A meeting of the Board of Directors of the Massachusetts Water Resources Authority was held on August 15, 2001 at the Authority Headquarters in Charlestown. Present: Chairman Robert Durand, Lucile Hicks and Donald Mitchell, Gubernatorial Representatives; John Carroll, Andrew Pappastergion and Joseph Foti, Advisory Board Representatives; Vincent Mannering, Antonia Pollak and Robert Spinney, City of Boston Representatives; Joseph MacRitchie, City of Quincy Representative; Marie Turner, Town of Winthrop Representative.

AGENDA

Report of the Chair

A. Employee Recognition Awards: Chairman Durand recognized two employees for long term service awards. Awards were also presented to employees from several divisions in recognition of outstanding work, cost savings to MWRA, and efforts beyond the call of duty. Chairman Durand then suggested that the Board reduce the number of its meetings per year from eighteen to twelve. Mr. Carroll stated that frequent meetings are the best way to "stay in touch" with what is happening at MWRA. Chairman Durand responded that with MWRA becoming a more "operational" facility, reducing the number of meetings should be possible. Mr. Pappastergion suggested that the option to call additional meetings should be maintained. Chairman Durand agreed. The Chairman also reminded the Board that its October meeting will be held at the Quabbin Reservoir and that a tour will be scheduled.

B. Annual Meeting: Election and Appointment of MWRA Officers; Committee Assignments: The Board voted to (1) designate the August 15, 2001 meeting as the annual meeting as provided in the Authority's by-laws; (2) elect John Carroll as Vice Chairman of the Board; and (3) appoint Robert Spinney as Secretary of the Board, Bonnie Hale and Rose Marie Convery as Assistant Secretaries, Kenneth Wissman as Treasurer, and Kate Murray, Gerald Lima and Richard Colburn as Assistant Treasurers. The Board further voted to ratify appointments of Board members to Committees, including adding Mr. Foti as a member of the Committees on Water Policy and Administration and Finance.

Report of the Executive Director

Fred Laskey, MWRA Executive Director, stated that the U.S. Court of Appeals recently upheld the Authority's position on filtration. Mr. Laskey also reported that recent dry weather beach closings were not related to MWRA or combined sewer overflows. Mr. Laskey informed the Board that MWRA was recently required to post an ad that a laboratory that MWRA used was not certified to test for two out of forty-seven items for which MWRA must test for drinking water purposes. Although the Authority did not fail to meet its required numbers, because the lab is not certified MWRA had to publicly state this information. Staff protested to the Department of Environmental Protection (DEP) because the lab was acquired through the agency's website. However, the website disclaims any guarantees that recommended labs are certified. Realizing that MWRA was in compliance, DEP tried to work with the Authority, yet regulations require that a notification be published. The cost of the advertisement in the Boston Herald was $4,500. Staff has not received any feedback on it.

APPROVALS

SRF Borrowing Authorization

The Board voted to adopt the thirty-sixth Supplemental Resolution authorizing the issuance of up to $17,500,000 MWRA General Revenue Bonds (subordinate series), 2001 Series D and the supporting issuance resolution. Funds are available in the FY02 budget for this borrowing. The average annual cost of this borrowing is projected to be approximately $700,000 through the Massachusetts Water Pollution Abatement Trust (SRF), which is subsidized by the Commonwealth and the federal government.

Memorandum of Understanding (MOU) and Financial Assistance Agreement (FAA) with the City of Cambridge for Implementation of CSO Projects, Amendment 2

The Board voted to authorize the Executive Director, on behalf of the Authority, to execute Amendment 2 to the MOU and related FAA with the City of Cambridge for implementation of the CSO control plan, increasing the total financial assistance amount by $2,532,000 to an amount not to exceed $18,409,000. Both the MOU and a FAA between Cambridge and MWRA were executed on June 28, 1996. The MOU provides a framework within which the City and MWRA cooperate in the implementation of certain CSO projects as required by the federal court order. The FAA provides a mechanism by which MWRA funds will be made available to Cambridge for design and construction costs. The agreements facilitate the management of certain CSO projects by Cambridge, with oversight and funding by MWRA.

