TRANSMITTAL LETTER FOR BOARD MEETING OF AUGUST 8, 2013
COMMITTEE ON ENGINEERING
Mr. David St. Pierre, Executive Director
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Authority to make payment of $6,000,000.00 to the U.S. Army Corps of Engineers for the non-federal sponsor's share of the costs associated with the Chicagoland Underflow Plan McCook Reservoir, Project 73-161-2H, and McCook Reservoir Expanded Stage 2 Incremental Costs to Army Corps, Project 09-180-4F, Account 401-50000-645630 (As Revised)
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Dear Sir:
The Project Cooperation Agreement (PCA) between the U.S. Army Corps of Engineers (Corps) and the Metropolitan Water Reclamation District of Greater Chicago (District), acting as the non-federal sponsor, for the Chicagoland Underflow Plan (CUP) McCook Reservoir Project was signed on May 10, 1999.
The Corps recently received their final federal funding amount of $35,528,000.00 for fiscal year 2013. At this time, the Corps has requested that the District provide $6,000,000.00 for the balance of the non-federal sponsor's share of the fiscal year 2013 project costs for the McCook Reservoir, in accordance with Article VI of the PCA. This $6,000,000.00 is in addition to the $4,000,000.00 that was approved by the Board at the December 6, 2012 meeting. Because of the recent increase in federal funding received by the Corps, additional funds are required from the District in fiscal year 2013 in order to balance the accounting of the project and bring our share of costs to 25% for the federally authorized 7 billion gallon reservoir. This money will be used to help pay for construction of the Main Tunnel Gates, the Main Tunnel, Slope Stabilization, Rock Wall Stabilization and continued design of remaining projects.
Additionally, the Corps has requested that $3,000,000.00 of the payment be used to cover the costs of betterment work performedby the Corps to expand Stage 2 of the reservoir by 3 billion gallons to provide a total of 10 billion gallons of storage. While the Corps could not economically justify the District's proposed Expanded Stage 2 plan at the time of the PCA, they afforded the District the option of constructing the expanded portion as a betterment to the Corps' plan. The $3,000,000.00 represents part of the District's incremental costs for the Grout Curtain and Slurry Wall installed around the expanded portion of the reservoir.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize and approve a payment of $6,000,000.00 to the Corps.
It is further requested that the Executive Director recommend to the Board of Commissioners that the Chairman of the Committee on Finance, the Clerk, and the Treasurer be authorized and directed to make a payment to "FAO, USAED, Chicago" in the amount of $6,000,000.00 as the non-federal share due at this time, and deliver same to the Director of Engineering for disposition.
Funds are available in Account 401-50000-645630.
Requested, Catherine A. O'Connor, Director of Engineering, WSS:KMF
Recommended, David St. Pierre, Executive Director
Respectfully Submitted, Frank Avila, Chairman Committee on Engineering
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for August 8, 2013
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