Title
Contract No. 2003330
Oakwood HVAC Improvements
CIP: 260618, No Score under CIP CSO Program 260600
Body
Agenda of: May 26, 2021
Item No.: 2021-169
Amount: $5,492,000.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Sue F. McCormick
Chief Executive Officer
Great Lakes Water Authority
DATE: April 30, 2021
RE: Contract No. 2003330
Oakwood HVAC Improvements
Vendor: Commercial Contracting Corporation
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. 2003330, “Oakwood HVAC Improvements” with Commercial Contracting Corporation, at a cost not to exceed $5,492,000.00 for a duration of 455 Calendar Days; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
The Oakwood Combined Sewer Overflow (CSO) Facility is situated along the Rouge River and provides treatment before discharge to the river. This facility is served by various support systems, including heating and ventilation and odor control systems which in some cases have failed and in others have presented great maintenance challenges for the GLWA O&M team. The HVAC and Odor Control systems which serve the facility area no longer function as intended and have exceeded their useful life. The malfunction of the HVAC system limits the facility from purging the hazardous gasses generated from wastewater in the sanitary pumping area. The buildup of these gases presents an immediate danger to GLWA team members and has led to accelerated corrosion of other facility infrastructure, and even resulted in frozen/broken pipes for the fire suppression system.
The makeup air units, supply fans, and odor control units for the Oakwood CSO Facility are all considered essential support equipment which provides proper conditions for the rest of the CSO Facility equipment to function properly and safely for GLWA Staff. This is accomplished by keeping the spaces conditioned. This prevents freezing of infrastructure (fire suppression or service water). It will keep the environment, in which other equipment and GLWA team members are required to work, safe by reducing hazardous gasses which cause corrosion, failure of monitoring equipment, and poses a health risk to the team. Lastly, properly ventilating the space and cleaning the air is required by the American Society of Heating, Refrigeration and Air-Conditioning Engineers (ASHRAE) and National Fire Protection Association (NFPA) standards for the ventilation of wet wells and basins and assures compliance with the GLWA Air Quality Permit.
The failure of the ventilation and odor control systems is leading to cascading failures of other systems including building structural steel, building bridge crane, building gas detection system, and electrical and instrumentation equipment. Additional failures of systems will occur, reducing the reliability of the facility to meet its intended purpose if the HVAC and odor control equipment is not improved.
JUSTIFICATION
The Odor Control systems and HVAC Systems at Oakwood require improvement to maintain a proper environment for GLWA personnel and storm/sanitary pumping equipment to operate in. The supply fans, makeup air unit, and odor control system have failed and therefore are not meeting all requirements necessary to operate the facility reliably and properly.
Providing investment for improvements in these systems will allow them to function properly, which will increase facility reliability and improve facility safety for personnel. The proposed improvement will stop the cascading events that are starting to occur (future additional failures of equipment and building/equipment systems) in the fire suppression system, building crane system, roof system/building structure, electrical and controls systems that are needed to reliably operate this facility for permit compliance.
FINANCIAL PLAN IMPACT
Summary: Sufficient funds are provided in the financial plan for this project.
Funding Source: Sewer Construction Fund
Cost Center: Wastewater
Expense Type: Construction (5421-892211.000-616900-260618)
Estimated Cost by Year and Related Estimating Variance: See table below.
Fiscal Year
FY 2022 Plan $2,900,000.00
FY 2023 Plan 0.00
CIP Plan Estimate 2,900,000.00
Proposed Contract Award $5,492,000.00
Negative Estimate Variance ($2,592,000.00)
The negative estimate variance will be funded from the unallocated Program No. 260600 CSO Facilities Improvement Program FY 2022-2026.
SAVINGS, COST OPTIMIZATION, AND REVENUE ENHANCEMENT IMPACT
Although the direct cost saving is not determined at the time of this award, the improvements to the HVAC and Odor control equipment will provide cost avoidance from premature equipment and infrastructure failure within the pump station from sewer gas corrosion.
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on May 12, 2021. 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.