The FY02-04 CIP budget includes $39,467,000 for Cambridge implemented CSO projects. Amendment 2 increases the cumulative amendment total to $5,909,000, added to the MOU's original amount of $12,500,000, for a revised total amount of authorized funding to Cambridge of $18,409,000 to date.

Renewal of Memoranda of Agreements (MOA) with the Massachusetts Department of Public Health (MDPH) and the Boston Public Health Commission (BPHC)

The Board voted to authorize the Executive Director, on behalf of the Authority, to renew the MOA with the MDPH for two years in an amount not to exceed $145,000 per year. The Board further voted to renew the MOA with the BPHC for two years in an amount not to exceed $120,000 per year, for the purposes of implementing programs for waterborne disease surveillance and outbreak monitoring activities.

Town of Wilmington Emergency Water Supply Connection

The Board voted to approve the Town of Wilmington's use of an emergency water supply connection to the MWRA water supply system, contingent upon Wilmington securing the MWRA Advisory Board's approval, DEP's declaration of a water supply emergency in the Town, and the Town's demonstration that it is has a) utilized all feasible non-MWRA sources of supply for the duration of the emergency; b) taken all feasible steps to minimize its demand on the MWRA system; and c) met all other applicable requirements of MWRA Policy #OP.05 - Emergency Water Supply Withdrawals in effect at the time of the request for use. The Board further voted to direct staff to send a letter to the Town indicating MWRA's approval of an emergency supply connection to the MWRA system, contingent upon the conditions noted above and indicating that approval of an emergency connection neither presumes nor constitutes approval of a permanent connection. Mr. Carroll made the request for a vote of the Board at the July 11, 2001 meeting. The original staff summary was presented as an informational item.

Mr. Mannering asked whether MWRA has an idea of which communities may want to draw on MWRA supplies and how much they want to draw as a safe yield. Staff responded that the Authority has been tracking the condition of water supplies and sources in other communities and does have an idea. Staff also stated that MWRA is in the process of joining the Advisory Board in reconvening the System Expansion Committee to address such issues. Joseph Favaloro, Executive Director of the MWRA Advisory Board, invited the Board to participate in the System Expansion Committee's discussions.

Eileen Simonson, Co-Executive Director of the Water Supply Citizens Advisory Committee, stated that safe yield is not the largest issue and that management strategies need to be implemented with ways to reduce demand. She suggested a workshop be planned. Ms. Pollak added that communities have a responsibility to provide MWRA with management development plans on how they intend to address water supply issues at the local level.

Appointment of Senior Program Manager - Master Planning, Operations

The Board voted to approve the Executive Director's recommendation to appoint Lise Marx to the position of Senior Program Manager - Master Planning in the Planning Department, Operations Division, at an annual salary of $83,357, effective September 1, 2001.

CONTRACT AWARDS

Task Order Appraisal Services: Tyburski Appraisal and Consulting Services, Inc., Contract 565-TA and The Foster Company, Contract 566-TA

The Board voted to approve the recommendation of the Consultant Selection Panel to select Tyburski Appraisal and Consulting Services, Inc., d/b/a ILS/Tyburski Appraisal Corporation and The Foster Company to provide consulting services to MWRA for task-order appraisal services. The Board further voted to authorize the Executive Director, on behalf of the Authority, to execute Contract 565-TA with Tyburski Appraisal and Consulting Services, Inc. and Contract 566-TA with The Foster Company, in amounts not to exceed $50,000 and for terms of three years.

These Contracts are for the hiring of the aforementioned firms to provide appraisal services on an as-needed basis through the use of task-orders, which simplify the administration of the contract process. This approach is particularly useful for smaller assignments. Large-scale appraisal projects will continue to be bid independently. The FY02-04 CIP includes a budget of $3,542,000 for technical assistance contracts, with $150,000 dedicated to funding land appraisals.

