City Council Meeting - FINAL

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Meeting Date: 06/07/2016  
From: Adam Miele, Senior Project Manager

Consideration and Approval of Contract:  Construction Manager at Risk Construction Contract for Street Maintenance Program 2016 (Phase 2). Approve agreement with C and E Paving and Grading, LLC.
1) Approve the Construction Manager at Risk Construction Contract with C and E Paving and Grading, LLC in an amount not to exceed $1,867,387.18 for Guaranteed Maximum Price GMP #2 (Chip Seal projects).
2) Authorize Change Order Authority of 10% for GMP # in the amount of $ 186,738.71, 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 2016 Street Maintenance Program. Phase 2 will consist of chip seals of various roadways utilizing monies from the Highway User Revenue Fund (HURF) funding (Street Maintenance Section's annual ongoing and one-time budget). Following the passing of Proposition 406 (Road Repair and Street Safety Initiative) in November 2014, the HURF funding has been allocated to chip seals for roadways throughout the city. The phase 2 (chip seal) program includes 130 streets (76.9 lane-miles) of improvements throughout the western portion of the city.

Approval of this contract will support the previous approved phase 1 improvements. Phase 1 consists of concrete improvements as well as the overlay of 24 streets (12.7 lane-miles) in the Foxglenn and Continental subdivisions. These two projects will improve 89.6 lane-miles within the western portion of the city. 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 in November 2014.
Financial Impact:
Budget funding for GMP #2 is provided by the annual Street Maintenance Program and is funded in account 040-06-162-3073-6-4443 in FY2016 and FY2017 for a total of $2,146,000.
Connection to Council Goal and/or Regional Plan:
Council goals connected to these projects include:
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 goals that apply include:
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:
• Council previously approved the design phase services contract on January 19, 2016.
• Council previously approved the Phase 1 construction contract with C and E Paving & Grading on March 22, 2016.
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 two months.
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 (Prop. 406 funding), ADA compliance (Prop. 406 funding) and chip sealing (HURF funding).

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 Overall Condition Index OCI of 100. Each pavement distress such as cracking or roughness reduces the street’s OCI. The street pavements are ranked by OCI’s and the pavements exhibiting the most severe distress are programmed for replacement. OCI’s that score within the middle range receive resurfacing with asphaltic concrete overlays as budget allows. Roadways with a higher OCI will receive a Chip seal work that provides a cost effective pavement preservation treatment to maintain newer pavements in a good condition.

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 CMAR contract, Design Phase Services Contract for the 2015, 2016 and 2017 programs to C and E Paving & 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 & 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. Chip seal work provides a cost effective pavement preservation treatment to maintain newer pavements in a good condition.
Expanded Financial Considerations:
Funding for the pavement preservation portion of the Street Improvement Program (GMP #2) is provided by the budget in FY 2015/2016. The contract includes an owner’s contingency of $ 50,000.00 and $ 50,000.00 for contractor’s contingency (to be approved by owner for authorization) to cover the potential cost of unanticipated or additional work which may be required during construction.

Account Number - 040-06-162-3073-6-443
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.

Use of the Construction Manager at Risk method of project delivery eases the need for an traditional 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.

Expanded 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 two months.

Construction Agreement
Street List - Chip Seal (Phase 2)
Chip Seal Key Maps - (Phase 2)


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