City Council Meeting Date: June 17, 2025
To: Mayor and City Council
City Administrator
From: Justin Wagner, Utilities Manager
David Bennett, P.E., Public Works Director/City Engineer
Title
Consider Approving Professional Service Agreement for Northwest Water Tower.
Body
Action Requested:
The Northfield City Council considers a Motion approving the Professional Service Agreement with SEH Inc. for the Northwest Water Tower.
Summary Report:
On March 18, 2025, the City Council authorized staff to redirect federal funds to the Northwest Water Tower. Staff initiated Request for Proposals (RFP’s) to five (5) qualified engineering firms and received three (3) proposals.
Staff reviewed the proposals and is recommending SEH Inc. be retained for professional services. SEH Inc. has a long history of similar work.
In 2023, the City of Northfield was successful in obtaining $3.945 million in federal funding through a Section 219 grant that will be administered through the Army Corps of Engineers (ACOE). The total project needs to be under $5.26 million where the ACOE is 75% cost share, and the City is 25% cost share or $1.315 million. The project cost includes administration work done by the ACOE for bidding purposes and construction observation services resulting in a project bid cost of $5.0 million as requested by the ACOE. The City will pay the ACOE its 25% cost share from the water fees, either from existing cash in the fund and/or debt. This is under review with the rate analysis that will be coming forward for future City Council review and direction.
City staff is currently working to obtain a letter of funding commitment from the Federal Corps of Army Engineers. They have verbally agreed and are expecting to send that to the City next week. It would have been sooner if not for some of their staff out on leave. Additionally, an initial template agreement draft is under review by staff and the City Attorney and expect that agreement to be brought to the City Council this summer.
Construction of a 750,000-gallon water tower in the Northwest Area is based on the water system study and evaluation of the Northwest Area. Additionally, upgrading the booster station is needed to serve the water tower. As part of the proposal, staff requested services for up to three (3) potential projects. The three (3) potential projects are the construction of the NW water tower, potentially removing painting services for the water tower if costs are over $5.0 million based on the engineers estimate and finally, the connection of watermains to the water tower and upsizing of the booster station. The final project will also connect the water tower into the City’s supervisory control and data acquisition (SCADA) system for operation purposes.
The water tower will be constructed in the City’s NW area and will serve industrial development in the northwest area of town. The tower and booster station upgrade will provide water needed to serve the industrial area that is in the priority growth area. The current water system in the northwest area does not have the capacity to serve potential water needs to an industry in the northwest area without the construction of this water tower. The water tower design and construction will take roughly three (3) years before the water tower is operational.
The construction of the NW water tower aligns with the City’s strategic plan’s strategic priority to Improve Financial Strength by helping to develop a NW area “shovel ready” site.
Alternative Options:
Not approve the contract, however, staff does not recommend this.
Financial Impacts:
Design services for the NW water tower are expected to cost $249,000 based on the proposal.
Project costs included in the summary report.
Tentative Timelines:
o Army Corps of Engineers Agreement Funding and Management - July or August 2025
o Water tower evaluation and design - July through December 2025
o Bidding water tower - February - March 2026
o Construction of water tower - 2026 through 2028