Preparation work for a $3.16 million reconstruction of Madison Street — one of Ann Arbor's most tattered roads and a major east-west drag through the Old West Side — has begun.

One of the westbound lanes just west of Main Street was closed on Thursday as orange traffic cones designated a makeshift two-way street in the eastbound lanes.

Crews from Corby Energy Services Inc. of Belleville and DTE Energy were on site, using tools to cut through the pavement to do underground utility work. A supervisor for Corby Energy said they'd be out working along Madison Street for the next two weeks.

The overall $3.16 million road construction project is scheduled to begin either later this month or early July and is expected to be completed in November.

The Ann Arbor City Council this week approved a $2.28 million construction contract with Pamar Enterprises Inc. of New Haven as part of the project. Pamar plans to subcontract some of the work to Doan Construction and Barrett Paving Materials, both based in Ypsilanti.

Nick Hutchinson, interim manager of the city's project management unit, said Madison Street from Seventh to Main is in need of several improvements — the pavement is in a poor condition and in need of repaving, and the existing water main is old and undersized.

The project will replace the existing 6-inch water main with new 8-inch and 12-inch ductile iron water mains, and full reconstruction of the street will follow.

Stormwater management features are included in the project, including rain gardens and upsized storm sewer pipes to improve stormwater quality and reduce and delay flows into Allen Creek.

In addition to underground utility work and resurfacing of the road, pedestrian and bicycle improvements are major components of the project.

The project includes the addition of a designated bicycle lane along the north side of Madison Street, and provisions for curb "bump-outs" along the south side to better delineate parking, provide an area for the rain gardens and also allow for shortened crosswalks.

The removal and replacement of concrete curb and gutter, sidewalk ramps, driveway approaches, and some sidewalk repair is being done as needed.

Eli Cooper, the city's transportation program manager, said the Madison Street project is a good example of one of the ways Ann Arbor's nonmotorized transportation system is provided.

"Although the city has an alternative transportation fund to support our nonmotorized system, we also include nonmotorized elements in our street projects as appropriate and planned," he said, noting Ann Arbor prides itself on being a "complete streets" community.

"So, looking through that lens, this project adds another mile of bike lane to our ever-growing system," he said. "It expands and connects the nonmotorized system, linking the existing lanes on Seventh to those in downtown.

"It is wonderful to see that not only do we have resources dedicated to non-motorized improvement, but we include these important means of transportation as a fundamental part of our projects."

The project is being funded by the city's water fund ($455,000), street resurfacing millage ($1.73 million), and the stormwater maintenance fund ($980,000), the latter of which will be repaid as a loan to the state's revolving fund. It's anticipated the city will receive 50 percent loan forgiveness.

Ryan J. Stanton covers government and politics for AnnArbor.com. Reach him at ryanstanton@annarbor.com or 734-623-2529. You also can follow him on Twitter or subscribe to AnnArbor.com's email newsletters.