Title
Resolution to Approve a Construction Contract with 21st Century Salvage, Inc. for the Demolition of Four City of Ann Arbor Properties - 415 West Washington, 721 North Main, the Farmers Market Office Building, and the Veterans Memorial Park Picnic Shelter and Appropriate Funding ($1,423,751.00) (8 Votes Required)
Memorandum
Attached for your review and approval, is a resolution to approve a Construction Contract with 21st Century Salvage Inc. in the amount of $1,423,751.00 for the Demolition Projects Project (RFP 24-41).
The scope of this project includes the demolition of four buildings at the following locations:
• 415 West Washington Street (Vacant City Facility)
• 721 North Main Street (Vacant City Facility)
• 315 Detroit Street (Farmers Market Office Building)
• 2150 Jackson Avenue (Veterans Memorial Park Picnic Shelter)
• Vacant City Facility (415 West Washington Street):
The City-owned building at 415 West Washington Street has sat vacant since City operations in the building were moved to their current location at the Wheeler Center on Stone School Road. Demolition work, as part of this contract, will include taking the structure down to the building slab, but it will not go below grade, requiring environmental remediation.
The Historic Commission approved demolition of this structure with HDC18-1574.
A Planned Unit Development Zoning was approved (PUD ORD-23-10) for the 415 West Washington Site. (Legistar File 23-0277)
• Vacant City Facility (721 North Main Street):
The City-owned building at 721 North Main Street has sat vacant since City operations in the building were moved to their current location at the Wheeler Center on Stone School Road. Demolition work for this contract will include taking the building down to its building slab, but it will not go below grade, requiring environmental remediation. Demolition work pertaining to this contract will only involve the building, and any site work directly impacted by its removal.
• Farmers Market Office Building (315 Detroit Street):
Concerns with the Farmers Market Office Building were observed in the spring of 2023, which included cracking in Masonry wall, and a large gap that formed between the sidewalk and the building. An evaluation, completed by Hubbell, Roth & Clark, inc., determined that the foundations of the structure were compromised, and had degraded over time. In addition, several other elements of the building were past the end of their life span, and significant investment would be needed to keep the building functional from a health, safety, and welfare standpoint.
Staff will begin commencement on a Market Study to determine the needs of the community before moving forward with a building replacement. Market operations have moved to a temporary structure, allowing the Farmers Market to continue functioning throughout this process.
• Veterans Memorial Park Picnic Shelter (2150 Jackson Avenue):
The Veterans Memorial Park Shelter was constructed in the 1960s and has degraded over time. Without running water or sanitation, the kitchen and restrooms are no longer operable. The structure has reached the end of its life and is recommended by staff to be removed.
Parks and Recreation staff supervised the creation of plans and contract documents and bid the project through the City’s Procurement Unit, on June 11, 2024. Six (6) proposals were received for this work. A selection committee comprised of Community Services and the City’s Safety Manager 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. 21st Century Salvage Inc.
2. E.T. MacKenzie Company
3. Adamo Demolition Company
4. Christman Constructors, Inc.
5. Vin-Con Inc.
6. Homrich
21st Century Salvage Inc. received the highest score among the proposals reviewed by the selection committee. Therefore, staff recommends approval of a Construction Contract with 21st Century Salvage, Inc for demolition of four City properties. 21st Century Salvage Inc. complies with the City’s Non-Discrimination and Living Wage ordinances.
Budget/Fiscal Impact: The cost for all projects is $1,423,751.00. A use of General Fund fund balance is being requested for the 415 W Washington demolition in the amount of $602,776.00. A use of Fleet Services Fund fund balance is being requested for the demolition of the property at 721 North Main Street in the amount of $477,690.00. It is further requested that fund balance from the Park Maintenance and Capital Improvement Millage Fund be utilized for the Farmers Market and Veterans Memorial Park Picnic Shelter demolitions for a total of $343,285.00.
Staff
Prepared by: Adam Fercho, Landscape Architect/Park Planner
Reviewed by: Josh Landefeld, Parks & Recreation Services Manager
Reviewed by: Derek Delacourt, Community Services Area Administrator
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, The structures included in this work have been identified as needing to be demolished for the health, safety, and welfare of the community;
Whereas, Request for Proposal #24-41, Demolition Projects, was published June 11, 2024;
Whereas, The City of Ann Arbor received six (6) proposals for this work on July 3, 2024, and 21st Century Salvage, Inc. received the highest score among the proposals reviewed by the selection committee;
Whereas, Staff recommends approval of a Construction Contract with 21st Century Salvage, Inc. for the performance of this work; and
Whereas, Funding is available for these projects in the fund balance of the General Fund, Fleet Services Fund and the Park Maintenance and Capital Improvement Millage fund;
RESOLVED, That City Council approves a Construction Contract with 21st Century Salvage, Inc. in the amount of $1,423,751.00 for the Demolition Projects Project (RFP 24-41);
RESOLVED, That $602,776 be appropriated from the General Fund fund balance to the FY 2025 General Fund Parks and Recreation expenditure budget for the demolition of 415 W Washington;
RESOLVED, That City Council approve a project contingency with 21st Century Salvage Inc. in the amount of $120,555.00 for the demolition of 415 W Washington and appropriate $120,555.00 from the General Fund fund balance to the FY 2025 General Fund Parks and Recreation expenditure budget for the project contingency; subject to City Administrator approval;
RESOLVED, That $477,690.00 be appropriated from the Fleet Services Fund fund balance to the FY 2025 Fleet Services Fund Fleet & Facility expenditure budget for the demolition of 721 North Main;
RESOLVED, That City Council approve a project contingency with 21st Century Salvage, Inc. in the amount of $95,538.00 for the demolition of 721 North Main and appropriate $95,538.00 from the Fleet Services Fund fund balance to the FY 2025 Fleet Services Fund Fleet & Facility expenditure budget for the project contingency, subject to City Administrator approval;
RESOLVED, That $343,285.00 be appropriated from the Park Maintenance and Capital Improvement Millage Fund fund balance to the FY 2025 Park Maintenance and Capital Improvement Millage Fund Parks and Recreation expenditure budget for the demolition and related work at the Farmers Market and the demolition of the Veterans Memorial Park Picnic Shelter;
RESOLVED, That City Council approve a project contingency with 21st Century Salvage, Inc. in the amount of $34,329.00 for the demolition and related work at the Farmers Market and the demolition of the Veterans Memorial Park Picnic Shelter and appropriate $34,329.00 from the Park Maintenance and Capital Improvement Millage Fund fund balance to the FY 2025 Park Maintenance and Capital Improvement Millage Fund Parks and Recreation expenditure budget for the project contingency, subject to City Administrator approval;
RESOLVED, That all amounts herein are without regard to fiscal year;
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 the necessary administrative actions to implement this resolution.