Title
Resolution to Approve a Construction Contract with Pavement Maintenance Systems, LLC (RFP No. 25-04, $1,542,423.68) for the 2025 Annual Street Preventative Maintenance Project and Appropriate $1,057,055.00 in Contributing Funds
Memorandum
Attached for your review and consideration for approval, please find a resolution to authorize the award of a construction contract to Pavement Maintenance Systems, LLC for $1,542,423.68 for the 2025 Annual Street Preventative Maintenance Program. This project consists of crack sealing and filling, hot mix asphalt patching, and surface treatment applications on numerous major and minor/local streets throughout the City of Ann Arbor.
Background
The 2025 program includes the application of cape sealing pavement preservation treatment on 2 major streets and 46 minor/local streets. This work is essential toward achieving the long-term goals established for the City’s Pavement Asset Management Plan.
A map showing the proposed streets can be found online at <https://storymaps.arcgis.com/stories/26696a05ca464433beb1f3ec9e8e31cd>. The schedule anticipates construction beginning in mid-April and be completed by the end of October. The Contractor will provide an exact schedule for each street, as required, to coordinate with planned City and other area construction projects, community events, in-session school days, and applicable holiday periods.
The proposed contract is a unit price contract, with the assumption that actual construction quantities will vary based on the necessary work. This arrangement allows for removal, addition and substitution of streets as appropriate. Depletion of available funds prior to the completion of all the streets on the list will result in termination of the construction contract and deferral of the balance of the streets to a future surface treatments project. Conversely, the city may add additional streets if the available budget allows.
The contract is structured to allow for and additional one-year renewal, if agreeable to both parties. The Contractor is required to hold their bid prices for the subsequent contract renewal.
Maintenance of Traffic
On major streets, the contract requires maintaining two-way traffic. The contractor will utilize lane closures with traffic shifts, and flag control at times to perform its work. It will utilize temporary short-term street closures (one day or less) to accomplish the work on local streets. For all the streets, the contract requires maintaining access to driveways and side streets during construction although short-term restricted access will be necessary. In advance of construction and at staff’s direction, the contractor will install signs and/or electronic message boards to notify drivers of upcoming detours and related traffic delays.
Public Outreach
The Contractor, working with staff, will provide advance construction notice to residents and business/property owners affected by this project. The City will notify the public of any temporary traffic control impacts on major streets.
Solicitation of Proposals
Engineering staff supervised the creation of plans and contract documents and solicited proposals for construction of the project through the City’s Procurement Unit. On January 9, 2025, two 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 respondents in the following order:
1. Pavement Maintenance Systems, LLC
2. Strawser Construction, Inc.
Pavement Maintenance Systems LLC received the highest score among the proposals received by the selection committee. Therefore, staff recommend approving a contract with them for this project. Pavement Maintenance Systems, LLC complies with the City’s Non-Discrimination and Living Wage ordinances.
Budget/Fiscal Impact: The estimated total cost for the Capital Preventative Maintenance Program (TR-SB-22-13) is in the current Capital Improvements Plan. The project will have no additional operational impacts.
The estimated total cost for this project is $2,557,055.00 and includes estimated revenue from the following sources:
|
Revenue Source |
Amount |
|
FY 2025 Local Street Fund |
$1,057,055.00 |
|
Bridge, Street and Sidewalk Millage Fund |
$1,500,000.00 |
|
Total |
$2,557,055.00 |
Staff
Prepared by: Nicholas Hutchinson, P.E., City Engineer
Reviewed by: Jordan Roberts, Public Services Area Administrator
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, The City of Ann Arbor’s Adopted FY 2025 Capital Budget includes the Capital Preventative Maintenance Program;
Whereas, Capital preventative maintenance treatments are important to improving and maintaining City streets and achieving the goals of the City’s pavement asset management program;
Whereas, The 2025 Annual Street Preventative Maintenance Project includes the application of cape sealing pavement preservation treatment on 2 major streets and 46 minor/local streets citywide;
Whereas, The 2025 Annual Street Preventative Maintenance Project also includes citywide crack sealing on identified streets;
Whereas, Proposals were received by the City’s Procurement Office on January 9, 2025, and Pavement Maintenance Systems, LLC, received the highest score among the proposals reviewed by the selection committee;
Whereas, The contract proposal sets forth the services to be performed by said company, and the payments to be made by the City therefore, along with other terms and conditions, all of which are agreeable to the City;
Whereas, It is now important to enter into a contract with said company for said construction project;
Whereas, Pavement Maintenance Systems, LLC complies with the City of Ann Arbor Non-Discrimination and Living Wage Ordinances;
RESOLVED, City Council approves a construction contract with Pavement Maintenance Systems, LLC in the amount of $1,542,423.68 for the 2025 Annual Street Preventative Maintenance Program (RFP 25-04);
RESOLVED, That $1,057,055.00 be appropriated from the Local Streets Fund Capital budget to the 2025 Annual Street Preventative Maintenance Project, thereby increasing project revenue and expenditures budget;
RESOLVED, That the funds for the 2025 Annual Street Preventative Maintenance Project be available without regard to fiscal year;
RESOLVED, That the Mayor and City Clerk be authorized and directed to execute said contract after approval as to form by the City Attorney and approval as to substance by the City Administrator;
RESOLVED, That a contingency amount of $155,000.00 be established within the project budget and that the City Administrator be authorized to approve additional change orders to the construction contract with Pavement Maintenance Systems, LLC not to exceed $155,000.00 in order to satisfactorily complete this project; and
RESOLVED, That the City Administrator be authorized to approve the extension of the contract for one additional one-year renewal in the year 2026, subject to the availability of funding; and
RESOLVED, That the City Administrator be authorized to take necessary administrative actions to implement this project, including issuing Traffic Control Orders for the streets included in the Annual Street Preventative Maintenance Program - 2025, including parking prohibitions as needed in excess of one (1) block and/or ninety (90) days.