Title
Resolution to Approve a Construction Contract with Fonson Company, Inc. for the Westgate Watermain Replacement Project (RFP 25-10; $2,168,176.91)
Memorandum
Attached for your review and approval, please find a resolution to approve a construction contract between the City of Ann Arbor and Fonson Company, Inc. (Fonson) in the amount of $2,168,176.91 for the Westgate Water Main Replacement Project (RFP 25-10).
The Westgate Watermain Replacement Project will be replacing and upsizing approximately 2,500 feet of public watermain due to a history of main breaks, and performing associated water service transfers and restoration. In addition, a short asphalt section of Maple Road near Stadium Boulevard will be resurfaced where the watermain needs to be connected.
The construction of the project is scheduled to begin in May 2025 and continue through September 2025. Before and during construction, City staff will maintain frequent communication with the property owner and the business owners in the Westgate Shopping Center to minimize impacts to businesses to the extent possible.
Engineering staff supervised the creation of plans and contract documents and issued a request for proposals through the City’s Procurement Unit. On March 3, 2025, three 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. Fonson Company, Inc.
2. E.T. MacKenzie Company, Inc.
3. Major Contracting
Fonson received the highest score among the proposals reviewed by the selection committee. Therefore, staff recommends awarding the contract for this project to Fonson. Fonson 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-14-08). The estimated total cost of the project is $3,000,000.00.
Partial funding for the project is included in the approved FY25 capital budget of the Water Supply System Fund; and Street, Bridge and Sidewalk Millage Fund and remaining funding will be available in the FY26 capital budget if so, approved by Council.
Fund Project Cost
Water Supply System Fund $ 2,940,000.00
Street, Bridge and Sidewalk Millage Fund $ 60,000.00
Total $ 3,000,000.00
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 a history of breaks and have been identified as needing replacement;
Whereas, Partial funding for the project is included in the approved FY25 capital budgets of the Water Supply System Fund; and Street, Bridge and Sidewalk Millage Fund and remaining funding will be available in the FY26 capital budget if so, approved by Council;
Whereas, The City of Ann Arbor received three proposals for this work on March 3, 2025 and Fonson Company, Inc. received the highest score among the proposals reviewed by the selection committee;
Whereas, It is now necessary to enter into a contract with Fonson Company, Inc. for the performance of this work; and
Whereas, Fonson Company, Inc. complies with the City’s Non-Discrimination, Conflict of Interest, and Living Wage ordinances;
RESOLVED, That City Council approves a construction contract with Fonson Company, Inc. in the amount of $2,168,176.91 for the Westgate Watermain Replacement Project (RFP 25-10);
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 a contract contingency amount of $217,000.00 be established within the project budget and that the City Administrator be authorized to approve additional change orders to the construction contract with Fonson Company, Inc. not to exceed $217,000.00 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; 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.