Title
Resolution to Approve Amendment No. 2 to the Professional Services Agreement with NOVA Consultants, Inc. for Construction Management and Owner’s Agent for Solar and Storage Installations at City Facilities to cover additional project costs of up to $20,000.00 (total not to exceed amount of $109,943.21)
Memorandum
In late 2022, the City of Ann Arbor was successful in working with Congresswoman Dingell to secure $2.5 million dollars to significantly scale the amount of solar, energy storage, and EV charging at multiple City facilities. The City released RFP 23-15 seeking a firm to design and construct these systems. Throughout the bid and negotiation process, the City made the determination that the best path would be to split the project into Final Designs (phase 1) and Construction (phase 2), thereby ensuring the City got robust projects that were in the best financial interest of the City. In doing this, the City made the decision to hire NOVA Consultants, Inc. (“NOVA”) to lead the pre-construction design elements of all the projects and to provide construction management support to the firms selected to build the designed solar systems.
To-date, NOVA has worked with City staff to create designs for solar and battery storage systems at four City facilities: City Hall/Justice Center, Fire Station 1, Fire Station 6, and Bicentennial Park. In April 2025, the City released an ITB to get construction firms for these systems, Ferndale Electric was selected for City Hall/Justice Center, Fire Station 1, and Fire Station 6, while Homeland Solar was selected for Bicentennial Park. Around the same time, the City entered into a professional services agreement with NOVA for Construction Management and Owner’s Agent support to ensure the systems were constructed in accordance with the designs.
In May 2025, the City entered a Professional Services Agreement with NOVA Consultants, Inc. for an amount not to exceed $75,000.00. In February 2026, an amendment to the agreement provided for an additional $14,943.21 in compensation related to design modifications and DTE paperwork that needed to be made to accommodate the splash pad at Bicentennial Park, increasing the total contract amount to $89.943.21.
Recently, there was a significant change order process with Ferndale Electric that took several months to resolve. NOVA reviewed and responded to at least 5 proposals that were submitted, which reduced the additional proposed costs of Ferndale by over $70,000.00. The time spent responding to these change order requests was not anticipated at the outset of the contract, and, as such, NOVA has spent nearly all the approved contract amount.
This has created a situation where the City needs to increase NOVA’s contract so that it can continue to provide services as we finish our solar installations. In particular, construction of the systems at Fire Station 1, City Hall/Justice Center, and Bicentennial Park are nearly complete, with these systems needing final punch list items addressed and final inspections before they’ll be operational. Construction of the battery storage system at Fire Station 6 has recently begun. This site involves battery storage and underground bores, which were not components of the other projects. This non-standard installation will require more contractor oversight, and therefore additional funding is needed so NOVA can provide construction management and owner’s agent services at this site.
City staff recommend amending the Professional Services Agreement with NOVA to increase the compensation by $20,000.00, bringing the total contract to an amount not to exceed $109,943.21.
NOVA Consultants, Inc. has submitted all required Non-Discrimination, Prevailing Wage, Living Wage, and Conflict of Interest Disclosure forms and complies with the requirements of the City’s Non-Discrimination and Living Wage ordinances.
Budget/Fiscal Impact: Funding for this amendment is available in the FY27 Office of Sustainability and Innovations budget.
Staff
Prepared by: Missy Stults, Sustainability and Innovations Director
Reviewed by: Kim Hoenerhoff, Financial Analyst
Reviewed by: Valerie Jackson, Assistant City Attorney
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, In May 2025, the City of Ann Arbor entered into a Professional Services Agreement with NOVA Consultants, Inc. for Construction Management and Owners Agent for Solar and Storage Installations at City Facilities;
Whereas, Many of the solar and energy storage projects for which NOVA Consultants, Inc. is providing construction management support are proving more complicated than anticipated or have had challenging contractor engagements which have necessitated more of NOVA Consultant Inc.’s time and attention than previously projected;
Whereas, Due to this unanticipated level of work, NOVA Consultants, Inc. has expended nearly the full contract amount, leaving an insufficient amount to cover the project work that remains to be completed; and
Whereas, The City of Ann Arbor has been extremely happy with the performance of Nova Consultants, Inc., including attention to detail and follow-through;
Whereas, City staff recommend amending the Professional Services Agreement with NOVA Consultants, Inc. to increase the compensation amount by $20,000.00 so NOVA Consultants, Inc. can continue providing construction management services to ensure the remaining solar and energy storage projects funded through the U.S. Department of Housing and Urban Development are completed;
RESOLVED, That City Council approve Amendment Number 2 to the Professional Services Agreement with NOVA Consultants, Inc. for Construction Management and Owners Agent for Solar and Storage Installations at City Facilities to cover additional project costs of up to $20,000.00, bringing the total compensation to an amount not to exceed $109,943.21;
RESOLVED, That all amounts approved are without regard to fiscal year;
RESOLVED, That the Mayor and City Clerk be authorized and directed to execute said amendment after approval as to substance by the City Administrator and approval as to form by the City Attorney; and
RESOLVED, That the City Administrator be authorized to take the necessary administrative actions to implement this resolution.