Title
Resolution to Approve a Professional Services Agreement with Oak Electric Service, Inc. for Electrical, Solar, and Storage Services Related to Bryant Neighborhood Decarbonization Work ($800,000.00)
Memorandum
Attached for your review and consideration is a Professional Services Agreement with Oak Electric Service, Inc. to complete electrical, solar, and storage-related service work in homes within the Bryant neighborhood as part of the City’s neighborhood decarbonization work there.
As background, for over three (3) years, City staff have been working with the residents of the Bryant neighborhood and Community Action Network (CAN) to determine what it would look like to make Bryant one of the nation’s most sustainable and resilient existing neighborhoods. Ideas emerging through these engagements informed a scope of services and fundraising efforts by both the City and Community Action Network. This includes two relatively recent grants the Office of Sustainability and Innovations won from the Michigan Public Service Commission (totaling $3.1 million) to implement solutions such as weatherization, flood remediation, appliance replacements, electrical upgrades, solar, and energy storage solutions in the Bryant neighborhood and a $5,000,000.00 award from the State of Michigan to test a Virtual Power Plant in Bryant. Both of these awards include funding for solar, storage, and electrical work.
To prepare for this work, the City issued a Request for Proposals (RFP # 25-21: Sustainability and Energy-Related Improvements in the Bryant Neighborhood) in April 2025. Responses to the RFP were due on May 30, 2025. Given the complexity of the needed work in Bryant, the RFP requested that interested firms bid on at least one of six areas of service: weatherization services; mechanical contractor (HVAC) services; electrical contractor services; solar and battery energy storage contractor services; drainage, water, and sewer contractor services; and appliance replacement, install, and recycling services. Bid sheets were provided for each area of work with bidders required to submit their standard pricing to ensure fair evaluation across service areas.
In total, 30 bids were submitted across all areas, with the following breakdown by service area:
• 5 bids for weatherization services
• 9 bids for mechanical HVAC services
• 4 bids for electrical services
• 6 bids for solar and storage services
• 2 bids for drainage, water, and sewage services
• 4 bids for appliance replacement
After starting the work, the team realized additional electric, solar, and storage capacity was needed. As such, the review committee went back to proposals and is recommending bringing the 3rd highest scoring solar/storage contract forward for award. That contractor is Oak Electric Service, Inc.
Oak Electric Service, Inc. is compliant with the City’s living wage, non-discrimination, and conflict of interest policies and is prepared to immediately begin work upon contract execution.
Budget/Fiscal Impact: Funding for this Professional Services Agreement is available through the Michigan Public Services Commission grant won by the Office of Sustainability and Innovations and from the State of Michigan grant award supporting a virtual power plant.
Staff
Prepared by: Missy Stults, Sustainability and Innovations Director
Reviewed by: Shoshannah Lenski, SEU Executive Director
Reviewed by: Kim Hoenerhoff, Financial Analyst
Reviewed by: Valerie Jackson, Assistant City Attorney
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, The City’s A2ZERO Plan calls for massive efforts to decarbonize buildings throughout the City of Ann Arbor;
Whereas, The City’s Office of Sustainability and Innovations has been working for three years with Community Action Network and the residents of the Bryant neighborhood to identify solutions and actions that will help make the Bryant neighborhood one of the first carbon neutral neighborhoods in the country;
Whereas, Through these engagements, the City’s Office of Sustainability and Innovations has identified a series of home improvements that are necessary to help improve the health, safety, and sustainability of homes in the Bryant neighborhood;
Whereas, The City’s Office of Sustainability and Innovations submitted and won a grant through the Michigan Public Service Commission’s Department of Licensing and Regulatory Affairs under the Renewable Energy and Electrification Infrastructure Enhancement and Development Grant program to support the implementation of decarbonization solutions in the Bryant neighborhood;
Whereas, The City also won funding from the State of Michigan to launch a virtual power plant in the Bryant neighborhood;
Whereas, Combined, these two grants provide over $4,000,000.00 for solar, storage, electrical, and related work in Bryant;
Whereas, The Office of Sustainability and Innovations released a request for proposal (RFP # 25-21) in April 2025 to identify firms capable of completing the work authorized under the Michigan Public Service Commission grant award;
Whereas, Oak Electric Services, Inc. was selected as a qualified vendor for solar, storage, and electrical work and selected to provide said services through the project; and
Whereas, Oak Electric Services, Inc. is compliant with the City’s living wage, conflict of interest, and non-discrimination policies;
RESOLVED, That City Council approve a Professional Services Agreement with Oak Electric Services, Inc. in the amount of $800,000.00 for electrical-related services and solar and energy storage services as identified in its bid sheets in connection with the decarbonization efforts in the Bryant neighborhood;
RESOLVED, That City Council approve a 10% contingency to be allocated at the City Administrator’s discretion should additional work be necessary;
RESOLVED, That any funding in the FY26 expenditure budget related to this Professional Services Agreement with Oak Electric Services, Inc. be carried forward without regard to fiscal year;
RESOLVED, That the Mayor and City Clerk be authorized and directed to execute said Professional Services Agreement after approval by the City Administrator and the City Attorney; and
RESOLVED, That the City Administrator be authorized to take all necessary actions to implement this resolution, including execution of related additional agreements necessary to effectuate the terms of this Agreement; execution of authorized renewals and amendments not exceeding the approved expenditure amount; and termination of this Agreement as needed.