Title
Resolution to Approve Construction Contract Extension No. 2 for the 2023 Sewer Lining Project (RFP 23-41) with SAK Construction, LLC for the 2026 Sewer Lining Project ($3,000,000.00)
Memorandum
Attached for your review and approval is a resolution to approve construction contract extension number 2 with SAK Construction, LLC, in the amount of $3,000,000.00 for the 2026 Sewer Lining Project which updates the locations and extends contract prices through October 1, 2026.
Historically, Engineering and Public Works executed separate but similar projects utilized to perform sanitary and stormwater sewer rehabilitation projects using separate construction contracts. Engineering contracted planned projects versus Public Works contracting for rehab projects deemed to be an emergency. Both projects were competitively bid and SAK Construction, LLC was awarded these contracts. Going forward, these projects will be administered by Public Works. The current agreement held by Public Works and approved by Council on September 3, 2024 (R-24-358), expires on October 1, 2026. Approval to extend the contract held by Engineering is sought at this time to align the expiration of both agreements at which time they will competitively bid as one.
City Council approved a construction contract administered by Engineering with SAK Construction, LLC on October 16, 2023 (R-23-374) and approved extension number 1 on June 16, 2025 (R-25-220). SAK Construction has agreed to extend and hold the pricing firm through October 1, 2026. Extension number 2 will be used to perform lining work this summer. This contract was bid through the City’s Procurement Unit on September 7, 2023.
This project includes lining approximately 20,000 feet of sanitary and storm sewer at multiple locations throughout the City, as well as repair or maintain segments of pipe where lining is not feasible. The project locations were identified by City staff as in need of repair.
Lining is a “trenchless” technology that enables pipe repair or maintenance without disturbing the surface above. During lining, new material is pumped into the existing pipe, creating a new pipe inside the existing one. The process is not only cost effective but eliminates the need for extensive excavation and lengthy traffic control measures, thereby minimizing traffic disruption. The project is expected to begin in June 2026.
SAK complies with the City’s Non-Discrimination and Living Wage ordinances.
Budget/Fiscal Impact: The City of Ann Arbor Capital Improvements Plan (CIP) includes the 2027 Sewer Lining Projects (UT-SN-24-08, and UT-ST-24-35). The estimated total cost of the project is $3,000,000. Funding for the projects is included in the approved FY26 Sewage Disposal System Fund and Stormwater Fund and future capital budgets if approved by Council.
|
Fund |
Project Cost |
|
Sewage Disposal System Fund |
$2,200,000 |
|
Stormwater Fund |
$800,000 |
|
Total |
$3,000,000 |
Staff
Prepared by: Paul Matthews, Public Works Manager
Reviewed by: Jordan Roberts, Public Services Area Administrator
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, It is necessary to repair or maintain sanitary and storm sewers in various locations throughout the City in order to provide reliable sewer service;
Whereas, Funding for the project is available in the approved capital budgets of the approved Sewage Disposal System Fund and Stormwater Fund;
Whereas, The City of Ann Arbor entered into a contract with SAK Construction, LLC on January 10, 2024;
Whereas, The proposed Construction Contract Extension No. 2 will extend the duration of the contract with SAK Construction, LLC, update the locations for work during the extension period, and extend pricing through October 1, 2026; and
Whereas, SAK Construction, LLC complies with the City’s Non-Discrimination, Conflict of Interest and Living Wage ordinances and submitted the appropriate documentation;
RESOLVED, That City Council approve Construction Contract Extension No. 2 to the construction contract with SAK Construction, LLC in the amount of $3,000,000 for the 2027 Sewer Lining Project;
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 the Mayor and City Clerk be authorized and directed to execute said contract after approval as to form by the City Attorney, and approval as to substance by the City Administrator; 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.