Hello neighbors!
This week, Ann Arbor City Council considers a very short agenda with only one item on the regular agenda. There will be one public hearing for final approval of a rezoning that will permit a 14 story building at Madison and Fifth (“The Dean”).
An item of note on the Consent Agenda: Council will consider awarding a contract for work on Ann Street that is considerably higher than other bids.
A2Council Update Video
After every City Council meeting I send out an “A2Council Update” newsletter, which includes a summary video. Here is my A2Council Update video from the Council meeting of February 19, 2026:
County Update
At their last regular session, the Washtenaw County Board of Commissioners approved brownfield plans (tax increment finance) for projects in Ann Arbor that will provide affordable housing through the City’s housing commission (350 S. Fifth) and home ownership opportunities through local nonprofit Ann Arbor Community Land Trust (Townie Homes).
Watch the Board discuss those housing projects, hear presentations about a County materials management plan, and approve a resolution that appears to violate a stipulated order they agreed to regarding litigation with the Sheriff.
Ann Arbor City Council Meeting Agenda
Below is my summary of issues on the City Council Agenda this week, with links to more information about each of them. If you have comments about any of these issues, you can email all of Council at CityCouncil@a2gov.org
Ann Arbor City Council Meeting
Monday, March 2, 2026 7:00PM
Ann Arbor City Hall (2nd Floor)
301 E Huron St, Ann Arbor 48104
The full agenda (including a link to the latest published PDF agenda, and instructions for dialing into the meeting) is on the A2Gov Legistar website:
https://a2gov.legistar.com/MeetingDetail.aspx?ID=1368487&GUID=7252989E-EB3B-4178-A19B-9AB047136125
City Council meetings are broadcast live by CTN on Comcast (channel 16) and AT&T (channel 99) and online at a2gov.org/watchCTN
Meetings are also streamed live on the CTN YouTube channel:
https://www.youtube.com/user/ctnannarbor
How to reserve public comment
People that wish to comment at a City Council meeting must sign up with the City Clerk’s office in advance. Speakers are allotted 3 minutes, with the first 15 speakers allowed to speak in a 45 minute session near the beginning of the meeting. Remaining speakers will speak at the end of the Council meeting. Public comment can be made either in person or remotely via phone/Zoom audio.
To sign up for public comment, please go to or call the City Clerk’s Office at 734-794-6140 on the day of the meeting between 8:00 AM and 5:00 PM. At 4:00 PM, all speakers that have signed up are randomly ordered in “priority groups”. After 4:00 PM, speakers are added to the end of the applicable priority group in the order received. No new speakers will be added to the list after 5:00 PM. For more information, visit the City’s website:
https://www.a2gov.org/city-council/council-meetings-overview/
Questions to the Agenda
In preparation for a Council meeting, Council members can ask questions of staff about scheduled agenda items. Questions must be submitted by noon on the Wednesday before a Council Meeting, and answers are returned the next day (Thursday) by 5pm.
AC-1 (26-0358) Agenda Response Memo and eComments – March 2, 2026
This agenda item has a PDF attachment with all questions raised by Council Members, and the answers provided by staff.This agenda item has a PDF attachment with all questions raised by Council Members, and the answers provided by staff.
Communications from the Mayor
There are no appointments from the Mayor on the agenda when this newsletter was published.
Consent Agenda
Below is the list of items included on the Consent Agenda. If no one on Council specifically requests that an item be pulled for discussion, the whole of this list will be approved in a single vote.
