Title
Proposed Amendment No. 1
Contract No. 2202164
Screening & Grit Transportation and Disposal from WRRF & CSO Facilities
O&M
Body
Agenda of: July 24, 2024
Item No.: 2024-238
Amount: Original Contract Price $1,998,900.00
Proposed Change Order No. 1 2,800,025.28
New Contract Total $4,798,925.28
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 28, 2024
RE: Proposed Amendment No. 1
Contract No. 2202164
Screening & Grit Transportation and Disposal from WWRF to CSO Facilities
Vendor: Waste Management of Michigan, Inc.
MOTION
Upon recommendation of Navid Mehram, Chief Operating Officer - Wastewater Operating Services, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA), authorizes the Chief Executive Officer (CEO) to enter into Contract No. 2202164, Proposed Amendment No. 1, “Screening of Grit Transportation and Disposal from WRRF & CSO Facilities” with Waste Management of Michigan, Inc., at an increased cost of $2,800,025.28 for a total cost not to exceed $4,798,925.28 and an increased duration of three (3) years for a total duration of five (5) years; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
As wastewater enters the Water Resource Recovery Facility (WRRF), the influent pump stations lift the wastewater, allowing it to flow by gravity through the preliminary and primary treatment processes. The preliminary treatment consists of a bar rack to remove rags, sticks, leaves, etc. They are collectively known as screenings from the wastewater stream. Once the screenings are removed, the inorganic material such as sand will settle in large tanks as grit. The screenings and grit are collected and transported by process equipment and temporarily staged in waste storage bins while awaiting pickup and final disposal to the landfill. The scope of work for this contract involves the contractor furnishing all labor, material, supplies, equipment, and disposal sites (landfills) necessary for safe transport and disposal of all screening and grit generated, into a state approved, licensed landfill.
The current contract for disposal is for $68.57 per ton.
JUSTIFICATION
The GLWA wastewater system captures an estimate of 15,000 tons of screenings and grit a year throughout all its facilities. The National Pollutant Discharge Elimination System Permit MI0022802 requires GLWA to remove and dispose of the captured screenings and grit to limit solids discharged into the Detroit River and Rouge River. A vendor is needed to haul and dispose of screenings and grit from the WRRF and Combined Sewer Overflow treatment facilities to various State approved landfills.
This specialized procurement is necessary to maintain GLWA’s continuity of service. After thorough investigation, it was determined that the service is procurable by only one source. This service requires equipment, licensing, and disposal facilities that are regulated by the State of Michigan. Waste Management meets all the State of Michigan requirements for disposal of grit.
The proposed amendment has a 5% annual increase, bringing the cost for the first year to $72.00 per ton, $75.60 per ton for the second year and $79.38 per ton for the third year. It is GLWA’s opinion that the proposed rate increases are consistent with market cost. Nevertheless, GLWA will monitor yearly if alternative saving opportunities are available.
PROJECT MANAGEMENT STATUS
Original Contract Time 2 years (12/14/2022 - 12/13/2024)
Proposed Amendment No. 1 3 years (12/14/2024 - 12/13/2027)
New Contract Time 5 years (12/14/2022 - 12/13/2027)
PROJECT ESTIMATE
Original Contract Price $1,998,900.00
Proposed Change Order No. 1 2,800,025.28
New Contract Total $4,798,925.28
FINANCIAL PLAN IMPACT
Summary: There are insufficient funds in the current financial plan should this contract be utilized to the maximum value. The volume of screening and grit disposed of may vary by year which could possibly require an amendment to that years’ financial plan.
Funding Source: Operations and Maintenance Budget (5960)
Cost Center: Biosolids Dryer Facility, Central Offloading Facility & Hauling (Sewage Disposal Cost Center 892227)
Puritan-Fenkell CSO (Sewage Disposal Cost Center 892271)
Seven Mile CSO (Sewage Disposal Cost Center 892272)
Hubbell-Southfield CSO (Sewage Disposal Cost Center 892273)
Conner Creek CSO (Sewage Disposal Cost Center 892276)
Oakwood CSO (Sewage Disposal Cost Center 892278)
Expense Type: Contractual Operating Services (617900)
Estimated Cost by Year and Related Forecast Variance: See table below.
Fiscal Year O&M Amount
FY 2023 Amended Budget (Prorated) $185,800.00
FY 2024 Amended Budget 625,600.00
FY 2025 Budget 880,400.00
FY 2026 Financial Plan 888,800.00
FY 2027 Financial Plan (Prorated) 491,900.00
Total Financial Plan $3,072,500.00
Maximum Proposed Contract $4,798,925.28
Variance (positive/(negative)) ($1,726,425.28)
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on July 10, 2024. 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.