Title
Contract No. 1803594
Maintenance Service Contract to Perform Conditional Assessments, Semi-Annual Preventative Maintenance and Calibration Services, Meter Repair Services and Upgrades on Accusonic Flow Meters at the Baby Creek, Conner Creek, Hubbell/Southfield, Lieb, Puritan/Fenkell, Seven Mile, St. Aubin CSO Facilities
Body
Agenda of: December 12, 2018
Item No.: 2018-1040
Amount: $3,675,531.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Sue F. McCormick
Chief Executive Officer
Great Lakes Water Authority
DATE: December 4, 2018
RE: Contract No. 1803594
Maintenance Service Contract to Perform Conditional Assessments, Semi-Annual Preventative Maintenance and Calibration Services, Meter Repair Services and Upgrades on Accusonic Flow Meters at the Baby Creek, Conner Creek, Hubbell/Southfield, Lieb, Puritan/Fenkell, Seven Mile, St. Aubin CSO Facilities
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. 1803594, “Maintenance Service Contract to Perform Conditional Assessments, Semi-Annual Preventative Maintenance and Calibration Services, Meter Repair Services and Upgrades on Accusonic Flow Meters at the Baby Creek, Conner Creek, Hubbell/Southfield, Lieb, Puritan/Fenkell, Seven Mile, St. Aubin CSO Facilities” with Hesco Group Inc., at a cost not to exceed $3,675,531.00 for a duration of five-years; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
The CSO Facilities identified herein utilize Accusonic flow meters to measure flow coming into a facility (influent), or leaving the facilities (effluent), or sometimes both. These meters are the only technology which can accurately and reliably measure flow in the GLWA collection system. The reason for this is that GLWA collection system pipes are extremely large, and often have a varied shape. Other meters will not report flow properly in odd-shaped structures the size of GLWA pipes. Hence, this is the only, and best-available technology to meet our need to understand the flows coming into our facilities. By knowing the flow coming in, we can properly dose our chemicals and achieve bacterial kill, as required by our NPDES permit.
JUSTIFICATION
The influent and effluent flow meters are a tool for operators in providing correct information that the operators will use to make decisions on how much chemical to use, or how much flow is passing through a facility and whether or not actions should be taken to open or close gates to facilitate these flows. Without the information provided by working flow meters, operators are left to guess what the flows are for disinfection purposes and are also left to guess what the total amount of flow that entered or exited a facility for regulatory reporting purposes. The means to estimate this flow are crude and can easily be replaced with a more accurate representation from working meters. Accusonic is the only company which manufacturers this type of meter, and HESCO is the only company in the state of Michigan which can service these meters per the manufacturer.
FINANCIAL PLAN IMPACT
Summary: This project encompasses both Operations & Maintenance expense as well as capitalizable costs. Sufficient funds are provided in the Operations & Maintenance (O&M) financial plan for this project. Sufficient funds are available in the Improvement & Extension (I&E) Fund.
Funding Source: Operations & Maintenance (O&M) Budget and
Improvement & Extension (I&E) Budget
Cost Centers: Puritan Fenkell CSO..................Sewage Disposal Cost Center 892271
Seven Mile CSO………...............Sewage Disposal Cost Center 892272
Hubbell Southfield CSO...............Sewage Disposal Cost Center 892273
Leib CSO……………...................Sewage Disposal Cost Center 892274
St Aubin CSO…………..............Sewage Disposal Cost Center 892275
Conner Creek CSO…................Sewage Disposal Cost Center 892276
Baby Creek CSO……………....Sewage Disposal Cost Center 892277
Expense Type: O&M - Contractual Operating Services (617900)
O&M - Repairs & Maintenance Equipment (622300)
I&E - Capital Outlay over $5k (I&E-Capitalized) (901100)
Estimated Cost by Year and Related Forecasted Variance: See table below
Fiscal Year O&M Amount (*) I&E Amount Total Amount
FY 2019 Plan $ 85,000.00 $0.00 $ 85,000.00
FY 2020 Plan $330,400.00 $600,000.00 $889,570.00
FY 2021 Plan $347,800.00 $600,000.00 $947,800.00
FY 2022 Plan $472,600.00 $400,000.00 $872,600.00
FY 2023 Plan $589,800.00 $0.00 $589,800.00
FY 2024 Plan $437,025.00 $0.00 $437,025.00
Financial Plan Estimate $2,262,625.00 $1,600,000.00 $3,862,625.00
Proposed Contract Award $2,204,531.00 $1,471,000.00 $3,675,531.00
Estimating Variance $58,094.00 $129,000.00 $187,094.00
(*) The support services provided under this contract are dependent upon the condition assessment of the meters supported by this contract. It has been estimated that a portion of these services will be incurred during FY 2019.
SAVINGS, COST OPTIMIZATION, AND REVENUE ENHANCEMENT IMPACT
The award of this contract provides $187,094 positive variance ($3,862,625 project estimate less $3,675,531 actual).
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on December 12, 2018. 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.