Title
Resolution to Approve a Construction Contract with Motor City Electric Utilities Co. for Fiber and Conduit Construction for the Ann Arbor/Ypsilanti Broadband Project ($2,876,032.25, ITB 4754)
Memorandum
Attached for your review and action is a resolution to approve a construction contract with Motor City Electric Utilities Co. in the amount of $2,876,032.25 for fiber and conduit construction for the Ann Arbor/Ypsilanti Broadband Project (ITB 4754).
This construction work is the final step in the joint project between the City of Ann Arbor, City of Ypsilanti, and SPARK for the construction of new fiber and conduit between the City of Ann Arbor’s existing fiber and conduit networks and the City of Ypsilanti and its Smart Zone. This new fiber and conduit will be used to promote economic development, collaboration and innovation in the area.
This project received a $2.4 Million U.S. Economic Development Administration (EDA) grant, and each of the participating entities has approved the grant documentation, a Memorandum of Understanding, and contributed matching funds.
IT staff supervised the creation of project plans and contract documents. Because of the EDA grant terms and conditions, the project was bid as an invitation to bid (ITB).
ITB 4754 was advertised on the City’s website and on the Michigan Intergovernmental Trade Network (MITN) website. Six (6) bids were received and publicly opened on February 27, 2025 with Motor City Electric Utilities Co. being the lowest cost responsible bidder with a bid in the amount of $2,876,032.25.
Motor City Electric Utilities Co. complies with the City’s Non-discrimination and Living Wage ordinances. Staff recommends that City Council approve a contract with Motor City Electric Utilities Co. for Fiber and Conduit Construction for the Ann Arbor/Ypsilanti Broadband Project.
Under the Memorandum of Understanding, SPARK is the lead grant applicant and responsible for administering all project funds, including matching funds, and for seeking reimbursement of project costs from EDA up to the grant award amount. The City is responsible for planning and overseeing construction of the project and will take ownership upon completion. Consistent with the Memorandum of Understanding, the construction contract provides that SPARK will pay the contractor invoices from project funds after they are reviewed and approved for payment by the City. As appropriate, SPARK will request reimbursement from EDA consistent with the grant award. Staff also recommends a contract contingency in the amount of $384,605.71 for change orders to satisfactorily complete the project, which is the amount of available project funds above the contract amount.
The construction of the project is scheduled to begin in spring 2025 and to be completed in 2025.
Budget/Fiscal Impact: On June 15, 2020, City Council approved the receipt of a $2.4 million Economic Development Administration (EDA) grant (Legislative File 20-0796). Combined with $600,000 in matching contributions from participating agencies, the total project budget is $3 million. The City’s share of the matching funds, in the amount of $137,591, was approved by City Council on August 16, 2021, to be drawn from the Information Technology (IT) Fund Balance (Legislative File 21-1411).
On September 6, 2022, City Council authorized the expenditure of $123,967.75 from the project budget for engineering design services (Legislative File 22-1221). As a result, the remaining project budget stands at $2,876,032.25. No additional funds are being requested at this time.
Motor City Electric Utilities Co. complies with the City’s Non-Discrimination and Living Wage Ordinances.
Staff
Prepared by: Joshua Baron, ITSD Director
Reviewed by: Atleen Kaur, City Attorney
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, On June 15, 2020, City Council approved the receipt of a $2.4 million U.S. Economic Development Administration (EDA) grant to support the Ann Arbor/Ypsilanti Broadband Project (Legislative File 20-0796), with an additional $600,000 in matching funds provided by the City of Ann Arbor, the City of Ypsilanti, and SPARK, establishing a total project budget of $3 million;
Whereas, The City of Ann Arbor’s portion of the matching funds, in the amount of $137,591, was approved by City Council on August 16, 2021, to be drawn from the Information Technology (IT) Fund Balance (Legislative File 21-1411);
Whereas, City Council authorized the expenditure of $123,967.75 for engineering design services on September 6, 2022, reducing the remaining project budget to $2,876,032.25 (Legislative File 22-1221);
Whereas, This construction project represents the final phase of the joint effort between the City of Ann Arbor, City of Ypsilanti, and SPARK to connect and expand municipal fiber and conduit infrastructure to promote economic development, innovation, and collaboration;
Whereas, The project was competitively bid through Invitation to Bid (ITB) 4754, which was advertised on the City’s website and the Michigan Intergovernmental Trade Network (MITN), and six bids were publicly opened on February 27, 2025;
Whereas, Motor City Electric Utilities Co. was determined to be the lowest responsible bidder and complies with the City’s Non-Discrimination and Living Wage Ordinances;
Whereas, It is now necessary to enter into a contract with Motor City Electric Utilities Co. for the performance of the work; and
Whereas, No additional funds are being requested at this time, and sufficient funds are available within the existing project budget;
RESOLVED, That City Council approve a construction contract with Motor City Electric Utilities Co. in the amount of $2,491,426.54 for the construction of fiber and conduit infrastructure as part of the Ann Arbor/Ypsilanti Broadband Project (ITB 4754);
RESOLVED, That a contract contingency amount of $384,605.71 be established within the project budget and that the City Administrator be authorized to approve additional change orders to the construction contract with Motor City Electric Utilities Co. not to exceed that amount, 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.