Title
Requisition No. REQ-0004298
Heating, Ventilation, and Air Conditioning (HVAC) Building and Mechanical Systems Inspection, Repair, and Preventative Maintenance Services
O&M
Body
Agenda of: July 23, 2025
Item No.: 2025-223
Amount: $30,465,000.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: June 20, 2025
RE: Requisition No. REQ-0004298
Heating, Ventilation, and Air Conditioning (HVAC) Building and Mechanical Systems Inspection, Repair, and Preventative Maintenance Services
Vendor: Johnson Controls, Inc.
Status: New Contract/PO
MOTION
Upon recommendation of Cheryl Porter, Chief Operating Officer - Water and Field Services and 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 Requisition No. REQ-0004298, “Heating, Ventilation, and Air Conditioning (HVAC) Building and Mechanical Systems Inspection, Repair, and Preventative Maintenance Services” with Johnson Controls, Inc. at a cost not to exceed $30,465,000.00 for a duration of three (3) years with two (2) one-year options to renew; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
GLWA operates multiple facilities, which include Combined Sewer Overflow (CSO), Water Treatment Plants (WTP), treated Water Booster Stations, Sewage Pumping Stations (SPS) and the Water Resource Recovery Facility (WRRF). The scope of this contract, as established, contains provisions for inspection and repair of the heating, ventilation, and air conditioning (HVAC) equipment, and dehumidification equipment. The HVAC equipment includes natural gas-fired unit heaters, electric unit heaters, boilers, condensate return pumping units, steam traps, pressure relief devices, building mechanical instrumentation and controls, and all associated parts and equipment. This equipment requires frequent preventive and predictive maintenance to ensure the reliability of the HVAC system, which is necessary to protect our team members and our facilities.
JUSTIFICATION
Reliable operation of the HVAC system for GLWA is critical for compliance, team member health and safety, and protection of our critical infrastructure. The services will include maintenance and repairs to the SPS, CSOs, Booster Stations, WTPs, WRRF and Remote Sites. In addition to monthly preventative maintenance and small repairs, it will include an allowance for emergency repairs, parts and materials.
The ability to have uniform service throughout the organization has proven to be beneficial. Johnson Controls Inc. (JCI) is the top-ranked supplier based on Sourcewell evaluation ranking. Also, JCI has successfully provided comparable services to GLWA for the past five years with satisfactory results.
FINANCIAL PLAN IMPACT
Summary: The proposed contract for HVAC services will cover both water and wastewater facilities. The current FY 2026 budget and five-year financial plan was based on previous experience and work performed. The value of the contract exceeds the current financial plan in total. The use of this service may vary by year, therefore, budget amendments may be required for this project. First offsetting other positive variances within other contractual services of repairs and maintenance budgets, then from the unallocated reserve.
Funding Source: Operations and Maintenance Budget (O&M 5960 and 5910)
Improvement and Extension (I&E, 5506 and 5404)
Cost Center: Water Treatment Plants - Five plants (882131 - 882171)
Water Resource Recovery Facility (892221)
Combined Sewer Overflow Facilities - Nine facilities (892271 - 892279)
Sewage Pumping Stations - Eight stations (892342 - 892352)
Water Booster Stations - 19 stations (882321 - 882340)
Field Service Operations (882431)
Expense Type: Facilities Repairs & Maintenance
Contractual Operating Services
Contractual Buildings and Grounds Maintenance
Equipment Repairs and Maintenance
Capital Outlay over $5K (I&E-Capitalized)
Estimated Cost by Year and Related Forecast Variance:
Fiscal Year O&M I&E Total
FY 2026 Budget (Prorated) $3,302,800.00 $340,000.00 $3,642,800.00
FY 2027 Financial Plan $3,340,700.00 $877,100.00 $4,217,800.00
FY 2028 Financial Plan $3,381,200.00 $727,100.00 $4,108,300.00
FY 2029 Financial Plan $3,422,800.00 $388,400.00 $3,811,200.00
FY 2030 Financial Plan $3,463,400.00 $388,400.00 $3,851,800.00
Total Financial Plan $16,910,900.00 $2,721,000.00 19,631,900.00
Maximum Requisitions $25,765,000.00 $4,700,000.00 $30,465,000.00
Variance (Negative)/Positive) ($8,854,100.00) ($1,979,000.00) ($10,833,100.00)
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on July 9, 2025.
SHARED SERVICES IMPACT
This contract will include possible services performed at facilities covered by the Shared Service Agreement, Operations 008 (OPS-008). These facilities, Belle Isle CSO and Detroit Only Sewer Pumping Stations, are owned by the City of Detroit and operated under this Shared Service Agreement by the Great Lakes Water Authority.