Title
Resolution for Approval of Professional Services Agreement with CDM Michigan Inc., ($458,172.00) for the Water Distribution System Master Plan and Hydraulic Model Upgrade Project
Memorandum
Your approval is requested to approve a Professional Services Agreement with CDM Michigan Inc., in the amount of $458,172.00 for the Water Distribution System Master Plan and Hydraulic Model Upgrade Project.
All public water systems are required by the Michigan Safe Drinking Water Act (Act 399) to complete a master plan every five years. In 2006, the City completed the Water Treatment and Facilities Master Plan. This plan evaluated the source and treatment components of the water system. The Water Distribution System Master Plan will cover the remaining components of the water system and will fulfill the Act 399 requirements.
The goal of this project is to ensure a sustainable water distribution system that is protective of the public health while maintaining an acceptable level of service. This will be accomplished by analyzing current and future population projections, water use and distribution piping data, and by updating the water system's hydraulic model. When complete, the Master Plan will be used to identify changes needed to improve water system quantity and quality, and provide a prioritized list of recommended projects that can be used in capital project planning.
As part of this project, an interface will be developed between the hydraulic model and the city's recently completed Automated Meter Reading (AMR) data system. This interface will enable the model to utilize daily consumption data in allocating water demands in the hydraulic model. This improvement permits the use of actual customer water usage patterns in analyses, and therefore more accurately predicts future improvements needed on the system.
RFP #677 originally included two project components; a distribution system planning component(listed in RFP as the "Primary" component) and a level of service (LOS) component. The primary component evaluates current and future system demands using population and water use data, distribution piping analysis and hydraulic modeling. The Level Of Service Component evaluates various service standards and builds the framework for a water distribtuion asset management system. Three consulting firms submitted proposals in response to the RFP, but none of them adequately addressed both components. As such, we have separated these components into two separate projects (planning and LOS). This resolution is seeking approval for the distribution system planning project. Completion of the "Primary" component fulfills the obligation to the state for our master planning requirements. We will reconsider the LOS component at a later date.
The three firms that submitted proposals were then interviewed by a selection committee. CDM is recommended because of their detail and completeness of scope, the level of effort identified to accomplish the specified tasks and the costs to complete the project. City staff negotiated the contract scope for a cost not-to-exceed of $458,172.00. CDM Michigan received human rights approval on October 10, 2007.
Council approved this project and its associated funding during the FY08 Capital Budget process. Funds will be advanced from the Water Supply System Budget pending the sale of appropriate Water Revenue bonds. Funding for staff and equipment costs is budgeted in the approved FY08 and the requested FY09 Water Supply System Operation and Maintenance Budget.
Staff
Prepared by: Molly Wade, Water Quality Manager, Public Services
Reviewed by: Sue F. McCormick, Public Services Administrator
Approved by: Roger Fraser, City Administrator
Body
Whereas, Public Services staff has identified a need to develop a water distribution master plan and update the hydraulic model to ensure a sustainable water distribution system that is protective of the public health while maintaining an acceptable level of service and improving efficiency in operations and maintenance;
Whereas, Council approved the Water Distribution System Master Plan and associated funding during the FY08 Capital Budget process;
Whereas, Funding for staff and equipment costs is available in the approved FY08 Water Supply System Operations & Maintenance budget and has been budgeted in the FY09 Water Supply System Operations & Maintenance budget;
Whereas, RFP-677, stating the objectives and criteria for this project, was responded to by three consultants teams with proposals;
Whereas, CDM Michigan, Inc. is recommended for the project because of their detailed work proposal, reasonable costs to perform the work, experience with hydraulic modeling of water distribution systems, and their specific knowledge of the City and Ann Arbor; and
Whereas, CDM Michigan received human rights approval on October 10, 2007;
RESOLVED, That the City Council authorize a professional services agreement with CDM Michigan, Inc. in the amount of $458,172.00 for completing a water distribution master plan and updating the hydraulic model of the water system;
RESOLVED, That the Mayor and City Clerk be authorized and directed to execute the said professional services agreement following approval as to substance by the City Administrator, and approval as to form by the City Attorney;
RESOLVED, That a contingency amount of $50,000.00 be established within the project budget and that the City Administrator be authorized to approve additional change orders to the contract with CDM Michigan, Inc. not to exceed $50,000.00 in order to satisfactorily complete this project;
RESOLVED, That the City makes the following declaration for the purpose of complying with the reimbursement rules of Treasury Regulations 1.150-2 pursuant to the Internal Revenue Code of 1986, as amended, that the City reasonably expects to reimburse itself for expenditures for the costs of the Project with proceeds of Bonds; and
RESOLVED, That City Council authorizes the City Administrator to take necessary administrative actions to implement this resolution and approve change orders with contingency funds.