Title
Resolution to Approve a Construction Contract with Ajax Paving Industries, Inc. for the Airport Box Hangar Taxilane and Apron Reconstruction Project (ITB No. 4780) ($389,880.00)
Memorandum
Attached for your review and consideration is a resolution that approves an agreement between the City and Ajax Paving Industries, Inc. (“Ajax Paving”), Troy, MI, for the Apron Pavement Reconstruction at Ann Arbor Municipal Airport, Ann Arbor, MI in the amount of $389,880.00.
The existing pavement conditions of the J Row Hangar approach and Taxilane are among the lowest-scoring areas on-site. The deteriorating condition of the pavement poses operational challenges, impacting the safety and accessibility of aircraft and personnel using these critical areas.
Given the federal grant assurances in place, it is imperative that these pavement deficiencies be addressed to maintain compliance and ensure the continued safe operation of airport activities. The degraded surface not only hinders efficient aircraft movement but also presents potential hazards that must be mitigated to uphold regulatory standards.
Timely improvements to this pavement infrastructure will enhance safety, maintain compliance with federal requirements, and support long-term operational efficiency. The necessary repairs and upgrades should be prioritized to align with funding obligations and ensure the ongoing reliability of airport facilities.
The City’s Procurement Unit solicited proposals under ITB No. 4780, and two bids were received on January 12, 2026. Using the lowest qualified bidder requirements, as required per BIL Federal Grant requirements, Ajax Paving had the lowest qualified bid of the two firms who submitted bids and was awarded the contract.
Ajax Paving complies with the requirements of the City’s Conflict of Interest, Living Wage, Prevailing Wage and Non-Discrimination ordinances.
Budget/Fiscal Impact: The Box Hangar Taxilane and Apron Reconstruction project is being funded by a combination of BIL Federal Grant Funds and State of Michigan Funds (MDOT agreement 2025-0726). Should the project costs exceed the maximum grant obligation a local share will be required and is available in the approved Airport Fund Operations and Maintenance Budget.
The resolution includes the request for $36,000.00 in contingency funds, approximately 10%, to cover any unknown conditions or potential scope change orders to be approved by the City Administrator if necessary.
Staff
Prepared by: Carl Konopaska, Fleet & Facilities Manager
Reviewed by: Mariah Walton, Deputy City Administrator
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, The pavement conditions of the J Row Hangar approach and Taxilane are among the lowest scored on-site and require immediate attention;
Whereas, The City of Ann Arbor solicited bids for the Box Hangar Taxilane and Apron Reconstruction Project under ITB No. 4760 and two bids were received in February 2025;
Whereas, Ajax Paving was the lowest qualified bid of the two received utilizing the Federal lowest qualified bid requirements outlined in ITB No. 4780;
Whereas, Ajax Paving has provided a bid at a cost of $389,880.00 to complete the Box Hangar Taxilane and Apron Reconstruction Project;
Whereas, Adequate funds for this project in the amount of $389,880.00, plus contingency are available by a combination of BIL Federal Grant Funds and State of Michigan Funds and the approved Airport Fund Operations and Maintenance Budget;
Whereas, Staff has requested that a project contingency in the amount of $36,000.00 be included to cover any unknown conditions or necessary scope changes upon approval of the City Administrator; and
Whereas, Ajax Paving complies with the requirements of the City’s Conflict of Interest, Living Wage, Prevailing Wage and Non-Discrimination ordinances;
RESOLVED, That City Council approves a contract with Ajax Paving Industries, Inc. in the amount of $389,880.00 for the Box Hangar Taxilane and Apron Reconstruction Project;
RESOLVED, The City Council approves a project contingency of $36,000.00 for potential contract change orders, subject to City Administrator approval;
RESOLVED, That all amounts herein are without regard to fiscal year;
RESOLVED, That the Mayor and City Clerk be authorized and directed to execute said contract after approval as to substance by the City Administrator and approval as to form by the City Attorney; and
RESOLVED, That the City Administrator is authorized to take all necessary actions to implement this resolution.