Title
Resolution to Approve Amendment No. 3 to the Professional Services Agreement with Stantec Consulting Michigan Inc., for Water Treatment Professional Engineering Services ($650,000.00 increase, total contract $1,900,000.00)
Memorandum
This memorandum and resolution requests approval of Amendment No. 3 to the professional services agreement for professional engineering services with Stantec Consulting Michigan Inc. (Stantec). City 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, Amendment No. 1 in April 2021 as part of Resolution No. R-21-103 for $350,000.00, and Amendment No. 2 in December 2021 as part of Resolution No. R-21-426 for $400,000.00.
The City’s Water Treatment Services Unit seeks to amend the professional services agreement with Stantec to accommodate additional professional engineering service needs. Stantec is working on several projects that will require additional funding to bring them to a successful conclusion. These projects include the Geddes Bridge Geotechnical Investigation, Old Dixboro Rd Bridges Condition Assessment and Alternatives Project, and providing project management on the Barton Embankment Remediation Project. Stantec is also providing hydroelectric dam/FERC regulatory assistance. Finally, Stantec’s continued professional engineering services are critically important in maintaining continuity on the Barton Pump Station Valve Improvements Project, which will be financed by the State of Michigan Drinking Water Revolving Loan Fund Program and involves a grant of $1,300,000.00. 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 for the Water Treatment Service Unit.
The requested amount was determined based on forecasted engineering services needs and work assignments, and Stantec’s proposal for Construction Engineering Services for the Barton Pump Station Valve Improvements Project construction schedule.
Based upon the remaining capital needs and to maintain several projects currently transitioning from design to construction phase, it is recommended that City Council approve Amendment No. 3 to the professional services agreement with Stantec.
Stantec complies with the requirements of the City’s Conflict of Interest, Non-Discrimination and Living Wage ordinances.
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, for which services are rendered. Engineering services in FY23 will be funded from subsequent annual Operating and Capital Budgets if approved by City Council. Tasks will be assigned on an as-needed basis to the appropriate fund.
Staff
Prepared by: Glen Wiczorek, PE, Senior Utilities Engineer
Reviewed by: Brian Steglitz, PE, Interim Public Services Area Administrator
Approved by: Milton Dohoney Jr., Interim City Administrator
Body
Whereas, The Water Treatment Services Unit seeks 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, Continued professional engineering services are necessary to meet Federal Energy Regulatory Commission (FERC) Dam Recovery Plan requirements;
Whereas, Continued professional engineering services are necessary to provide Construction Engineering Services are necessary throughout the construction of the Barton Pump Station Valve Improvements Project and to meet Drinking Water Revolving Fund (DWRF) loan requirements and secure eligible grant funds;
Whereas, Additional funds are necessary to cover the continued professional engineering services needed to maintain the Water Treatment Services Unit capital improvement and maintenance project schedule, DWRF Barton Pump Station Valve Improvements Project and meet FERC regulatory compliance requirements;
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 FY22 Capital Budgets;
Whereas, The Professional Engineering Services for FY23 will be funded by the appropriate Operating and 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 City Council approves Amendment No. 3 to the Professional Services Agreement with Stantec Consulting Michigan Inc. in the amount of $650,000.00;
RESOLVED, That the Mayor and City Clerk are authorized and directed to execute Amendment No. 3 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.