Title
Resolution to Approve a Construction Contract with Toebe Construction, LLC for the Needham, Medford, and Buckingham Water Main and Resurfacing Project (RFP 26-07; $4,146,231.80) and to Appropriate $2,623,000.00 in Contributing Funds (8 Votes Required)
Memorandum
Attached for your review and approval, please find a resolution to approve a construction contract between the City of Ann Arbor and Toebe Construction, LLC in the amount of $4,146,231.80 for the Needham, Medford, and Buckingham (NMB) Water Main and Resurfacing Project (RFP 26-07).
The project includes replacement of the aging public water mains, replacement of obsolete storm structures and complete street resurfacing of the following:
• Needham Road from Medford Road to Manchester Road
• Medford Road from St. Francis Drive to Manchester Road
• Buckingham Road from Needham Road to Manchester Road
• Buckingham Court
This is a continuation of projects in the Bryant Pattengill East neighborhood to replace aging drinking water pipes, improve stormwater infrastructure to improve water quality, and resurface roads in poor condition. Construction is scheduled to begin in April 2026 and continue through September 2026.
Engineering staff supervised the creation of plans and contract documents and bid the project through the City’s Procurement Unit. On February 5, 2026, Five (5) proposals were received for this work. A selection committee comprised of Public Services staff reviewed the proposals and determined which bidder was the Best Value based on the criteria in ORD-21-41:
• Qualifications, Experience, & Accountability (20%)
• Workplace Safety (20%)
• Workforce Development (20%)
• Social Equity & Sustainability (20%)
• Schedule of Pricing/Cost (20%)
After reviewing and scoring the proposals, staff ranked the responding firms in the following order:
1. Toebe Construction, LLC
2. Bailey Excavating, Inc.
3. E.T. MacKenzie Company, Inc.
4. Fonson Company, LLC
5. Major Contracting
Toebe Construction, LLC received the highest score among the proposals reviewed by the selection committee. Therefore, staff recommend awarding the contract for this project to Toebe Construction, LLC. Toebe Construction, LLC complies with the City’s Non-Discrimination and Living Wage ordinances.
Budget/Fiscal Impact: This project is included in the Capital Improvements Plan (UT-WS-16-23, UT-ST-26-16, & TR-SB-25-14). The estimated total cost of the project is $5,485,127. Funding for the project is included in the approved capital budgets of the Water Supply System Fund, Stormwater Fund, and Street, Bridge, and Sidewalk Millage Fund as follows:
Fund Project Cost
Street, Bridge, and Sidewalk Millage Fund $2,423,000.00
Water Supply System Fund $2,862,000.00
Stormwater Fund $200,000.00
Total $5,485,000.00
Staff
Prepared by: Nicholas S. Hutchinson, P.E., City Engineer
Reviewed by: Jordan Roberts, Public Services Area Administrator
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, The existing water mains in the project area have been identified as needing upgrade or replacement;
Whereas, Funding for the project is included in the approved capital budgets of the Water Supply System Fund and Stormwater Fund;
Whereas, The City of Ann Arbor received Five (5) proposals for this work on February 5, 2026, and Toebe Construction, LLC received the highest score among the proposals reviewed by the selection committee; and
Whereas, It is now necessary to enter into a contract with Toebe Construction, LLC for the performance of this work;
RESOLVED, That City Council approves a construction contract with Toebe Construction, LLC in the amount of $4,146,231.80 for the Needham, Medford, and Buckingham Water Main and Resurfacing Project (RFP 26-07);
RESOLVED, That $2,423,000.00 be appropriated from the Street, Bridge, and Sidewalk Millage Fund and $200,000.00 be appropriated from the Stormwater Fund to the Needham, Medford, and Buckingham Water Main and Resurfacing Project, thereby increasing the project revenue and expenditure budgets;
RESOLVED, That a contingency amount of $415,000.00 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 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;
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; 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.