City Council Meeting

Item No: lle Meeting: 12.6.2022 Business of the Algonac City Council Agenda Statement Item Title: To approve WWTP Rate Study: $8,166 Submitted by: Denice A. Gerstenberg, City Manager Summary The St. Clair County Department of Public Works currently manages the wastewater treatment plant for Algonac, Clay, and Ira. In February 2022, after managing the facility under a 1971 contract that expired in 2011, the County advised Algonac, Clay, and Ira that they no longer wished to manage the WWTP and that an Authority should be formed to take over operations as soon as possible. As a result, the communities jointly hired a specialist in the creation of management authorities, law firm Fahey Schultz Burzych Rhodes in April 2022. At this time the attorney has advised the municipalities to seek the services of a rate consultant. The rate study will be a thorough review and analysis of the current customer base, current rate structure, current and future revenue requirements. Three proposals were received and reviewed by the attorney and municipalities: Stantec, PFM, and UFS. Stantec $20,000 -- · --· ----- : PFM $23,000 UFS $32,000 Attached is a November 24, 2022, letter from the attorney which summarizes the main elements of each proposal and provides a recommendation with respect to which proposal would best suit the municipalities' needs. It is recommended that PFM be selected because they: 1. Are willing to review agreements. 2. Provided a thorough proposal and estimate of services that will be key to the Authority as it begins operations. 3. Are proposing a flat flee. 4. Were the only proposal to provide an estimate for out of services costs, which they estimate to be no more than $1,500 (in addition to the $23,000). 5. Will give the municipalities control and possession of the final work product. Clay Township approved award to PFM at the Board meeting of November 21, 2022. The $23,000 + $1,500 not-to-exceed cost would be split between Algonac, Clay, and Ira. The total amount not-to-exceed for Algonac would be $8,166. It will take approximately 12 weeks to complete this study. Suggested Action: MOVED BY: SUPPORTED BY: RESOLVED, to approve the PFM Letter of Engagement for a WWTP rate study, whose address is 558 Briarwood Circle, Suite 333, Ann Arbor MI 48108 in the amount not-to-exceed $8,166 and authorize the City Manager to sign the proposal on behalf of the city. APPROVED/Denied  MEMORANDUM TO: Artie Bryson, Clay Township Supervisor Jim Endres, Ira Township Supervisor Denice Gerstenberg, City of Algonac City Manager FROM: Christopher Patterson; 517.381.3196; cpatterson@fsbrlaw.com DATE: November 24, 2022 RE: Summary and Recommendations Concerning Stantec, PFM, & UFS Sewer Authority Proposals ________________________________________________________________________ ‘ In the process of establishing a joint wastewater authority to operate the Waste Water Treatment plant located at 451 State Street, Algonac (“WWTP”), which serves Algonac, Clay and Ira, it was advised the municipalities seek the services of a rate consultant. The municipalities received three proposals in response from Stantec, PFM, and and UFS. You have been provided with full copies of the proposals. This document summarizes the main elements proposed in each proposal and provides a recommendation with respect to which proposal we believe would best suit the municipalities’ needs. Of course, the ultimate decision is left to be determined by the governing body of each municipality. Stantec PFM UFS • Will complete a • Perform technical services, such • Will perform a Revenue comprehensive cost sharing as data mining and analysis, Sufficiency Study, which will methodology for treatment. developing financial projections, include a thorough review The financial objectives of Scope identifying appropriate cost and analysis of the system’s the study are to adequately of allocation methods, evaluating current customer base, fund utility operations, Services various governance models, current rate structure, capital costs, bonded debt, identifying administrative, current and future revenue and develop a strategy to management, system, and requirements, and will ensure the current and business process requirements, provide recommendations. future financial stability of  and estimating customer the treatment plant while impacts in various regional • PFM is a registered minimizing rate impacts on authority scenarios. The intent municipal advisor with the customers. is to leverage Stantec’s SEC and the MSRB; expertise to help define and • Large team of 9 identified organize the tools, approaches, individuals to be potentially and procedural guidelines assigned to the engagement. needed to establish a regional wastewater treatment • Provided list of examples of authority, with an understanding experience in three past of the projected financial similar projects. impacts as compared to the status quo. • UFS identifies itself as an industry leader with a wide range of experience and expertise. • The final report/study/presentation will be delivered within 12 • The study will take approximately Timing N/A – Not Provided weeks of receipt of the 12 weeks to complete. information required to complete the analysis. • An initial not to exceed amount • One-time fee in an amount • All services will be hourly. of $20,000 (which can be of $23,000, payable upon adjusted via change orders as completion of the scope of • Overall estimate of $32,000. needed) that will be invoiced services. If the study monthly. requires significantly more • There is an additional “optional” hours than estimated, the estimate of $12,500 per • Stantec indicates that the parties will negotiate a municipality for individual Costs combination of services may mutually agreeable community financial assessments. require more work than what is adjustment. UDS indicates this option charge available in the initial budget, relates to whether the therefore, work will continue • In addition to fees for municipalities need to assess under the agreement up until services, PFM will be their independent financial the budget limit is met or is reimbursed for necessary, position and ultimate retail rates adjusted. No work beyond the reasonable, and documented incorporating collection system approved budget will be out-of-pocket expenses, and other costs. 