Memorandum - City of Evanston

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Memorandum
       To:                  Honorable Mayor and Members of the City Council
       CC:                  Members of Administration and Public Works Committee
       From:                Paul Moyano, Senior Project Manager
       CC:                  David Stoneback, Public Works Agency Director; Lara Biggs, Capital
                            Planning & Engineering Bureau Chief / City Engineer
       Subject:             Approval of a Contract with CDM Smith Inc. for Lead Service Line
                            Replacement Plan and Pilot Implementation (RFP 21-29)
       Date:                September 13, 2021

      Recommended Action:
      Staff recommends the City Council authorize the City Manager to execute an agreement with
      CDM Smith Inc. (125 South Wacker, Suite 700, Chicago, IL 60606) for Lead Service Line
      Replacement Plan and Pilot Implementation (RFP 21-29) in the amount of $1,140,940.00.

      Funding Source:
      Funding for this project is from the Water Fund (Account No. 513.71.7330.62145 – 421031),
      which has an FY 2021 budget of $350,000. Additional funding will be budgeted in future years.

      City staff intends to pursue a low interest loan from the Illinois Environmental Protection Agency
      (IEPA) State Revolving Fund (SRF). The loan is only issued after the design is complete and
      a contractor has been selected. If the City is successful in obtaining the loan, eligible
      engineering and construction costs would be funded by the loan.

      Council Action:
      For Action

      Summary:
      The Federal Environmental Protection Agency (EPA) and Illinois Environmental Protection
      Agency (IEPA) have recently prioritized the removal of lead water services. There are two
      significant regulations that have been moving through the approval process and are meant to
      better protect public health by imposing stricter regulatory requirements related to lead service
      lines:

      •Illinois House Bill 3739, the Lead Service Line Replacement and Notification Act. This Bill was
      signed by the Governor on August 27, 2021.

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•The EPA Lead and Copper Rule Revisions (LCRR). The LCRR is anticipated to be finalized
             on December 16, 2021.

             City Staff has been tracking these rules and earmarked funding in 2021 to begin addressing
             these new requirements. Replacement of all lead services associated with the City’s annual
             water main replacement program will be required beginning January 1, 2022, which presents
             significant challenges that will be addressed as part of this project.

             Out of approximately 14,500 water services in the City of Evanston, approximately 11,000 of
             them contain lead. In order to fully comply with the requirements of both the Lead Service Line
             Replacement and Notification Act, and the LCRR, the City needs to develop a Lead Service
             Line Replacement (LSLR) Program. The Program will establish standards and templates for
             full lead service line replacements that must be completed over the next 35 years.

             The Program will impact every resident in the City through the replacement of services which
             require entering over 11,000 private homes and disruptions to streets and parkways. To make
             this Program successful and gain early acceptance from the community, the City is seeking a
             qualified consultant with the experience to start this important program off successfully and
             meet tight construction deadlines for 2022.

             The work under this project will be to develop the framework of the LSLR Program, addressing
             constructability issues, detailed construction design, cost estimates, program planning and
             management, public outreach, private property easements, and ordinance and code updates
             that will be required to perform the work. The selected consultant will also apply the new
             framework to perform up to 525 private side lead service line replacements in 2022, including
             those associated with the City’s 2022 Water Main Replacement Project.

             Analysis:
             On June 17, 2021, the City issued a Request for Proposal. On July 27, 2021, the City received
             five proposals from the following consulting firms:

             The proposal review team consisted of:

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•David Stoneback, Director – Public Works Agency
             •Darrell King, Bureau Chief – Water Production
             •Tim Bartus, Water Distribution Supervisor
             •Paul Moyano, Senior Project Manager
             •Christopher Venatta, Senior Project Manager
             •Angeleo Alonzo, Civil Engineer II
             •Ron Papa, Civil Engineer II
             •Jillian Ostman, Purchasing Specialist

             The proposals were reviewed based on firm qualifications and expertise; project team
             qualifications and expertise; project approach; price; willingness to execute the City’s
             professional services contract; organization and completeness of the proposal; and M/W/EBE
             participation. The proposals were rated and the scoring is as follows:

             CDM Smith Inc. received the highest overall score. They provided the highest-qualified team
             and their proposal demonstrated significant experience with large lead service line replacement
             programs and full lead service line replacements that the other consultants were unable to
             demonstrate.

