Title
Contract No. 2201068
Springwells Water Treatment Plant Medium Voltage Electrical System Replacement
CIP #114002 / BCE Score: 90.9
Body
Agenda of: November 17, 2022
Item No.: 2022-489
Amount: $64,457,860.00
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 28, 2022
RE: Contract No. 2201068
Springwells Water Treatment Plant Medium Voltage Electrical System Replacement
Vendor: Clark Construction Company
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. 2201068 “Springwells Water Treatment Plant Medium Voltage Electrical System Replacement” with Clark Construction Company, at a cost not to exceed $64,457,860.00 for a duration of 1,760 days; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
Proposed Contract No. 2201068 is a construction contract for the medium voltage electrical system replacement located at the Springwells Water Treatment Plant. The medium voltage electrical distribution system at the plant is mostly original to the initial installation in the early 1930s with several upgrades and modifications over the decades.
The original 1930s coal-fired steam boiler plant and steam turbine electric generators were replaced in the 1960s with Detroit Edison feeders. During this 1960s conversion, the original 4800V switchgear was retrofitted. The existing medium voltage system is supplied by three (3) Detroit Edison feeds with an on-site emergency diesel generator system for backup of major process systems in case of power loss. This construction contract replaces the medium voltage system in its entirety between the existing Detroit Edison transformers and the 24 motors associated with the low lift and high lift pumping units, integrates the new electrical system with the existing generators, provides power quality metering of the Detroit Edison feeders, meters power usage of each low lift and high lift pumping unit, relocates all GLWA-owned underground electrical facilities to a new utility bridge, and abates hazardous materials associated with the electrical system.
JUSTIFICATION
The existing electrical system consists of many components remaining from the original 1930s installation, and the original manufacturer of the equipment no longer services the equipment or manufactures replacement components. Lost manufacturer support services and replacement parts reduce the reliability of the electrical system, thereby reducing the plant’s reliability to meet system demands. The equipment is mechanically worn to the point that lockout-tagout procedures required for necessary maintenance are customized to the conditions of the equipment. The exposed medium voltage cabling is covered with friable asbestos insulation. The condition of the equipment and presence of exposed friable asbestos pose health and safety issues to plant operating personnel and all else that work on the facility.
FINANCIAL PLAN IMPACT
Summary: Sufficient funds are provided in the financial plan for this project.
Funding Source: Water Construction Bond
Cost Center: Water Engineering
Expense Type: Construction (5519-882111.000-616900-114002)
Estimated Cost by Year and Related Estimating Variance: See table below.
Fiscal Year Amount
FY 2022 Planned Spend $ 4,563,000.00
FY 2023 Planned Spend 11,122,000.00
FY 2024 Planned Spend 19,120,000.00
Financial Plan Estimate $ 34,805,000.00
Proposed Contract Award 64,457,860.00
Estimating Variance $ (29,652,860.00)
The estimating variance is primarily due to increased costs in labor and materials in the construction market plus adding another year to the project schedule.
FY 2023 Plan Spend per CIP $ 11,122,000.00
FY 2023 Plan Spend adjusted for award value 1,500,000.00
FY 2023 Estimating Variance $ 9,622,000.00
A budget amendment will be made to return the estimating variance for FY23 of $9,622,000.00 back to Capital Reserves. The 2024-2028 CIP Plan document has $52,000,000.00 allocated for the proposed contract’s construction phase. The balance of the estimating variance will be adjusted for in the future CIP Plan documents.
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on November 9, 2022. 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.