Title
Resolution to Approve Change Order No. 2 to the Contract with Melink Solar, LLC for Solar Installations at the Wheeler Service Center to Cover Additional Project Costs of $265,433.15 (Total Contract amount: $3,328,637.15) (8 Votes Required)
Memorandum
In November 2023, City Council approved four construction contracts with Melink Solar, LLC (“Melink”) for behind-the-meter solar installations at designated City sites (R-23-423). These contracts cover solar installations at various City facilities, including the Ann Arbor Municipal Airport, Steere Farm Wells, Water Resource Recovery Facility, and Wheeler Service Center (“Wheeler”). Staff have been working with Melink to build these systems over the last eighteen months. Due to the size of the proposed solar system at Wheeler, the team was required to undertake additional assessments.
The Wheeler solar system was originally competing for space with the grid-scale landfill solar project that was planned with DTE (the project was known as the “landfill solar” project). For that reason, there was limited available space for solar at the site during initial design. However, when the decision was made to put the landfill solar project on hold, the project team decided to utilize this space for the installation of the behind the meter solar system for Wheeler. This would eliminate the need to modify the existing PUD and the chosen location was the closest feasible location to the interconnection point that can accommodate the array: it is in a field to the south of the Wheeler Service Cetner.
As the team was making this design adjustment, it was also completing the necessary interconnection studies and work with Pittsfield Township to ensure the designed system met all requirements of the PUD. Through these engagements and studies, additional costs were identified. Those additional costs were: 1) increased electrical costs to run conduit, 2) costs associated with a longer access road for use during construction, 3) costs identified during the DTE Interconnection study that are required to connect the Wheeler solar system to the distribution grid; and 4) engineering redesign and labor cost adjustments associated with the first three tasks.
City staff have worked with Melink to reduce these additional costs as much as possible, including through rebidding parts of the work and changing material suppliers, which did reduce the change order amount by over $100,000.00 from initial estimates. The City’s Public Services team will use existing contracts to construct the required access road, further saving almost $20,000.00.
At this point, staff are content with the change order and presenting it to Council for your authorization.
Melink Solar, LLC 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 work is available in the Office of Sustainability and Innovations Fiscal Year 2026 Climate Action Millage Fund 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 November 2023, through resolution R-23-423, City Council approved four separate construction contracts with Melink Solar, LLC for the construction of roughly 2.8MW of solar systems at various City facilities, including the Wheeler Service Center;
Whereas, Melink Solar, LLC requested an additional $265,433.15 to cover unexpected expenses related to design, construction, and utility-related costs of the solar system at the Wheeler Service Center;
Whereas, Melink Solar, LLC worked with City staff to minimize additional costs through a variety of processes, including competitively bidding new work; and
Whereas, Funding for this change order is available in the Office of Sustainability and Innovations Fiscal Year 2026 Climate Action Millage budget;
RESOLVED, That City Council approve Change Order No. 2 to the Contract with Melink Solar, LLC for solar installations at the Wheeler Service Center to cover additional project costs of up to $265,433.15, bringing the total contract amount to $3,328,637.15;
RESOLVED, That up to $265,433.00 from the Sustainability and Innovations FY26 Climate Action Millage Fund expenditure budget carry forward to future fiscal years without regard to fiscal year;
RESOLVED, That the Mayor and City Clerk be authorized and directed to execute said agreement 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.