Title
Contract No. 1802775
Park-Merriman Road 24-Inch Water Main
(CIP# 122011)
Body
Agenda of: January 23, 2019
Item No.: 2018-1068
Amount: $6,796,714.65
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Sue F. McCormick
Chief Executive Officer
Great Lakes Water Authority
DATE: January 3, 2019
RE: Contract No. 1802775
Park-Merriman Road 24-Inch Water Main
Vendor: Salenbien Trucking and Excavating
MOTION
Upon recommendation of Cheryl Porter, Chief Operating Officer - Water and Field Services, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA), authorizes the Chief Executive Officer (CEO) to enter into Contract No. 1802775 “Park-Merriman Road 24-Inch Water Transmission Main” with Salenbien Trucking and Excavating, at a cost not to exceed $6,796,714.65 for a duration of 730 days; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
This project is the final phase of the 24-inch water transmission main construction project that will finish the parallel transmission main serving master meters west of the Michigan Avenue Water Booster Station. Phase I water transmission main was installed from Michigan Avenue north on Newburgh Road and replaced WL-08 master meter from a deduct to a direct-reading master meter. Phase II water transmission main was installed from the intersection of Newburgh Road and Glenwood Road to Glenwood Road and Venoy Road. Phase III (final phase) will install new water transmission main from the intersection of Glenwood Road and Venoy Road through a Wayne County Park (Venoy Dorsey Park), south on Merriman Road to the GLWA Michigan Avenue Water Booster Station. This final phase will replace deduct meter WY-01, WL-01, WL-03, WL-13, and IK-02 from deduct to direct meters.
JUSTIFICATION
Completion of this construction project will provide redundancy to GLWA customers served west of the Michigan Avenue Water Booster Station eliminating a dead-end transmission main. CIP# 122011 will also provide direct meter connections to the City of Wayne and City of Westland.
FINANCIAL PLAN IMPACT
Summary: Sufficient funds are provided in the financial plan for this project.
Funding Source: Water Construction Bond
Cost Center: Water Engineering
Expense Type: Construction (5519-882111.000-616900-122011)
Estimated Cost by Year and Related Estimating Variance: See table below.
Fiscal Year
FY 2019 Budget $ 900,000.00
FY 2020 Budget 3,600,000.00
FY 2021 Budget 1,500,000.00
Financial Plan Estimate $ 6,000,000.00
Proposed Contract Award 6,796,714.65
Negative Estimating Variance $ (796,714.65)
Variance to be funded by a budget amendment from Capital Reserves.
SAVINGS, COST OPTIMIZATION, AND REVENUE ENHANCEMENT IMPACT
This the final phase for the 24-Inch transmission main on Park-Merriman Road. Cost savings are not determinable at the time of this award.
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on January 9, 2019. 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.