Title
Approval of Cost Sharing Agreement for 14 Mile Transmission Project (CIP # 122013) with City of Novi for Construction on 11 Mile, Meadowbrook, and 13 Mile Roads
Body
Agenda of: September 23, 2020
Item No.: 2020-319
Amount: NA
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Sue F. McCormick
Chief Executive Officer
Great Lakes Water Authority
DATE: September 14, 2020
RE: Approval of Cost Sharing Agreement for 14 Mile Transmission Project (CIP # 122013) with City of Novi for Construction on 11 Mile, Meadowbrook, and 13 Mile Roads
MOTION
Upon recommendation of Cheryl Porter, Chief Operating Officer - Water and Field Services, and Randal M. Brown, General Counsel, the Board of Directors for the Great Lakes Water Authority (GLWA) approves the cost sharing agreement between GLWA and the City of Novi for construction along 11 Mile, Meadowbrook, and 13 Mile Roads as part of Phase 2 of 14 Mile Transmission Main loop project (CIP #122013); and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
The GLWA 14 Mile Road transmission main supplies water to Novi, Farmington Hills, West Bloomfield, Commerce, Walled Lake, and Wixom. Currently, the 14 Mile Transmission Main is not looped within the GLWA transmission system and is susceptible to unplanned outages due to main breaks. The 14 Mile Transmission Main Loop project (CIP # 122013) is being constructed in two phases to add redundancy to the customers along 14 Mile. The first phase is approximately 1 mile of 24-inch parallel pipeline that will run west from M-5 to Novi Road. The second phase is approximately 8 miles of 54-inch watermain that will be constructed from 8 Mile Road to 14 Mile Road along an alignment generally following the I-275 bike path to 11 Mile to Meadowbrook to 13 Mile to the M-5 bike path and along 14 Mile to a connection with the Haggerty Pump Station reservoirs. The second phase of the 14 Mile Transmission Main project is being constructed almost entirely within the City of Novi and Michigan Department of Transportation (MDOT) right-of-way. The segments of the second phase of the project within City of Novi right-of-way include:
• 11 Mile Road from Seeley to Meadowbrook
• Meadowbrook Road from 11 Mile Road to I-96
• Meadowbrook Road from I-96 to 12 Mile
• Meadowbrook Road from 12 Mile Road to 13 Mile Road
• 13 Mile Road from Meadowbrook to M-5
Approximately half of the roadway cross section for each of the road segments listed above is expected to be impacted by the construction of the second phase of the GLWA transmission main project, and GLWA would be expected to restore the impacted portion of roadway. The City of Novi has four of the five roadway segments listed above programmed in their Capital Improvements Plan (CIP) for roadway restoration (Meadowbrook from 1-96 to 12 Mile is not programmed in the CIP as it was reconstructed in 2017) and also has the segment along 11 Mile Road from Seeley to Meadowbrook programmed in their CIP for watermain construction. The City of Novi has requested that the following construction work be included in the second phase of the GLWA transmission main project with the additional incremental cost of the design and construction to be paid for by the City of Novi:
• Restoration of remainder of the road cross section outside of the GLWA transmission main construction zone for the roadway segments listed above, except for Meadowbrook from I-96 to 12 Mile, which was reconstructed in 2017.
• Construction of a portion of 12-inch main along 11 Mile from Seeley to Meadowbrook.
GLWA and the City of Novi have drafted a cost sharing agreement that establishes construction cost allocations for each agency. The proposed cost sharing agreement allocates $145,000 in additional design costs and an estimated $3.67 million in construction costs to be paid by the City of Novi. The construction cost allocations are currently based on engineering estimates and will be updated once actual bid costs are obtained. The cost sharing agreement was approved by the City of Novi City Council at the July 27, 2020 City Council Meeting and is being presented to the GLWA Board for approval.
JUSTIFICATION
The proposed cost sharing agreement merges four City of Novi CIP projects and one GLWA CIP for GLWA into a single construction contract. The single construction contract allows both agencies to potentially realize economy of scale cost savings on the project. Beyond potential cost benefits, merging multiple CIP projects into a single, coordinated construction contract eliminates the need for multiple, intermittent roadway disruptions that would be required if each agency constructed their CIP projects as part of separate construction projects.
FINANCIAL PLAN IMPACT
There is no budget impact associated with the proposed cost sharing agreement.
COMMITTEE REVIEW
This item was presented to the Legal Committee at its meeting on September 23, 2020.
SHARED SERVICES IMPACT
This item does not impact the shared services agreement between GLWA and DWSD.