visit to observe above-ground treatment and pumping assets at the water treatment plant facility, and interview City personnel who are knowledgeable of the engineering, operations, and maintenance of the facility. It is expected that appropriate City personnel will be available to lead the tour of the water treatment facility. The purpose of the site visit is to confirm critical large equipment and structures of the water treatment plant facility continue to exist and are functioning. We will also summarize information provided by the City during the site visit such as capacity, the City’s key operation and maintenance practices, and planned capital improvements. The review, inspection and observation of the water treatment facility, including work performed by the City or by others working on behalf of the City, is performed solely for its use in this valuation and is based on visual observation and information conveyed by the City. No testing of structural integrity of the assets is included in this Study. Task 2 – Northwest Water Commission Asset Valuation In Task 2.A, Burns & McDonnell will develop an estimate of Original Cost Less Depreciation (OCLD) and Reproduction Cost New Less Depreciation (RCNLD) for the year ended December 31, 2024. The initial approach to this valuation will be consistent with the approach used in prior valuations, including adjustments as agreed to between the City and Northwest Water Commission (NWC) for the valuation for the year ended December 31, 2023. Burns & McDonnell will review the draft of the valuation with the City and provide a draft report summarizing the approach and results. We will finalize the report after review and feedback provided by the City. In Task 2.B, Burns & McDonnell will also support the consideration of modifications to the existing valuation methodology or the development of an alternative approach to future valuations, which may become the basis of a new agreement between the City and NWC. Activities anticipated in this task may include meetings with the City, NWC, and NWC’s rate consultant Raftelis; research into valuation methods used for wholesale service by other water suppliers in the Chicago metropolitan area; and estimated valuation results under such modifications to existing methods or a new approach on up to two valuation alternatives. Task 3 – Additional Wholesale Valuations For Task 3, Burns & McDonnell will develop an estimate of Original Cost Less Depreciation (OCLD) and Reproduction Cost New Less Depreciation (RCNLD) for the year ended December Page 4 of 6 Doc ID: 4f2a584904983cb0b4b185110ebba586d4c607a1 Mr. Darrell King City of Evanston March 24, 2025 Page 3 9400 Ward Parkway \ Kansas City, MO 64114 O 816-333-9400 \ burnsmcd.com 31, 2024. The approach to this valuation will be consistent with the approach used for the valuation for the year ended December 31, 2023, with the following three anticipated subtasks: • Task 3.A – Morton Grove/Niles Water Commission (MGNWC) valuation of fixed assets with Skokie and Lincolnwood as a customer • Task 3.B – Lincolnwood valuation of fixed assets with Skokie and MGNWC as a customer • Task 3.C – Skokie valuation of fixed assets with MGNWC and Lincolnwood as a customer Burns & McDonnell will review the draft of the valuation with the City and provide a draft report summarizing the approach and results. We will finalize the report after review and feedback provided by the City. Anticipated Timeline Burns & McDonnell is prepared to initiate the Study as soon as an agreement is executed with the City. The analysis requires the fixed asset records as of December 31, 2024, which are anticipated to become available after July 1, 2025, at which point valuation calculations will begin. Final reports for all tasks should be provided to the City by November 31, 2025. Proposed Agreement The agreement between the City and Burns & McDonnell expired December 31, 2024. For this Study, we propose the agreement either be amended to extend through December 31, 2025, or a new agreement be used reflecting identical terms and conditions. Page 5 of 6 Doc ID: 4f2a584904983cb0b4b185110ebba586d4c607a1 Mr. Darrell King City of Evanston March 24, 2025 Page 4 9400 Ward Parkway \ Kansas City, MO 64114 O 816-333-9400 \ burnsmcd.com Proposed Level of Effort and Fee The following table summarizes anticipated hours, labor cost, and fee