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Mount Clemens approves five-year extension to city engineering contract with annual 3.7% rate increases
Summary
The Mount Clemens City Commission approved a five-year extension and amendment to its engineering services agreement with the city's engineering contractor, allowing a 3.7% annual increase in hourly rates and leaving improvement-project fee schedules unchanged; commissioners pressed for periodic reviews during annual budgeting.
The Mount Clemens City Commission voted unanimously on a motion to approve a five-year extension and amendment to the city's engineering services agreement with the city's engineering contractor, referred to in the meeting as AW, authorizing city officials to execute the contract.
City administration told the commission the amendment would permit a 3.7% increase in the contractor's hourly rates each year for five years, effective each July 1, while the fee schedule for improvement projects would remain unchanged. Staff said AW has helped secure approximately $4.8 million in grant dollars and about $5.7 million in matching street funding for city projects over the past decade.
Why it matters: the amendment locks in multi-year rate increases for a long-term service supplier and affects the city's projected operating costs for engineering work. Commissioners said they support the contractor’s work but wanted clarity on fiscal oversight and review cadence.
During discussion, a commissioner asked whether staff had experienced any performance issues with AW; Mr. Shipman replied no. Multiple commissioners pressed for routine review of material contracts. One commissioner expressed concern that a guaranteed 3.7% increase for five straight years is a long-term commitment given economic uncertainty and said such increases should be re-evaluated as part of the annual budgeting process. City staff said longstanding contracts are being catalogued for review and that the city has moved from annual to quarterly reviews of outside contractors.
A commissioner summarized the contractor relationship this way during the remarks: "they're more like part of the staff," reflecting the commission's sense that the vendor is closely integrated with city operations.
Votes at a glance: the motion to approve the extension and amendment passed on roll call with six "yes" votes from Commissioners Forier, Hammond, Crop, Rick, Vorhees and Campbell; Commissioner Dempsey had been excused earlier in the meeting.
Next steps: the commission authorized city officials to execute the amendment; staff indicated they will continue contract oversight and include reviews during budgeting cycles.
