Title
Resolution Approving an Amendment to Professional Services Agreement with Harper Electric, Inc. for On-Call City Electrical Services (Not to exceed $275,000.00)
Memorandum
The City has a 2-year on-call contract with Harper Electric to provide electrical support for city projects dated July 25, 2019 which runs through June 30, 2021 and has an annual, not to exceed amount of $75,000.00. As the City has been scaling up its electric vehicle charging infrastructure and preparing facilities for a transition to electric, the demands for electrical support have grown. As such, this resolution seeks to increase the amount of support we are able to seek from Harper Electric for FY21.
Most immediately, the City needs to increase the contract amount with Harper Electric in order to support the installation of 4 direct current fast chargers (DCFCs) for electric vehicle charging at City Hall, as well as the installation of 14 Level 2 (L2) chargers at 2000 S. Industrial Highway to support our new electric fleet vehicles. We also anticipate needing to install additional chargers, and doing the necessary electrical work to support those chargers, as we continue to replace our internal combustion engines with electric vehicles. Increasing our contract with Harper Electric will provide the financial support under this contract to complete that necessary work.
As illustration, installing four DC Fast Chargers in the Ann St. lot at Ann Arbor City Hall will require significant electrical upgrades. This work includes the installation of a 480V, 600A power panel for installation of 4 dedicated circuits, pouring of concrete pads, trenching, and placement of conduits, among other actions. Harper Electric has the capacity, competencies, and the trust of the City to complete work of this nature. However, a project like this is estimated to cost approximately $111,500.00 (plus a 10% contingency of $11,150). This project alone exceeds our current contract with Harper Electric, necessitating that the contract be increased.
Additionally, the work at 2000 S. Industrial Highway will cost approximately $80,000.00 for installation of the charging infrastructure. Harper Electric has installed over a dozen charging stations for the City’s fleet to date. The cost of the work at this location will be rebated by DTE under their Charging Forward program.
Budget/Fiscal Impact: $123,000.00 for this amendment is currently available in the FY21 Office of Sustainability and Innovations budget. The remaining $152,000.00 is available in the FY21 Fleet and Facilities Fund. The approximately $80,000.00 for the work at 2000 S. industrial Highway has been approved for rebate by DTE under their Charging Forward program upon completion of the work.
Harper Electric Inc. complies with the City’s Conflict of Interest, Living Wage, Prevailing Wage and Non-Discrimination ordinance requirements.
Staff
Prepared by: Simi Barr, Energy Fellow
Reviewed by: Missy Stults, Sustainability and Innovations Manager
Reviewed by: Matthew Kulhanek, Fleet and Facilities Manager
Approved by: Tom Crawford, City Administrator
Body
Whereas, The City of Ann Arbor has committed to reaching carbon-neutrality by the year 2030 though the unanimous adoption of the A2ZERO Carbon Neutrality Plan;
Whereas, A2ZERO Strategy 2, Action 4 calls to Electrify the City Fleet and A2ZERO Strategy 2, Action 6 calls to Expand Electric Vehicle Charging Infrastructure;
Whereas, A2ZERO Strategy 2, Action 6 includes the goal of having 2% of public and private parking spaces equipped with DC Fast Chargers;
Whereas, There is a need to provide safe and reliable electrical systems throughout City facilities;
Whereas, Harper Electric Inc. of Ann Arbor, MI provided the most responsive proposal for on-call electrical services solicited through RFP #19-17 in June 2019;
Whereas, The Fleet & Facilities Unit and the Office of Sustainability and Innovations recommend an increase in the contract amount with Harper Electric Inc., for FY21 from $75,000.00 to $275,000.00 in order to support the significant amount of electric work needed to transition our City’s fleet to electric;
Whereas, Harper Electric Inc. complies with the City’s Conflict of Interest, Living Wage, Prevailing Wage and Non-Discrimination ordinance requirements; and
Whereas, Funding for this work is available in the Office of Sustainability and Innovations and Fleet and Facilities FY21 budgets;
RESOLVED, That City Council approve a contract amendment with Harper Electric, Inc., in the amount of not to exceed $275,000.00 for FY21;
RESOLVED, That the contract will still include the option to extend the contract for up to one additional two-year period at the hourly rates provided in the RFP fee proposal form upon approval by the City Administrator, for a total not to exceed $500,000.00 over the life of the contract including renewals;
RESOLVED, That the Mayor and City Clerk be authorized and directed to execute said contract after approval as to substance by the City Administrator and approval as to form by the City Attorney, and that the City Administrator be authorized to execute the extensions after approval as to form by the City Attorney; and
RESOLVED, That the City Administrator be authorized to take all necessary actions to implement this resolution.