Title
Proposed Change Order No. 4 - GLWA-CS-010 Water Residential Assistance Program
Body
Agenda of: October 28, 2020
Item No.: 2020-366
Amount: N/A
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Sue F. McCormick
Chief Executive Officer
Great Lakes Water Authority
DATE: October 28, 2020
RE: Proposed Change Order No. 4 - GLWA-CS-010 Water Residential Assistance Program
MOTION
Upon recommendation of Nicolette N. Bateson, Chief Financial Officer/Treasurer, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA), approves the Change Order 4 for Contract No. CS-010, “Water Residential Assistance Program (WRAP)” with Wayne Metropolitan Community Action Agency (WMCAA) at a cost increase of $276,550, for a total cost of $2,809,000.00 and a time extension of six months for a total contract duration of sixty-four months with the addition of WMCAA’s agreement to allow greater program administrative participation for Macomb Community Action Agency and Oakland Livingston Human Service Agency, and authorizes the Chief Executive Officer or Chief Financial Officer to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
The Water Residential Assistance Program (“WRAP”) provides sustainable funding for qualifying low-income residents served by the Great Lakes Water Authority’s (“GLWA”) customers. The program is currently funded by GLWA at an amount equal to 0.5 percent of budgeted revenues with the budgeted FY 2021 funding level of $6.1 million combined for water and sewer services.
The WRAP began providing assistance to residents in the GLWA service area on March 1, 2016 and as of June 30, 2020 has committed over $16.9 million in assistance and conservation funds to over 21,000 qualified WRAP participants. During that time, Wayne Metro has been the WRAP program administrator for GLWA.
The current contract with Wayne Metro (GLWA CS-010) expires on December 31, 2020 and has been in place nearly five years. Since the last contract change order in March 2020, GLWA has engaged Public Sector Consultants (PSC) to evaluate WRAP through a series of one on one meetings and focus groups with various GLWA stakeholder groups. The draft report from PSC has been completed and depending on the GLWA Board’s acceptance of the recommendations within it, may require a change in the delivery model for WRAP and the development of a workplan than will extend the timeline beyond the current contract expiration date of December 31, 2020.
In order to accommodate the additional time needed to execute the proposed recommendations from the PSC report, GLWA is recommending the extension of the current contract (GLWA CS-010) through June 30, 2021 through a contract amendment (Change Order #4). The current project management status of GLWA CS-010 is shown in Attachment 1.
It should also be noted that many of the emerging recommendations from the PSC report provide some quick wins and/or ability to pilot some of the proposed modifications to the WRAP service delivery model that address stakeholder concerns. Attached is a letter from Wayne Metro that demonstrates their commitment to working with GLWA and the other WRAP delivery partners to begin implementing program delivery improvements.
JUSTIFICATION
The contract with Wayne Metro specifies the not-to-exceed administrative fee amount based on the anticipated allocation of assistance dollars to each county. Change Order #4 extends the GLWA CS-010 contract six months to June 30, 2021 and it increases the contract amount based on the total budgeted WRAP funding amounts from the table in Attachment 2.
Based on the budgeted FY 2021 WRAP funding and the proposed allocation of WRAP funds to the City of Detroit and participating counties, the administration fees for FY 2021 total $553,100. Since the recommended extension on the contract is six months, the increase in the contract amount is $276,550. See table Attachment 3.
BUDGET IMPACT
The funding of the proposed administration fees for WRAP are paid from the budgeted WRAP funds each year and do not impact the FY 2021 Budget.
COMMITTEE REVIEW
This matter was reviewed by the GLWA Audit Committee at its meeting on October 23, 2020. The Audit Committee recommends that the GLWA Board of Directors approve Change Order 4 in the amount of $276,550.00 for GLWA CS-010 Water Residential Assistance Program.