Title
Resolution to Approve a Construction Contract with Fonson Company, Inc for the Packard Water Main at Malletts Creek Project (RFP 26-20; $821,178.15)
Memorandum
Attached for your review and approval, please find a resolution to approve a construction contract between the City of Ann Arbor and Fonson Company, Inc (Fonson) in the amount of $821,178.15 for the Packard Water Main at Malletts Creek Project (RFP 26-20).
The project includes replacement of the aging public water main crossing Malletts Creek by horizontal direction boring and associated pavement repairs. The existing cast iron water main was constructed in 1959 and has experienced a water main break under the Malletts Creek culvert. Construction is scheduled to begin in mid-June 2026 and continue through mid-August 2026.
Engineering staff supervised the creation of plans and contract documents and issued a request for proposals through the City’s Procurement Unit. On April 6, 2026, four (4) proposals were received for this work. A selection committee comprised of Public Services staff reviewed the proposals and determined which bidder was the Best Value based on the criteria in ORD-21-41:
• Qualifications, Experience, & Accountability (20%)
• Workplace Safety (20%)
• Workforce Development (20%)
• Social Equity & Sustainability (20%)
• Schedule of Pricing/Cost (20%)
After reviewing and scoring the proposals, staff ranked the responding firms in the following order:
1. Fonson Company, Inc
2. Bidigare Contractors, Inc
3. Eminent Excavating, LLC
4. E.T. MacKenzie Company, Inc.
Fonson received the highest score among the proposals reviewed by the selection committee. Therefore, staff recommend awarding the contract for this project to Fonson. Fonson complies with the City’s Non-Discrimination and Living Wage ordinances.
Budget/Fiscal Impact: This project is included in the Capital Improvements Plan (UT-WS-22-18). The estimated total cost of the project is $1,020,626.92. Funding for the project is included in the approved capital budget of the Water Supply System Fund and remaining funds are available in unobligated fund balance.
Staff
Prepared by: Nicholas S. Hutchinson, P.E., City Engineer
Reviewed by: Jordan Roberts, Public Services Area Administrator
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, the existing water main in the project area has been identified as needing upgrade or replacement;
Whereas, Funding for the project is included in the approved capital budget of the Water Supply System Fund;
Whereas, The City of Ann Arbor received four (4) proposals for this work on April 6, 2026, and Fonson received the highest score among the proposals reviewed by the selection committee; and
Whereas, It is now necessary to enter into a contract with Fonson for the performance of this work;
RESOLVED, That City Council approves a construction contract with Fonson Company, Inc in the amount of $821,178.15 for the Packard Water Main at Malletts Creek Project (RFP 26-20);
RESOLVED, That a contingency amount of $82,200.00 be established within the project budget and that the City Administrator be authorized to approve construction change orders not to exceed that amount, in order to satisfactorily complete this project;
RESOLVED, That the Mayor and City Clerk be authorized and directed to execute said agreement after approval as to substance by the City Administrator and approval as to form by the City Attorney;
RESOLVED, That the City make the following declaration for the purpose of complying with the reimbursement rules of Treasury Regulations 1.150-2 pursuant to the Internal Revenue Code of 1986, as amended: that the City reasonably expects to reimburse itself for expenditures for the costs of the Project with proceeds of Bonds; and
RESOLVED, That the City Administrator be authorized to take necessary administrative actions to implement this resolution, including issuing temporary and permanent Traffic Control Orders and night work authorizations as required for the construction of the project.