City Council Meeting - FINAL


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  9.D.       
Meeting Date: 03/22/2016  
From: Adam Miele, Senior Project Manager

Information
TITLE:
Consideration and Approval of Contract:  Street Maintenance 2016 improvements - Construction Phase 1. (MOVED FROM THE ROUTINE AGENDA)*
RECOMMENDED ACTION:
1)  Approve the Construction Manager at Risk Contract with C and E Paving and Grading, LLC in an amount not to exceed $ 2,838,240.00 for Guaranteed Maximum Price (GMP) # 1. Authorize staff to perform asphalt surface treatments of Pulliam Drive at Pulliam Airport not to exceed $200,000.00.
2) Authorize Change Order Authority of 10% each for GMP # 1 in the amount of $ 283,824.00, to cover potential costs associated with unanticipated or additional items of work.
3) Authorize the City Manager to execute the necessary documents.
Executive Summary:
In awarding the Construction Manager at Risk contract, Council will demonstrate a commitment to maintaining City infrastructure through the annual budgeting process as well as improving infrastructure through the first project utilizing funding approved by the voters for the Road Repair and Street Safety Initiative.
Financial Impact:
Funding for GMP # 1 is to be provided by the 2014 voter approved sales tax increase in account 046-06-163-3321-6. Funding for the Pulliam Dr. improvements is to be provided by the 2014 voter approved sales tax increase in account 046-05-116-3330-6.
Connection to Council Goal and/or Regional Plan:
3) Provide sustainable and equitable public facilities, services, and infrastructure systems in an efficient and effective manner to serve all population areas and demographics.
Has There Been Previous Council Decision on This:
Yes. Council previously approved the design phase services contract (Plateau Engineering, Inc.) on January 19, 2016.
Options and Alternatives:

1) Approve the CM @ Risk Construction Phase Services Agreement and authorize staff perform asphalt surface treatments on Pulliam Dr. as presented.
2) Reject the Agreement and direct staff to pursue traditional design-bid-build project delivery. This would negatively delay progress on the project by three months.

Background/History:
The City has established an annual program to maintain existing street pavements. This year, the program provides three major services: non-structural upgrades by overlay, ADA compliance and chip sealing.

The overlay streets are selected after evaluation of the street condition using pavement management software owned by the City. One half of the City street pavements are evaluated and ranked each year. Each street pavement is assigned an overall condition index (OCI) based on the type and severity of the distress observed. A pavement that has no distress is given an OCI of 100. Each pavement distress such as cracking or roughness reduces the street’s OCI. The street pavements are ranked by OCI and the pavements exhibiting the most severe distress are programmed for resurfacing with asphaltic concrete overlays as budget allows.

In recent years, the Arizona State Legislature has authorized the use of Alternative Project Delivery Methods (APDM) in lieu of the traditional Design-Bid-Build method of project delivery. These alternative methods allow a contracting agency the opportunity to select a construction team utilizing a Qualifications Based Selection process to procure construction services from a firm deemed most qualified to perform the work. The enabling legislation also allows for provision of multiple Guaranteed Maximum Prices under a single procurement.

On August 31, 2014, a Request for Statements of Qualifications for Construction Manager at Risk services was published in the Arizona Daily Sun and posted on the City’s Purchasing web site. On September 23, 2014, the City of Flagstaff received five Statements of Qualifications from firms wishing to provide CM at Risk services for the project. A selection committee of five members independently reviewed and evaluated those statements in accordance with guidelines established by the enabling legislation. Based on numerical evaluation of the statements received, the firm of C and E Paving and Grading, LLC received the highest ranking and was deemed the most qualified among those submitting proposals to provide the desired design phase services.

On November 18, 2014, Council approved award of the Design Phase Services Contract for the 2015, 2016 and 2017 programs to C and E Paving and Grading, LLC. in the amount of $ 112,821.00. Design phase services including program and budget evaluation, project scheduling, design document reviews, constructability reviews, detailed cost estimating, and preparation of final construction documents have now been completed. Based upon the Design Phase Services, C and E Paving and Grading, LLC has provided a Guaranteed Maximum Price (GMP) to complete construction of the annual improvement project. The GMP will include costs for construction, a CM @ Risk contingency, construction fee, costs for General Conditions including bonds and insurance, and sales taxes.
Key Considerations:
The goal of the Street Maintenance Program is to use the available funds in the most efficient manner to lengthen the service life of the City street pavements and avoid costly pavement reconstruction. The ADA improvements provide improved access for disabled citizens and visitors along existing streets and provide compliance with Federal requirements. Chip seal work provides a cost effective pavement preservation treatment to maintain newer pavements in a good condition.
Expanded Financial Considerations:
Funding for the overlay portion of the Street Maintenance Program is to be provided by the 2014 voter approved sales tax increase. The contract includes an owner’s contingency of $ 50,000.00 and $ 50,000.00 to cover the potential cost of unanticipated or additional work which may be required during construction.

FLAGSTAFF STREET MAINTENANCE PROGRAM 2016 FUNDING SUMMARY

ACCOUNT NUMBER       DESCRIPTION                           BUDGET
046-06-163-3321-6     Pavement Overlay (GMP #1)     $ 3,109,953
046-05-116-3330-6     Pulliam Dr. Overlay                    $     200,000
Community Benefits and Considerations:
The Street Maintenance Program provides surface treatments as required to preserve and maintain pavement condition on the 664 lane miles of asphalt City streets. The ADA improvements provide improved access for disabled citizens and visitors along existing streets and provide compliance with Federal requirements.

The previous council approved Street Maintenance programs in the 2015 and 2016 ($3 million of the $6 million budgeted from the 2014 voter approved sales tax increase) fiscal year projects were a great success. These projects were completed with $6.3 million dollars utilizing 2014 voter approved sales tax funds (34 streets or 30 lane miles of overlay and 1 streets or 1.2 miles of repaving). In addition to the sales tax funds, $2.8 million dollars in HURF funds (123 streets or 94.7 lane miles in chip sealing).

Use of the Construction Manager at Risk method of project delivery will eliminate the need for an advertisement/bid/award process and will cut approximately two months off the project development schedule. In addition, value engineering, constructability reviews and design input conducted as part of this service agreement have the potential to realize significant construction cost savings over the traditional design-bid-build delivery method.
Community Involvement:

Inform - The Public Works Division will prepare weekly news releases that are distributed to the local media outlets describing the location of the street construction and any traffic restrictions planned for the week. The contractor distributes written notices to all the adjacent businesses and residents in advance of the construction.

Expanded Options and Alternatives:
1. Approve the CM @ Risk Construction Phase Services Agreement as presented.
2. Reject approval of the Agreement and direct staff to pursue traditional design-bid-build project delivery. This would effectively delay progress on the project by three months.

Attachments
CMAR Contract
Phase 1 COF GMP 2016
Clarifications and Assumptions
Overlay Street List
Overlay Key Map


    

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