CA-1 (26-0311) Resolution to Approve Street Closings for the 2025 Take Back the Night/Standing Tough Against Rape (Rally and March) – Thursday, April 3, 2025
CA-2 (26-0307) Resolution to Approve Street Closings for Fool Moon on Friday, April 4, 2025, from 12:00 Noon to 12:00 Midnight
CA-3 (26-0308) Resolution to Approve Street Closings for FestiFools Parade – Sunday, April 12, 2026
CA-4 (26-0310) Resolution to Approve Street Closings for the University of Michigan Big House 5K on Sunday, April 12, 2026
CA-5 (26-0202) Resolution to Approve a Construction Contract with Brencal Contractors, Inc. for the South Maple Park and Dexter Park Improvements Project ($1,711,338.91)
CA-6 (26-0245) Resolution to Approve a Professional Services Agreement with Progressive Companies for Design and Engineering Services for the Ice Arena Improvements Project ($256,500.00)
CA-7 (26-0228) Resolution to Approve a Professional Services Agreement with Agency Landscape + Planning, LLC for Development of the 2028-2032 Parks and Recreation Open Space Plan (RFP #25-51) ($443,000.00)
CA-8 (26-0105) 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)
CA-9 (26-0106) Resolution to Approve a Renewed Construction Contract with Pavement Maintenance Systems, LLC for the 2026 Annual Street Preventative Maintenance Project ($1,281,078.98), and to Appropriate Contributing Funds (8 Votes Required)
CA-10 (26-0183) Resolution to Approve a Construction Contract with Toebe Construction LLC for the East Huron River Retaining Wall Replacement and Road Reconstruction Project (RFP 26-02; $711,959.00)
CA-11 (26-0282) Resolution to Approve a Construction Contract with Toebe Construction, LLC for the Needham, Medford, and Buckingham Water Main and Resurfacing Project (RFP 26-07; $4,146,231.80) and to Appropriate $2,623,000.00 in Contributing Funds (8 Votes Required)
CA-12 (26-0187) Resolution to Approve a Contract with the Michigan Department of Transportation for the Packard Street Improvements Project (25-5688) and Appropriate $2,470,213.00 in Contributing Funds (8 Votes Required)
CA-13 (26-0273) Resolution to Approve a Construction Contract with Bailey Excavating, Inc. for the Ann Street Improvements Project ($6,312,780.85) and to Appropriate $2,000,000.00 from the Street, Bridge, Sidewalk Millage Fund, $1,580,000.00 from the Stormwater Fund, $1,961,000.00 of Funding from the Downtown Development Authority (8 Votes Required)
A construction contract with Bailey Excavating will support Ann Street Improvements. Three companies submitted bids on this contract:
- Bailey Excavating $6,992,208.41
- Major Contracting $5,618,000.00
- Fonson Company $5,671,143.04
The three bids were evaluated under the City’s “best value” contracting policy, approved as an amendment to the City Charter in 2020. (That charter amendment displaced the previous policy of “lowest responsible bidder”). Bailey Excavating’s bid scored highest under the “best value” policy, despite a cost $1.3 million higher than the other two bids.
The $6,312,780.80 contract on this week’s agenda is less than Bailey Excavating’s original bid because their price exceeded the amount of money allocated to the project. (The other two bids were well within project budget.)
Bailey Excavating was awarded the contract with a price in excess of the project budget and then, according to a staff memo “the City and DDA negotiated with Bailey to reduce the total project cost. Some scope of work was removed (decreased quantity) and some unit prices were reduced.”
CA-14 (26-0262) Resolution to Approve Professional Services Agreements with Intertek – Professional Service Industries, Inc. for $450,000.00; Materials Testing Consultants, Inc. for $820,000.00; NTH Consultants, Ltd. for $800,000.00; and Somat Engineering, Inc. for $220,000.00 for Construction Materials Testing Services
CA-15 (26-0237) Resolution to Increase the Purchase Order with The Detroit Salt Company, L.C. for the Purchase of Seasonal Backup Supply Ice Control Salt through the Michigan Delivering Extended Agreements Locally (MiDEAL) ($65,972.00 increase, Total $281,212.00)
CA-16 (26-0151) Resolution to Increase Sole Source Purchasing Authority with Idexx Distribution, Inc. (Idexx) for Bacteriological Testing Media and Associated Supplies for FY26 ($5,000.00 Increase, Total Purchase Value $41,000.00)
