Council approves revised rate schedule for Hubbell, Roth & Clark engineering services

The Wixom City Council on July 7 authorized a revised rate schedule under the five-year agreement with Hubbell, Roth & Clark (HRC) for engineering services. The change is an administrative rate adjustment rather than an extension of the contract term.

HRC's representative, Nancy Faught, told the council that the firm had the contractual right to request annual adjustments and that HRC had not requested an increase in one prior year. "It's on me... It's not on Tim or Steve to say, 'Hey Nancy, are you gonna ask for an increase?'", Faught said, explaining that labor-cost increases and the firm's unchanged multiplier make periodic adjustments necessary.

Council members debated whether the proposed 4.9% request was appropriate in light of recent CPIs and whether the city should cap future increases. Staff explained that HRC's request equates to a blended, single adjustment that is below the cumulative CPI for the period and that the council would see future increases when HRC requests them.

Vote: Council approved the revised rate schedule by voice vote. Staff said HRC remains competitively priced compared with firms the city surveyed in 2022. Council asked staff to consider including a cap tied to CPI in future contracts.

Why it matters: Engineering-rate adjustments affect project costs for capital and maintenance projects across the city. Council discussion focused on how to balance fair compensation for professional services against controlling long-term project costs.