Title
Resolution to Approve Amendment No. 4 to extend the Professional Services Agreement with Stantec Consulting Michigan Inc., for Water Treatment Professional Engineering Services ($600,000.00 increase, total contract $2,500,000.00)
Memorandum
This memorandum and resolution requests approval of Amendment No. 4 to the professional services agreement for professional engineering services with Stantec Consulting Michigan Inc. (Stantec). Council approved a professional services agreement for $500,000 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, Amendment No. 2 in December 2021 as part of Resolution No. R-21-426 for $400,000.00, and Amendment No. 3 in February 2022 as part of Resolution No. R-22-035 for $650,000.00.
The City is seeking to amend the professional services agreement with Stantec to accommodate additional professional engineering service needs and extend the existing contract for an additional year, through FY24. The original task-based contract was effective FY21 through FY23. Stantec is currently supporting Public Services on numerous projects within the Water Treatment Services Unit (WTSU). As of November, of FY23, Stantec has completed Ozone Chiller Replacement construction phase, Barton Embankment Improvements Design RFP, Barton Pump Station Valve Improvements design, Geddes Dam Recoating and Repairs construction phase, the Barton, Superior and Argo Dam Gate Coating and Steel Repair design and bidding, Barton Raw Water Transmission Main Condition Assessment engineering support and as-needed emergency water main assistance. Currently, Stantec is working on the Geddes Bridge Geotechnical Investigation, Old Dixboro Rd Bridges Condition Assessment and Alternatives Project and providing project management on the Barton Embankment Remediation Project, as well as construction engineering services for the Barton Pump Station Valve Improvements Project. Stantec continues to provide electrical engineering services, as well as hydroelectric dam/FERC regulatory assistance to the WTP Senior Utilities Engineer, like Barton Bay 5 Leak support. Stantec also continues to provide as-needed dam technician assistance to supplement WTP workforce. 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 schedules and hydroelectric regulatory responsibilities through FY24. The requested amount was determined based on forecasted engineering services needs and work assignments.
Based upon the remaining capital needs, and the significant effort needed to manage the dams and meet on-going requirements from FERC, it is recommended that City Council approve Amendment No. 4 to the professional services agreement with Stantec, to provide additional Professional Engineering Services for the remaining life of the contract, and extend the contract through FY24.
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 FY23 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 FY24 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, P.E., Water Treatment Plant Manager
Reviewed by: Brian Steglitz, Interim Public Services Area Administrator
Approved by: Milton Dohoney, Jr., City Administrator
Body
Whereas, Continued professional engineering services are necessary to maintain the Water Treatment Services Unit capital improvement and maintenance project schedule;
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;
Whereas, The Water Treatment Services Unit is seeking to amend the Professional Engineering Services Professional Services Agreement with Stantec Consulting Michigan Inc. to extend the duration of the contract to June 30, 2024;
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, 2024;
Whereas, Funding is available in the approved FY23 Water Supply System Operations and Maintenance budget, Parks Maintenance and Capital Improvement Millage, the General Fund Operating Budget (Hydroelectric) and FY23 Capital Budgets;
Whereas, The Professional Engineering Services for FY24 will be funded by the appropriate Operating and Capital Budgets for this fiscal year 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 approve Amendment No. 4 to the Professional Services Agreement with Stantec Consulting Michigan Inc. in the amount of $600,000.00 and to extend the duration through June 30, 2024;
RESOLVED, That the Mayor and City Clerk are authorized and directed to execute Amendment No. 4 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, 2024.