Title
Contract No. 1901555
Snow Removal and De-Icing Services
O&M
Body
Agenda of: September 25, 2019
Item No.: 2019-322
Amount: 2-Year Contract $1,079,053.00
First Year Renewal Option 539,526.50
Second Year Renewal Option 539,526.50
Total $2,158,106.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Sue F. McCormick
Chief Executive Officer
Great Lakes Water Authority
DATE: August 29, 2019
RE: Contract No. 1901555
Snow Removal and De-Icing Services
Vendor: Premier Group Associates, LLC
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. 1901555 “Snow Removal and De-icing” with Premier Group Associates, LLC, at a cost not to exceed $1,079,053.00 for a duration of two (2) years, with two (2) one (1) year renewal options at a cost of $539,526.50 each for a total contract amount of $2,158,106.00; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
This proposed contract “Snow Removal and De-Icing Services” will provide snow removal and de-icing services to 71 GLWA facilities across southeast Michigan, within the counties of Wayne, Oakland, Macomb, Washtenaw, Monroe, St Clair, Lapeer, and Genesee. GLWA sites range from small plots of land to large 100-plus acre facilities. The scope of this contract contains provisions for snow removal and de-icing services that includes providing labor, equipment, material, and supervision necessary to facilitate this service.
JUSTIFICATION
GLWA’s resource structure does not provide for dedicated staff to perform the snow removal and de-icing services. The contractor shall be responsible for providing labor, equipment, material, and supervision necessary to remove snow from all roadways, driveways, parking areas, and walkways, including pedestrian and roll-up or swing doorways at all facilities for each snow and ice event. This contract will ensure that all GLWA sites are accessible and safe for 24/7 operations.
FINANCIAL PLAN IMPACT
Summary: The proposed contract with Premier Group Associates, LLC. encompasses Operations & Maintenance expense only. The FY 2020 budget and five-year financial plan was based on the analysis of prior snow removal and de-icing service over past fiscal years. The value of the contract is within the current financial plan in total. Sufficient funds will be provided in the Operations & Maintenance (O&M) financial plan for this contract related to contractual buildings & grounds maintenance.
Funding Source: Operations & Maintenance (O&M) Budget
Cost Center(s): Facility Operations…....Centralized Services cost center 882421
Expense Type(s): Contractual Buildings & Grounds Maintenance (617200)
Estimated Cost by Year and Related Estimating Variance: See table below.
Fiscal Year Amount
FY 2020 Budget $600,000
FY 2021 Financial Plan 600,000
FY 2022 Financial Plan 600,000
FY 2023 Financial Plan 600,000
Financial Plan Forecast $2,400,000
Proposed Contract Amount $2,158,106
Variance (positive/ (negative)) $ 241,894
SAVINGS, COST OPTIMIZATION, AND REVENUE ENHANCEMENT IMPACT
The award of this contract provides a variance of $241,894 ($2,400,000 financial plan forecast less $2,158,106 proposed contract amount). Contractual services are dependent on several factors such as, delays in estimated start and end dates, environmental constraints, and other unforeseen circumstances that can cause the expenses to fluctuate from fiscal year to fiscal year.
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on September 11, 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.