Chelsea Branch Sewer and Revere Extension Sewer Rehabilitation: Insituform Technologies, Contract 6370

The Board voted to approve the award of Contract 6370, Chelsea Branch Sewer and Revere Extension Sewer Rehabilitation, to the lowest responsive bidder, Insituform Technologies, Inc., and to authorize the Executive Director, on behalf of the Authority, to execute and deliver said Contract in the bid amount of $3,410,050 for a term of 300 days from the Notice to Proceed. The FY02-04 CIP includes a budget of $7,373,000 for Contract 6370. This Contract consists of the rehabilitation of 9,270 linear feet of sewer interceptor that varies in age along its length from forty-six to ninety-seven years old. The interceptor is located in the City of Chelsea and conveys flows from Everett, Chelsea and Revere to the Chelsea Screen House.

Warren Cottage Line Rehabilitation: Spiniello Companies, Contract 6285

The Board voted to approve the award of Contract 6285, Warren Cottage Line Rehabilitation, to the lowest responsive bidder, Spiniello Companies, and to authorize the Executive Director, on behalf of the Authority, to execute and deliver said Contract in the bid amount of $1,123,500 for a term of 450 days from the Notice to Proceed. The FY02-04 CIP includes a budget of $1,544,000 for Contract 6285. Contract 6285 addresses a project to clean and install a cement-mortar lining along the Warren Cottage Line, which is a 137-year-old water main. It is part of the Southern High Service System in Brookline and Boston, and extends from Brookline to Jamaica Plain.

Microwave Communications System-Wide Backbone, New England Digital Distribution, Inc., Contract 6653

The Board voted to approve the award of Contract 6653, Microwave Communications System-Wide Backbone, to the lowest responsive bidder, New England Digital Distribution, Inc., and to authorize the Executive Director, on behalf of the Authority, to execute and deliver said Contract in the bid amount of $1,630,925, with a term of 200 days from the Notice to Proceed. The FY02-04 CIP includes $1,860,000 for Contract 6653.

Ms. Hicks asked for clarification on the cost of the microwave dishes. Staff responded that the purchase price is $1.1 million for eight dishes and between $500,000 to $600,000 for installation. Mr. Mannering asked why the Authority could not use a DSL telephone cable line. Staff responded that the Authority is required to repair a problem within four hours and a DSL line cannot provide a comparable level of reliability.

 CONTRACT AMENDMENTS/CHANGE ORDERS

Task Order Appraisal Services: The Foster Company, Contract 556TA, Amendment 2

The Board voted to authorize the Executive Director, on behalf of the Authority, to approve Amendment 2 to increase the amount of Contract 556-TA with The Foster Company, Task Order Appraisal Services, in the amount of $15,000. Amendment 2 increases the cumulative amendment total to $27,500, added to the original contract amount of $50,000, for a revised contract total of $77,500. The FY02-04 CIP includes a budget of $3,542,000 for technical assistance contracts that include land appraisals.

The purpose of Amendment 2 is to fund costs associated with litigating an eminent domain taking for an easement at the Parkway Plaza Shopping Center in Chelsea, MA. Because The Foster Company prepared the original appraisal report, the firm was needed to provide litigation support to MWRA's Law Division. A brief trial was held in June 2001 that resulted in a favorable verdict for MWRA.

North Dorchester Bay/Reserved Channel Consolidation Conduits and Reserved Channel CSO Facility: Parsons Brinckerhoff/Metcalf & Eddy, J.V., Contract 6220, Amendment 4

The Board, with Chairman Durand abstaining, voted to authorize the Executive Director, on behalf of the Authority, to approve Amendment 4 to increase the amount of Contract 6220 with Parsons Brinckerhoff/Metcalf & Eddy, J.V., North Dorchester Bay and Reserved Channel Consolidation Conduits and Reserved Channel CSO Facility, in the amount of $786,235. Amendment 4 increases the cumulative amendment total to $2,792,823, added to the original contract amount of $10,209,673, for a revised contract total of $13,002,496.

The FY02-04 CIP includes $26,123,000 for Contract 6220. Of this total, the CIP includes $1.3 million for project reassessment. Staff believes that reassessment of the appropriate level of CSO control, potential control technologies and siting options for North Dorchester Bay and Reserved Channel is necessary before making further decisions. Staff has proposed that the reassessment be carried out in two phases over a twelve-month period. Amendment 4 addresses Phase 1 - Initial Reassessment, which is expected to take approximately eight months and cost $842,235 to be completed (of which $56,000 will be reallocated from current remaining contract funds).

