Title
Resolution to Approve a Professional Services Agreement with The Air King Heating & Cooling LLC for Appliance Replacement Services Related to Bryant Neighborhood Decarbonization Work ($250,250.00)
Memorandum
Attached for your review and consideration is a Professional Services Agreement with The Air King Heating & Cooling LLC to complete appliance replacement services in homes within the Bryant neighborhood as part of the City’s work to decarbonize the Bryant neighborhood in Ann Arbor.
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 have helped inform a scope of services and fundraising efforts by both the City and Community Action Network. This includes a recent grant 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.
This funding from the Michigan Public Service Commission (MPSC) was explicitly focused on making improvements in up to 50 homes in the Bryant neighborhood. 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 review as to qualifications, previous experience, fees, and ability to meet service standard requirements, the review committee selected 10 firms to move forward with contracting in five of the six areas. These include:
• Enerdynamic, LLC dba Blanket Insulation Services and Ecotelligent Homes LLC for Weatherization Services
• Expert Heating and Cooling Co. LLC and Sharon’s Heating & Cooling, Inc. for Mechanical HVAC services
• Decima, LLC and Michigan Solar Solutions LLC for Electrical services
• Michigan Solar Solutions, LLC and Homeland Builders of Michigan LLC d/b/a Homeland Solar for Solar and Storage services
• Sharon’s Heating & Cooling, Inc. and The Air King Heating & Cooling LLC for Appliance Replacement services
Unfortunately, neither of the two bids received for drainage were moved forward by the review committee due to either incomplete bids, fees, or lack of experience. As such, staff at the City and CAN anticipate following up with existing contractors doing quality drainage work in the neighborhood who did not bid on the RFP to uncover why they chose not to bid and explore next steps.
For now though, the staff review committee recommends moving forward with the eight contractors identified above with all of them coming under separate professional services agreement to implement work identified as necessary in the Bryant neighborhood.
As further background, the workflow process for work under this grant will follow the following process:
• City of Ann Arbor and CAN staff meet with interested residents to explain the program and what it entails
• Interested residents sign an interest letter and then receive a home assessment from Elevate. At this point a project manager is assigned from either Elevate or CAN to accompany the resident through the implementation phase of the project.
• Elevate completes the assessment and discusses with the resident to identify which home improvements they would like to receive and prioritize, which Elevate then assembles into a Home Upgrade Plan.
• Once projects are identified, Elevate reaches out to approved contractors (aka, those who successfully bid on RFP # 25-21) to coordinate the scope of services.
• The contractor then follows up with the resident to schedule a site visit. This must be completed within 5 days of work assignment.
• At the job site the contractor evaluates the work to be completed and discusses the work with the resident and with the project manager prior to proceeding with work. If the resident refuses any work, the work does not move forward.
• The contractor then coordinates with the resident and project manager to schedule all work.
• The contractor pulls permits as necessary with the appropriate jurisdiction.
• Work is completed as agreed upon with the contractor notifying the designated project manager upon completion. Any work that cannot be completed needs to be discussed and approved by the project manager prior to moving forward with the job.
• The project manager meets with the resident and performs a site visit to confirm all work was completed according to expectations.
• The contractor submits invoices and related necessary documentation and is paid.
• Throughout this process, the Contractor will regularly submit all payroll verification reports, as required.
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.
Staff
Prepared by: Missy Stults, Sustainability and Innovations 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 an application to 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’s grant application included $3,000,000 in proposed funding to support hiring contractors to make improvements in approximately 50 homes in the Bryant neighborhood;
Whereas, The Michigan Public Service Commission’s Department of Licensing and Regulatory Affairs selected the City’s grant application for award and has approved a total assistance amount of $3,115,600.00 to accomplish the tasks in the City’s application, including the funding for home improvements;
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, Eight firms were recommended to move forward with contracting, with two firms selected to provide services related to appliance replacement services;
Whereas, The Air King Heating & Cooling LLC was selected as a qualifying appliance replacement firm to provide said services through the project; and
Whereas, The Air King Heating & Cooling LLC 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 The Air King Heating & Cooling LLC in the amount of $250,250.00 for appliance replacement-related 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 remaining funding in the FY26 expenditure budget related to this Professional Services Agreement with The Air King Heating & Cooling LLC 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.