TRANSMITTAL LETTER FOR BOARD MEETING OF JANUARY 21, 2010
COMMITTEE ON ENGINEERING
Mr. Richard Lanyon, Executive Director
Title
Authority to advance funds in an amount not to exceed $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 McCook Reservoir Stage 2 Grout Curtain, Project 73-161-2H, Account 401-50000-645630
Body
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.
On July 10, 2003, the Board of Commissioners authorized and approved the execution of an amendment to the PCA between the District and the Corps, to define the terms by which funds may be advanced to the Corps. Pursuant to that amendment, the District advanced funds to the Corps in 2003 and 2004 to keep the McCook Reservoir Distribution Tunnels contract on schedule. These funds have since been applied towards the District’s 25% share of total project costs.
On December 17, 2009, the Board of Commissioners passed an order authorizing and approving a payment by the District, in an amount of $5,536,000.00, to the Corps for the District’s share of the fiscal year 2010 project costs. This money was to be used to help pay for the construction of the Stage 2 Grout Curtain, the Main Tunnel Gates, the Main Tunnel Shaft, and continued design of remaining projects.
At this time, the Corps has estimated that the McCook Reservoir Stage 2 Grout Curtain project will be underfunded by up to $6,000,000.00 for the 2010 fiscal year, if the contractor maintains the aggressive schedule projected. Unless funding can be secured, the construction schedule for this work will need to be decelerated. The timely completion of the Stage 2 Grout Curtain will allow the completion of overburden removal in Expanded Stage 2 on schedule, will make additional space available for mining, and will reduce the amount of groundwater requiring pumping from the site.
It is therefore requested that the Executive Director recommend to the Board of Commissioners that it authorize and approve an advance of funds in an amount not to exceed $6,000,000.00 to the Corps in the 2010 fiscal year.
Funds are available in Account 401-50000-645630.
Requested, Joseph P. Sobanski, Director of Engineering, WSS:MVL
Recommended, Richard Lanyon, 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 January 21, 2010