Title
Resolution to Approve a General Services Agreement with Yarrington Services Incorporated d/b/a Koala Insulation of Greater Ann Arbor for Weatherization Services Related to Bryant Neighborhood Decarbonization Work ($400,000.00)
Memorandum
Attached for your review and consideration is a General Services Agreement with Yarrington Services Incorporated d/b/a Koala Insulation of Greater Ann Arbor to complete weatherization services in homes within the Bryant neighborhood as part of the City’s work to decarbonize the Bryant neighborhood in Ann Arbor.
To date, Council has approved numerous Professional and General Services Agreements to complete home improvement projects with grant dollars from the Michigan Public Service Commission. One of the primary areas where work is needed is related to weatherization. To provide support in this work stream, the City selected two weatherization contractors, both of which were approved by City Council. Unfortunately, one of the selected weatherization contractors Enerdynamic, LLC d/b/a Blanket Insulation Services, made the decision to close their doors early in 2026, meaning a significant gap emerged in the program. To meet the need left by this closure, the City brought in All Weather Comfort Solutions LLC, who is still working through the insurance process.
Additionally, the City received notice that the other remaining weatherization contractor, Ecotelligent Homes LLC, is at capacity and cannot take on more jobs in Bryant. This means we have roughly 60 homes in need of weatherization services but no available contractor to complete work within the very tight timeline required through the Michigan Public Service Commission grant. Staff continue to work with All Weather Comfort Solutions LLC to get them compliant with the insurance requirements, but another weatherization contractor is needed to immediately begin working in the neighborhood.
When news of Ecotelligent Homes LLC being at capacity came, staff were actively engaged in conversations with Yarrington Services Incorporated d/b/a Koala Insulation of Greater Ann Arbor regarding support they are providing to Insulate Ann Arbor, our program to support rental units with receiving weatherization. Through this conversation, staff inquired if Yarrington Services Incorporated d/b/a Koala Insulation of Greater Ann Arbor had the capacity and interest to immediately begin working in Bryant to help weatherize homes. Yarrington Services Incorporated d/b/a Koala Insulation of Greater Ann Arbor confirmed they were interested in working on the Bryant project and submitted proposed pricing and associated contracting documents. This pricing was aligned with the existing pricing that the other successful weatherization contractors submitted.
Because of the time sensitive nature of the needed work in Bryant, combined with Yarrington Services Incorporated d/b/a Koala Insulation of Greater Ann Arbor’s capacity to immediately begin work upon authorization, staff are recommending a best source contract with Yarrington Services Incorporated d/b/a Koala Insulation of Greater Ann Arbor.
Budget/Fiscal Impact: Funding for this General Services 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 $3,100,000.00 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, Three firms were selected from this RFP to support weatherization services in the Bryant neighborhood;
Whereas, One of those selected firms has since closed, one is at capacity, and the other is still working through their insurance verification process;
Whereas, Demand is extremely high for weatherization-related services in the Bryant neighborhood;
Whereas, All funding secured through the Michigan Public Service Commission must be spent by the end of summer 2026, per the grant requirements;
Whereas, Yarrington Services Incorporated d/b/a Koala Insulation of Greater Ann Arbor is interested and able to immediately begin providing weatherization-related services in the Bryant neighborhood; and
Whereas, Yarrington Services Incorporated d/b/a Koala Insulation of Greater Ann Arbor is compliant with the City’s living wage, non-discrimination, and conflict of interest policies and has already cleared the City’s insurance requirements;
RESOLVED, That City Council approve a General Services Agreement with Yarrington Services Incorporated d/b/a Koala Insulation of Greater Ann Arbor in an amount not to exceed $400,000.00 for weatherization-related services as identified in its bid sheet 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 the Mayor and City Clerk be authorized and directed to execute said General Services 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.