Title
Resolution to Approve a Construction Contract with Fonson Company, Inc. for the South Industrial Water Main Project (RFP 25-19; $1,241,935.47) and to Appropriate $120,000.00 in Contributing Funds (8 Votes Required)
Memorandum
Attached for your review and approval, please find a resolution to approve a construction contract between the City of Ann Arbor and Fonson Company, Inc. (Fonson) in the amount of $1,241,935.47 for the South Industrial Water Main Replacement Project (RFP 25-19).
The South Industrial Water Main Replacement Project will be replacing and upsizing approximately 1,000 feet of public water main and performing associated water service transfers and restoration. In addition, concrete road repairs will be done on some isolated areas of deteriorated pavement.
The construction of the project is scheduled to begin in late June 2025 and continue through October 2025. Before and during construction, City staff will maintain frequent communication with the property and business owners along South Industrial to minimize impacts to businesses to the extent possible.
Engineering staff supervised the creation of plans and contract documents and issued a request for proposals through the City’s Procurement Unit. On April 24, 2025, three 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 responding firms in the following order:
1. Fonson Company, Inc.
2. E.T. MacKenzie Company, Inc.
3. Major Contracting
Fonson received the highest score among the proposals reviewed by the selection committee. Therefore, staff recommends awarding the contract for this project to Fonson. Fonson complies with the City’s Non-Discrimination and Living Wage ordinances.
Budget/Fiscal Impact: This project is included in the City’s Capital Improvements Plan (UT-WS-24-10 and TR-SB-26-31). The estimated total cost of the project is $1,700,000.
Funding for the project is partially included in the approved FY25 capital budget of the Water Supply System Fund, and the remainder is available in unobligated Street, Bridge and Sidewalk Millage Fund balance.
Fund Project Cost
Water Supply System Fund $ 1,580,000.00
Street, Bridge and Sidewalk Millage Fund $ 120,000.00
Total $ 1,700,000.00
Staff
Prepared by: Nicholas S. Hutchinson, P.E., City Engineer
Reviewed by: Jordan Roberts, Public Services Area Administrator
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, The existing water mains in the project area have a history of breaks and have been identified as needing replacement;
Whereas, Funding for the project is available from the Water Supply System Fund and the Street, Bridge and Sidewalk Millage Fund balance;
Whereas, The City of Ann Arbor received three proposals for this work on April 24, 2025 and Fonson Company, Inc. received the highest score among the proposals reviewed by the selection committee;
Whereas, It is now necessary to enter into a contract with Fonson Company, Inc. for the performance of this work; and
Whereas, Fonson Company, Inc. complies with the City’s Non-Discrimination, Conflict of Interest, and Living Wage ordinances;
RESOLVED, That City Council approves a construction contract with Fonson Company, Inc. in the amount of $1,241,935.47 for the South Industrial Watermain Replacement Project (RFP 25-19);
RESOLVED, That $120,000.00 be appropriated from the unobligated Street. Bridge and Sidewalk Millage Fund balance to the South Industrial Watermain project, thereby increasing the project revenue and expenditure budgets;
RESOLVED, That the City make the following declaration for the purpose of complying with the reimbursement rules of Treasury Regulations 1.150-2 pursuant to the Internal Revenue Code of 1986, as amended: that the City reasonably expects to reimburse itself for expenditures for the costs of the Project with proceeds of Bonds;
RESOLVED, That a contract contingency amount of $120,000.00 be established within the project budget and that the City Administrator be authorized to approve additional change orders to the construction contract with Fonson Company, Inc. not to exceed $120,000.00 in order to satisfactorily complete this project;
RESOLVED, That the Mayor and City Clerk be authorized and directed to execute said agreement after approval as to substance by the City Administrator and approval as to form by the City Attorney; and
RESOLVED, That the City Administrator be authorized to take necessary administrative actions to implement this resolution, including issuing temporary and permanent Traffic Control Orders and night work authorizations as required for the construction of the project.