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Board approves GMP 3 for Allen plant solids-handling upgrades, adds manual transfer switch
Summary
The board approved a guaranteed maximum price modification (GMP 3) under an existing CMGC agreement to add a manual transfer switch at the Allen Water Treatment Plant to improve backup power connections; staff presented a recommended GMP and a 5% contingency for final authorization.
The Water & Sewer Board voted June 10 to add GMP 3 to an existing construction manager/general contractor (CMGC) agreement to fund installation of a manual transfer switch and associated electrical work at the Allen Water Treatment Plant.
Adam Marquez, utilities engineering supervisor, said the solids-handling improvements project increases power demand at the Allen plant and the new manual transfer switch will allow a rental or supplemental generator to connect quickly and safely during outages or for planned maintenance. He said the switch gear has an approximately 15‑month equipment lead time; staff planned procurement in July with equipment delivery expected in October of the following year and installation complete by the end of 2026 if approved.
Marquez described the scope as furnishing and installing the transfer switch, building a reinforced concrete pad, installing underground conduit and duct bank, and tying into the existing switch gear building. He said the contractor will supply a roll‑up generator during construction and commissioning.
Staff presented a proposed GMP amount (reported at the meeting as approximately $666,050.08) and recommended a 5% staff-managed contingency, yielding a total project authorization presented to the board of $699,833. Marquez and other staff explained the CMGC/GMP approach: the city selected a contractor early to work through design and long‑lead procurement items and to manage pricing through incremental GMPs.
Board members asked about contingency size (5% in this case, rather than the more typical 10%) and were told staff judged the project scope to be lower risk and included an allowance for price escalation in the contract price. After discussion, the board voted to add GMP 3 and authorize the total project amount as presented. The motion carried by voice vote.
Why this matters: the transfer switch is intended to shorten downtime during outages or maintenance by making it easier to connect a generator, improving operational resilience for a treatment plant that supports drinking-water delivery and solids handling for the utility.
The contract adds to two earlier GMPs that are already under construction; staff said GMPs 1 and 2 are expected to complete in Q3 of the calendar year.
