Title
Resolution to Approve a Renewed Construction Contract with Pavement Maintenance Systems, LLC for the 2026 Annual Street Preventative Maintenance Project ($1,281,078.98), and to Appropriate Contributing Funds (8 Votes Required)
Memorandum
Attached for your consideration is a resolution to approve a renewed construction contract with Pavement Maintenance Systems, LLC, in the amount of $1,281,078.98 for the pavement preservation of various streets throughout the City through the 2026 Annual Street Preventative Maintenance Project. The resolution also appropriates money from other funds contributing to the project.
Background
Engineering staff solicited proposals for the Annual Street Preventative Maintenance Program through the City’s Procurement Unit and received proposals on January 9, 2025.
RFP 25-04 included language that, if both the City and awarded Contractor agree, the contract may be renewed for one (1) year, subject to the availability of funding, with unit pricing remaining the same as the original 2025 contract. Updates to the renewed contract were identified to include the 2026 street list, completion dates, and contract total.
The original construction contract with Pavement Maintenance Systems, LLC (RFP 25-04) received council approval on March 17, 2025 (R-25-079; File #: 25-0202).
Both parties agree to the original terms outlined in the 2025 contract and are therefore moving forward with a renewed construction contract for 2026.
2026 Preservation Maintenance Program
The 2026 Annual Street Preventative Maintenance Program Project consists of crack sealing, hot mix asphalt patching, and cape sealing pavement preservation treatment on 2 major streets and 14 minor/local streets. This work is essential toward achieving the long-term goals established for the City’s Pavement Asset Management Plan. An interactive map of all road work, including the work being done as part of this project, can be found at: <http://www.a2gov.org/a2streets>.
Construction is planned to begin in April 2026 and be completed by October 2026.
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. 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.
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 construction notices in advance 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.
Budget/Fiscal Impact: The estimated total cost for the Capital Preventative Maintenance Program (TR-SB-22-14) is in the current Capital Improvements Plan. The project will have no additional operational impacts. Funding is available in the Approved Majors Streets and Locals Streets Capital Budgets for this project.
The estimated total cost for this project is $1,745,000.00 and includes estimated revenue from the following sources:
|
Revenue Source |
Amount |
|
Act 51 Major Streets Fund |
$1,450,000.00 |
|
Act 51 Local Streets Fund |
$ 295,000.00 |
|
Total |
$1,745,000.00 |
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 2026 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 plan;
Whereas, The 2026 Annual Street Preventative Maintenance Project includes the application of cape sealing pavement preservation treatment on 2 major streets and 14 minor/local streets citywide;
Whereas, The 2026 Annual Street Preventative Maintenance Project also includes citywide crack sealing on identified streets;
Whereas, The original construction contract with Pavement Maintenance Systems, LLC (RFP 25-04) received council approval on March 17, 2025 (R-25-079; File #: 25-0202);
Whereas, It is desirable to enter into a renewed construction contract for the 2026 Annual Street Preventative Maintenance Project with said company to maintain existing unit pricing;
Whereas, The renewed 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, Pavement Maintenance Systems, LLC complies with the City of Ann Arbor Non-Discrimination and Living Wage Ordinances;
RESOLVED, That City Council approves the Renewed Construction Contract with Pavement Maintenance Systems, LLC in the amount of $1,281,078.98 for the 2026 Annual Street Preventative Maintenance Project;
RESOLVED, That $295,000.00 from the Local Streets Fund Capital budget to the 2026 Annual Street Preventative Maintenance Project, thereby increasing project revenue and expenditures budget;
RESOLVED, That a contingency amount of $174,500.00 be established within the project budget and that the City Administrator be authorized to approve additional change orders to the renewed construction contract with Pavement Maintenance Systems, LLC not to exceed $174,500.00 in order to satisfactorily complete this project;
RESOLVED, That the funds for the 2026 Annual Street Preventative Maintenance Project be available without regard to fiscal year; 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 2026 Annual Street Preventative Maintenance Program, including parking prohibitions as needed in excess of one (1) block and/or ninety (90) days.