2  performed without further which are not expected to approval exceed $1,500. • On-site visits are billed at out of scope pricing; travel time • Out of pocket and sub- discounted 50%. contractor expenses for changes, modifications, or • Out of pocket expenses are billed additional services will be billed actual. at cost. • Stantec will retain the property and copyright in the documents prepared pursuant to the agreement, whether the Project is executed or not. The documents may not be used for • All materials, except any other purpose without the functioning or dynamic prior written consent of financial models, prepared Stantec, and in the event Docs by PFM pursuant exclusively N/A – Not Provided Stantec’s documents are to engagement letter will be subsequently reused or the property of the modified in any material respect municipalities. without their consent the municipalities would agree to defend, hold harmless and indemnify Stantec from any claims advanced on account of said reuse or modification. ANALYSIS & RECOMMENDATION Ultimately, we find the UFS’s proposal very complete. While it would be our preferred vendor, we understand that the revised PFM proposal provides a similar scope of work at a cost savings to the local units. PFM, except with respect to a willingness to review agreements (which is not currently clearly encapsulated in its stated scope of services), provides a thorough proposal and estimate of services that will be key to the Authority as it begins operation. PFM is also proposing a flat flee. PFM is also the only proposal to provide an estimate for out of services costs, which they estimate 3 to be no more than $1,500 (in addition to the $23,000). Further, it would be advantageous for the municipalities to have control and possession of the work product as provided in PFM’s proposal. Accordingly, all of the entities will provide a great service for the local units and newly formed Authority. We also see this initial relationship as the potential to create a continued relationship for further work the Authority may require as time progresses. Accordingly, we defer to the local units, but find that PFM’s revised proposal is adequate and appropriate for next steps. We would support the local units in selecting PFM. 4  Item No: llh Meeting: 12.6.2022 Business of the Algonac City Council Agenda Statement Item Title: To approve contract for information technology services: $36,565. Submitted by: Linda Mackie, City Treasurer Summary Quotes were recently received for information technology services, including anti-virus protection, Proactive Performance Management, Proactive Performance Management - Server, Remote online back-up - Server, Service Contract, Website hosting, Online backup. It is a standard best practice to competitively bid/quote every 3 to 5 years for the following reasons: • Creates a transparent environment that is open and fair. • Keeps costs low and ensures the most qualified companies do the work. • Any company, regardless of size or annual revenue, has a fair chance. • Protects the public against the squandering of public funds. • Prevents abuses such as fraud and waste. Sometimes there is no need for change. Other times change may be the best way to move an organization forward. Three companies provided quotes: 1 Provider 2022 2023 2024 Total . - . - lT. Right (aka, CV-3 Services) $ 9,260 $11,945 $15,360 $36,565 GRIT Technologies (one-time set up $1,000) $13,000 i *$12:000 *$12,000 $37,000 Calysto �roup (pric�@ 10% discou�t_displayed) $21,:330 *$21,33_0 *$21,339 $63,990 Attached is a memo from the City Treasurer and information provided by each company. It is recommended that Algonac continue service with IT Right for the following reasons: • They provided the lowest bid. • IT Right works closely with our software vendor, BS&A. • Their main business is helping government clients maintain their IT systems. • They have over 350 local government clients in Michigan. • They have a network of field technicians spread throughout Michigan, when issues cannot be resolved remotely by their IT help desk. • The city has been pleased with the service they have provided the past six (6) years. • They are in the process of adding a 24-hr. call center. The current contract expired April 30, 2022. The renewed contract is for a 3-year period beginning December 1, 2022, thru November 30, 2025. Suggested Action: MOVED BY SUPPORTED BY: RESOLVED, to approve the proposal for information technology services to IT Right, whose address is P.O. Box 160, Bath, MI 48808, in the amount of $36,565.00 for the period December 1, 2022 thru November 30, 2025 and direct the City Manager to sign the contract on behalf of the city. APPROVED/Denied