Title
Resolution to Approve Change Order No. 1 to the Contract with Melink Solar, LLC to Cover Additional Project Costs for Solar Installation at Ann Arbor Airport for an Additional Cost of $24,842.49 (Total Contract amount: $785,882.49)
Memorandum
In November of 2023, City Council approved a contract with Melink Solar, LLC to design and install solar installations at the Ann Arbor Airport. In the course of this work, it was discovered that the junction box needed replacement and rerouting and that additional fees were required to shut down the airport during the interconnection process. These additional tasks and fees increase the cost of the project by $24,842.49. Because there was no administrative contingency provision in the resolution approving the original contract, staff are seeking City Council’s authorization to increase the contract amount for solar installations at the Ann Arbor Airport from $761,040.00 to $785,882.49. In addition, staff are requesting the addition of a small administrative contingency to this contract in case other changes are needed in the future.
Budget/Fiscal Impact: The Office of Sustainability and Innovations is able to absorb the budget increase of $24,842.49 in our existing Fiscal Year 2025 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 late 2023, Ann Arbor City Council unanimously approved a Contract with Melink Solar, LLC to design and install solar and energy storage systems at the Ann Arbor Airport;
Whereas, In conducting this work, Melink Solar, LLC discovered complicated electrical system configurations that require additional work outside the original scope of services;
Whereas, City staff in the Office of Sustainability and Innovations and across the City are working to adopt clean energy wherever possible and practical;
Whereas, City staff requested that Melink Solar, LLC put together a change request detailing the additional work needed to connect the designed solar system at the Ann Arbor Airport to the electrical grid;
Whereas, Melink Solar, LLC provided the attached change request, which includes a description of the required additional tasks and an itemized cost breakdown for such tasks, with a total additional cost to deliver said tasks of $24,842.49; and
Whereas, The change in budget can be absorbed within the Office of Sustainability and Innovations Fiscal Year 2025 budget;
RESOLVED, That City Council approve Change Order No. 1 to the Contract with Melink Solar, LLC to include additional tasks related to installing the solar system at the Ann Arbor Airport and increase the compensation paid to Melink Solar, LLC by $24,842.49, bringing the total compensation amount under the Contract to $785,882.49;
RESOLVED, That City Council approve a contingency in the amount of $25,000 to fund additional necessary services as approved by the City Administrator in order to satisfactorily complete the project;
RESOLVED, That all amounts approved herein are without regard to fiscal year;
RESOLVED, That the Mayor and City Clerk be authorized and directed to execute this Change Order 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 all necessary administrative actions to implement this resolution.