Title
Resolution to Approve an Amendment to the Professional Services Agreement with CDM Michigan, Inc. for the Swift Run Parallel Relief Sewer Project ($114,146.00)
Memorandum
This is to recommend approval of the attached resolution authorizing an amendment to the Professional Services Agreement with CDM Michigan, Inc. (CDM) for construction engineering services for the Swift Run Parallel Relief Sewer.
On September 4, 2003, the City entered into an Administrative Consent Order (ACO) with the Michigan Department of Environmental Quality (MDEQ) to address sanitary sewer overflows within the City. As part of the ACO compliance program, the City is obligated to begin construction of the Swift Run Parallel Relief Sewer by December 31, 2008. Bids for the construction of the project were opened on June 27, 2008 and award of the construction contract is being submitted under a separate resolution to Council.
The contract for design of the improvements was awarded to CDM in November 2000. The project was put on hold due to delays in negotiation of an Outside City Service Agreement (OSSA) between the City and Shetland Drive property owners. The issues were later resolved and in March 2006, CDM's contract was amended to include easement-related work (R-101-3-06).
Because CDM prepared the design and is most familiar with the project, they are best suited to provide cost effective construction engineering services.
Below is the breakdown of the scope of services included in the proposed amendment.
1) Construction Engineering ($22,642.00). CDM will provide construction engineering, including preparing field design changes, reviewing construction claims and contractor submittals, meeting with the neighbors, weekly meetings with the contractor, and preparation of as-built drawings.
2) Construction Staking and Surveying ($9,709.00). CDM will provide all the necessary construction staking throughout the job.
3) Construction Inspection ($81,795.00). CDM will provide full-time construction inspection, including overtime and weekend work.
The CDM's approved Professional Services Agreement for the project design engineering was for $168,700.00. The attached resolution authorizes an Amendment to the Professional Services Agreement for $114,146.00 for the construction engineering services.
CDM received Human Resources Department approval on May 1, 2008. Employees working on this project will be paid living wages per the contract.
The amendment will be funded from the previously approved project budget in which sufficient funds exist.
Staff
Prepared by: Homayoon Pirooz, P.E., Project Management Manager
Reviewed by: Sue F. McCormick, Public Services Administrator
Approved by: Roger W. Fraser, City Administrator
Body
Whereas, Construction engineering services, including construction inspection and construction staking, are required for the Swift Run Parallel Relief Sewer;
Whereas, CDM Michigan, Inc. has demonstrated the required experience, personnel, and competitive fees to provide construction engineering services for the Swift Run Parallel Relief Sewer project;
Whereas, CDM Michigan, Inc. designed the project for the City;
Whereas, It is now necessary to construct the project in order to meet the MDEQ Administrative Consent Order deadlines;
Whereas, CDM Michigan, Inc. received Human Rights approval on May 1, 2008 and complies with the Living Wage Ordinance; and
Whereas, Sufficient funds exist in the approved project budget.
RESOLVED, That the City Council authorizes an amendment to the professional services agreement with CDM Michigan, Inc. in the amount of $114,146.00 for construction engineering services for the Swift Run Parallel Relief Sewer project;
RESOLVED, That the City Administrator be authorized to approve additional amendments to the professional services agreement not to exceed $15,000.00 in order to satisfactorily complete the project;
RESOLVED, That the Mayor and City Clerk be authorized and directed to execute said amendment after approval as to form by the City Attorney, and approval as to substance by the City Administrator;
RESOLVED, That the City make the following declaration for the purpose of complying with the reimbursement rules of Treas. Reg. 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 Council authorize the City Administrator to take necessary administrative actions to implement this resolution.