Although Amendment 4 includes only Phase 1 of the reassessment, staff states in its summary that the total of this Amendment and the Phase 2 reassessment work (Amendment 5) are still expected to be within the $1.3 million. Depending upon the outcome of the reassessment and subsequent negotiations with the court parties, staff expects to return to the Board to request additional funds for design, permitting or bid services.

Design and Construction Services for the Braintree-Weymouth Tunnel and Intermediate Pump Station: Stone & Webster, Contract 5313, Amendment 7

The Board voted to authorize the Executive Director, on behalf of the Authority, to approve Amendment 7 to increase the amount of Contract 5313 with Stone & Webster Massachusetts, Inc., Braintree-Weymouth Tunnel and Intermediate Pump Station (IPS), in an amount not to exceed $6,787,744 and to extend the time for completion by 484 calendar days to May 14, 2004. Amendment 7 increases the cumulative amendment total to $10,326,472, added to the original contract amount of $7,673,200, for a revised contract total of $17,999,672. The FY02-04 CIP includes $17,985,000 for Contract 5313, resulting in a $14,672 budget deficit. Staff states in its summary that if this additional amount causes the CIP budget to exceed the ten-year spending cap or the cap for any of the first three years, reductions will be taken elsewhere within the CIP to offset the increase.

Staff attributes Amendment 7 to increased levels of efforts and additional engineering services during construction, as well as adjustments in design service costs. The most significant factors contributing to Amendment 7 are 1) an increase of over 40% in the construction phase duration, resulting in the need to extend construction phase services ($3,053,945); 2) the need for additional field staff to oversee the Contractor's activities ($2,313,000); and 3) increased levels of efforts for construction administration services due to the increased complexity of the IPS ($1,355,946).

Braintree/Weymouth Tunnel and Shafts: Modern Continental, Contract 5315, Change Order 14

The Board voted to authorize the Executive Director, on behalf of the Authority, to approve Change Order 14 to increase the amount of Contract 5315 with Modern Continental Construction Company, Inc., Braintree-Weymouth Tunnel and Shafts, in an amount not to exceed $310,000 and to extend the time for completion by two days to March 5, 2003. Change Order 14 addresses costs associated with training Contractor personnel familiar with tunnel conditions to operate locomotives and other equipment used during tunnel rescues.

Change Order 14 increases the cumulative change order total to $3,335,190.02, added to the original contract amount of $73,007,162, for a revised contract total of $76,342,352.02. The FY02-04 CIP includes $81,460,000 for Contracts 5313 and 5315A. The latter addresses emergency tunnel rescue and fire services and is for the amount of $2,082,019. The revised total of Contract 5315 added to Contract 5315A results in a budget deficit of $59,551.02. Staff states in its summary that if this additional amount causes the CIP budget to exceed the ten-year spending cap or the cap for any of the first three years, reductions will be made elsewhere within the CIP.

Upgrades at Somerville Marginal, Commercial Point and Fox Point CSO Facilities: R. Zoppo Corporation, Contract 6496, Change Order 13

The Board voted to authorize the Executive Director, on behalf of the Authority, to approve Change Order 13 to increase the amount of Contract 6496 with R. Zoppo Corporation, Upgrades at Somerville Marginal, Commercial Point and Fox Point, in the amount of $36,648.95. The Board further voted to authorize the Executive Director to approve additional change orders as may be needed to Contract 6496 in amounts not to exceed the aggregate of $50,000 and sixty calendar days.

Change Order 13 increases the cumulative change order total to $565,275.02, added to the original contract amount of $7,176,000, for a revised contract total of $7,741,275.02. The FY02-04 CIP includes a budget of $8,003,000 for Contracts 6469 and 6469A. The latter is a separate MOA with the Metropolitan District Commission (MDC) for its Beaches Restoration program and is for the amount of $277,511.39. MDC constructed a dechlorination force main along Savin Hill Beach from the Southeast Expressway to Morrissey Boulevard to process effluent flows from Fox Point. The revised total of Contract 6469 added to Contract 6469A results in a budget deficit of $15,786.41. Staff states in its summary that if this additional amount causes the CIP budget to exceed the ten-year spending cap or the cap for any of the first three years, reductions will be made elsewhere within the CIP.

