Title
Proposed Change Order No. 2
Contract No. 2201316/SCN-0000427
Reservoir Rehabilitation Construction Phase II
CIP #170802 / BCE 74.2
Body
Agenda of: November 19, 2026
Item No.: 2026-444
Amount: Original Contract Price $35,573,564.00
Change Order No. 1 8,905,072.00
Proposed Change Order No. 2 26,500,000.00
New Contract Amount $70,978,636.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: October 26, 2026
RE: Proposed Change Order No. 2
Contract No. 2201316/SCN-0000427
Reservoir Rehabilitation Construction Phase II
Vendor: LGC Global, Inc.
Status: Amendment/Change Order
MOTION
Upon recommendation of Cheryl Porter, Chief Operating Officer - Water and Field Services, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA), authorizes the Chief Executive Officer (CEO) to enter into Contract No. 2201316/SCN-0000427, Proposed Change Order No. 2, “Reservoir Rehabilitation Construction Phase II”, with LGC Global, Inc., at an increased cost of $26,500,000.00 for a total cost not to exceed $70,978,636.00 and an increased duration of 558 days for a total duration of 2,217 days; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
Contract No. 2201316 is a low bid construction project to clean, repair, and complete select improvements to 16 (17 with this Amendment) finished water reservoirs at Eastside, Wick Road, Schoolcraft, Haggerty, Adams Road, Joy Road No. 1 & No. 2, North Service Center No.1 & No. 2, Water Works Park No. 1 & No. 2A/2B, Northeast No. 1 & No. 2, Michigan Avenue, Lake Huron No. 3, and Ford Road. The contract started in December 2023, and the Reservoir Inspection Phase II is under the umbrella Capital Improvement Program (CIP) 170800 reservoir program that services all 30 finished water reservoirs in the GLWA system.
Change Order No. 1 added several items to the contract:
• The inspection and repair of Ford Station Reservoir (Dearborn Heights, MI) to address active reservoir side wall leaks, and to install new sanitary sealing roof coating
• Work to address a full perimeter wall joint base leak at the Haggerty Station (Commerce Charter Township, MI) 10-million-gallon (MG) reservoir, and to add a side wall access hatch for safe maintenance access
• Sanitary sealing roof coating replacement at North Service Center Station (Troy, MI) two 10 MG reservoirs
• The installation of a bird deterrent system to six flat roof reservoirs to discourage birds from landing and depositing on the reservoir roofs
To date, Ford Station has been repaired and is in service, all bird deterrent systems are installed and performing well. Roof coating replacement at North Service Center Station is in progress.
Franklin Station in West Bloomfield Township, MI:
Routine exterior inspection of the Franklin Reservoir in summer 2025 indicated the reservoir may have structural and sanitary deficiencies. A submarine drone inspection was performed on July 16, 2025, to examine the roof from the inside, and there was evidence of water leaking through the roof and compromised concrete roof deck. GLWA water quality reviewed the inspection reports and video and issued instructions to remove the reservoir from service. GLWA and Brown and Caldwell LLC (BC) prepared a cost comparison to repair the reservoir versus building a new reservoir. GLWA staff, including water engineering, water transmission, and SCC, determined the best course of action was to proceed with constructing a new reservoir as the cost to perform a full comprehensive rehabilitation of the existing reservoir would exceed the cost of constructing a new reservoir on the property. Conceptual engineering started in October 2025 and detailed engineering by BC commenced on March 18, 2026. Permit drawings for the new Franklin Reservoir were submitted to the Michigan Department of Environment, Great Lakes, and Energy on August 31, 2026.
With the Franklin Reservoir out of service, increased stress and operational risks are placed on the overall regional water supply that the Franklin Station services, including Farmington Hills, Franklin Township, Bloomfield, and West Bloomfield. It was determined for operational considerations to expand the current contract with LGC Global, Inc. (LGC) to include the installation of a new 5-million-gallon (MG) reservoir with associated piping and valves, at the Franklin Station site. GLWA Water Engineering determined the station does not require more than 5 MG of storage capacity to meet the current and projected future demands. LGC solicited pricing from the two primary (2) tank vendors in the industry, and the vendor with the lowest cost and shortest construction schedule was selected. GLWA, through the engineer of record (Brown and Caldwell), solicited the expertise of a third-party estimator to provide a review of initial pricing from LGC. Upon review of the third-party report and negotiations with LGC, GLWA agreed to the sum of $21,644,300 for work involving construction of a new 5 million gallon reservoir, demo of the existing reservoir, and ancillary components necessary for the work to be completed. Demolition work is planned to start this fall with approval of this change order, and the new reservoir is targeted to be in service for the 2028 high demand season - meeting the operational constraints of having the reservoir out of service for just two (2) high demand seasons.
Northwest Station in Detroit, MI:
The original contract included the Lake Huron Reservoir No. 3 to be cleaned and inspected. Lake Huron Reservoir No. 3 was last inspected in 2020 under Reservoir Inspection Phase I. The Northwest Booster Station has a 10-million-gallon underground reservoir on site which has not been inspected since 2013. It was determined to exchange the reservoir at the Northwest Booster Station for Lake Huron Reservoir No. 3 and push out the Lake Huron Reservoir No. 3 to Reservoir Inspection Phase.
JUSTIFICATION
The justification to increase the contract price and time is based on the operational needs to maintain a reservoir at the Franklin Station to service our communities with minimal interruption to operations. Currently, the reservoir at the Franklin Station is out of service and the system is under increased operational stress without having an operational reservoir. It is imperative that the new reservoir is installed as soon as possible.
The Northwest Booster Station Reservoir has not been cleaned and inspected since 2013, and it was determined it is more important to service the Northwest Booster Station Reservoir first and exchange the work associated with Lake Huron Reservoir No. 3 for the Northwest Booster Station Reservoir. Lake Huron Reservoir No. 3 was inspected in 2020 and is now in the next Reservoir Inspection Phase III Contract and is planned to be cleaned and inspected in the fall of 2027.
PROJECT MANAGEMENT STATUS
Original Contract Time 1,659 days (12/21/2023 - 07/06/2028)
Change Order No. 1 0 days
Proposed Change Order No. 2 558 days (07/07/2028 - 01/15/2030)
New Contract Time 2,217 days (12/21/2023 - 01/15/2030)
PROJECT ESTIMATE
Original Contract Price $35,573,564.00
Change Order No. 1 8,905,072.00
Proposed Change Order No. 2 26,500,000.00
New Contract Total $70,978,636.00
FINANCIAL PLAN IMPACT
Summary: Sufficient funds are provided in the financial plan for this project.
Funding Source: 5519 - Water Construction Fund
Cost Center: 880000 - Capital Improvement Fund
Expense Type: 616900 - Construction
Project: 170802
Estimated Cost by Year and Related Estimating Variance: See table below.
Original Contract Price $ 35,573,564.00
Proposed Change Order No. 1 8,905,072.00
Current Contract Total $ 44,478,636.00
Proposed Change Order No. 2 26,500,000.00
New Contract Total $ 70,978,636.00
Financial Plan Estimate 69,479,000.00
Estimating Variance $ (1,499,636.00)
Projects have been reallocated to account for the estimating variance.
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on November 12, 2026.
SHARED SERVICES IMPACT
This item does not impact the shared services agreement between GLWA and DWSD.