TRANSMITTAL LETTER FOR BOARD MEETING OF MAY 6, 2010
COMMITTEE ON ENGINEERING
Mr. Richard Lanyon, Executive Director
Title
Authority to advance funds in an amount not to exceed $500,000.00 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 January 21, 2010, the Board of Commissioners passed an order authorizing and approving an advance of funds to the Corps, in an amount not to exceed $6,000,000.00, in order to maintain the contractor’s progress and ensure the timely completion of the Stage 2 Grout Curtain. At this time, the Corps has determined that their funding shortfall for this work in Fiscal Year 2010 will exceed the previous estimate of $6,000,000.00 and now requests an additional advance of funds in an amount not to exceed $500,000.00. The timely completion of the Stage 2 Grout Curtain is critical. It 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 $500,000.00 to the Corps in the 2010 fiscal year.
Funds are available in Account 401-50000-645630.
Requested, Kenneth A. Kits, Acting 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 May 6, 2010