Title
Contract No. 1804129
Schoolcraft Road 48 Inch Water Transmission Main
CIP# 122005 / BCE 42.0
Body
Agenda of: October 31, 2019
Item No.: 2019-362
Amount: $14,490,960.20
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Sue F. McCormick
Chief Executive Officer
Great Lakes Water Authority
DATE: October 2, 2019
RE: Contract No. 1804129
Schoolcraft Road 48 Inch Water Transmission Main
Vendor: Lakeshore Global
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. 1804129 “Schoolcraft Road 48 Inch Water Transmission Main” with Lakeshore Global, at a cost not to exceed $14,490,960.20 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
Contract No. 1804129 is a construction contract that involves constructing approximately 2.1 miles of new 48-inch diameter steel water transmission main along westbound Schoolcraft Road. This new main will replace an existing 48-inch diameter prestressed concrete embedded cylinder pipe (PCCP) located along eastbound Schoolcraft Road. This existing main is part of an older system with a history of catastrophic breaks. A portion of the new 48-inch diameter main was installed in the Interstate 96 (I-96) freeway when it was reconstructed in 2015 under the Michigan Department of Transportation (MDOT) Contract No. 82188-89095.
JUSTIFICATION
The existing 48-inch PCCP transmission main along this segment of Schoolcraft Road has had a history of breaks. The manufacturer of this transmission main segment has a documented history of failures due to hydrogen embrittlement of its prestressed steel wires. Replacing this existing PCCP water transmission main will improve water service reliability in GLWA’s system.
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 (5519-882411.000-616900-122005)
Estimated Cost by Year and Related Estimating Variance: See table below.
Fiscal Year
FY 2020 Budget $ 7,945,000.00
FY 2021 Budget 8,990,000.00
FY 2022 Budget 565,000.00
Financial Plan Estimate $17,500,000.00
Proposed Contract Award 14,490,960.20
Positive Estimating Variance $ 3,009,039.80
SAVINGS, COST OPTIMIZATION, AND REVENUE ENHANCEMENT IMPACT
Cost savings are not determinable at the time of award.
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on October 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.