Title
Proposed Amendment No. 1
Contract No. 1901555
Snow Removal and De-icing Services
O&M
Body
Agenda of: October 27, 2021
Item No.: 2021-379
Amount: Original Contract $2,158,106.00
Amendment No. 1 226,700.00
Total Contract $2,384,806.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Interim Chief Executive Office
Great Lakes Water Authority
DATE: October 6, 2021
RE: Proposed Amendment No. 1
Contract No. 1901555
Snow Removal and De-icing Services
Vendor: Premier Group Associates, LC
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 Interim Chief Executive Officer (ICEO) to enter into Contract No. 1901555 Proposed Amendment No. 1 “Snow Removal and De-icing Services” with Premier Group Associates, LC, with an increased cost of $226,700.00 for a total cost not to exceed $2,384,806.00 and no increase in duration for a total duration of two years plus two renewal options; and authorizes the ICEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
GLWA has multiple facilities that require snow removal and de-icing services, including but not limited to: GLWA office facilities and GLWA worksites, the five water treatment plants, treated water booster pumping stations, wastewater pumping stations, wastewater CSOs, and water resource recovery facilities. In April 2021, GLWA acquired a new warehouse facility located in Melvindale, MI. This facility is currently staffed and operating.
JUSTIFICATION
The current contract for Snow Removal and De-Icing Services with PGA (Contract No. 1901555) must be amended to include the 5 acres at 19000 Rialto Drive, also known as the GLWA Rialto Warehouse. Proposed Amendment No. 1 adds this facility for $26,700.00 and establishes an allowance of $200,000.00 for any additional items during the term of this contract. This increases the contract amount through the contract period to cover the following:
• Snow removal from walks, steps, loading docks, equipment access, fire hydrants, fueling stations and parking areas
• De-icing of walks, steps, loading docks, equipment access, fueling stations and parking areas
These services assist GLWA in maintaining a safe environment for team members and operations.
PROJECT MANAGEMENT STATUS
Original Contract Time 2 years (11/19/2019 - 11/18/2021)
Renewal Option No. 1 1 year (11/19/2021 - 11/18/2022)
Renewal Option No. 2 1 year (11/19/2022 - 11/18/2023)
Proposed Amendment No. 1 0 years
New Contract Time 4 years (11/19/2019 - 11/18/2023)
PROJECT ESTIMATE
Original Contract Price $2,158,106.00
Proposed Amendment No. 1 226,700.00
New Contract Total $2,384,806.00
FINANCIAL PLAN IMPACT
Summary: The proposed contract with Premier Group Associates, LC encompasses Operations & Maintenance expense only. The FY 2022 budget and five-year financial plan was based on the analysis of snow and de-icing services over past fiscal years. The value of the contract is within the current financial plan in total. Sufficient funds will be provided in the Operations & Maintenance (O&M) financial plan for this contract related to contractual buildings & grounds maintenance.
Funding Source: Operations & Maintenance (O&M) Budget
Cost Center(s): Facility Operations…....Centralized Services cost center 882421
Expense Type(s): Contractual Buildings & Grounds Maintenance (617200)
Estimated Cost by Year and Related Estimating Variance: See table below.
Fiscal Year Amount
FY 2020 Budget (Prorated) $350,000.00
FY 2021 Budget 600,000.00
FY 2022 Budget 600,000.00
FY 2023 Financial Plan 600,000.00
FY 2024 Financial Plan (Prorated) 250,000.00
Financial Plan Forecast $2,400,000.00
Proposed Contract Amount $2,384,806.00
Variance (positive/ (negative)) $15,194.00
SAVINGS, COST OPTIMIZATION, AND REVENUE ENHANCEMENT IMPACT
The award of this contract provides a variance of $15,194.00 ($2,400,000.00 financial plan forecast less $2,384,806.00 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 meeting on October 13, 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.