Title
Contract No. 2302652
Emergency and Urgent Sewer Evaluation, Repair and
Rehabilitation II
CIP #260211 / BCE Score: 60.2
Body
Agenda of: January 24, 2024
Item No.: 2023-492
Amount: $18,000,000.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: December 21, 2023
RE: Contract No. 2302652
Emergency and Urgent Sewer Evaluation, Repair and Rehabilitation II
Vendor: LGC Global 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. 2302652, “Emergency and Urgent Sewer Evaluation, Repair and Rehabilitation II” with LGC Global Inc, in the amount of $9,000,000.00 for the duration of two (2) years, with two (2) one (1) year renewal options at a cost not to exceed $4,500,000.00 for each renewal year for a total contract amount not to exceed $18,000,000.00; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
The GLWA sewer conveyance system consists of 195 miles of sewers ranging in diameter from 48 inches to 192 inches. Due to the size, age, and potential for deterioration of the sewer pipes, ongoing inspections, immediate spot repairs, and rehabilitation are often required. To inspect, make spot repairs, and collect the necessary information to develop capital improvement projects and conduct urgent and emergency repairs as needed, GLWA uses a program approach within the Capital Improvement Plan to provide these services and manage associated costs.
GLWA-CON-149 “Emergency Sewer Repair,” with Inland Waters Pollution Control, Inc., was for the period of July 2017, through December 2023, in the amount of $67,000,000.00 of which GLWA has spent $63,842,781.00. This contract expired December 2023 and currently in the close out process. On June 2022, GLWA awarded a new Emergency and Urgent Sewer Evaluation, Repair, and Rehabilitation contract, Contract No. 2102000, to Inland Waters Pollution Control, Inc. with an initial two (2) year term, with an option for two additional renewals. The need for a sewer evaluation, repair and rehabilitation is critical for GLWA to ensure continuity of operations and the needed level of service to our member partners. GLWA utilizes condition assessment and the Pipeline Assessment Certification Program (PACP) rating to assess sewer conditions and rate of repair and rehabilitation. Often, immediate emergency action is required for rehabilitation services or repair plugged, damaged, and collapsed sewers to avoid basement flooding and maintain the flows within the wastewater conveyance system.
JUSTIFICATION
Due to the scale and criticality of the GLWA sewer system, a redundant contract to the existing Emergency and Urgent Sewer Evaluation, Repair and Rehabilitation contract was identified. This contract aims to ensure the level of service for sewers by providing the means of inspection, spot repairs, sewer lining, and/or open-cut repair of failed sewers and in-place rehabilitation of selected sewers using the procedures as specified in the contract. The contract provides for unit rate repairs and time and material work as needed to complete all the proposed types of work anticipated under this contract.
FINANCIAL PLAN IMPACT
Summary: The proposed contract with LGC Global, Inc. encompasses Capital Improvement Plan and Operations & Maintenance expenses. The value of the contract is within the current financial plan in total. Sufficient funds will be provided in the Operations & Maintenance (O&M) and CIP financial plan for this contract related to contractual operating services.
Funding Source: Operations & Maintenance (O&M) Budget; CIP 260200
Cost Center(s): Field Service Operations…....Centralized Services cost center 882431
Expense Type(s): Contractual Operating Services (617900); Construction (616900)
Estimated Cost by Year and Related Estimating Variance: See table below.
Fiscal Year CIP O&M Total
FY 2024 Budget $ 485,000 $2,250,000 $ 2,735,000
FY 2025 Budget 1,499,000 2,000,000 3,499,000
FY 2026 Budget 1,499,000 2,200,000 3,699,000
FY 2027 Budget 1,499,000 2,200,000 3,699,000
FY 2028 Financial Plan 1,018,000 0 1,018,000
Total Final Plan Estimate $ 6,000,000 $ 8,650,000 $14,650,000
Proposed Contract Amount $ 6,000,000 $12,000,000 $18,000,000
Variance (positive/(negative)) $ 0 $(3,350,000) $(3,350,000)
The award of this contract provides an O&M negative variance of $3,350,000 ($8,650,000 financial plan estimate less $12,000,000 proposed contract amount). The CIP financial plan is per the FY2025 - FY2029 CIP Plan Draft 2. 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 January 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.