Item 15 - Briefing - Walnut Creek WWTP Projects_Loan — original pdf

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Walnut Creek Wastewater Treatment Plant Expansion and Modernization Charles Celauro, P.E. Austin Water Assistant Director of Engineering Services Water & Wastewater Commission March 11, 2026 Wastewater Treatment Plants  1977 population 321,900 Walnut Creek Wastewater Plant constructed at 18 MGD Expansions of Walnut Creek WWTP in 1987, 1990, 2005 based on population growth  1986 population 447,342 South Austin Regional Wastewater Plant constructed at 75 MGD  2025 population 1,035,002 Walnut Creek Wastewater Plant expansion to 100 MGD Walnut Creek Wastewater Treatment Plant South Austin Regional Wastewater Treatment Plant 2 Expansion and Modernization Upgrade existing facilities for new treatment process (Biological Nutrient Removal or BNR) Construct new facilities for BNR Construct new facilities for 25 MGD expansion 3 Construction Manager-at-Risk Delivery December 8, 2022 – Council approved Construction Manager-at-Risk (CMAR) methodology  Mitigates risks with collaborative approach to phasing and construction bid packages, identifying constructability approach for a complex project, maintaining continuous plant operations, and conducting value engineering during design. 4 CMAR Contract Execution May 30, 2024 –Council authorized negotiation and execution of a contract for pre-construction and construction services for the Walnut Creek Wastewater Treatment Plant Expansion to 100 Million Gallons per Day with MWH Constructors Inc. in the amount of $900,000,000. The $900 million contract amount was based on Preliminary Engineering. 5 CMAR Benefits – Preconstruction Services  Collaboration: Enhancing the level of detail in construction drawings and technical specifications.  Constructability: Performing thorough constructability reviews to ensure efficiency and quality.  Continuous Service: Supporting development of Maintenance of Plant Operation (MOPO) plans.  Scheduling: Identifying construction sequencing for smooth execution.  Value Engineering: Exploring cost-saving opportunities to maximize value.  Cost Refinement: Continuing to refine Opinion of Probable Construction Cost for accuracy.  Bid Packages: Preparing Guarantee Maximum Price (GMP) bidding documents in a phased approach. 6 Guarantee Maximum Price Progress In Construction GMP 1 Key Rehabilitation Projects In Construction GMP 2 Mobilization Site Services In Construction GMP 3 Long Lead Items Early Work Package GMP 4 GMP 1 Contract Award GMP 4 Flood Wall GMP 7 Bidding Phase Bid Date: 12-18-2025 GMP 5 25 MGD Expansion GMP 6 Bidding Phase Bid Date: 2-26-2026 GMP 6 Peak Wet Weather Flow Facilities 90% Design GMP 7 75 MGD Existing Plant Modifications PTC 60% Design GMP 8 Outfall Pipe GMP 2 GMP 5 7 Project Schedule GMPs Scope GMP 1 Key Rehabilitation Projects GMP 2 Mobilization Site Services GMP 3 Long Lead Items Early Work Package GMP 4 Flood Wall GMP 5 25 MGD Expansion GMP 6 Peak Wet Weather Flow Facilities GMP 7 75 MGD Existing Plant Modifications GMP 8 Discharge Outfall Pipe 2024 2028 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2031 2027 2026 2032 2030 2025 2029 H E A D W O R K S # 1 I N F L U E N T L I F T S T A T I O N C M A R S U P P O R T S E R V I C E S L L I - E L E C T R I C A L G E A R E A R L Y W O R K LEGEND DESIGN Pre-Con Construction Completion 8 CMAR Benefits - Accurate Cost Estimates March 12, 2026 – Authorize additional expenditures for the construction contract for the Walnut Creek Wastewater Treatment Plant Expansion to 100 Million Gallons per Day project with MWH Constructors Inc., Construction Manager at Risk, to increase the amount by $600,000,000 for a revised total contract amount not to exceed $1,500,000,000. 9 CMAR Benefits - Collaborative Delivery Design → Bid → Build Owner Preliminary Engineering Engineer D e s i g n 6 0 % Engineer D e s i g n 9 0 % Engineer D e s i g n 1 0 0 % Construction Cost Estimate Bid Contractor C o m p e t i t i v e L o w B i d City Council Construction Manager at Risk (CMAR) Owner Preliminary Engineering CMAR Qualification Selection City Council CMAR and Engineer Design Construction Cost Estimate GMP Packages Subcontractor C o m p e t i t i v e S e a l e d P r o p o s a l s City Council May 24, 2024 $900 million March 12, 2026 $1.5 billion 10 CMAR Benefits - Managing Cost and Risks  Monitoring Market Dynamics: Proactively addressing cost escalation for goods and services due to on-going supply chain issues and elevated market demand.  Improved Accuracy: Leveraging greater detailed construction drawings to achieve more precise cost estimates.  Operational Continuity: Implementing constructability strategies that maintain plant operations.  Specialized Expertise: Coordinating with specialized subcontractors to ensure quality execution.  Optimized Access: Utilizing specialized equipment and construction sequencing required for limited site access.  Regulatory Excellence: Permitting and regulatory compliance that includes tunneling 120-inch effluent pipeline to avoid trees.  Strategic Scheduling: Managing an extended construction timeline.  Funding Support: Federal and State Loan opportunities. 11 Funding Support Opportunities March 12, 2026 – Approve a resolution authorizing the City Manager to increase the application amount for a low-interest loan to a total up to $1,000,000,000. This loan, obtained through the United States Environmental Protection Agency’s Water Infrastructure Finance and Innovation Act (WIFIA) program. 12 Financing EPA WIFIA (Water Infrastructure Finance and Innovation Act)  Council approved loan application for $446.8 Million on July 18, 2024  Revised Loan Request is up to $1.0 Billion TWDB CWSRF (Clean Water State Revolving Fund): $59 Million Austin Water Revenue Bond: $441 Million Austin Water does not anticipate modifying the rate plan shown in the five-year forecast included in the City of Austin approved 2025-26 budget. 13 Building Austin’s water future, together. Water & Wastewater Commission March 11, 2026