Title
Resolution Approving Amendment 3 to the Professional Services Agreement with Harper Electric, Inc. for On-Call City Electrical Services (Not to Exceed $525,000.00)
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 was moved to FY22, as approved by Council via resolution #21-292.
As the City continues to work to electrify its fleet and to increase public charging options, two opportunities have emerged which necessitate an amendment to the Harper Electric contract. The first is the installation of 80 additional public electric vehicle chargers in the downtown area. This would more than triple the number of existing public chargers (taking the total from 30 ports to 110 ports). The second opportunity relates to the City’s fleet and the need to install a direct current fast charger at the Wheeler Service Center to support charging for the City’s new electric refuse trucks. The Office of Sustainability and Innovations, along with Fleet and Public Works, secured two grants, both which are on tonight’s agenda for Council consideration, to support the purchase of two all-electric refuse trucks. A portion of these grant dollars will fund the electrical work necessary to install the requisite charging for the refuse trucks, making some of this request reimbursable once the grant is paid out.
As such, this proposed amendment 3 with Harper Electric will support the electrical work needed to install 80 new electric vehicle chargers in the downtown area and install new fast charging capacity at the Wheeler Service Center for our soon to be delivered electric refuse trucks. The charging hardware at the Wheeler Service Center will be purchased separately by the City with Harper Electric completing the installation and connections. To make this possible, this amendment requests an increase in the purchase order authorization for FY22 in the amount of $300,000.00 from the original $225,000.00 to a total of $525,000.00. This $300,000.00 increase will be allocated to OSI, which has budgeted for these expenses in their FY22 budget. In addition, it is requested that the not to exceed amount over the life of the contract be increased from $500,000.00 to $800,000.00 to accommodate these additional installations.
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 this project is available in the Office of Sustainability and Innovations approved FY23 budget.
Staff
Prepared by: Matthew J. Kulhanek, Fleet & Facilities Unit Manager
Reviewed by: Missy Stults, Sustainability and Innovations Manager
Reviewed by: John Fournier, Assistant City Administrator
Approved by: Milton Dohoney Jr., Interim 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, The City adopted a Green Fleets policy and established the goal of powering all city vehicles with fuel efficient, ideally electric, vehicles;
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 #21-252 on August 2, 2021 approving amendment 2 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 help advance the A2ZERO goal and the City’s Green Fleets policy;
Whereas, The Office of Sustainability and Innovations allocated funding in their FY22 budget to support the installation of electric vehicle charging infrastructure funding;
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 City Council approve amendment 3 to the professional services agreement with Harper Electric Inc., in the amount not to exceed $525,000.00 in FY22;
RESOLVED, That City Council approve an increase in the not to exceed amount to $800,000.00 for the life of the contract with Harper Electric, Inc.
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.