CA-17 (26-0179) Resolution to Approve a Sole Source Purchase Order with McNaughton-McKay Electric Company for a New Variable Frequency Drive ($33,364.57)
CA-18 (26-0198) Resolution to Approve Change Order No. 3 with Fonson Company, Inc. for the Water Treatment Plant Lime Residual Removal Contract No. 1 – Site Modifications ($310,491.75 Increase, Total Contract Amount $731,308.60)
CA-19 (26-0156) Resolution to Authorize the Purchase of Five Vehicles from Lunghamer Ford (State of Michigan MiDeal – $534,922.00)
CA-20 (26-0166) Resolution to Approve a Construction Contract with Ajax Paving Industries, Inc. for the Airport Box Hangar Taxilane and Apron Reconstruction Project (ITB No. 4780) ($389,880.00)
CA-21 (26-0315) Resolution to Appropriate Fund and to Amend the Public Services Area Transportation Unit General Fund Operations and Maintenance Budget to Procure and Install Signage Related to Federal Civil Immigration Enforcement Activities ($20,000.00) (8 Votes Required)
CA-22 (26-0215) Resolution to Approve the Amended (2016) Michigan Mutual Aid Box Alarm System Association Agreement
CA-23 (26-0295) Resolution to Rescind Previous Recommendation of Issuance of New Full-Year Class C Quota Liquor License in the City of Ann Arbor to Jibarito A2, LLC
CA-24 (26-0296) Resolution to Rescind Previous Recommendation of Issuance of New Full-Year Class C Quota Liquor Licenses in the City of Ann Arbor to A2WINEMAN, LLC
CA-25 (26-0304) Resolution to Accept an Sidewalk Easement at 2805 Burton Road from Glorycrest Burton Road Inc. (8 Votes Required)
CA-26 (26-0305) Resolution to Accept a Stormwater Easement at 2805 Burton Road from Glorycrest Burton Road Inc. (8 Votes Required)
CA-27 (26-0306) Resolution to Accept a Water Main Easement at 2805 Burton Road from Glorycrest Burton Road Inc. (8 Votes Required)
Public Hearings
Anyone wanting to comment on these issues may speak for 3 minutes, without having specifically reserved time. Issues subject to public hearing will also be up for a vote by Council later in the meeting.
PH-1 (26-0061) An Ordinance to Amend the Zoning Map of Chapter 55 (Unified Development Code), Rezoning of 0.95 Acres from R4C (Multiple-Family Dwelling) and M1 (Limited Industrial) to D1 (Downtown Core), Midtown Character Overlay, Secondary Street Frontage with Conditions, The Dean, 558 S Fifth Ave (CPC Recommendation: Approval – 8 Yes, 0 No) (ORD-26-06)
Nine parcels at 554, 558 South Fifth Avenue; 201, 211 and 215 East Madison Street; 543, 547, 551, 553 South Fourth Avenue (one acre, total) will be rezoned from R4C (Multiple-Family Dwelling) and M1 (Limited Industrial) to D1 (Downtown Core), with conditions. The rezoning was requested by the developers of “The Dean”, a proposed 14-story residential building. Developers have offered the condition of a 10 foot setback from adjacent residential zoning.
Developers of “The Dean” held a public engagement meeting on June 26, 2025.
https://a2council.com/558-s-fifth-ave-resident-participation-meeting-june-26-2025/
The City Planning commission recommended approval of this rezoning at their meeting on December 2, 2025.
https://a2council.com/ann-arbor-city-planning-commission-december-2-2025/
Ordinances – Second Reading
In order to amend the city code, Council must vote to approve the change, via ordinance, at two Council meetings. The following proposed ordinances were approved at a previous Council meeting, and are also subject to a public hearing as listed above.
B-1 (26-0061) is the same as PH-1 above
Ordinances – First Reading
In order to amend the city code, Council must vote to approve the change, via ordinance, at two Council meetings. The following proposed ordinances are being introduced for “first reading”. If approved, the ordinance will be voted on at a subsequent Council meeting (“second reading”), where it will also be subject to a public hearing.
There are no ordinance first readings on the agenda
Motions and Resolutions
There are no other motions or resolutions on the agenda
Additional Thoughts…
I also posted this on my website
https://a2elnel.com/post/three-million-dollars-or-more-and-counting/
Three Million Dollars (or more?) and Counting
On the March 2, 2026 agenda, City Council considers a construction contract with Bailey Excavating for Ann Street Improvements.
