Title
Resolution to Approve a Construction Contract with Lee Contracting, Inc. d/b/a Midwest Power Systems in the amount of $2,225,685.00 for the Water Treatment Services Unit Instrumentation and Controls Improvements Project (RFP 26-24)
Memorandum
This memorandum and resolution requests approval of a construction contract with Lee Contracting, Inc. d/b/a Midwest Power Systems in the amount of $2,225,685.00 for the Water Treatment Services Unit (WTSU) Instrumentation and Controls Improvements Project (RFP 26-24).
The Water Treatment Plant (WTP) processes rely on hundreds of actuated valves and instruments to maintain critical operations and maintain regulatory requirements to provide safe and reliable drinking water to the City of Ann Arbor. The filtration process alone consists of dozens of electric-actuated valves and instruments to monitor level and various water quality parameters. WTSU is continually working to replace actuators that have reached the end of their useful life and are no longer supported by the original equipment manufacturer. In addition, various instruments associated with filtration process such as filter effluent flow meters, turbidity meters, backwash turbidity meters, and level measurement require replacement to ensure optimal filtration.
The scope of this project includes replacement of valve actuators and instrumentation that are critical to optimal performance of Filters 1-10 including flow meters, turbidity analyzers, particle counters and level measurement devices. Additional scope includes replacement of the four (4) finished water flow meters that serve the distribution system. The proposed improvements are necessary to assure operational reliability of the City’s WTSU infrastructure. This project is included in the City’s Capital Improvements Plan (UT-WS-26-17).
Solicitation of Proposals
WTSU staff supervised the development of plans and contract documents and solicited proposals for construction of the project through the City’s Procurement Unit. On May 20, 2026, the City received two (2) responsive proposals for this work. A selection committee comprised of WTSU staff and design consultants reviewed the proposals and determined which respondent provided the best value based on the City’s best value procurement criteria:
• Qualifications, Experience & Accountability (20%)
• Workplace Safety (20%)
• Workforce Development (20%)
• Social Equity & Sustainability (20%)
• Schedule of Pricing/Cost (20%)
After evaluation of the bid, staff have determined that Lee Contracting, Inc. d/b/a Midwest Power Systems’ bid is responsible, in line with the construction cost estimate, and represents the best value. Therefore, WTSU recommends approving the Contract for these services to Lee Contracting, Inc. d/b/a Midwest Power Systems.
Budget/Fiscal Impact: This project is included in the approved Water Supply System Capital Improvement Budget.
Lee Contracting Inc d/b/a Midwest Power Systems submitted all required Non-Discrimination, Prevailing Wage, Living Wage, and Conflict of Interest Disclosure forms and complies with the requirements of the City’s Non-Discrimination and Living Wage ordinances.
Staff
Prepared by: Emily Schlanderer, PE, Senior Utilities Engineer
Reviewed by: Jordan Roberts, Public Services Area Administrator
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, The WTP filtration process relies on dozens of actuated valves and instruments to maintain critical operations and maintain regulatory requirements;
Whereas, The Instrumentation and Controls Improvements Project includes replacement of valve actuators and instrumentation that have reached the end of their life and are critical to performance of Filters 1-10;
Whereas, Additional scope includes replacement of the WTP’s four (4) finished water flow meters that serve the distribution system;
Whereas, Competitive bids were solicited by Procurement on April 9, 2026 (RFP 26-24) and two responsive proposals were received;
Whereas, The bids were evaluated and Lee Contracting, Inc. d/b/a Midwest Power Systems in the amount of $2,225,685.00 received the highest score among the proposals reviewed by the selection committee;
Whereas, The Instrumentation and Controls Improvements Project is included as a project in the Capital Improvement Plan;
Whereas, Funding is available in the approved Water Supply System Capital Budget and will be available in future fiscal years throughout the life of the project; and
Whereas, Lee Contracting, Inc. d/b/a Midwest Power Systems has submitted all required Non-Discrimination, Prevailing Wage, Living Wage, and Conflict of Interest Disclosure forms and complies with the requirements of the City’s Non-Discrimination and Living Wage ordinances;
RESOLVED, That City Council approves the Construction Contract with Lee Contracting, Inc. d/b/a Midwest Power Systems in the amount of $2,225,685.00 for the WTSU Instrumentation and Controls Improvements Project (RFP 26-24);
RESOLVED, That a contingency in the amount of $225,000.00 is approved to finance change orders to the contract with Lee Contracting, Inc. d/b/a Midwest Power Systems to be approved by the City Administrator;
RESOLVED, That the City makes the following declaration for the purpose of complying with the reimbursement rules of Treas. Reg. 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 WTSU Instrumentation and Controls Improvements Project with proceeds of Bonds;
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 all necessary actions to implement this resolution.