Title
Amendment to DTE Letter Agreement Regarding Third Electrical Feed
Body
Agenda of: June 23, 2021
Item No.: 2021-222
Amount: $2,066,000
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Sue F. McCormick
Chief Executive Officer
Great Lakes Water Authority
DATE: June 4, 2021
RE: Amendment to DTE Letter Agreement Regarding Third Electrical Feed
MOTION
Upon recommendation of Navid Mehram, Chief Operating Officer-Wastewater, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA), authorizes the Chief Executive Officer (CEO) to finalize and execute an Amendment to the Letter Agreement with DTE pertaining to a third electrical feed for the Water Resource Recovery Facility (WRRF); and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
GLWA is required by Michigan Department of Environment, Great Lakes, and Energy (EGLE), to have two redundant feeds for the WRRF. To provide additional operational protections, GLWA has determined that adding a third electrical feed at the Facility is necessary (the Project). GLWA (then DWSD) contracted with Weiss Construction for building of a third electrical feed, PC-783. The work within the WRRF necessary for the installation of the third electrical feed has been completed. As a part of PC-783, DTE was subcontracted to perform certain services related to land acquisition for the Project.
In 2016, GLWA conducted its own land acquisition efforts, and the Board approved a Resolution of Necessity regarding the use of eminent domain for this Project.
The project is included in the GLWA Capital Improvement Plan with an overall budget of $7,000,000. Of this budget, a substantial portion was the actual cost of construction of the third electrical feed on WRRF grounds.
On July 12, 2017, the Board approved the letter agreement for construction of the transmission line for an amount of $2,000,000. In October 2020, the Board approved, through a letter agreement, an increase of $12,000 for additional labor and material costs for the installation of the conductor, static wire, hardwire assemblies and insulators from DTE structure to GLWA’s H-Frame. In December 2020, DTE completed the construction of the overhead transmission line.
Upon preparation for startup of the third feed, it was determined that the phasing as installed on the transmission line is in reverse of what is installed at the WRRF.
JUSTIFICATION
The installation of the third feed for the WRRF is essential to maintain the resiliency of our facility. Upon preparation to energize the third feeder, it was determined that the record drawings were not consistent with the field conditions. This requires the main transmission line phasing to be reversed for the X-Phase and the Z-Phase. The cost proposal from DTE to complete this effort is $34,000. GLWA determine that the proposal is fair for approval.
GLWA requests a total of $54,000 through this amendment to fund the proposed additional work described above for $34,000, and an additional $20,000 contingency amount to undertake any other unforeseen changes that my encounter during the startup process. The $20,000 contingency amount will be authorized if additional unforeseen are experienced during the startup process.
BUDGET IMPACT
The proposed installation of a third electrical feed was included in the approved capital improvement plan. The proposed letter agreement construction cost amount of $2,066,000 is within the construction budget for the Project.
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on June 9, 2021. 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.