Title
Contract No. 1803776
Relocation of the Analytical Lab Operations to the Water Resource Recovery Facility
CIP#: 214001 / BCE Score: 62.2
Body
Agenda of: July 24, 2019
Item No. 2019-268
Amount: $11,499,000.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Sue F. McCormick
Chief Executive Officer
Great Lakes Water Authority
DATE: July 24, 2019
RE: Contract No. 1803776
Relocation of the Analytical Lab Operations to the Water Resource Recovery Facility
Vendor: Commercial Contracting Corporation
MOTION
Upon recommendation of Navid Mehram, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA), authorizes the Chief Executive Officer (CEO) to enter into Contract No. 1803776, “Relocation of the Analytical Lab Operations to the Water Resource Recovery Facility” with Commercial Contracting Corporation, at a cost not to exceed $11,499,000.00 for a duration of 18 months; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
The GLWA wastewater team currently operates two laboratories referred to as the Analytical Laboratory and the Operations Laboratory. The GLWA Analytical Laboratory is currently located at Michigan Center for High Technology (MCHT) Building on Second Avenue in Detroit. This facility is leased from New Technology Development Limited Partnership for a yearly cost of approximately $460,000.00. The lease term will expire on December 31, 2019, and afterwards, the Landlord has agreed, in good faith, to a month-to-month lease, effective January 1, 2020. The laboratory services performed by the Analytical Laboratory include analyses for the WRRF Compliance with its National Pollutant Discharge Elimination System (NPDES) permit, Industrial Waste Control (IWC) Sample, Combined Sewer Overflow (CSO) Sample, Residual Management and Part 503 Sludge, with limited Drinking Water and other Miscellaneous analyses. The Operations Laboratory is located at the WRRF Administration Building. The operations laboratory is responsible for sample collection and process analyses for day-to-day process control.
JUSTIFICATION
Both facilities have reached their useful life and require upgrades. GLWA evaluated several alternatives in lieu of rehabilitating the two independent facilities. The alternatives evaluated are as follows: (a) construction of a new facility; (b) relocation of Analytical Lab to Conner Creek CSO Facility; and (c) relocation of Analytical Lab to WRRF. The alternative analysis found the consolidation of the laboratory operations to one facility and the relocation of the Analytical lab to the WRRF to be the most favorable alternative.
This project will consolidate the Analytical and Operations laboratories to one location. The consolidation of the laboratories will provide cost savings in maintenance, utility bills, sample transportation time and fuel, and overall life cost to GLWA. Additionally, the consolidation will provide operational efficiencies including reduction in laboratory equipment, laboratory chemical storage and ordering, and reduction in standard operating procedures. The available space on the second floor of the new administration building will be utilized for the new laboratory.
FINANCIAL PLAN IMPACT
Summary: Sufficient funds are provided in the financial plan for this project.
Funding Source: Wastewater Construction Bond
Cost Center: Wastewater Engineering
Expense Type: Construction (5421-892211.000-616900-214001)
Estimated Cost by Year and Related Estimating Variance: See table below.
Fiscal Year
FY 2020 Plan 10,968,000.00
Financial Plan Estimate $ 10,968,000.00
Proposed Contract Award 11,499,000.00
Negative Estimating Variance ($ 531,000.000)
A budget amendment will adjust the negative estimating variance from Capital Reserves.
SAVINGS, COST OPTIMIZATION, AND REVENUE ENHANCEMENT IMPACT
The relocation of the analytical laboratory will eliminate the MCHT lease fee of approximately $460,000.00 from the GLWA budget. Additionally, with the consolidation of the laboratories GLWA anticipate a cost saving from services and equipment that are currently duplicated.
COMMITTEE REVIEW
This matter was presented to the Operations and Resources Committee at its Special Meeting on July 24, 2019. The Operations and Resources Committee unanimously recommended that the GLWA Board adopt the resolution as presented.
SHARED SERVICES IMPACT
This item does not impact the shared services agreement between GLWA and DWSD.