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Wixom council approves five-year renewal with FNV for water and wastewater services at $1.37 million first-year cost
Summary
The council approved a five-year renewal of the operations and maintenance agreement for the city's water and wastewater systems with the incumbent operator (transcript name: FNV/F&V/FMP), setting a first-year contract cost of $1,367,181 and approving related budget amendments; council noted a CPI adjustment clause capped at 3.25% after an initial one-year increment.
WIXOM, Mich. — The Wixom City Council voted Dec. 17 to renew operations and maintenance agreements for the city's water and wastewater treatment facilities with the operator identified in the meeting transcript as FNV (the operator's name is spelled variably in the transcript) for five additional years, with a first-year annual cost of $1,367,181 and associated budget amendments.
Mr. Sikma, who introduced the item, told the council staff had reviewed the operator's performance over the past year and engaged an outside engineering reviewer (transcript: "black andv") to audit operations. "We did find a couple of things that were noted in the report," Sikma said, and staff reported the operator has either completed requested changes or is in the process of doing so.
Council discussed the contract's inflation adjustment language. Staff said the agreement retains a CPI-based fee increase that is capped at 3.25% for four years; the contract includes a one-year increment that restores a previously waived increase for the first renewal year. The council was told that, depending on the CPI that year, the one-year increase could be as low as 1.62% or would still be limited to the 3.25% cap if CPI were higher.
Project manager Ruben John and regional manager Matt Hoser were introduced to answer technical questions. Deputy Mayor Resnik requested that monthly operational reports explicitly note any regulatory exceedances so the council can see when they occur; staff agreed to adapt reporting to highlight such events.
A motion to approve the amendments renewing the operations and maintenance agreements and the related budget amendments was moved and seconded; the council approved the motion by voice vote.
The action extends the current operator's contract for five years and funds the first year at $1,367,181. The council did not record a roll-call vote tally in the transcript; the motion passed by voice vote.
