Title
Resolution Approving a Reimbursement Agreement in the Amount of $2,551,335.68 with the City of High Point for the Funding of Lift Station Upgrade to Support Sanitary Sewer Capacity for Greensboro
Body
Council Priority: Maintain Infrastructure and Provide Sustainable Growth Opportunities
Department: Water Resources
Council District: All
Public Hearing: N/A
Advertising Date/By: N/A
Contact 1 and Phone: Mike Borchers, 373-2494
Contact 2 and Phone: Virginia Spillman, 373-3260
PURPOSE:
The City of Greensboro Water Resources Department is requesting funding for a reimbursement agreement with the City of High Point to support the upgrade of a wastewater lift station that receives Greensboro’s sanitary sewer through an interlocal agreement.
BACKGROUND:
The City of High Point and City of Greensboro originally entered into water and sewer purchase agreements in February of 1989 and April 1996. These agreement formed the basis for the interconnection of the two community’s infrastructure. Both of these agreements are in force and effect for as long as there is mutual benefit for each City. The City of High Point and City of Greensboro have a lengthy history of interlocal cooperation with respect to matters affecting their mutual interests and benefitting their respective citizens.
The City of Greensboro has a sewershed that drains to High Point. By cooperating with High Point to convey and treat this sanitary sewer, the City of Greensboro is able to conserve capacity within our system for future development. To help address current capacity and future growth, the City of High Point is constructing an upgraded lift station, Registers Creek Lift Station. The Registers Creek Lift Station will be accepting flow from Greensboro. High Point will continue to own and operate the Registers Creek Lift Station.
The reimbursement agreement assigns the cost of the wastewater lift station improvement based on the percentage of wastewater that is conveyed to High Point. The percentage of participation for Greensboro in the Registers Creek Lift Station is 30%. This capacity is estimated to cover our sewer allocations for capacity conveyance. The engineering cost estimate for the new lift station is $8,504,452.27, which equates to a reimbursable cost for Greensboro of $2,551,335.68. This agreement is excluded from the M/WBE Program Plan which states “that the following categories of contracts shall be excluded from the scope and application of this Program Plan: (c) Contracts for electricity or water and sewage services from a municipal utility district or governmental agency.” However, bidders are required to abide by the City of High Point’s Minority Business Enterprise, Woman Business Enterprise, Disadvantaged Business Enterprise Outreach Plan and Guidelines in order to be considered responsive on the project. According to The City of High Point, the contractor has met the City of High Point’s MWBE “Good Faith” requirements (10%) by obtaining a 10.01% goal according to City policy.
BUDGET IMPACT:
Funding is budgeted in Water Resources Capital Improvements Fund account 503-7030-05.5932 in the amount of $2,551,335.68. 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 Reimbursement Agreement with the City of High Point for $2,551,335.68 for the funding of lift station upgrade supporting the purchase of sanitary sewer capacity and the associated budget adjustment.