Effluent Outfall Tunnel: Kiewit/Atkinson/Kenny, J.V., Contract 5637, Change Order 75

The Board voted to authorize the Executive Director, on behalf of the Authority, to approve Change Order 75 to increase the amount of Contract 5637 with Kiewit/Atkinson/Kenny, J.V., Effluent Outfall Tunnel, in the amount of $120,635.16. Change Order 75 increases the cumulative change order total to $21,444,514.07, added to the original contract amount of $201,959,987, for a revised contract total of $223,404,501.17. Although the FY02-04 CIP includes $291,636,000 for Contract 5637, a budget shortfall of $1,199,823.17 results with the addition of off contract claim settlements that the Board approved during Executive Sessions. Staff states in its summary that if this additional amount causes the CIP budget to exceed the ten-year spending cap or the cap for any of the first three years, reductions will be made elsewhere within the CIP.

Contract 5637 provided for the construction of the 9.5-mile Effluent Outfall Tunnel. Change Order 75 reflects the final adjustment to the cost of the Disputes Review Board, which was established to resolve claims between MWRA and the Contractor. Specifically, this change order addresses MWRA's share of costs related to the review of a claim regarding the impact of excess water on post-mining activities.

Boston Harbor Project - Final Site Completion: Barletta Heavy Division, Contract 6201, Change Order 18

The Board voted to authorize the Executive Director, on behalf of the Authority, to approve Change Order 18 to increase the amount of Contract 6201 with Barletta Heavy Division, Inc., Final Site Completion, in the amount of $195,383.40. The Board further voted to authorize the Executive Director to approve additional change orders as may be needed to Contract 6201 in amounts not to exceed the aggregate of $65,000. Change Order 18 increases the cumulative change order total to $2,972,432.66, added to the original contract amount of $31,741,234, for a revised contract total of $34,713,666.66. The FY02-04 CIP includes $34,697,000 for Contract 6201, resulting in a $16,666.66 budget deficit. Staff states in its summary that if this additional amount causes the CIP budget to exceed the ten-year spending cap or the cap for any of the first three years, reductions will be made elsewhere within the CIP.

Contract 6201 will bring closure to all civil/site systems for Deer Island. Presently, emergency response vehicles can only access the site via a temporary, unpaved road. Staff attributes Change Order 18 to the need for site grading and installation of paving, curbs, sidewalks and fencing along a permanent access road.

Blue Hills Covered Storage, Concept Design/EIR: Rizzo Associates, Contract 6139, Amendment 3

The Board voted, with Chairman Durand abstaining, to authorize the Executive Director, on behalf of the Authority, to approve Amendment 3 to extend the time for completion of Contract 6139 with Rizzo Associates, Blue Hills Covered Storage EIR/Conceptual Design, by six months to February 28, 2002. There are no costs associated with Amendment 3 and the FY02-04 CIP contains a budget of $868,000 for Contract 6139.

MetroWest Water Supply Tunnel, Construction Management/Resident Inspection: Stone & Webster, Contract 5284, Amendment 5

The Board voted to authorize the Executive Director, on behalf of the Authority, to approve Amendment 5 to increase the amount of Contract 5284 with Stone & Webster Massachusetts, Inc., with the Shaw Group, Inc., as guarantor, MetroWest Water Supply Tunnel, Construction Management/Resident Inspection, in an amount not to exceed $1,899,967. Amendment 5 increases the cumulative amendment total to $4,893,187, added to the original contract amount of $31,593,033, for a revised contract total of $36,486,187.00. The FY02-04 CIP includes a budget of $36,486,000 for Contract 5284, resulting in a budget shortfall of $220.

MetroWest Water Supply Tunnel Project, Owner-Controlled Insurance Program, Consultant Services: J.H. Albert International Insurance Advisors, Contract 6117C, Amendment 2

The Board voted to authorize the Executive Director, on behalf of the Authority, to approve Amendment 2 to extend the time for completion of Contract 6117C with J.H. Albert International Insurance, MetroWest Water Supply Tunnel, Owner-Controlled Insurance Program Consultant Services, by eighteen months to February 28, 2003. There are no costs associated with any amendments to Contract 6117C and the FY02-04 CIP budgets $527,000 for MetroWest Professional Services.

