Title
Resolution to Approve a Renewed Construction Contract with Cadillac Asphalt, LLC for the 2026 Annual Street Resurfacing Project $6,711,054.60, and to Appropriate $3,120,000.00 in Contributing Funds (8 Votes Required)
Memorandum
Attached for your consideration is a resolution to approve a renewed construction contract with Cadillac Asphalt, LLC (Cadillac), in the amount of $6,711,054.60 for the rehabilitation and resurfacing of various City streets and asphalt paths, and installation of Traffic Calming devices. The resolution also appropriates money from other funds contributing to the project.
Background
Engineering staff solicited proposals for the Annual Street Resurfacing Program through the City’s Procurement Unit and received proposals on February 12, 2025.
RFP 25-02 included language that, if both the City and awarded Contractor agree, the contract could be renewed for one (1) one-year, subject to the availability of funding, with unit pricing remaining the same as the original 2025 bid and contract. Updates to the renewed contract include revisions to the street list, completion dates, and contract total.
The original construction contract with Cadillac (RFP 25-02) received council approval on March 17, 2025 (R-25-082; File #: 25-0352).
Both parties agree to the original terms outlined in the 2025 bid pricing and contract and are therefore moving forward with a renewed contract for 2026.
2026 Resurfacing Program
The 2026 Annual Street Resurfacing Program Project includes approximately 9.7 lane miles of resurfacing work on 23 local streets, 5 major streets, and one segment of asphalt path. In addition, and typical for this annual project, minor repairs to water, stormwater, and sewage infrastructure within the project limits will be made and funded by the appropriate fund. An interactive map of all road work, including the work being done as part of this project, can be found at: www.a2gov.org/a2streets <http://www.a2gov.org/a2streets>.
In addition, the project includes one (1) traffic calming device installation on Doty Avenue (Dexter Avenue to Arborview Boulevard), which was requested and approved through the City’s Traffic Calming Program.
Construction is planned to begin in April 2026 and be completed by November 2026.
The contract is a unit price contract and actual construction quantities may vary. This allows removal or substitution of any streets on the proposed list for any reason. If additional funding becomes available, or if costs for the current project list are lower than anticipated, the city may add additional streets to the project.
Maintenance of Traffic
The contract requires maintenance of local traffic and access to properties throughout most of the construction. If total road closures are necessary, the road will be open to local traffic only, and other traffic will be temporarily detoured in both directions of travel. In advance of construction and at staff’s direction, the contractor will install signs and/or electronic message boards to notify drivers of upcoming detours and related traffic delays.
Public Outreach
Individual Stakeholder meetings have been held and will continue for the following major streets; Zina Pitcher Place (Catherine Street to E. Huron Street), Catherine Street (Glen Avenue to Zina Pitcher Place), and E. Ann Street (Zina Pitcher Place to Observatory Street).
Residents and business/property owners along identified roads in the program will be notified of their streets anticipated resurfacing and where to find information related to schedule, impacts, contacts and much more.
The project website (www.a2gov.org/resurfacing <http://www.a2gov.org/resurfacing>) will include project area updates throughout construction. Residents and business/property owners will be encouraged to check the webpage to track the progress of work, schedule, changes, etc.
The Contractor, working with staff, will distribute additional notices when their work activities and operations directly impact residents and property/business owners. The city will notify the public of any temporary traffic control impacts on major streets.
Budget/Fiscal Impact: The estimated total cost for this year’s project is $7,880,000.00, which includes the Annual Street Resurfacing Project (TR-SC-22-07), Northbrook Pl and W Oakbrook (TR-SB-22-32), Ann Street (Zina Pitcher to Observatory) (TR-SB-26-01), Zina Pitcher/Catherine (Glen to Washtenaw/Huron) (TR-SB-12-01), Neighborhood Traffic Calming Program (TR-SB-24-02), Annual Asphalt Sidewalk Repairs (TR-AT-22-12). Estimated revenue for the project comes from the following sources:
|
Revenue Source |
Amount |
|
Street, Bridge, and Sidewalk Millage Fund* |
$4,840,000 |
|
Major Street Fund |
$2,420,000 |
|
County Mental Health (Program Fund |
$60,000 |
|
Stormwater Fund |
$500,000 |
|
Sewage Disposal Fund |
$125,000 |
|
Water Supply System Fund |
$75,000 |
|
*Includes $250,000.00 for asphalt path repairs |
$8,020,000 |
Appropriations are necessary to allocate the major funding sources outside of the Street, Bridges, and Sidewalk Millage to the 2026 Annual Street Resurfacing Project Budget.
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 City of Ann Arbor Adopted FY 2026 Street, Bridge, and Sidewalk Millage Capital Budget, which includes the Annual Street Resurfacing Project and Annual Asphalt Sidewalk Repairs;
Whereas, The 2026 Annual Street Resurfacing Project includes approximately 9.7 lane miles of resurfacing work on 23 local streets and 5 major streets, as well as the replacement of asphalt sidewalk;
Whereas, The 2026 Annual Street Resurfacing Project will improve and maintain streets and asphalt sidewalks in the City;
Whereas, The original construction contract with Cadillac Asphalt, LLC (RFP 25-02) received council approval on March 17, 2025 (R-25-082; File #: 25-0352);
Whereas, It is desirable to enter into a renew the contract with Cadillac for the 2026 Annual Street Resurfacing Project using the existing 2025 unit pricing;
Whereas, The contract sets forth, among other things, the services to be performed by the contractor, and the payments to be made by the City therefore, all of which are agreeable to the City; and
Whereas, Cadillac Asphalt, LLC complies with the City of Ann Arbor Non-Discrimination and Living Wage Ordinances;
RESOLVED, That City Council approve a Renewed Construction Contract with Cadillac Asphalt, LLC in the amount of $6,711,054.60 for the 2026 Annual Street Resurfacing Project;
RESOLVED, That the 2026 Annual Street Resurfacing Project expenditure and revenue budgets be increased by $3,120,000.00 with the sources of funding being the appropriation from the approved Stormwater Fund Capital budget ($500,000.00), the approved Water System Fund Capital budget ($75,000.00), the approved Sewage Disposal System Capital budget ($125,000.00), and the Major Street Fund ($2,420,000.00);
RESOLVED, That a contingency amount of $1,000,000.00 be established within the project budget and that the City Administrator be authorized to approve additional change orders to the construction contract with Cadillac Asphalt LLC not to exceed $1,000,000.00 in order to satisfactorily complete this project;
RESOLVED; That the funding be available without regard to fiscal year until project completion;
RESOLVED, That the Mayor and City Clerk be authorized and directed to execute said contract after approval as to form by the City Attorney and approval as to substance by the City Administrator; and
RESOLVED, That the City Administrator be authorized to take necessary administrative actions to implement this resolution, including issuing Traffic Control Orders for the streets included in the 2026 Annual Street Resurfacing Project, including parking prohibitions as needed in excess of one (1) block and/or ninety (90) days.