Title
Resolution to Approve Amendment No. 1 to the General Services Agreement for Electrical and Instrumentation Support Services with Utilities Instrumentation Service, RFP #19-23 and Appropriate Insurance Proceeds to the Filter Pipe Gallery Emergency Repairs Project Budget ($1,280,000.00) (8 Votes Required)
Memorandum
This memorandum and resolution requests approval of Amendment No. 1 in the amount of $1,280,000.00 to the General Services Agreement for electrical and instrumentation support services with Utilities Instrumentation Service (UIS). Council approved a General Services Agreement for $120,000.00 with UIS in September 2019 as part of Resolution No. R-19-424. The amendment is to increase funding in order to strategically address the need for repairs to the filter pipe gallery which was damaged by a main breaker failure. The resolution also requests that insurance proceeds from this incident be appropriated to the capital budget within the Water Supply System Fund.
On September 16, 2019, the City of Ann Arbor (City) Water Treatment Plant (WTP) experienced a temporary power outage which caused the failure of a main breaker. This event resulted in flooding a portion of the WTP's filter pipe gallery and significant damage to 16 of the 26 filters' control and monitoring equipment. Until the repair and replacement work is completed, many of the automated controls are still not functional and portions of the filter process must be run manually in order to meet operational needs and regulatory compliance.
The city has reported a claim to its insurance carrier, AIG, to cover the damages associated with this event, and has been working directly with them over the past four months to ensure that they have the proper documentation to appropriately process this claim. The total estimated value of the damages is $1,450,000.00 and the city carries a $50,000.00 deductible. Of the total estimated damages, $1,250,000.00 are anticipated to be covered by the clai...
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