Title
Resolution to Approve a Professional Services Work Statement Agreement with Foundation Systems of Michigan, LLC for As Needed Drainage Services Related to Bryant Neighborhood Decarbonization Work ($300,000.00)
Memorandum
Attached for your review and consideration is a Professional Services Work Statement Agreement with Foundation Systems of Michigan, LLC to complete as needed drainage services in homes within the Bryant neighborhood as part of the City’s work to decarbonize the Bryant neighborhood in Ann Arbor.
As background, for over three (3) years, City staff have been working with the residents of the Bryant neighborhood and Community Action Network (CAN) to determine what it would look like to make Bryant one of the nation’s most sustainable and resilient existing neighborhoods. Ideas emerging through these engagements informed a scope of services and fundraising efforts by both the City and Community Action Network. This includes a recent grant the Office of Sustainability and Innovations won from the Michigan Public Service Commission (totaling $3.1 million) to implement solutions such as weatherization, flood remediation, appliance replacements, electrical upgrades, solar, and energy storage solutions in the Bryant neighborhood.
This funding from the Michigan Public Service Commission (MPSC) was explicitly focused on making improvements in up to 50 homes in the Bryant neighborhood. To prepare for this work, the City issued a Request for Proposals (RFP # 25-21: Sustainability and Energy-Related Improvements in the Bryant Neighborhood) in April 2025. Responses to the RFP were due on May 30, 2025. Given the complexity of the needed work in Bryant, the RFP requested that interested firms bid on at least one of six areas of service: weatherization services; mechanical contractor (HVAC) services; electrical contractor services; solar and battery energy storage contractor services; drainage, water, and sewer contractor services; and appliance replacement, install, and recycling services. Bid sheets were provided for each area of work with bidders required to submit their standard pricing to ensure fair evaluation across service areas.
In total, 30 bids were submitted across all areas, with the following breakdown by service area:
• 5 bids for weatherization services
• 9 bids for mechanical HVAC services
• 4 bids for electrical services
• 6 bids for solar and storage services
• 2 bids for drainage, water, and sewage services
• 4 bids for appliance replacement
Unfortunately, neither of the two bids received for drainage were moved forward by the review committee due to either incomplete bids, fees, or lack of experience. As such, staff at the City and CAN followed up with existing contractors doing quality drainage work in the neighborhood who did not bid on the RFP to uncover why they chose not to bid and explore next steps. Through this process, it was determined that the RFP process was too rigid, requiring standardized pricing for projects that are always customized (i.e., flooding abatement projects vary widely depending on the issue and damage a home is facing). As such, the City went back out to drainage contractors that work in the City and inquired if any would be willing to work with the City through an as needed, not to exceed contract. Two firms, Foundation Systems of Michigan, LLC and Home Inspection Plus Inc., indicated interest. Both firms are compliant with the City’s living wage, nondiscrimination and conflict of interest policies.
As such, staff are recommending moving forward with Professional Services Work Statement Agreements for a not to exceed amount of $300,000.00 for as needed drainage services with each firm. Procedurally, when drainage services are identified as a need via the home inspection process, the City and Community Action Network will send the required scope of work to both Foundation Systems of Michigan, LLC and Home Inspection Inc., and ask both firms to prepare proposals including cost quotes. The City will choose the winning contractor based on budget and estimated implementation timeframe. In this way, each contractor will be authorized to do the drainage work but the best all around bid will prevail in securing the formal work order.
Budget/Fiscal Impact: Funding for this Professional Services Work Statement Agreement is available through the Michigan Public Services Commission grant won by the Office of Sustainability and Innovations.
Staff
Prepared by: Missy Stults, Sustainability and Innovations Director
Reviewed by: Kim Hoenerhoff, Financial Analyst
Reviewed by: Valerie Jackson, Assistant City Attorney
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, The City’s A2ZERO Plan calls for massive efforts to decarbonize buildings throughout the City of Ann Arbor;
Whereas, The City’s Office of Sustainability and Innovations has been working for three years with Community Action Network and the residents of the Bryant neighborhood to identify solutions and actions that will help make the Bryant neighborhood one of the first carbon neutral neighborhoods in the country;
Whereas, Through these engagements, the City’s Office of Sustainability and Innovations has identified a series of home improvements that are necessary to help improve the health, safety, and sustainability of homes in the Bryant neighborhood;
Whereas, The City’s Office of Sustainability and Innovations submitted an application to the Michigan Public Service Commission’s Department of Licensing and Regulatory Affairs under the Renewable Energy and Electrification Infrastructure Enhancement and Development Grant program to support the implementation of decarbonization solutions in the Bryant neighborhood;
Whereas, The City’s grant application included $3,000,000 in proposed funding to support hiring contractors to make improvements in approximately 50 homes in the Bryant neighborhood;
Whereas, The Michigan Public Service Commission’s Department of Licensing and Regulatory Affairs selected the City’s grant application for award and has approved a total assistance amount of $3,115,600.00 to accomplish the tasks in the City’s application, including the funding for home improvements;
Whereas, The Office of Sustainability and Innovations released a request for proposal (RFP # 25-21) in April 2025 to identify firms capable of completing the work authorized under the Michigan Public Service Commission grant award;
Whereas, Only two bids for drainage work were received in response to the RFP, and neither of those two bids was moved forward by the review committee due to an incomplete bid and/or lack of experience; and
Whereas, Foundation Systems of Michigan, LLC is already providing drainage services in Bryant through a contract with Community Action Network and complies with the City’s living wage, conflict of interest, and non-discrimination policies;
RESOLVED, That City Council approve a Professional Services Work Statement Agreement with Foundation Systems of Michigan, LLC for an amount not to exceed $300,000.00 for as needed drainage-related services in connection with the decarbonization efforts in the Bryant neighborhood;
RESOLVED, That City Council approve a 10% contingency to be allocated at the City Administrator’s discretion should additional work be necessary;
RESOLVED, That any remaining funding in the FY26 expenditure budget related to this Professional Services Work Statement Agreement with Foundation Systems of Michigan, LLC be carried forward without regard to fiscal year;
RESOLVED, That the Mayor and City Clerk be authorized and directed to execute said Professional Services Work Statement Agreement after approval by the City Administrator and the City Attorney; and
RESOLVED, That the City Administrator be authorized to take all necessary actions to implement this resolution, including execution of related additional agreements necessary to effectuate the terms of this Agreement; execution of authorized renewals and amendments not exceeding the approved expenditure amount; and termination of this Agreement as needed.