Title
Proposed Amendment No. 1
Contract No. 2000292
GLWA New Valve Exercising Project for Field Services
O&M
Body
Agenda of: July 26, 2023
Item No.: 2023-252
Amount: Original Contract $5,601,663.33
Proposed Amendment No. 1 0.00
Total Revised Contract $5,601,663.33
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: June 30, 2023
RE: Proposed Amendment No. 1
Contract No. 2000292
GLWA New Valve Exercising Project for Field Services
Vendor: Hydromax USA
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. 2000292, Proposed Amendment No. 1, “GLWA New Valve Exercising Project for Field Services” with Hydromax USA, with no increase to cost for a total cost not to exceed $5,601,663.33, and an increased duration of one (1) year for a total duration of four (4) years; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
GLWA’s water system is one of the largest in the United States in terms of water produced and population served. The water system transmission pipes serve an area of 1,698 square miles in eight (8) counties and 88 wholesale water customers including the City of Detroit. The GLWA operates with an average day demand of approximately 400 million gallons per day and serves approximately 3.8 million people across 112 neighboring communities with over 816 miles of transmission mains.
GLWA uses over 4,900 valves on the water transmission pipes (mains) ranging in sizes up to 108 inches in diameter. It is industry standard practice to periodically exercise these large valves to ensure they are maintained in good working order and can be used for the periodic service of the transmission mains, or in the event of a main failure.
In addition to the large transmission valves, associated valves (e.g., air, bypass, and blow-off valves) should also be inspected and operated in coordination with the Valve Exercise Program.
The Valve Exercise Program will:
• Baseline the existing condition of valves
• Improve the efficiency and productivity of field crews
• Improve valve reliability
• Reduce water loss
• Measure and document valve operation
An effective Valve Exercising Program will:
• Improve transmission system reliability
• Aid in developing predictive maintenance programs
• Aid in determining capital improvement budgeting
• Improve system isolation capability
JUSTIFICATION
GLWA began its first formal valve condition assessment and exercising program in 2018, with the goal of locating, inspecting, evaluating, exercising, and repairing 450 valves with a diameter of 24 inches or greater over a two-year period. The goal of the program is to assess all valves on a 5-year cycle and critical valves on an annual basis and to identify the location and accessibility of all system valves, determine the condition and operability of all system valves and provide a foundation for management of these assets.
This program will provide significant benefit for GLWA’s member partners as it will allow for faster response during emergency situations and provide for better resiliency and redundancy as it pertains to our system.
As we move forward with the continuation of this program, we will be looking to complete the following:
• Continue to inspect and evaluate system valves including valves that were assessed during the pilot program.
• Integrate our findings with Asset Management to coordinate reinspection and major valve repairs.
• Develop “minor repair” list and begin repair with GLWA and vendor resources.
PROJECT MANAGEMENT STATUS
Original Contract Time 1,095 days (08/11/2020 - 08/10/2023)
Proposed Amendment No. 1 365 days (08/11/2023 - 08/10/2024)
New Contract Time 1,460 days (08/11/2020 - 08/10/2024)
PROJECT ESTIMATE
Original Contract Price $5,601,663.33
Proposed Amendment No. 1 0.00
New Contract Total $5,601,663.33
FINANCIAL PLAN IMPACT
Summary: The proposed contract with Hydromax USA encompasses Operations & Maintenance expense only. The FY 2024 budget and five-year financial plan was based on previous contract period. The value of the contract is within the current financial plan in total. The financial plan will be adjusted accordingly during the FY 2025 budget preparation to align with the proposed contract amount. Sufficient funds will be provided in the Operations & Maintenance (O&M) financial plan for this contract related to contractual operating services.
Funding Source: Operations & Maintenance (O&M) Budget
Cost Center(s): Field Service Operations…....Centralized Services cost center 882431
Expense Type(s): Contractual Operating Services-All Water (617901)
Estimated Cost by Year and Related Estimating Variance: See table below.
Fiscal Year Amount
FY 2021 Budget (prorated) $1,906,700.00
FY 2022 Budget 1,866,700.00
FY 2023 Budget 1,400,000.00
FY 2024 Budget 1,500,000.00
FY 2025 Financial Plan (prorated) 250,000.00
Financial Plan Forecast $6,923,400.00
Proposed Contract Amount $5,601,663.00
Variance (positive/ (negative)) $1,321,737.00
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on July 12, 2023. 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.