Title
Resolution to Approve a Construction Contract with Cadillac Asphalt, LLC (RFP No. 25-02, $5,316,300.85) for the 2025 Annual Street Resurfacing Project, and to Appropriate $1,415,000.00 from Contributing Funds (8 Votes Required)
Memorandum
Attached for your consideration is a resolution to approve a construction contract with Cadillac Asphalt, LLC (Cadillac), in the amount of $5,316,300.85 for the rehabilitation and resurfacing of various City streets and asphalt paths, and the construction of new sidewalks. The resolution also appropriates money from other funds contributing to the project.
Background
This year’s project includes approximately 8.4 lane miles of resurfacing work on 23 local streets and 3 major streets, as well as segments of asphalt paths along Eisenhower Parkway and State Street. In addition, and as is typical for this annual project, minor repairs to utility structures within the project limits are made and funded by the appropriate fund. An interactive map of all road work, including resurfacing, in the city, in 2025 can be found at: www.a2gov.org/a2streets <http://www.a2gov.org/a2streets>.
Also included is one new sidewalk installation on the south side of Independence Boulevard from Victoria Avenue to Essex Road.
In addition to the above work, the project includes the installation of traffic calming devices on Bird Road ( Newport Road to Huron River Drive), Arella Boulevard (Stadium Boulevard to Pauline Boulevard), Henry Street (Golden Avenue to Packard Street), Mershon Drive (Scio Church Road to Delaware Drive), and Worden Avenue (Jackson Avenue to Dexter Avenue) that were requested and approved through the City’s Traffic Calming Program.
It is also anticipated that this contract will be utilized to install concrete work for crosswalks on Jackson Ave/Huron Street, thus necessitating the larger than average contingency request of $1,000,000.00.
Construction is anticipated to begin in April 2025 and be completed by November 2025. The Contractor will provide an exact schedule for each street, as required, to coordinate with planned community events, in-session school days, holiday periods, and other construction projects.
The contract is a unit price contract, as actual construction quantities may vary. This allows removal or substitution of any streets on the proposed list for any reason. If additional funding becomes available, or if costs for the current project list are lower than anticipated, the city may add additional streets to the project.
The contract is structured to allow for an 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
The contract requires maintenance of local traffic and access to properties throughout most of the construction. For total closures, the road will be open to local traffic only, and other traffic will be temporarily detoured in both directions of travel. 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
An in-person open house was held on January 16, 2025, in relation to the new sidewalk installation on Independence Boulevard for the adjacent property owners to ask questions and obtain feedback about the layout.
In addition to this area specific outreach, communications to all residents in the 2025 Resurfacing areas will include post card communications, email distribution lists created from resident requests, and the following webpages: www.a2gov.org/a2streets <http://www.a2gov.org/a2streets>, www.a2gov.org/roadconstruction <http://www.a2gov.org/roadconstruction> and www.a2gov.org/resurfacing <http://www.a2gov.org/resurfacing>
Staff will distribute a detailed notice prior to construction on each street. Residents and property owners may check the webpage or sign up for email updates to track the progress of work. The Contractor will distribute additional notices when its work activities and operations directly impact residents and property/business owners.
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 February 12, 2025, two (2) 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. Cadillac Asphalt, LLC
2. Ajax Paving Industries, Inc.
Cadillac received the highest score among the proposals reviewed by the selection committee. Therefore, staff recommend approving a contract with them for this project. Cadillac complies with the City’s Non-Discrimination and Living Wage ordinances.
Budget/Fiscal Impact; The estimated total cost for this year’s project is $6,859,098.00, which includes the Annual Street Resurfacing Project (TR-SC-22-06), Ann Street (Zina Pitcher to Observatory) (TR-SB-26-01), Fifth Avenue (William to Madison) (TR-SB-22-19), Neighborhood Traffic Calming Program (TR-SB-24-02), Independence Sidewalk Gap (TR-AT-18-07), and Annual Asphalt Sidewalk Repairs (TR-AT-22-12) in the current Capital Improvement Plan. Estimated revenues for the project come from the following sources:
|
Revenue Source |
Amount |
|
Street, Bridge, and Sidewalk Millage Fund* |
$5,124,098 |
|
FY25 Sidewalk Construction Millage (New Sidewalk) |
$350,000 |
|
FY25 County Mental Health Millage Fund (Traffic Calming) |
$250,000 |
|
FY26 County Mental Health Millage Fund (Traffic Calming) |
$70,000 |
|
Stormwater Fund |
$800,000 |
|
Sewage Disposal Fund |
$185,000 |
|
Water Supply System Fund |
$80,000 |
|
*Includes $250,000.00 for asphalt path repairs |
$6,859,098 |
Appropriations are necessary to allocate the major funding sources to the existing 2025 Annual Street Resurfacing Project Budget.
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 Adopted FY 2025 Street, Bridge, and Sidewalk Millage Capital Budget, which includes the Annual Street Resurfacing Project and Annual Asphalt Sidewalk Repairs;
Whereas, The 2025 Annual Street Resurfacing Project includes approximately 8.4 lane miles of resurfacing work on 23 local streets and 3 major streets, as well as the replacement of segments of asphalt sidewalks;
Whereas, The 2025 Annual Street Resurfacing Project will improve and maintain streets and asphalt sidewalks in the City;
Whereas, Proposals were received by the City’s Procurement Office on February 12, 2025, and Cadillac Asphalt, LLC received the highest score among the proposals reviewed by the selection committee;
Whereas, It is appropriate now to enter into a contract with said company for said construction project; and
Whereas, The contract sets forth, among other things, the services to be performed by said company, and the payments to be made by the City therefore, all of which are agreeable to the City; and
Whereas, Cadillac Asphalt, LLC complies with the City of Ann Arbor Non-Discrimination, Responsible Bidder and Living Wage Ordinances;
RESOLVED, That City Council approve a construction contract with Cadillac Asphalt, LLC in the amount of $5,316,300.85 for the 2025 Annual Street Resurfacing Project (RFP No. 25-02);
RESOLVED, That the 2025 Annual Street Resurfacing Project expenditure and revenue budgets be increased by $1,415,000.00 with the sources of funding being the appropriation from the approved Stormwater Fund Capital budget ($800,000.00), the approved Water System Fund Capital budget ($80,000.00), the approved Sewage Disposal System Capital budget ($185,000.00), and the Sidewalk Construction Millage Fund Capital Budget ($350,000.00), if so approved;
RESOLVED, That a contingency amount of $1,000,000.00 be established within the project budget and that the City Administrator be authorized to approve additional change orders to the construction contract with Cadillac Asphalt LLC not to exceed $1,000,000.00 in order to satisfactorily complete this project;
RESOLVED; That the funding be available without regard to fiscal year until project completion;
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 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 resolution, including issuing Traffic Control Orders for the streets included in the 2025 Annual Street Resurfacing Project, including parking prohibitions as needed in excess of one (1) block and/or ninety (90) days.