CA-13 (26-0273) Resolution to Approve a Construction Contract with Bailey Excavating, Inc. for the Ann Street Improvements Project ($6,312,780.85) and to Appropriate $2,000,000.00 from the Street, Bridge, Sidewalk Millage Fund, $1,580,000.00 from the Stormwater Fund, $1,961,000.00 of Funding from the Downtown Development Authority (8 Votes Required)
Three companies submitted bids on this contract:
- Bailey Excavating $6,992,208.41
- Major Contracting $5,618,000.00
- Fonson Company $5,671,143.04
The three bids were evaluated under the City’s “best value” contracting policy, approved as an amendment to the City Charter in 2020. (That charter amendment displaced the previous policy of “lowest responsible bidder”). The $6,312,780.80 contract on this week’s agenda is less than Bailey Excavating’s original bid– the price was negotiated down by City staff and the scope of work was reduced. The contract sum is still significantly more than the other two bids.
COUNCIL DISCRETION
The current City Council has a special history with Bailey Excavating — Council Members Travis Radina and Jen Eyer twice amended contract awards at the table (against staff recommendations) in order to award work to Bailey Excavating.
In March 2021, when staff recommended a lower cost bidder for a project in the DIcken neighborhood, Council Member Eyer offered a substitute resolution in order to award the contract to Bailey Excavating. That substitution cost the City an additional $81,621.95. (Legistar)
In March 2022, a contract for work at Third and Mosley was amended at the Council table to favor Bailey Excavating. From the March 7, 2022 Council meeting minutes: “A motion was made by Council Member Radina, seconded by Council Member Eyer, that the Resolution be amended with a substitute resolution awarding the contract to Bailey Excavating.” That amendment cost the City an additional $60,503.47. (Legistar)
In 2024, Council switched a third contract at the table, setting aside staff scoring and recommendation in order to substitute another preferred company: Major Contracting. In consideration of a contract for work on the Huron West Park Sanitary Sewer, Council Member Radina led the maneuver to switch contractors but attributed the idea to Council Member Eyer, who was absent:
“I want to start by acknowledging Councilmember Eyer for flagging this contract,… [T]here’s likely a bit of a learning curve here with respect to our rigorous process… it is easy for me to believe that Major Contracting likely thought that the information provided was sufficient to demonstrate that they quite clearly meet the criteria that we ask for under our best value contracting requirements …again with credits [to] Councilmember Eyer for digging into this… I move to amend to that resolution CA-1 to approve the construction contract for Huron West Park Sanitary sewer replacement phases two and three to change the contractor from Pamar Enterprises Inc to Major Contracting Group Inc.”
CTN Video: Ann Arbor City Council February 5, 2024 (timestamp 1:09:44)
Council ultimately awarded the $8.4 million contract to a company that had failed to properly complete the bidding paperwork.
COST: MORE THAN MONEY
In 2024, the final contract amount with Major Contracting did not match the amount they offered in their original bid— between bidding and contract award, their price went up. As reported by MLive:
“The city’s bid tabulation sheet showed Pamar initially offered a price of $8,483,440, while Major’s price was slightly lower at $8,481,495, but the final amount stated in the council resolution to hire Major was just over $8,528,195 — nearly $45,000 higher than the staff-recommended Pamar bid.
…
The increase in Major’s price was due to math errors in the original bid form, Hutchinson said, saying the number in the council resolution is the corrected figure.”
This week, Bailey Excavating’s price also changed between bidding and final contract. Bailey Excavating’s original winning bid – reviewed by staff under the “best value” scoring metric – included a price that was much higher. In a staff memo, it’s explained that the contract amount is lower because Bailey’s bid was so high that it exceeded the amount budgeted for the project. (The other two bids were $1.3 million lower, presumably within project budget.)
Bailey Excavating was awarded the contract with a price in excess of the project budget and then, according to a staff memo “the City and DDA negotiated with Bailey to reduce the total project cost. Some scope of work was removed (decreased quantity) and some unit prices were reduced.”
The current contract reflects a price that is around $700,000 higher than the other two bids, but it also includes a reduced “scope of work.”
Is it worth it? Are we getting “best value”?
At least one resident doesn’t think so. In September 2025, a neighbor of the Huron West Park Sanitary Sewer project reported on the work done by Major Contracting:
“It’s projected to take six months, and we are now halfway through month 18 … [T]he contractors for this project have performed poorly and have not followed certain contractual provisions … you have in your inbox now – with citations from the contract – many examples of poor man management, delays that were both foreseeable and completely avoidable with any amount of research and contractual violations that harmed residents.”
