Title
Resolution to Approve Amendment 1 to the Five-Year Professional Services Agreement with Michigan Recreational Construction, Inc. for Playground Improvement Services for Parks & Recreation for a Not to Exceed Annual Amount of $750,000.00
Memorandum
Attached for your review and action is a resolution to approve Amendment 1 to the Professional Services Agreement (PSA) with Michigan Recreational Construction, Inc. (MRC) to provide playground improvement services for the Parks & Recreation Services Area.
The Ann Arbor Parks & Recreation system includes over 80 playgrounds that require ongoing maintenance, renovation, and replacement to ensure safe, accessible, and high-quality recreational opportunities for residents. Many playgrounds throughout the system were constructed over multiple decades and require continued investment to address aging infrastructure, maintain safety standards, and provide inclusive recreational amenities.
Establishing a pre-qualified playground contractor with extensive experience in playground design and construction allows staff to efficiently deliver improvements and reduce administrative time associated with procuring individual projects. The as-needed PSA structure allows staff to obtain project-specific fee proposals and evaluate individual projects prior to issuing work statements for each improvement.
In anticipation of increased playground renovation needs and rising construction costs, staff recommend increasing the annual contract authorization from $350,000.00 per fiscal year to $750,000.00 per fiscal year. This amendment does not obligate the City to expend the full authorized amount. Expenditures will continue to be based on available funding, project priorities, staff review, and individual work statements issued under the agreement.
Staff are also including the option to renew the agreement for up to two additional one-year periods upon approval by the City Administrator in this Amendment 1 which was included in R-24-308 but was not incorporated into the executed PSA.
Staff recommend approving Amendment 1 to increase the not to exceed annual contract authorization to $750,000.00 per fiscal year.
The Park Advisory Commission recommended approval of Amendment 1 at the July 21st meeting.
Budget/Fiscal Impact: Funding is available in the approved FY2027 Parks Maintenance and Capital Improvements Millage budget. Funding for services in future fiscal years will be contingent upon City Council approval of the Parks Maintenance and Capital Improvements budget.
Staff
Prepared by: Hillary Hanzel, Landscape Architect Capital Project Manager
Reviewed by: Josh Landefeld, Parks and Recreation Services Manager
Reviewed by: Derek Delacourt, Community Services Area Administrator
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, The City of Ann Arbor has a Professional Services Agreement (PSA) with Michigan Recreational Construction, Inc. (MRC) to provide Playground Improvement Services (R-24-308);
Whereas, MRC has extensive experience with all aspects of playground construction, renovation, and maintenance, as well as many years of experience providing playground services for the Ann Arbor Parks & Recreation system;
Whereas, Awarding services on an as-needed basis through a pre-qualified playground contractor allows the City to efficiently deliver playground improvements, respond to maintenance needs, and expedite project completion;
Whereas, The Ann Arbor Parks & Recreation system includes over 80 playgrounds requiring ongoing investment to maintain safe, accessible, and high-quality recreational amenities;
Whereas, The City anticipates increased needs for playground renovation and improvement projects in the coming years due to aging infrastructure and the continued need to maintain and improve recreational facilities;
Whereas, The City desires to amend the PSA with MRC to increase the annual contract authorization from $350,000.00 per fiscal year to $750,000.00 per fiscal year to provide additional capacity for playground improvement projects;
Whereas, Individual projects under the PSA will continue to require staff review, project-specific fee proposals, and issuance of individual work statements prior to authorization;
Whereas, The City desires to amend the PSA with MRC to formalize the option to renew for up to two additional one-year periods upon approval by the City Administrator;
Whereas, Funding is available in the approved FY2027 Parks Maintenance and Capital Improvements budget to cover the cost of these services;
Whereas, Funding for future fiscal years will be contingent upon City Council approval of the Parks Maintenance and Capital Improvements budget; and
Whereas, The Park Advisory Commission recommended approval of Amendment 1 at their July 21st meeting;
RESOLVED, That City Council approve Amendment 1 to the Professional Services Agreement with Michigan Recreational Construction, Inc. for Playground Improvement Services for Parks & Recreation, increasing the annual contract authorization to an amount not to exceed $750,000.00 per fiscal year.