MetroWest Water Supply Tunnel, Middle Tunnel Segment: Shea-Traylor-Healy, J.V., Contract 6055, Change Order 33

The Board voted to authorize the Executive Director, on behalf of the Authority, to approve Change Order 33 to increase the amount of Contract 6055 with Shea-Traylor-Healy, J.V., MetroWest Water Supply Tunnel, Middle Tunnel Segment, in the amount of $50,000. The Board further voted to authorize the Executive Director to approve an extension of the trial Safety Incentive Reward Program for Contract 6055 until Substantial Completion, scheduled for March 2003. The extension may result in bonuses to the Contractor of up to $100,000, depending on its actual safety performance. Additionally, the Board voted to authorize the Executive Director to approve additional change orders as may be needed to Contract 6055 in amounts not to exceed the aggregate of $250,000.

Change Order 33 increases the cumulative change order total to $1,669,656, added to the original contract amount of $251,867,770, for a revised contract total of $253,537,426. The FY02-04 CIP includes $252,403,000 for Contract 6055, resulting in a $1,134,426 deficit. Staff states in its summary that if this additional amount causes the CIP budget to exceed the ten-year spending cap or the cap for any of the first three years, reductions will be made elsewhere within the CIP.

Walnut Hill Water Treatment Plant, Site Work and Storage Tank Facility: Barletta Heavy Division, Contract 6488, Change Order 22

The Board voted to authorize the Executive Director, on behalf of the Authority, to approve Change Order 22 to increase the amount of Contract 6488 with Barletta Heavy Division, Inc., Walnut Hill Water Treatment Plant, Site Work and Storage Tank Facility, in the amount of $400,790. Change Order 22 increases the cumulative change order total to $4,113,195.40, added to the original contract amount of $62,344,400, for a revised contract total of $66,457,595.40. The FY02-04 CIP contains a budget of $67,150,000 for Contract 6488. The purposes of Change Order 22 are to address costs associated with revisions to site utilities, bio-engineered site revisions and a safety incentive fee.

Walnut Hill Water Treatment Plant, Site Work and Storage Tank Facility: Barletta Heavy Division, Contract 6488, Change Order 23

The Board voted to authorize the Executive Director, on behalf of the Authority, to approve Change Order 23 to increase the amount of Contract 6488 with Barletta Heavy Division, Inc., Walnut Hill Water Treatment Plant, Site Work and Storage Tank Facility, in the amount of $324,840. The Board further voted to authorize the Executive Director to approve additional change orders as may be needed to Contract 6488 in amounts not to exceed the aggregate of $250,000. Change Order 23 increases the cumulative change order total to $4,438,035.40, added to the original contract amount of $62,344,400, for a revised contract total of $66,782,435.40. The FY02-04 CIP includes $67,150,000 for Contract 6488. Change Order 23 is associated with revisions to the Interim Corrosion Control Facility's piping and utilities and rock excavation along the Wachusett Extension.

Walnut Hill Water Treatment Plant, Wachusett & Cosgrove Intakes: J.F. White Contracting Co., Contract 6207, Change Order 11

The Board voted to authorize the Executive Director, on behalf of the Authority, to approve Change Order 11 to increase the amount of Contract 6207 with J.F. White Contracting Company, Walnut Hill Water Treatment Plant, Wachusett and Cosgrove Intakes, in the amount of $86,550. The Board further voted to authorize the Executive Director to approve additional change orders as may be needed to Contract 6207 in amounts not to exceed the aggregate of $250,000.

Change Order 11 increases the cumulative change order total to $1,475,022, added to the original contract amount of $10,930,100, for a revised contract total of $12,405,122. The FY02-04 CIP contains a budget of $12,160,000 for Contract 6207, resulting in a $245,122 deficit. Staff states in its summary that if this additional amount causes the CIP budget to exceed the ten-year spending cap or the cap for any of the first three years, reductions will be made elsewhere within the CIP. The purpose of Change Order 11 is to furnish and install a new sluice gate to replace the existing broken gate.

