Title
Approval of Exhibit A to the Intergovernmental Agreement between GLWA and DWSD, Cost Sharing Agreement for Various Projects Re: Emergency Repairs to the Campbell Sewer
Body
Agenda of: August 23, 2023
Item No.: 2023-315
Amount: Not to Exceed $1,453,629.36
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: August 21, 2023
RE: Approval of Exhibit A to the Intergovernmental Agreement between GLWA and DWSD, Cost Sharing Agreement for Various Projects Re: Emergency Repairs to the Campbell Sewer
MOTION
Upon recommendation and opinion of Suzanne R. Coffey, P.E., Chief Executive Officer, and Randal M. Brown, Deputy Chief Administrative and Compliance Officer/General Counsel, the Board of Directors (Board) for the Great Lakes Water Authority (GLWA):
1) Approves Exhibit A to the Intergovernmental Agreement between GLWA and DWSD, Cost Sharing Agreement for Various Projects related to the Campbell Sewer Improvements; and
2) Authorizes the Chief Executive Officer to take such other action as may be necessary to accomplish the intent of this vote.
JUSTIFICATION
On Sunday, July 30, 2023, a sink hole was discovered at the cross streets of West Jefferson and Campbell in Detroit. The cause of the sink hole is unknown, however, the sink hole exposed GLWA’s 42-inch water main, DWSD’s 6-inch water main, DWSD’s Campbell sewer, and other utilities that are co-located in this area. The sinkhole is also near GLWA’s Detroit River Interceptor (DRI). Given the risk to GLWA’s assets, GLWA engaged its emergency repair contractor, LGC Global Inc. (“LGC”), to ensure that GLWA’s assets were protected during the sinkhole repair work. During LGC’s inspection of the sinkhole, it inspected DWSD’s Campbell Sewer as well.
The inspection revealed that DWSD’s Campbell Sewer needed emergency repairs in an amount not to exceed $1,453,629.36. DWSD confirmed in writing that it wanted the work to proceed, and the Board of Water Commissioners authorized the work by resolution on August 16, 2023.
This Cost Sharing Agreement was approved by the Board on January 26, 2022 for circumstances such as this where GLWA and DWSD’s coordinated efforts are in the best interest of the systems. It is the appropriate agreement to allocate the costs for these capital projects between the parties. In addition, it results in expedited reimbursement when compared to using a Shared Services Agreement Schedule. DWSD is responsible for 100% of the emergency repair cost.
BUDGET IMPACT
DWSD agrees to transfer approximately 50% the Estimated Project Costs ($725,000.00) within seven (7) calendar days of DWSD Board of Water Commissioners’ approval of the Project. A designated representative of GLWA and DWSD will review the invoice from the vendor within seven (7) calendar days and indicate approval to pay to the GLWA CFO and Treasurer with a copy of notice of approval to pay to the DWSD CFO. If the invoice is disputed by GLWA or DWSD, a meeting to resolve any discrepancies will be scheduled with the vendor within five (5) business days.
The notice to the DWSD CFO of approval of progress payment by the designated representatives will serve as authorization for the DWSD CFO to replenish the deposit with GLWA within ten (10) business days until the project cost is fully funded.
COMMITTEE REVIEW
This matter is being presented directly to the Board.
SHARED SERVICES IMPACT
This request does not impact the Shared Services Agreement.