The commenter pointed out how the contract had been switched at the table by Council Member Radina and explained further:
“You want to use unionized workers, that’s great. But here we bailed out a contractor who didn’t bother to follow the instructions. Then they’ve consistently failed to follow instructions for the past eighteen months. Last minute substitutions for projects of this size are not appropriate. There’s no opportunity for public comment, there’s no public oversight since there’s no supporting documentation for the change. And it clearly and plainly opposes the public’s clear mandate of what values are important to us when appropriating city dollars.”
CTN Video: Ann Arbor City Council 9/15/2025 (timestamp 29:01)
“BEST VALUE” AMONG FRIENDS
The City now regularly awards contracts to higher bidders, as staff attempt to interpret “best value” in a way that will not be challenged by Council Members at the table. Since its adoption in 2021, the financial cost of “best value” policy would be measured in multiple millions. I first calculated it in January 2023, when it approached $1 million:
https://a2elnel.com/post/a-million-dollars-and-counting/
In February 2024, the “best value” policy – as applied to a single contract – cost the City an additional million dollars over the next highest bid. (NOTE: this contract was approved at the same meeting that Council amended another, to benefit Major Contracting, for an additional cost of $45,000.)
https://a2elnel.com/post/another-million-dollars-and-counting/
https://a2council.com/ann-arbor-city-council-february-5-2024/
Only two contractors have benefited from a Council contract swap at the table: Bailey Excavating and Major Contracting. Since Council Members Radina and Eyer gifted them the Huron West Park project, Major Contracting has not been awarded any other work with the city. Bailey Excavating, however, has been awarded more.
Since the contract swaps, staff recommended five more contracts with Bailey Excavating (in addition to the one this week).
In two contracts, Bailey Excavating’s winning bid offered the lowest price.
Broadway Street Water Main Replacement and Resurfacing (RFP 23-04)
https://www.a2gov.org/media/oxcnzp4m/rfp_23-04_proposaltab.pdf
Brooks Street Improvement Project (RFP 23-09)
https://www.a2gov.org/media/rwqnvpzm/rfp_23-09_proposaltab.pdf
In one case, Bailey Excavating was the only bid.
S.Main Street Water Main Replacement and Resurfacing (RFP 22-82)
https://www.a2gov.org/media/hqhdwj55/rfp_22-82_proposaltab.pdf
In the other two contracts, City staff recommended and Council approved contracts with Bailey Excavating that were hundreds of thousands more than other bids.
Pontiac, Swift, Moore and Wright Watermain and resurfacing (RFP 23-22)
Bailey Excavating $2,812,528.42
CI Contracting $2,410,741.00
https://www.a2gov.org/media/jhlpkqal/rfp_23-22_proposaltab.pdf
2025 Miscellaneous Utility Projects (RFP 25-01)
Major Contracting $4,684,756.00
Bailey Excavating $4,384,077.17
ET MacKenzie $4,249,000.00
Fonson Company $3,970,336.71
DiPonio Contracting $3,901,210.49
https://www.a2gov.org/media/4npfmvhv/rfp_25-01_proposaltab.pdf
TWO “BEST VALUE” CHOICES
Of the three companies who bid on this week’s contract – Fonson Company, Major Contracting, and Bailey Excavating – two are favored by Council. Twice, Council Members Radina and Eyer set aside staff recommendations to award work to Bailey Excavating. They did the same for Major Contracting (once).
Swapping this week’s contract to Major Contracting would benefit a company they already favor, and save the City $700,000. However, that company’s track record with the City is extremely limited and reportedly poor. Fonson Company is a contractor that regularly does millions of dollars of work for the City— in the year 2025 alone, they were awarded four contracts adding up to $25 million. In 2025, they did work at the Water Treatment Plant, South Industrial, Westgate, and Pittsfield Village. In previous years, they’ve done much more.
Would Council ever consider swapping a contract at the table for the purpose of getting actual value? Or is “best value” policy just an excuse to pay more for work from companies that Council Members favor?
Thank you for taking the time to be informed about our local government!
Elizabeth Nelson