by task. The level of effort assumed for Task 2B includes 88 hours to perform activities such as those described in the scope of work, which represents an estimate which may or may not be adequate depending on the extent of work performed. Burns & McDonnell will keep the City apprised of the budget status of this task in particular, due to the uncertainty in effort for what will actually be required. We will bill only for hours pertaining to each task, and to the extent tasks are completed for less than the effort, billing may be less than proposed. We propose invoicing on a time and materials basis reflecting hours and costs incurred each month. Proposed hourly billing rates are shown herein. It is assumed the City will pay Burns & McDonnell invoices directly, with cost sharing coordination to be managed between the City and NWC on the appropriate tasks for reimbursement of shared costs. Task Hours Labor Cost Expenses Total Task 1 Site Visit & Field Observations 32 10,112$ 150$ 10,262$ Task 2A NWC Baseline Valuation 96 29,792$ -$ 29,792$ Task 2B NWC Alternate Approach 88 27,664$ -$ 27,664$ Total Task 2 184 57,456$ -$ 57,456$ Task 3 Additional Wholesale Valuations 48 14,896$ -$ 14,896$ Total 264 82,464$ 150$ 82,614$ Proposed Fee Staff Hourly Level Billing Rate 16 322$ 15 320$ 14 318$ 13 308$ 12 286$ 11 250$ 10 228$ Page 6 of 6 Doc ID: 4f2a584904983cb0b4b185110ebba586d4c607a1 Approved as to form: Alexandra B. Ruggie Corporation Counsel 07 / 17 / 2025 Doc ID: 4f2a584904983cb0b4b185110ebba586d4c607a1 Doc ID: 4f2a584904983cb0b4b185110ebba586d4c607a1 Doc ID: 4f2a584904983cb0b4b185110ebba586d4c607a1 Doc ID: 4f2a584904983cb0b4b185110ebba586d4c607a1 Doc ID: 4f2a584904983cb0b4b185110ebba586d4c607a1 Doc ID: 4f2a584904983cb0b4b185110ebba586d4c607a1 Doc ID: 4f2a584904983cb0b4b185110ebba586d4c607a1 Doc ID: 4f2a584904983cb0b4b185110ebba586d4c607a1 Doc ID: 4f2a584904983cb0b4b185110ebba586d4c607a1 Doc ID: 4f2a584904983cb0b4b185110ebba586d4c607a1 Doc ID: 4f2a584904983cb0b4b185110ebba586d4c607a1 Doc ID: 4f2a584904983cb0b4b185110ebba586d4c607a1 Doc ID: 4f2a584904983cb0b4b185110ebba586d4c607a1 Doc ID: 4f2a584904983cb0b4b185110ebba586d4c607a1 Doc ID: 4f2a584904983cb0b4b185110ebba586d4c607a1 Doc ID: 4f2a584904983cb0b4b185110ebba586d4c607a1 Doc ID: 4f2a584904983cb0b4b185110ebba586d4c607a1 Doc ID: 4f2a584904983cb0b4b185110ebba586d4c607a1 Doc ID: 4f2a584904983cb0b4b185110ebba586d4c607a1 Doc ID: 4f2a584904983cb0b4b185110ebba586d4c607a1 Doc ID: 4f2a584904983cb0b4b185110ebba586d4c607a1 Doc ID: 4f2a584904983cb0b4b185110ebba586d4c607a1 Doc ID: 4f2a584904983cb0b4b185110ebba586d4c607a1 Doc ID: 4f2a584904983cb0b4b185110ebba586d4c607a1 Doc ID: 4f2a584904983cb0b4b185110ebba586d4c607a1 Doc ID: 4f2a584904983cb0b4b185110ebba586d4c607a1 Doc ID: 4f2a584904983cb0b4b185110ebba586d4c607a1 Doc ID: 4f2a584904983cb0b4b185110ebba586d4c607a1 Doc ID: 4f2a584904983cb0b4b185110ebba586d4c607a1 Doc ID: 4f2a584904983cb0b4b185110ebba586d4c607a1 Doc ID: 4f2a584904983cb0b4b185110ebba586d4c607a1 Doc ID: 4f2a584904983cb0b4b185110ebba586d4c607a1 Doc ID: 4f2a584904983cb0b4b185110ebba586d4c607a1 Doc ID: 4f2a584904983cb0b4b185110ebba586d4c607a1 Doc ID: 4f2a584904983cb0b4b185110ebba586d4c607a1 Doc ID: 4f2a584904983cb0b4b185110ebba586d4c607a1 Doc ID: 4f2a584904983cb0b4b185110ebba586d4c607a1 Doc ID: 4f2a584904983cb0b4b185110ebba586d4c607a1 Doc ID: 4f2a584904983cb0b4b185110ebba586d4c607a1 Doc ID: 4f2a584904983cb0b4b185110ebba586d4c607a1 Doc ID: 4f2a584904983cb0b4b185110ebba586d4c607a1 Doc ID: 4f2a584904983cb0b4b185110ebba586d4c607a1 Doc ID: 4f2a584904983cb0b4b185110ebba586d4c607a1 Contract with Burns & McDonnell Engineering Company, Inc.,... Approval_of...r_Engin.pdf and 1 other 4f2a584904983cb0b4b185110ebba586d4c607a1 MM / DD / YYYY Signed 07 / 17 / 2025 08:57:51 UTC-5 Sent for signature to Alexandra Ruggie (aruggie@cityofevanston.org) and Luke Stowe (lstowe@cityofevanston.org) from lthomas@cityofevanston.org IP: 66.158.65.78 07 / 17 / 2025 08:59:49 UTC-5 Viewed by Alexandra Ruggie (aruggie@cityofevanston.org) IP: 24.13.226.57 07 / 17 / 2025 09:00:00 UTC-5 Signed by Alexandra Ruggie (aruggie@cityofevanston.org) IP: 24.13.226.57 07 / 17 / 2025 12:37:38 UTC-5 Viewed by Luke Stowe (lstowe@cityofevanston.org) IP: 50.171.242.186 07 / 17 / 2025 12:38:15 UTC-5 Signed by Luke Stowe (lstowe@cityofevanston.org) IP: 50.171.242.186 The document has been completed.07 / 17 / 2025 12:38:15 UTC-5