Title
Resolution Approving a Change Order in the Amount of $64,440 to Contract 2017-5170 with the City of Reidsville for Additional Funding of Operational Needs Required to Support the Purchase of Treated Drinking Water
Body
Department: Water Resources
Council District: All
Public Hearing: N/A
Advertising Date/By: N/A
Contact 1 and Phone: Steven D. Drew, 336-373-7893
Contact 2 and Phone: Kristine Williams, 336-373-2556
PURPOSE:
Funding is needed to support the interlocal agreement with the City of Reidsville to address needed equipment for operational purposes.
BACKGROUND:
The City of Reidsville and City of Greensboro originally entered into a water purchase agreement in May of 1999. This agreement formed the basis for the interconnection of the two water and sewer systems of the respective communities. City Council approved an amendment to the agreement on August 16, 2016 that increased the minimum purchase to 1 million gallons per day. The amendment contained the same purchase water rate basis as the previous agreement. The amendment also set the rate for Greensboro to sell water to Reidsville in the event that Reidsville needs operational flexibility, and extends the contract to June 30, 2024. A condition of the agreement required the installation of a variable speed motor controller and associated electrical and instrumentation to meet operational needs. According to the agreement, Reidsville shall pay the upfront cost and Greensboro would reimburse for the cost of the infrastructure. On June 20, 2017, City Council approved a reimbursement agreement for $1,419,893 for the construction cost of the new pump enclosure, variable speed motor controller and associated electrical instrumentation. During construction, additional items need to be addressed and result on a change order. The purpose of the change order is to: relocate an electrical conduit, change of pipe discharge elevation, change in an under-slab conduit elbow material, addition of drywall, demolition of thrust block, and replacement of temperature transmitter and VFD wiring modifications. Contracts for utility services from a municipal utility district or governmental agency are excluded from the M/WBE Plan.
BUDGET IMPACT:
Funds are budgeted in the Water Resources Capital Improvements Fund account 503-7028-04.5932 in the amount of $64,440. A budget adjustment is needed to use this account.
RECOMMENDATION / ACTION REQUESTED:
The Water Resources Department requests and recommends that City Council Approve a resolution authorizing the execution of a change order to the Reimbursement Agreement with the City of Reidsville for $64,440 for additional funding of operational needs required to support the purchase of treated drinking water.