Title
Resolution to Approve a Construction Contract with Bailey Excavating, Inc. for the Ingalls Kingsley Water Main Project ($4,268,513.70) and to Appropriate $3,116,219.00 in Contributing Funds (8 Votes Required)
Memorandum
Attached for your review and approval, please find a resolution to approve a construction contract between the City of Ann Arbor and Bailey Excavating, Inc. in the amount of $4,268,513.70 for the Ingalls Kingsley Water Main Project (RFP 26-12).
The Ingalls Kingsley Water Main Project, located along Kingsley Street from Detroit Street to Ingalls Street and Ingalls Street from Kingsley Street to E. Huron Street, includes the following elements:
• Water main improvements, including replacement of an aging 6-inch water main that has a history of breaks, upsizing to 12-inch water main, and creating other improvements to improve reliability and water pressure
• Select stormwater system improvements
• Road resurfacing, curb replacement, bump-out additions at intersections, sidewalk and ramp replacements, and restoration of the two-way configuration on Ingalls Street from Kingsley to Catherine and on Kingsley Street between State and Ingalls, a separate Resolution for which will be forthcoming to Council
The construction of the project is scheduled from May through October 2026 and will be coordinated with other downtown capital projects.
Engineering staff supervised the creation of plans and contract documents and issued a request for proposals through the City’s Procurement Unit. On February 26, 2026, five 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. Bailey Excavating, Inc.
2. Toebe Construction
3. Eminent Excavating, Inc.
4. E. T. MacKenzie Company, Inc.
5. Major Contracting
Bailey received the highest score among the proposals reviewed by the selection committee. Therefore, staff recommend awarding the contract for this project to Bailey Excavating, Inc. Bailey complies with the City’s Non-Discrimination and Living Wage ordinances.
Budget/Fiscal Impact:
This project is included in the FY26-31 Capital Improvements Plan (UT-WS-20-05, UT-ST-26-13, TR-SB-20-07). The estimated total cost of the project is $5,975,000. Funding for the project is included in the approved capital budgets of the Water Supply System, Stormwater, and the Street, Bridge and Sidewalk Millage Fund.
Fund Total Project Cost
Water Supply System Fund $ 2,755,000
Street, Bridge and Sidewalk Millage Fund $ 2,265,000
Stormwater Sewer System Fund $ 955,000
Total $ 5,975,000
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 mains and stormwater infrastructure in the project area have been identified as needing upgrade or replacement;
Whereas, The pavement on Ingalls Street and on Kingsley Street is in poor condition and in need of replacement;
Whereas, Funding for the project is included in the approved capital budgets of the Water Supply System Fund; Stormwater Fund; and Street, Bridge and Sidewalk Millage Fund;
Whereas, The City of Ann Arbor received five proposals for this work on February 26, 2026 and Bailey Excavating, Inc. received the highest score among the proposals reviewed by the selection committee;
Whereas, Bailey Excavating, Inc. complies with the City’s Non-Discrimination and Living Wage ordinances; and
Whereas, It is now necessary to enter into a contract with Bailey Excavating, Inc. for the performance of this work;
RESOLVED, That City Council approves a construction contract with Bailey Excavating, Inc. in the amount of $4,268,513.70 for the Ingalls Kingsley Water Main Project (RFP 26 -12);
RESOLVED, That $931,600.00 be appropriated from the Stormwater Sewer System Fund Capital Budget to the Ingalls Kingsley Water Main Project, thereby increasing the project revenue and expenditure budgets;
RESOLVED, That $2,154,619.00 be appropriated from the Street, Bridge, and Sidewalk Millage Fund Capital Budget to the Ingalls Kingsley Water Main Project, thereby increasing the project revenue and expenditure budgets;
RESOLVED, That a contingency amount of $430,000.00 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 construction contract 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.