Walnut Hill Water Treatment Plant, Wachusett Aqueduct Rehabilitation: United Gunite, Contract 5522, Change Order 2

The Board voted to authorize the Executive Director, on behalf of the Authority, to approve Change Order 2 to increase the amount of Contract 5522 with United Gunite, Walnut Hill Water Treatment Plant, Wachusett Aqueduct Rehabilitation, in an amount not to exceed $300,000. The Board further voted to authorize the Executive Director to approve additional change orders as may be needed to Contract 5522 in amounts not to exceed the aggregate of $250,000. Mr. Favaloro stated that this is a critical project and requested that staff provide additional updates.

Change Order 2 increases the cumulative change order total to $345,000, added to the original contract total of $21,435,807, for a revised contract total of $21,780,807. The FY02-04 CIP contains a budget of $21,436,000 for Contract 5522, resulting in a $344,807 shortfall. Staff states in its summary that if this additional amount causes the CIP budget to exceed the ten-year spending cap or the cap for any of the first three years, reductions will be made elsewhere within the CIP. Change Order 2 addresses funding for expansion of the piloting of the groundwater control methods in the wettest areas of the Wachusett Aqueduct.

East West Spot Pond Supply Mains Rehabilitation: Spiniello Companies, Contract 6317, Change Order 3

The Board voted to authorize the Executive Director, on behalf of the Authority, to approve Change Order 3 to increase the amount of Contract 6317 with Spiniello Companies, East Spot Pond Supply Mains Rehabilitation, Sections 7 and 12, in the amount of $750,000. The Board further voted to authorize the Executive Director to approve additional change orders as may be needed to Contract 6317 in amounts not to exceed the aggregate of $250,000. Change Order 3 increases the cumulative change order total to $962,944.03, added to the original contract amount of $5,527,600, for a revised contract total of $6,490,544.03. The FY02-04 CIP contains a budget of $5,578,000 for Contract 6137, resulting in a $912,544 deficit. Staff states in its summary that if this additional amount causes the CIP budget to exceed the ten-year spending cap or the cap for any of the first three years, reductions will be made elsewhere within the CIP.

Change Order 3 is the result of the need to conduct certain work under Contract 6317 earlier than originally planned. The scope of the work includes pipe replacement, cleaning and lining beneath an intersection in the City of Medford that is scheduled for repavement. In order not to disrupt the City's plans, MWRA has moved up the date for this work from 2002 to 2001.

INFORMATION REPORTS

Union Park CSO Treatment Facility: Memorandum of Agreement (MOA) with Boston Water & Sewer Commission (BWSC)

MWRA's CSO control plan is comprised of twenty-five projects at a total estimated design construction cost of $550 million (FY02-04 CIP), including the Union Park CSO Detention/Treatment Facility, at a capital cost of $40 million. The Authority is designing and constructing a facility to treat wet weather overflows from the South End neighborhood of Boston, which flow to the existing BWSC Union Park Pump Station. Under the CSO plan, MWRA has assumed responsibility for constructing, owning and operating the Treatment Facility.

Under current conditions, the Pump Station receives wet weather overflows from the combined sewer system serving the South End. In order to protect South End neighborhoods from flooding, BWSC pumps overflows to the Roxbury Canal Conduit, which discharges to the Fort Point Channel through outfall BOS070. Under the CSO plan, for the purpose of improving water quality in the Fort Point Channel, MWRA is responsible for providing treatment for this CSO.

MWRA's treatment facility will occupy common building space and be hydraulically linked to the Pump Station. As a result, MWRA and BWSC have agreed in a MOA that future operations of the integrated facilities will be jointly contracted. The MOA formalizes this arrangement and specifies how the parties will determine the basis of sharing operation and maintenance costs in the contract. Mr. Carroll requested that staff provide the Board a written summary outlining the specific responsibilities of MWRA and BWSC prior to any formal vote on the draft MOA since there remain issues under negotiation.

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This summary does not include every item discussed by the Board, nor the full extent of the discussions. Please contact Nathalie Grady at the Advisory Board Office with questions, comments and requests for additional information.