             •Based on the proposals received, CDM Smith Inc. has designed, inspected, replaced and
             managed the replacement of over 20,000 lead service lines. For comparison, the most lead
             service lines replaced by any other team was 1,600.
             •The majority of the services replaced by CDM Smith Inc. were part of significant programs,
             demonstrating their ability to address all aspects of a successful LSLR Program, including

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technical design, community outreach, construction management, regulatory compliance, and
             data management. No other firm was able to offer such broad proven experience by their
             project team.
             •CDM Smith Inc. demonstrated significant experience related to lead water services in systems
             and communities that are similar to Evanston, particularly in terms of regulatory compliance,
             outreach, design, and construction. CDM Smith Inc. was able to highlight lessons learned from
             past work that applies to the City’s goals and will help them meet early project milestones.
             They used this experience to appropriately plan and budget the work described in their
             proposal.
             •CDM Smith Inc. has teaming experience with the subcontracted firms included on this project.
             Firms include: Infrastructure Engineering Inc. (worked with CDM on significant LSLR Programs
             on the east coast and Chicago), Morreale Strategic Communications (with experience
             providing services related to local water infrastructure programs), 120Water (currently
             supporting outreach related to LSLR and lead testing), and Terra Engineering LTD (with water
             system design and construction experience).

             CDM has completed other projects for the City of Evanston, and the quality of their work has
             been very good.

             Because the City intends to fund portions of this project through the IEPA SRF Program, the
             IEPA DBE goals must be followed in lieu of the City’s M/W/EBE goals. The IEPA loan rules do
             not recognize EBE as a DBE. The IEPA fair share percentages are 5% for MBEs and 12% for
             WBEs, for a combined DBE participation of 17%. CDM Smith Inc. is proposing to exceed the
             IEPA goals and meet the City’s M/W/EBE goal of 25% participation by utilizing 13.8% MBE and
             12.9% WBE. A memo reviewing compliance with the City’s M/W/EBE program is attached.

             Attachments:
             MWEBE Memo RFP 21-29 LSLR Plan and Pilot Implementation

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Memorandum

                    To:             David D. Stoneback, Public Works Agency Director
                                    Lara Biggs, Capital Planning & Engineering Bureau Chief
                                    Paul Moyano, Senior Project Manager

                    From:           Tammi Nunez, Purchasing Manager

                    Subject:        Lead Service Line Replacement Plan and Pilot Implementation, RFP
                                    21-29

                    Date:           September 13, 2021

                    The goal of the Minority, Women and Evanston Business Enterprise Program
                    (M/W/EBE) is to assist such businesses with opportunities to grow. In order to help
                    ensure such growth, the City’s goal is to have general contractors utilize M/W/EBEs
                    to perform no less than 25% of the awarded contract.

                    With regard to the recommendation for the Lead Service Line Replacement Plan
                    and Pilot Implementation, RFP 21-29 CDM Smith’s total base bid is $1,140,940 and
                    they are found to be in compliance with the City’s goal. They will receive credit for
                    27% M/W/EBE participation.

                     Name of M/W/EBE                        Scope of            Contract            %       MBE       WBE     EBE
                                                             Work               Amount
                     Infrastructure Engineering          Engineering          $157,284.00         14%          X
                     1 S. Wacker Dr., Ste. 2650          Services
                     Chicago, IL 60606
                     Morreale Communications             Consulting            $50,270.00          4%                    X
                     6703 N. Northwest Highway           Services
                     Chicago, IL 60631
                     TERRA Engineering, Ltd.             Landscape             $97,308.00          9%                    X
                     225 W. Ohio St., 4th Floor          Services
                     Chicago, IL 60654
                     Total M/W/EBE                                            $304,862.00         27%

                    CC: Hitesh Desai, Chief Financial Officer

                            Lead Service Line Replacement Plan and Pilot Implementation, RFP 21-29, M/W/EBE Memo 09.13.2021

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