Title
Resolution to Approve Amendment No. 1 to Amend the Professional Services Agreement with Stantec Consulting Michigan Inc., for Water Treatment Professional Engineering Services ($350,000.00 increase, total contract $850,000.00)
Memorandum
This memorandum and resolution requests approval of Amendment No. 1 to the professional services agreement for professional engineering services with Stantec Consulting Michigan Inc. (Stantec). Council approved a professional services agreement for $500,000.00 with Stantec in July 26, 2024 as part of Resolution No. R-24-194.
The City is seeking to amend the professional services agreement with Stantec to accommodate additional professional engineering service needs. The original task-based contract is effective FY25 through FY27. Stantec is currently supporting Public Services on numerous projects within the Water Treatment Services Unit (WTSU). Currently, Stantec is working on the Barton Embankment construction project, Barton Valve Replacement project, providing construction administration/observation, general electrical engineering services, as well as hydroelectric dam and Federal Energy Regulatory Commission (FERC) regulatory assistance and as-needed dam technician assistance to supplement WTP workforce. Stantec has demonstrated themselves to be experienced in a wide range of disciplines, responsive and cost effective in meeting those diverse needs on complex engineering tasks associated with the WTSU. Stantec’s longevity and experience in providing support on projects and assistance to the City as described makes them indispensable as partners in continuing this work.
Additional professional engineering services are required to support the Water Treatment Services Unit with capital, operation, and maintenance projects at the Water Treatment Plant and associated facilities, recreational dams, and hydroelectric generating dams in order to maintain the aggressive capital improvement project schedules and hydroelectric regulatory requirements. The requested amount is based on forecasted engineering services needs and additional work assignments, which includes but is not limited to continued dam support services, dam security improvements required by FERC, assisting with dam concrete assessments required by FERC, performing security assessments at Superior Dam, and the rebuilding of the Superior turbine.
Based upon the remaining capital needs and the significant effort needed to manage the dams and meet on-going FERC requirements, it is recommended that City Council approve Amendment No. 1 to the professional services agreement with Stantec to provide additional Professional Engineering Services for the remaining life of the contract. This amendment retains the option as described in the original memorandum to Resolution No. R-24-194 to extend the agreement for up to two (2) one-year periods.
Stantec complies with the requirements of the City’s Conflict of Interest, Non-Discrimination and Living Wage ordinance.
Budget/Fiscal Impact: These engineering services are to be funded from the approved FY25 Water Supply System Fund budget, Parks Maintenance and Capital Improvement Millage Fund, and the General Fund budgets. Engineering services in future fiscal years will be funded from the subsequent annual Operating and Capital Budgets if so, approved by Council. Tasks will be assigned on as-needed basis to the appropriate fund.
Staff
Prepared by: Glen Wiczorek, P.E., WTSU Senior Utilities Engineer
Reviewed by: Jordan Roberts, Public Services Area Administrator
Approved by: Milton Dohoney, Jr., City Administrator
Body
Whereas, Continued professional engineering services are necessary to maintain the Water Treatment Services Unit capital improvement and maintenance project schedule, and to meet the Federal Energy Regulatory Commission’s requirements at the dams;
Whereas, Additional funds are necessary to cover the continued professional engineering services needed to maintain the Water Treatment Services Unit capital improvement and maintenance project schedules, and regulatory needs;
Whereas, The Water Treatment Services Unit is seeking to amend the Professional Engineering Services Professional Services Agreement with Stantec Consulting Michigan Inc. because the contract balance is projected to be exhausted prior to the Contract expiration date;
Whereas, Funding is available in the approved FY25 Water Supply System Operations and Maintenance budget, Parks Maintenance and Capital Improvement Millage, the General Fund Operating Budget (Hydroelectric) and FY25 Capital Budgets;
Whereas, The Professional Engineering Services for future fiscal years will be funded by the appropriate Operating and Capital Budgets if so approved by Council; and
Whereas, Stantec Consulting Michigan Inc. complies with the requirements of the City’s Conflict of Interest, Non-Discrimination and Living Wage ordinances;
RESOLVED, That Amendment No. 1 to the Professional Services Agreement with Stantec Consulting Michigan Inc. is approved in the amount of $350,000.00;
RESOLVED, That Amendment No. 1 includes the option to extend the agreement for up to two (2) one-year periods;
RESOLVED, That the Mayor and City Clerk are authorized and directed to execute Amendment No. 1 to the Professional Services Agreement after approval as to substance by the City Administrator and approval as to form by the City Attorney;
RESOLVED, That the City makes 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 Projects with proceeds of Bonds;
RESOLVED, That the City Administrator be authorized to take the necessary administrative actions to implement this resolution, including authorization of two (2) one-year renewals; and
RESOLVED, That the funds be available for the life of the project(s) without regard to fiscal year until the Professional Service Agreement ends.