Title
Approval of Cost Sharing Agreement and Exhibit A-1 between the City of Detroit, Water and Sewerage Department, and GLWA
Body
Agenda of: January 26, 2022
Item No.: 2022-014
Amount:
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Interim Chief Executive Officer
Great Lakes Water Authority
DATE: January 7, 2022
RE: Approval of Cost Sharing Agreement and Exhibit A-1 between the City of Detroit, Water and Sewerage Department, and GLWA
MOTION
Upon recommendation and opinion of Suzanne R. Coffey, Interim Chief Executive Officer. and Randal M. Brown, General Counsel, the Board of Directors for the Great Lakes Water Authority (GLWA):
1) Approves the execution of the Cost Sharing Agreement between the City of Detroit, Water and Sewerage Department and GLWA; and
2) Approves the reimbursement of costs outlined Exhibit A-1 with a 10% allowance above the estimated costs; and
3) Authorizes the Interim Chief Executive Officer to take such other action as may be necessary to accomplish the intent of this vote.
JUSTIFICATION
Through regular communication between DWSD and GLWA’s administrations, the parties identified opportunities to share costs associated with projects that benefit both DWSD and GLWA. In order to track these opportunities and standardize the paperwork associated with these projects, the parties desire to enter into a Cost Sharing Agreement. With an underlying agreement in place, the parties would amend the Agreement through the completion of the Exhibit A-# template. Exhibit A will be sequentially numbered, A-1, A-2, A-3…A-10, to reflect a new project and the terms of the cost sharing between the parties.
If the underlying Agreement is approved, “Exhibit A-#” would be presented to the Board of Water Commissioners or GLWA Board of Directors, consistent with contract authorization policies of the two organizations. For example, and consistent with GLWA’s Procurement Policy, GLWA would present an “Exhibit A-#” to the Board if the amount of GLWA’s cost sharing reimbursement to DWSD exceeded $1 million or the project would last more than 5 years.
Here, Exhibit A-1 meets the Board approval requirements for both organizations and therefore is being presented to the Board of Water Commissioners and GLWA’s Board of Directors. Exhibit A-1 relates to design work associated with replacement and rehabilitation of the aggregate utilities along E. Jefferson, which has been a discussion point for the last few years due to the expected pavement replacement work along the full reach of E. Jefferson Avenue. The upcoming pavement work is an opportunity to renew and replace the underground utilities along East Jefferson, including regional and local water mains. The allocation of costs, per design task, is as follows:
Design Task #1: West of Water Works Park
Description: Installation of new 12-inch mains along Jefferson Ave to replace existing distribution mains
Allocation:100% DWSD
Estimated DWSD ($): 843,601
Estimated GLWA ($): 0
Estimated Extended Total ($): 843,601
Design Task #2: East of Water Works Park
Description: Replacement or rehabilitation of existing 16-inch, 12-inch, and 8-inch distribution mains from WWP to Gray Street and other select locations along Jefferson
Allocation: 100% DWSD
Estimated DWSD ($): 287,447
Estimated GLWA: 0
Estimated Extended Total ($): 287,447
Design Task #3: West of Water Works Park
Description: Replacement of 48-inch GLWA main from WWP to Downtown, meter vaults and pressure reducing valve vaults, retirement of one existing 42-inch GLWA main and one 42-inch DWSD main.
Allocation: 20% DWSD 80% GLWA
Estimated DWSD ($): 426,181
Estimated GLWA ($): 1,683,621
Estimated Extended Total ($): 2,109,802
Design Task #4: East of Water Works Park
Description: Replacement of the existing 8-inch main along Jefferson from Dickerson Avenue to Alter with 16-inch main
Allocation: 100% DWSD
Estimated DWSD ($): 126,750
Estimated GLWA ($): 0
Estimated Extended Total ($): 126,750
Design Task #5: Hydraulic Modelling
Allocation: 100% GLWA
Estimated DWSD ($): 0
Estimated GLWA ($): 23,875
Estimated Extended Total ($): 23,875
Design Task #6: Geotechnical Investigation
Allocation: 53% DWSD 47% GLWA
Estimated DWSD ($): 134,086
Estimated GLWA ($): 121,193
Estimated Extended Total ($): 255,279
Design Task #7: Subsurface Utility Engineering (SUE) Allowance
Allocation: 100% GLWA
Estimated DWSD ($): 0
Estimated GLWA ($) 185,643
Estimated Extended Total ($): 185,643
Design Task #8: Potholing Allowance
Allocation: 100% GLWA
Estimated DWSD ($): 0
Estimated GLWA ($): 207,627
Estimated Extended Total ($): 207,627
Total Estimated Project Costs
Estimated DWSD ($): 1,818,065
Estimated GLWA ($): 2,221,959
Estimated Extended Project Costs Total: 4,040,024
FINANCIAL PLAN IMPACT
Summary: Sufficient funds are provided in the financial plan for this project.
Funding Source: Water Construction Fund
Cost Center: Water Field Engineering
Expense Type: Construction (5519-882411.000-617950-122019)
Estimated Cost by Year and Related Estimating Variance: See table below.
Fiscal Year
FY 2022 Plan $ 613,000.00
FY 2023 Plan 782,000.00
FY 2024 Plan 686,000.00
FY 2025 Plan 684,000.00
FY 2026 Plan 684,000.00
FY 2027 Plan 28,000.00
Financial Plan Estimate $ 3,477,000.00
Proposed Contract Award 2,221,959.00
Balance reserved for services during construction $ 1,255,041.00
Plan amounts above as per Draft 2 of the FY 2023 - 2027 CIP Plan.
COMMITTEE REVIEW
This matter was presented to the Operations and Resources Committee on January 12, 2022. The Operations and Resources Committee unanimously recommended that the GLWA Board adopt the resolution as presented.
SHARED SERVICES IMPACT
This request does not impact the Shared Services Agreement.