Title
Resolution to Approve a Construction Contract with E.T. MacKenzie Company for the State Street Improvements Project (RFP 25-12; $5,333,900.00) and to Appropriate $6,732,891 in Contributing Funds (8 Votes Required)
Memorandum
Please refer to the enclosed resolution to approve a construction contract between the City of Ann Arbor and E.T. MacKenzie Company in the amount of $5,333,900.00 for the State Street Improvements Project (RFP 25-12).
The State Street Improvements project is located between South University Avenue and East William Street. The project scope includes the following elements:
• Replacement of water main and related appurtenances and water main consolidation with the University of Michigan
• Stormwater system improvements
• Road resurfacing
• Curb and gutter replacements
• Sidewalk and ramp upgrades
• Separated bike lanes
• Addition of a dedicated northbound transit-only lane
• Traffic signal modifications
The City has partnered with the University of Michigan to consolidate existing water mains owned by the City and University, and to provide a northbound bus stop near the UM Museum of Art, an exclusive northbound transit lane, and a transit priority signal at the William Street intersection. The City is also partnering with the Ann Arbor Area Transportation Authority (AAATA) to provide a southbound bus stop near the Michigan Union building. The University of Michigan and the AAATA are contributing funds for these transit features for the State Street Improvements Project.
The construction of the project is scheduled in three phases:
• Phase 1: Early May to mid-July 2025. Work will focus on water main improvements before repairing road, pausing construction, and opening for the Art Fair.
• Phase 2: mid-July 2025 (following Art Fair) to mid-November 2025. Work will focus on stormwater system improvements and roadway improvements.
• Phase 3: April - May 2026. Work will focus on final turf establishment (lawn restoration).
Engineering staff supervised the creation of plans and contract documents and bid the project through the City’s Procurement Unit. On March 6, 2025, bids were received from three contractors 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 provided in ORD-21-41, adopted by Council on January 3, 2022:
• 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. E.T. MacKenzie Company
2. Fonson Company, Inc.
3. Major Contracting Group
E.T. MacKenzie Company received the highest score among the proposals reviewed by the selection committee. Therefore, staff recommends awarding the contract for this project to E.T. MacKenzie Company.
E.T. MacKenzie Company complies with the City’s Non-Discrimination and Living Wage ordinances.
Budget/Fiscal Impact: This project is included in the Capital Improvements Plan (TR-SB-22-39, UT-ST-24-16, and UT-WS-20-16). The estimated total cost of the project is $7,971,850. Funding for the project City’s portion of the project is included in the FY25 & FY26 capital budgets of the Water Supply System Fund, Stormwater Fund, and the Street, Bridge and Sidewalk Millage Fund. The University of Michigan and the AAATA are also contributing funds for the project.
Fund Total Project Cost
Water Supply System Fund $1,238,959
Street, Bridge and Sidewalk Millage Fund $ 674,812
Stormwater Fund $ 990,334
University of Michigan Contributions $4,986,429
Ann Arbor Area Transportation (AAATA) Contributions $ 81,316
Total $7,971,850
The additional bike and transit lanes are estimated to increase annual maintenance costs by $23,500 as detailed below:
• Bike Lane Pavement Marking Maintenance $1,500.00
• Transit Lane Pavement Marking Maintenance $12,000.00
• Bike Lane Maintenance $5,000.00
• Transit Lane Maintenance $5,000.00
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 along State Street are in poor condition, undersized and are in need of replacement and consolidation with the adjacent University of Michigan main;
Whereas, The pavement at this location is in poor condition and in need of replacement;
Whereas, The City is committed to meeting its environmental goals to improve storm water quality, reduce emissions, enhance non-motorized and transit facilities and operations;
Whereas, Funding for the project is included in the approved capital budgets of the Water Supply System, Stormwater, Sanitary Funds, and Street, Bridge and Sidewalk Millage;
Whereas, the City is partnering with the University of Michigan to consolidate water mains in the project limits and reduce transit route times along the corridor;
Whereas, the City is also partnering with the Ann Arbor Area Transportation Authority (AAATA) to include a southbound bus stop located at the Michigan Union building;
Whereas, The City of Ann Arbor received three proposals for this work on March 6, 2025 and E.T. MacKenzie Company received the highest score among the proposals reviewed by the selection committee;
Whereas, E.T. MacKenzie Company complies with the City’s Non-Discrimination and Living Wage ordinances; and
Whereas, It is now necessary to enter into a contract with E.T. MacKenzie Company for the performance of this work;
RESOLVED, That City Council approves a construction contract with E.T. MacKenzie Company in the amount of $5,333,900.00 for the State Street Improvements Project (RFP 25-12);
RESOLVED, That $674,812.00 be appropriated from the Street, Bridge, Sidewalk Millage Fund unobligated fund balance to the State Street Improvements Project; thereby increasing the project revenue and expenditure budgets;
RESOLVED, That $990,334.00 be appropriated from the Stormwater Sewer Fund unobligated fund balance to the State Street Improvements Project thereby increasing the project revenue and expenditure budgets;
RESOLVED, That $4,986,429.00 be appropriated for contributions that will be made by the University of Michigan to pay for their share of water main and transit improvements in the State Street Improvements project thereby increasing the project revenue and expenditure budgets;
RESOLVED, That $83,316.00 be appropriated for contributions that will be made by the Ann Arbor Area Transportation Authority (AAATA) to pay for their share of transit improvements in the State Street Improvements project thereby increasing the project revenue and expenditure budgets;
RESOLVED, That a contingency amount of $540,000.00 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 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 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.