Title
Contract No. 1905101
Northeast Water Treatment Plant High-Pressure Water System Emergency Partial Replacement
CIP # N/A / BCE Score: N/A
Body
Agenda of: April 22, 2020
Item No.: 2020-096
Amount: $3,000,000.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Sue F. McCormick
Chief Executive Officer
Great Lakes Water Authority
DATE: March 4, 2020
RE: Contract No. 1905101
Northeast Water Treatment Plant High-Pressure Water System
Emergency Partial Replacement
Vendor: J.F. Cavanaugh Company
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. 1905101 “Northeast Water Treatment Plant High-Pressure Water System Emergency Partial Replacement” with J.F. Cavanaugh Company, at a cost not to exceed $3,000,000.00 for a duration of 310 days; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
The high-pressure water (HPW) system at the Northeast Water Treatment Plant (NEWTP) serves as a source of hydraulic power to operate valves that control all the filters and the suction valves on the low lift pumps at NEWTP. There is one hydropneumatic storage tank that serves as the main source of hydraulic power (i.e. pressure) to operate the filter and low-lift pump suction valves. The hydropneumatic storage tank, connected piping, controls, and other appurtenances are original to the 1953 construction of NEWTP and are beyond their functional service life. The tank and some of the connected piping are severely deteriorated and corroded to the point where a sudden failure might occur. Additionally, unplanned maintenance on the controls has increased in frequency over the last year requiring constant attention from plant staff to keep the HPW system functioning. If a sudden failure of the system were to occur, adequate pressure would not be available to operate the valves. In the case of the filters, this means that filters would not be able to be backwashed or otherwise placed into and out of service. In short, the filter process would essentially be shut down along with all water production at the plant.
JUSTIFICATION
Due to the issues described above, an emergency procurement was used to expedite the design-build project delivery to replace portions of the existing high-pressure water system that are nearing failure, as well as to install a new hydropneumatic storage tank, tank level controls, pumps dedicated to this new tank, and associated piping, valves and instruments.
Contract No. 1905101, a design-build contract at the Northeast Water Treatment Plant, will provide all design and construction services necessary to build the high-pressure water system partial replacement.
FINANCIAL PLAN IMPACT
Summary: The proposed contract with J.F. Cavanaugh Company encompasses Capital Outlay Improvement & Extension (I&E) expense only. While this contract is not included in the FY 2020 budget or the FY 2021 financial plan, the value of the contract is within the current financial plan in total. Sufficient funds will be provided in the Improvement & Extension (I&E) financial plan for this contract but will require a budget amendment for this project utilizing the reserves.
Funding Source: Capital Outlay Improvement & Extension (I&E) Budget
Cost Center(s): Northeast WTP…....Water Operations cost center 882151
Expense Type(s): Capital Outlay over $5k(I&E-Capitalized) (901100)
SAVINGS, COST OPTIMIZATION, AND REVENUE ENHANCEMENT IMPACT
The award of this contract provides a variance of $0 ($3,000,000 financial plan forecast less $3,000,000 proposed contract amount). 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 April 8, 2020 meeting. The Operations and Resources Committee unanimously recommended that the CEO take appropriate action to implement the resolution consistent with the provisions of GLWA Board Resolution 2020-114.
SHARED SERVICES IMPACT
This item does not impact the shared services agreement between GLWA and DWSD.