Title
Resolution to Approve Amendment No. 2 to the Professional Services Agreement with Stantec Consulting Michigan, Inc., for Water Treatment Professional Engineering Services ($400,000.00 increase, total contract $1,250,000.00)
Memorandum
This memorandum and resolution requests approval of Amendment No. 2 to the professional services agreement for professional engineering services with Stantec Consulting Michigan, Inc. (Stantec). Council approved a professional services agreement for $500,000.00 through FY23 with Stantec in June 2020 as part of Resolution No. R-20-168 and Amendment No. 1 in April 2021 as part of Resolution No. R-21-103 for $350,000.00.
The City is seeking to amend the professional services agreement with Stantec to accommodate additional professional engineering service needs over the remaining duration of the contract. The task-based contract is effective FY21 through FY23. Stantec is currently supporting Public Services on numerous projects within the Water Treatment Services Unit (WTSU). Currently, Stantec is working on the Barton, Superior and Argo Dam Gate Coating and Steel Repair design, Geddes Bridge Geotechnical Investigation, and providing project management of the Barton Pump Station Valve Improvement Project and Barton Embankment Remediation Project. Stantec continues to provide electrical engineering services, Barton Raw Water Transmission Main Condition Assessment engineering support, as well as hydroelectric dam/FERC regulatory assistance. Stantec is also providing dam technician assistance to supplement the WTSU workforce in response to recent staff departures. Stantec has demonstrated themselves to be experienced in a wide range of disciplines, responsive and cost effective in meeting those diverse needs on complex engineering tasks associated with the WTSU. Stantec’s longevity and experience in providing support on projects and assistance to the City as described makes them indispensable as partners in continuing this work.
Additional professional engineering services are required to support the Water Treatment Services Unit with capital, operation, and maintenance projects at the Water Treatment Plant and associated facilities, recreational dams, and hydroelectric generating dams in order to maintain the aggressive capital improvement project schedule and hydroelectric regulatory responsibilities through FY23. The requested amount was determined based on forecasted engineering services needs and work assignments.
Based upon the remaining capital needs, it is recommended that City Council approve Amendment No. 2 to the professional services agreement with Stantec, to provide additional Professional Engineering Services for the remaining life of the contract, through FY23.
Stantec complies with the requirements of the City’s Conflict of Interest, Non-Discrimination and Living Wage ordinance.
Budget/Fiscal Impact: These engineering services are to be funded from the approved FY22 Water Supply System Operations and Maintenance and Capital, Parks Maintenance and Capital Improvement Millage, and the General Fund Operating and Capital budgets, from which services are rendered. Engineering services in FY23 will be funded from the available amounts in subsequent annual Operating and Capital Budgets if approved by City Council. Tasks will be assigned on as-needed basis to the appropriate fund.
Staff
Prepared by: Brian Steglitz, P.E., Water Treatment Plant Manager
Reviewed by: Craig Hupy, Public Services Area Administrator
Approved by: Milton Dohoney Jr., Interim City Administrator
Body
Whereas, The Water Treatment Services Unit is seeking to amend the Professional Engineering Services Professional Services Agreement with Stantec Consulting Michigan, Inc. because the contract balance is projected to be exhausted prior to the extended Contract expiration date of June 30, 2023;
Whereas, Continued professional engineering services are necessary to maintain the Water Treatment Services Unit capital improvement and maintenance project schedule;
Whereas, Funding is available in the approved FY22 Water Supply System Operations and Maintenance budget, Parks Maintenance and Capital Improvement Millage, the General Fund Operating Budget (Hydroelectric) and the appropriate Capital Budgets;
Whereas, The Professional Engineering Services for FY22 will be funded by the appropriate operating budgets for this fiscal year or approved capital budgets if so approved by Council; and
Whereas, Stantec Consulting Michigan, Inc. complies with the requirements of the City’s Conflict of Interest, Non-Discrimination and Living Wage ordinances;
RESOLVED, That the Amendment No. 2 to the Professional Services Agreement with Stantec Consulting Michigan, Inc. is approved in the amount of $400,000.00;
RESOLVED, That the Mayor and City Clerk are authorized and directed to execute Amendment No. 2 to the Professional Services Agreement after approval as to substance by the City Administrator and approval as to form by the City Attorney;
RESOLVED, That the City makes the following declaration for the purpose of complying with the reimbursement rules of Treas. Reg. 1.150-2 pursuant to the Internal Revenue Code of 1986, as amended, that the City reasonably expects to reimburse itself for expenditures for the costs of the Project with proceeds of Bonds;
RESOLVED, That the City Administrator be authorized to take the necessary administrative actions to implement this resolution; and
RESOLVED, That the funds be available for the life of the project(s) without regard to fiscal year until the Professional Service Agreement ends on June 30, 2023.