Title
Resolution to Approve a Construction Contract with Fonson Company, Inc. for the Miller Avenue Rehabilitation Project (ITB-4753; $6,358,946.30) and Appropriate $5,465,464.00 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 Fonson Company, Inc. (Fonson) in the amount of $6,358,946.30 for the Miller Avenue Rehabilitation Project (ITB-4753).
The scope of this project includes replacing watermain from Newport Road to Chapin Street, along with constructing stormwater management devices, and street resurfacing. The project also includes the installation of a two-way cycle track from North Maple Road to First Street and associated signal updates at the North Maple Road and South Seventh Street intersections.
Engineering staff supervised the creation of plans and contract documents and bid the project through the City’s Procurement Unit. Due to requirements of the American Rescue Plan Act (ARPA), this project was bid as an Invitation to Bid (ITB).
Five (5) bids were received and opened on October 9, 2024. Fonson was the lowest responsible bidder with a bid amount of $6,358,946.30, which is approximately 15% lower than the Engineer's Estimate of $7,290,000. Attached is a summary of the bids received. Fonson complies with the City’s Non-Discrimination and Living Wage ordinances.
The construction of the project is scheduled to begin in the spring of 2025.
Budget/Fiscal Impact: This project is included in the Capital Improvements Plan (TR-SC-14-15, UT-WS-24-04, TR-SC-20-04, UT-ST-22-07, TR-AT-24-13, & TR-AT-24-11). The estimated total cost of the project is $8,584,280. Revenue for the project comes from the following funding sources:
Fund Project Cost
Water Supply System Fund $2,864,615
Stormwater Fund $1,121,048
MDOT Federal Aid Buyout Program Funds $ 956,820
Downtown Development Authority $ 75,000
American Rescue Plan Act Funds $1,347,461
Street, Bridge, Sidewalk Millage $2,219,635
Total $8,584,579
Staff
Prepared by: Nicholas S. Hutchinson, P.E., City Engineer
Reviewed by: Sue F. McCormick, Interim Public Services Area Administrator
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, the existing water mains in the project area have been identified as needing replacement and stormwater improvements associated with the project will be a benefit to the Allen Creek watershed;
Whereas, Miller Avenue is identified in the Moving Together Towards Vision Zero Transportation Plan as a Tier 1 safety focus corridor and part of the proposed All Ages and Abilities Bicycle Network;
Whereas, The pavement on Miller Avenue is in need of replacement;
Whereas, The City of Ann Arbor received five bids for this work which were opened on October 9, 2024, and Fonson Company, Inc. was the lowest responsible bidder;
Whereas, It is now necessary to enter into a contract with Fonson Company, Inc. for the performance of this work; and
Whereas, Funding is available for the project in the approved capital budgets;
RESOLVED, That City Council approve a construction contract with Fonson Company, Inc. in the amount of $6,358,946.30 for the Miller Avenue Rehabilitation Project, (ITB-4753);
RESOLVED, That a contingency amount of $686,00.00 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 $1,051,048.00 be appropriated from the Stormwater Fund Capital Budget to the Miller Avenue Rehabilitation Project, thereby increasing the project revenue and expenditure budgets;
RESOLVED, That $956,820.00 of Federal Aid Buyout Program funds be appropriated to the Miller Avenue Rehabilitation Project, thereby increasing the project revenue and expenditure budgets;
RESOLVED, That $1,347,461.00 of American Rescue Plan Act funds be appropriated from the Major Grants Fund to the Miller Avenue Rehabilitation Project, thereby increasing the project revenue and expenditure budgets;
RESOLVED, That $2,035,135.00 be appropriated from the Street, Bridge, and Sidewalk Millage Fund to the Miller Avenue Rehabilitation Project, thereby increasing the project revenue and expenditure budgets, to be reimbursed in part from the Downtown Development Authority;
RESOLVED, That $75,000.00 of Downtown Development Authority be appropriated to the Miller Avenue Rehabilitation Project, thereby increasing the project revenue and expenditure budgets;
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; 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.