Title
Resolution to Approve a Construction Contract with Fonson Company, Inc. in the Amount of $385,829.00 for the Water Treatment Plant Lime Residual Removal Contract No. 1 - Site Modifications (RFP 25-15)
Memorandum
This memorandum and resolution requests approval of a construction contract with Fonson Company, Inc. in the amount of $385,829.00 for the Water Treatment Plant (WTP) Lime Residual Removal Contract No. 1 - Site Modifications (RFP 25-15).
The WTP generates approximately 18,000 tons of lime residual each year as a byproduct of the lime softening process. The residuals are dewatered on-site using filter presses and hauled away for disposal. During times when the filter presses are not operational, or during other related process upsets at the WTP, the residual lime is pumped to the lime residuals lagoon located west of Newport Road and directly south of M-14. Discharges from the lagoon are regulated through a Michigan Department of Environment, Great Lakes and Energy (EGLE) National Pollutant Discharge Elimination System (NPDES) permit.
Managing this material as well as the lagoon is critical for operating the WTP. The lagoon is nearly full and removal efforts are needed to provide storage capacity. In 2018, the WTP had prepared bid documents for this project to remove significant material from the lagoon. However, due to budget constraints the project was delayed and reprogrammed in the CIP for fiscal year (FY) 2026. This project is now necessary to provide critical storage capacity in the lagoon for on-going WTP operations.
This project will occur in two phases. This first phase (Contract 1), will consist of the site modifications needed at the lagoon site and at the WTP site to facilitate the dredging, pumping, dewatering, and hauling that will occur in the second phase of the project. Contract 1 includes a new construction access drive off Sunset Road into the WTP parking lot, miscellaneous modifications within the parking lot, construction of pipe connection assemblies at each site, as well as soil erosion and sedimentation control measures at both sites. Both phases of this project are programmed in the City’s Capital Improvements Plan (UT-WS-16-18).
Solicitation of Proposals
Water Treatment Services Unit (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 April 2, 2025, the City received three (3) proposals for this work. A selection committee comprised of Water Treatment Services staff reviewed the proposal and determined that the respondent provided the Best Value based on the criteria provided in ORD-21-41:
• 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 Fonson Company, Inc.’s bid is responsible, and it is in line with the construction cost estimate. Therefore, WTSU recommends approving the Contract for these services to Fonson Company, Inc.
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. AZ Shmina
Fonson Company, Inc. received the highest score among the proposals reviewed by the selection committee. Therefore, staff recommend awarding the contract for this project to Fonson Company, Inc. Fonson Company, Inc. 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.
Budget/Fiscal Impact: The WTP Lime Residual Removal project has been identified in the Capital Improvements Plan (UT-WS-16-18.) This project is to be partially funded from the approved FY 2026 Water Supply System Capital Budget and continued funding will be available in future fiscal years throughout the life of the project if so, approved by Council.
Staff
Prepared by: Emily Schlanderer, PE, Water Treatment Plant Engineer
Molly Maciejewski, Water Treatment Services Unit Manager
Reviewed by: Jordan Roberts, Public Services Area Administrator
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, The Water Treatment Plant lime softening process generates lime residuals that require proper management to maintain operations;
Whereas, The existing lime residual lagoon exists to store excess lime residuals during maintenance and emergency scenarios;
Whereas, The lagoon is near capacity for storing solids and removal efforts are required;
Whereas, The Water Treatment Plant Lime Residual Removal project will remove significant volume of residuals from the lagoon to increase storage capacity;
Whereas, Competitive bids were solicited by Procurement on April 2, 2025 (RFP 25-15) and the bid received from Fonson Company, Inc. provided the low bid in the amount of $385,829.00;
Whereas, The Water Treatment Plant Lime Residual Removal Contract No. 1 - Site Modifications is included as a project in the Capital Improvement Plan;
Whereas, Funding is available in the approved FY26 Water Supply System Capital Budget and will be available in future fiscal years throughout the life of the project if so, approved by Council; and
Whereas, Fonson Company, Inc. 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 Fonson Company, Inc. in the amount of $385,829.00 for the Water Treatment Plant Lime Residual Removal Contract No. 1 - Site Modifications (RFP 25-15);
RESOLVED, That a contingency amount of $39,000.00 be established within the project budget and that the City Administrator be authorized to approve construction change orders not to exceed that amount, in order to satisfactorily complete this project;
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 WTP Lime Residual Removal Contract No. 1 - Site Modifications 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.