Title
Resolution Approving Amendment 2 to the Professional Services Agreement with Harper Electric, Inc. for On-Call City Electrical Services (Not to Exceed $225,000.00) and to Appropriate Funding in the Amount of $150,000.00 from the Fleet Fund Balance and County Mental Health Millage - Sustainability Fund Balance (8 Votes Required)
Memorandum
The City is in year three of a four year on-call contract with Harper Electric to provide electrical support for City projects dated July 25, 2019 which runs through June 30, 2023 and has an annual, not to exceed amount of $75,000.00. As the City has been scaling up its electric vehicle charging infrastructure and preparing facilities for transition to electric, the demands for electrical support have grown.
On December 7, 2020, City Council approved resolution #20-451 which amended the contract with Harper Electric for FY21 to provide a not to exceed amount of $275,000.00 for FY21 and a not to exceed amount of $500,000.00 over the life of the contract. This amendment was an increase of $200,000.00 over the original contract amount to cover the installation of four direct current fast chargers (DCFC) at City Hall ($123,000.00) through the Office of Sustainability and Innovations (OSI) and 14 level 2 chargers at 2000 S. Industrial ($77,000.00) through Fleet Services.
Each of these projects was started in FY21 but delayed due to planning and installation issues with the electric utility provider, and in the case of 2000 S. Industrial, an unknown and abandoned underground heating oil tank that stopped work. Because of these delays, the unused FY21 funding and the purchase order authorization need to be moved to FY22. This is not a request for new or additional funding. The unused funds from FY21 for both Fleet Services and OSI (County Mental Health Millage) lapsed into their respective fund balances at the end of FY21 and are available for FY22.
The proposed amendment 2 to the contract with Harper Electric will increase the purchase order authorization for FY22 in the amount of $150,000.00 from the original $75,000.00 to $225,000.00. This $150,000.00 increase will be allocated between OSI’s City Hall DCFC project ($105,000.00) and Fleet Services 2000 S. Industrial level 2 chargers project ($45,000.00). The not to exceed amount of $500,000.00 over the life of the contract is not being changed by this proposed amendment.
The proposed appropriation from fund balances in the amount of $150,000.00 will be allocated from the Fleet Fund balance in the amount of $45,000.00 and from the County Mental Health Millage fund balance in the amount of $105,000.00.
Harper Electric Inc. complies with the requirements of the City’s Conflict of Interest, Living Wage, Prevailing Wage and Non-Discrimination ordinances.
Budget/Fiscal Impact: Funding for the proposed $150,000.00 increase to the FY22 purchase order authorization in the amount of $45,000.00 is available in the Fleet Fund Balance and in the amount of $105,000.00 in the Office of Sustainability and Innovations from athe County Mental Health Millage Fund Balance.
Staff
Prepared by: Matthew J. Kulhanek, Fleet & Facilities Unit Manager
Reviewed by: John Fournier, Assistant City Administrator
Approved by: Tom Crawford, City Administrator
Body
Whereas, The City has committed to reaching carbon-neutrality by year 2030 and an expanded electric vehicle charging infrastructure is necessary to attain that goal;
Whereas, Harper Electric Inc., Ann Arbor MI, provided the most responsive proposal for on-call electrical services solicited through RFP #19-17 in June 2019;
Whereas, City Council approved Resolution #20-451 on December 7, 2020 approving amendment 1 to the contract with Harper Electric Inc. to increase purchase order authorization for charging infrastructure projects;
Whereas, The Fleet & Facilities Unit and the Office of Sustainability and Innovations recommend an increase in the purchase order authorization for Harper Electric Inc. for FY22 to complete charging infrastructure projects that began in FY21;
Whereas, Unused FY21 funding for these charging infrastructure projects lapsed to fund balance and are available for FY22;
Whereas, Adequate funds for the increase of the purchase order authorization in the amount of $150,000.00 are available in the Fleet Fund Balance and County Mental Health Millage Fund Balance; and
Whereas, Harper Electric Inc. complies with the requirements of the City’s Conflict of Interest, Living Wage, Prevailing Wage and Non-Discrimination Ordinances;
RESOLVED, That funding in the amount of $45,000.00 be appropriated from the Fleet Fund fund balance to the FY22 Fleet Fund operations and maintenance budget; thereby, increasing both the revenue and expenditure budget;
RESOLVED, That funding in the amount of $105,000.00 be appropriated from the County Mental Health Millage Fund fund balance to the FY22 Office of Sustainability and Innovations operations and maintenance budget; thereby, increasing both the revenue and expenditure budget;
RESOLVED, That City Council approve amendment 2 to the professional services agreement with Harper Electric Inc., in the amount not to exceed $225,000.00 in FY22;
RESOLVED, That the Mayor and City Clerk be authorized and directed to execute said contract 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.