Skip to main content
Ann Arbor logo
File #: 25-1062    Version: 1 Name: 6/16/25 Resolution to Approve PFM Financial Analyses Amendment No. 1
Type: Resolution Status: Passed
File created: 6/16/2025 In control: City Council
On agenda: 6/16/2025 Final action: 6/16/2025
Enactment date: 6/16/2025 Enactment #: R-25-232
Title: Resolution to Approve Renewal and Amendment No. 1 the Professional Services Agreement with PFM Group Consulting LLC for Development Proposal, Economic and Financial Analysis ($100,000.00 increase, total contract not-to-exceed $175,000.00)
Attachments: 1. PFM Group Consulting LLC - Renewal 06 16 25.pdf, 2. PFM EXHIBIT A_Exhibit_A.pdf, 3. Final Signed Agreement Contract Ann Arbor with Exhibit A.pdf

Title

Resolution to Approve Renewal and Amendment No. 1 the Professional Services Agreement with PFM Group Consulting LLC for Development Proposal, Economic and Financial Analysis ($100,000.00 increase, total contract not-to-exceed $175,000.00)

Memorandum

Attached for your review and consideration is a resolution approving Renewal and Amendment No. 1 to the Professional Services Agreement with PFM Group Consulting LLC for Development Proposal, Economic and Financial Analysis, which increases the contract amount, and adds tasks to the list of potential work statements to be performed pursuant of the Agreement. 

 

In August 2023, the City entered into a two-year sole-source agreement with PFM Group Consulting to perform as needed financial and economic analysis associated with City participation in proposed developments. To date the City has spent approximately $75,000.00 on analyses related to the Arbor South Development. 

 

On April 7, 2025, City Council approved #R-25-118, which directed the City Administrator to Negotiate City Participation in the Arbor South Project, including potentially owning, operating, and bonding for parking decks.  To continue the due diligence related to the development and to comply with #R-25-118 additional analyses are required.  Therefore, we are seeking to increase the contract amount by $100,000.00 for a total contract amount not-to-exceed $175,000.00 and to exercise the option to renew the agreement for a one-year period.

 

Budget/Fiscal Impact:  The amount expended under the Agreement will vary based on the analyses that are conducted.  Staff are estimating an additional $100,000.00 for purposes of completing the due diligence related to the Arbor South Development.  Funding is available in the approved FY 26 General Fund Budget.

Staff

Prepared by:                                          Marti Praschan, Chief Financial Officer

Reviewed by:                                          Michelle Landis, Senior Assistant City Attorney

Approved by:                                          Milton Dohoney Jr., City Administrator

 Body

Whereas, In August 2023, the City entered into a two-year sole-source Professional Services Agreement with PFM Group Consulting LLC for Development Proposal, Economic and Financial Analysis (the “Agreement”) to perform as-needed financial and economic analysis associated with City participation in proposed developments;

 

Whereas, To date, the City has expended approximately $75,000.00 on financial and economic analyses related to the Arbor South Development Project pursuant to the Agreement;

 

Whereas, City Council approved #R-25-118 directing the City Administrator to negotiate City participation in the Arbor South Development Project, including potentially owning, operating, and bonding for parking decks,

 

Whereas, Additional analyses are required to comply with #R-25-118 and PFM is uniquely situated to continue further analyses; and

 

Whereas, PFM Group Consulting LLC is in compliance with the requirements of the City’s Non-Discrimination and Living Wage ordinances;

 

RESOLVED, That City Council approve the Renewal and Amendment No. 1 to the Professional Services Agreement with PFM Group Consulting LLC for Development Proposal, Economic and Financial Analysis (the Renewal Agreement”);

 

RESOLVED, That City Council approve an increase of $100,000.00 to the sole-source agreement and the one-year renewal option of the sole source agreement under the  terms and conditions of the original Agreement for additional as-needed financial and economic analysis associated with City participation in proposed developments;

 

RESOLVED, That the Mayor and City Clerk be authorized and directed to execute the Renewal Agreement after approval as to substance by the City Administrator and as to form by the City Attorney; and

 

RESOLVED, That the City Administrator be directed to take all actions necessary to effectuate the terms of the Renewal Agreement, including termination if deemed necessary.