Title
Resolution to Approve a Construction Contract with Fonson Company, Inc. for the Pittsfield Village Improvements Project (RFP 25-06; $13,512,426.75) and to Appropriate $12,660,500.00 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 Fonson Company, Inc. (Fonson) in the amount of $13,512,426.75 for the Pittsfield Village Improvements Project (RFP 25-06).
The Pittsfield Village Improvements Project, is a composite of several Capital Improvements Plan (CIP) projects including:
Water Main (UT-WS-20-09)
• Upsizing of approximately 10,250 LF of aging asbestos cement and cast-iron water main.
• Full integration of the Pittsfield Village Neighborhood into the overall water system with the removal of master meters and installation of new water meters on individual water services.
Sanitary Sewer (UT-SN-20-01; UT-SN-18-07)
• Upsizing of approximately 1,670 LF of existing sanitary sewer in Norwood to improve wet weather capacity.
• Relocation of 220 feet of 8-inch sanitary sewer for stormwater basin construction.
• Installation of 13,000 feet of curb drains to allow future disconnection of existing footing drains from the sanitary sewer system.
Stormwater Improvements (UT-ST-22-02; UT-ST-18-06; UT-ST-25-04)
• Installation of 10,000 feet of stormwater pipe including the replacement of undersized pipes, and improved road drainage throughout the Pittsfield Village Neighborhood.
• Installation of stormwater detention facilities in three locations to manage stormwater discharge from the neighborhood to the Malletts Creek and Swift Run Drains.
Street Resurfacing and (TR-SB-24-10)
• Resurfacing of approximately 2.9 miles of local roads
• Implementing an All Ages and Abilities (A3) bike corridor on Pittsfield Boulevard from Washtenaw to Edgewood.
• Implementing speed management measures along the Pittsfield Boulevard corridor including speed tables, curb bump-outs and splitter islands at the Pittsfield/Jeanne traffic circle.
Sidewalk Improvements (TR-AT-26-04; TR-AT-26-05)
• Filling a 520 feet of sidewalk gaps on Whitewood Street (east side, Norwood to north of Packard) and on Fernwood/Edgewood.
The construction of the project is scheduled to begin in April 2025 and continue through November 2026.
Engineering staff working with OHM Advisors (design consultant) supervised the creation of plans and contract documents and bid the project through the City’s Procurement Unit. On February 4, 2025, five 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. Bailey Excavating, Inc.
3. E.T. MacKenzie Company, Inc.
4. Diponio Contracting, Inc.
5. 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 Company, Inc. 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-20-09, UT-SN-20-01, UT-SN-18-07, UT-ST-22-02, UT-ST-18-06, UT-ST-25-04; TR•SB-24-10, TR-AT-26-04; TR-AT-26-05). The estimated total cost of the project is $19,000,000.00 Funding for the project is included in the approved FY25/FY 26 capital budgets of the Water Supply System Fund; Stormwater Fund; Sewage Disposal Fund; and Street, Bridge and Sidewalk Millage Fund.
Fund Project Cost
Water Supply System Fund $ 5,600,000.00
Stormwater Fund $ 5,275,000.00
Street, Bridge and Sidewalk Millage Fund $ 1,820,000.00
New Sidewalk Millage Fund $ 280,000.00
Washtenaw County Road Millage $ 3,900,000.00
Sewage Disposal Fund $ 2,125,000.00
Total $ 19,000,000.00
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, sanitary sewer, road, and stormwater infrastructure 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; Stormwater Fund; Street, Bridge and Sidewalk Millage Fund; Sewage Disposal Fund; and New Sidewalk Millage;
Whereas, The City of Ann Arbor received five proposals for this work on February 4, 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 $13,512,426.75 for Pittsfield Village Improvements Project (RFP 25-06);
RESOLVED, That a contract contingency amount of $1,300,000.00 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 $1,300,000.00 in order to satisfactorily complete this project;
RESOLVED, That the Pittsfield Village Improvements Project expenditure and revenue budgets be increased by $12,660,500.00 with the sources of funding being the appropriation of the approved the Stormwater Fund Capital Budget ($5,160,250.00); the Sewage Disposal Fund Capital Budget ($1,768,000.00); the Street, Bridge, and Sidewalk Millage Fund Capital Budget ($5,452,250.00); and the Sidewalk Construction Millage Fund Capital Budget ($280,000.00);
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.