The City of Billings and HDR Engineering, Inc. agreed to a Professional Services Contract on June 25, 2007 for designing emergency power systems for the city's water distribution system.  Amendment 1, approved September 25, 2008, included design and bidding services for backup power systems at the Water Treatment Plant (WTP).  Amendment 2 includes construction administration services for the work at the WTP.  The majority of work to be completed is specialized electrical work.  HDR has qualified people available to inspect and administer this type of work.

The Council may:

• Approve Amendment #2 to the Professional Services Agreement with HDR Engineering; or
• Not approve Amendment #2 to the Professional Services Agreement, potentially leading to using unqualified personnel to interpret and observe the contractor's work.

Original Contract Amount	$   74,639.00
Amendment One	$   97,800.00
Amendment Two	$   82,400.00
TOTAL	$  254,839.00

The project is being funded with $974,000 from a HUD grant and the remainder from water funds approved in the FY11 Budget.  There are funds available to cover the increase associated with Amendment No. 2.

Staff recommends that Council authorize the Mayor to execute Amendment #2 to the Professional Services Contract with HDR Engineering, Inc., in the amount of $82,400.00.