City Council Meeting - FINAL


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  9.B.       
Meeting Date: 06/02/2015  
From: Adam Miele, Senior Project Manager

Information
TITLE:
Consideration and Approval of Contract:  Consideration and Approval of Contract: Construction Manager at Risk Construction Contract for Street Maintenance Program 2015 - Phase 2 with C and E Paving and Grading, LLC in the amount of $2,904,883.71  (Street Maintenance Program 2015).
RECOMMENDED ACTION:
    1) Approve the Construction Manager at Risk Construction Contract with C and E Paving and Grading, LLC in an amount not to exceed $2,904,883.71 for Guaranteed Maximum Price (GMP).
    2) Authorize Change Order Authority of 5% for GMP3 in the amount of $ 145,244.19, to cover potential costs associated with unanticipated or additional items of work.
    3) Authorize the City Manager to execute the necessary documents
Executive Summary:
Approval of this contract will allow the City to complete construction of Phase 2 of the 2015 Street Maintenance (SM) Program. This second phase of the 2015 SM project will consist of only overlay streets.

The Overlay portion of the program, which includes an additional 19 streets from the initial Street Maintenance program that improved 16 streets. This project is funded from the recently voter-approved Road Repair and Street Safety Initiative, which shows voters that we are keeping promises made during the campaign that we would begin projects right away. If approved, the City will have overlayed a total of 35 streets throughout the city.

The addition to this year's program is very extensive due to the voter-approved initiative and will impact many residents and businesses on the east side of town. We will do our best to inform the public and nearby residents and businesses of the areas we will be working in and mitigate as many impacts as possible during construction.

If the contract is approved as presented, we anticipate starting construction Jul 1. Approval of the contract will further demonstrate Council's commitment to maintaining City infrastructure through the annual budgeting process as well as improving infrastructure through the first project utilizing funding approved by voters last November.
Financial Impact:
Funding for the phase 2 overlay is to be provided by the 2014 voter approved sales tax increase in account 046-06-163-3321-6.
Connection to Council Goal and/or Regional Plan:
Council goals
3) Provide sustainable and equitable public facilities, services, and infrastructure systems in an efficient and effective manner to serve all population areas and demographics
11) Ensure that we are as prepared as possible for extreme weather events


Regional Plan
Goal LU.7. Provide for public services and infrastructure.
Goal LU.10. Increase the proportion of urban neighborhoods to achieve walkable, compact growth.
Goal T.1. Improve mobility and access throughout the region.
Goal T.2. Improve transportation safety and efficiency for all modes.
Goal T.8. Establish a functional, safe, and aesthetic hierarchy of roads and streets.
Has There Been Previous Council Decision on This:
Yes. Council previously approved the design phase services contract on November 18, 2014. Council previously approved the Phase 1 construction contract (overlays and chip seals) on March 3, 2015 for $6,203,665.68.
Options and Alternatives:
1. Approve the Construction Manager at Risk Construction Phase Services Agreement as presented.
2. Reject the Agreement and direct staff to pursue traditional design-bid-build project delivery. This would 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 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. 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 includes costs for construction, a CM at 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.
Expanded Financial Considerations:
The combined financial investment from the original 2015 Street Maintenance Project and the proposed Phase 2 2015 Street Maintenance Project will be $9.1 Million dollars on the City's streets.

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.
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.

Use of the Construction Manager at Risk method of project delivery eliminates the need for an advertisement/bid/award process and cuts 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 will distribute written notices to all the adjacent businesses and residents in advance of the construction. In addition, site maps of the streets planned for construction activities will be provided on the City's website.


Attachments
Overlay Streets List
Overlay Streets Map
Construction Contract - Phase 2
Phase 2 - GMP 3


    

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