Title
Resolution to Approve a Contract with the Michigan Department of Transportation for the Packard Street Improvements Project (25-5688) and Appropriate $2,470,213.00 in Contributing Funds (8 Votes Required)
Memorandum
Attached for your review and consideration, please find a resolution to approve a contract between the City of Ann Arbor and the Michigan Department of Transportation (MDOT) for the construction phase of the Packard Street Improvements Project. The agreement prescribes the cost sharing of the construction, as well as each party’s rights and responsibilities, and is required for the project to receive its share of federal funding from the Surface Transportation Program (STP).
The Packard Street Improvements Project includes removal and replacement of asphalt pavements along Packard Street from South Main Street to State Street and installation of a new 12-inch water main to ensure water supply and quality needs. Improved features such as ADA compliant sidewalk ramp upgrades, bump-outs, and signal upgrades at the Fourth Avenue and Fifth Avenue intersections, Audible Pedestrian Systems at several intersections, and buffered bike lanes along the corridor will improve the safety of the roadway for pedestrians and cyclists while reducing vehicle speeds. Also, upon detailed study during the design phase, the corridor speed limit was reduced to 25 MPH by the City prior to the project.
The project will be constructed in two phases during 2026, with construction requiring full road closures occurring within the months of May-November to limit impacts to the adjacent businesses, residents, and University of Michigan community. Final acceptance of landscape restoration will be completed in the spring of 2027. The limits and timing of each phase are as follows:
Phase 1
Full roadway closure of Packard Street from South Main Street to Division Street.
Schedule: May 2026 - July 2026
Phase 2
Full roadway closure of Packard Street from Division Street to State Street.
Schedule: July 2026 - November 2026
Completed plans were submitted to MDOT in November 2025 and revisions submitted in December 2025 and January 2026. The project is scheduled for a March 6, 2026 MDOT bid letting. This memorandum and resolution were prepared prior to the letting date, so bid prices were not available. MDOT will award a contract to the qualified low bidder and administer the contract. The City will act as the project engineer.
Budget/Fiscal Impact: The Engineer’s estimate for the project’s construction is $5,261,000.00. The estimated total cost of the project is $7,347,000.00. In total, the City will be receiving $633,787.00 in Federal funds for this project. The Federal funding will be used to fund participating construction expenses. The City will be funding its share of the construction costs as well as the design, construction engineering, inspection, and material testing costs. Appropriations are necessary to allocate the major funding sources to the existing Packard Street* Reconstruction Project.
A breakdown of the project revenues is shown below:
Federal Funds $ 633,787.00
Street, Bridge, & Sidewalk Millage $ 2,132,213.00
Major Street Fund $ 667,000.00
Water Supply System Fund $ 3,893,000.00
Stormwater Fund $ 21,000.00
Total $ 7,347,000.00
The additional bike lanes are estimated to increase annual maintenance costs by approximately $6,500.00 as detailed below:
Pavement Marking Maintenance $ 1,500.00
Bike Lane Maintenance $ 5,000.00
*A typo in the staff memorandum referencing Nixon Road was corrected administratively on March 3, 2026 to reflect the correct project, Packard Street.
Staff
Prepared by: Nicholas Hutchinson, P.E., City Engineer
Reviewed by: Jordan Roberts, Public Services Area Administrator
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, The Packard Street Improvements Project will replace the existing water main between South Main Street and State Street, resurface the roadways with permanent buffered bike lanes, and improve active transportation connectivity and safety;
Whereas, Packard Street is identified as a proposed All Ages and Abilities bicycle route in the Moving Together Towards Vision Zero Transportation Plan;
Whereas, The City of Ann Arbor will receive Federal funding from the Surface Transportation Program (STP);
Whereas, The City share of the funding for this project is available in the approved Major Street Fund, Water Supply System Fund, and Stormwater Fund Capital Budgets; and
Whereas, It is necessary to approve the cost sharing agreement with the Michigan Department of Transportation so that the project can proceed;
RESOLVED, That $21,000.00 be appropriated from the Stormwater Fund Capital Budget to the Packard Street Improvements Project, thereby increasing the project revenue and expenditure budgets;
RESOLVED, That $2,132,213.00 be appropriated from the Street, Bridge, and Sidewalk Millage Capital Budget to the Packard Street Improvements Project, thereby increasing the project revenue and expenditure budgets;
RESOLVED, That $317,000.00 be appropriated from the Major Street Fund Capital Budget to the Packard Street Improvements Project, thereby increasing the project revenue and expenditure budgets;
RESOLVED, That the Mayor and City Clerk be authorized and directed to execute Michigan Department of Transportation Contract No. 25-5688 for the Packard Street Improvements Project, substantially in the form on file with the City Clerk, following 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 the necessary administrative actions to implement this resolution including approval of needed Traffic Control Orders, night work authorizations, and other similar administrative approvals to allow the work of the project to proceed without delay.