Title
Resolution to Ratify an Emergency Purchase Order with the National Railroad Passenger Corporation (Amtrak) for Railroad Inspection and Flagging Services for the Southside Interceptor Sanitary Diversion Project ($30,000.00)
Memorandum
Pursuant to the Southside Interceptor Sanitary Diversion Project, it was necessary to enter into a Permit of Temporary Entry (PTE) with Amtrak for railroad inspection and flagging services. This was necessary as the work is being performed in a portion of the railroad right-of-way that is owned by the Michigan Department of Transportation. Amtrak is the operating railroad of this right-of-way and all needed construction permits and reviews must be conducted in accordance with their protocols and procedures.
The PTE for this project was approved by Council on February 4, 2019 (R-19-051, copy attached.) As part of the permit approval process with Amtrak, it was necessary to pre-pay plan review, inspection, and flagging fees for the work. Amtrak estimated the cost of their services to be $62,920.00 when the agreement was created. Please note, the City was not able to negotiate the value of these services nor was able to provide input regarding the estimated value of the services. One of the terms of the agreement with Amtrak is that the City is required to pre-pay the inspection fees. Amtrak in turn draws down the balance of the funds as they are expended. The City and the Contractor have no control over the Amtrak personnel regarding the number of employees, the length of time that they are inspecting, or the equipment used in performing the work. Additionally, the City is required by the agreement to have an Amtrak inspector on-site any time work is being performed on the project. Finally, Amtrak stipulates that, should the funds be expended, they have the ability to stop work on the project until such time as the funds have been replenished. Amtrak has informed the City that should the funds be completely expended,...
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