City Council Meeting - FINAL

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Meeting Date: 02/02/2021  
Co-Submitter: Adam Miele From: Scott Overton, Streets Section Director

Consideration and Approval of Contract:  Award C and E Paving & Grading, LLC, the Construction Manager at Risk (CMAR) Design Phase Services Agreement for the Street Maintenance Program years 2021, 2022 and 2023.
  1. Award C and E Paving & Grading, LLC the Construction Manager at Risk (CMAR) Design Services Agreement an amount not to exceed $135,391.00; and
  2. Authorize the City Manager to execute any necessary documents.
Executive Summary:
The Public Works, Streets Section is responsible for the on-going maintenance of over 700 lane miles of transportation infrastructure in the city limits.  Each Spring a road maintenance program is developed in a coordinated effort with a street overall condition index ("OCI"). This OCI rating combined with input from Streets Supervisors observations of actual field conditions results in a concept plan and prioritization of more significant roadway surface repairs.

In 2014, the voters approved the Road Repair and Street Safety Initiative providing the City additional funds for transportation surface infrastructure maintenance.  Recently, a competitive process has been completed to select the contractor and staff recommends an award of the Design Services Agreement to, C and E Paving & Grading, LLC.  This award provides the City with the planning resources to assist in the Street Maintenance Program development and delivery. The negotiated cost proposals for years 2021, 2022 and 2023 are:   Street Maintenance Program 2021: $41,463.00 Street Maintenance Program 2022: $46,526.00 Street Maintenance Program 2023: $47,402.00
Financial Impact:
Funding is available in the current budget and is expected as an associated expense request in the future budget years.   The Council has budgeted the Street Maintenance Program in FY 2020-2021 account number 040-06-162-3073-6-4443 and 046-06-163-3321-6-4443
Policy Impact:
Proper planning and program development results in good governance and efficient use of financial resources to improve the community transportation infrastructure and promote the health, welfare and safety of the residents of the City.  
Connection to PBB Key Community Priorities/Objectives & Regional Plan:
Transportation and other public infrastructure; Provide sustainable and equitable public facilities, and services; and Provide infrastructure systems in an efficient and effective manner to serve all population areas and demographics. PBB strategy, Deliver outstanding services to residents through a healthy, well maintained infrastructure system.
Has There Been Previous Council Decision on This:
Yes, the City Council has had numerous conversations about the Road Repair Street Safety program since 2014 and has awarded two prior multi-year Construction Manager at Risk (CMAR) Design Services Agreements to C and E Paving & Grading, LLC, for the Street Maintenance Program for years 2014-2017 and 2017-2020. 
Options and Alternatives:
  1. Reject approval of the Agreement and direct staff to pursue traditional design-bid-build project delivery.  (This method is not recommended due to the delivery time delay, associated time-consuming process and lack of cost predictability.)
  2. Modify the terms of the agreement, costs or scoping requirements with cooperation of the proposed contractor.
  3. Do not deliver the Street Maintenance program or defer to future construction season.
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. 

On September 29, 2020, Purchasing staff posted a Request for Statements of Qualifications ("RSOQ") solicitation for Construction Manager at Risk (CMAR) services on the PlanetBids electronic bidding website, and advertised it in the Arizona Daily Sun on October 4 and October 11, 2020.  On October 30, 2020, Purchasing received three Statements of Qualifications ("SOQs") from contractors wishing to provide Construction Manager at Risk (CMAR) services for the project.  A Selection Committee of five members, including one member, a licensed contractor outside of City staff, independently reviewed and evaluated the Statement of Qualifications (SOQs) in accordance with guidelines established by the enabling legislation.  Based upon the numerical scoring of the written Statement of Qualifications (SOQs), the Selection Committee identified the most qualified Firm to perform the Construction Manager at Risk (CMAR) services for the Project and recommended to commence negotiations for a scope and fee proposal to be provided by C and E Paving & Grading, LLC. Final scores of all firms are as follows:

C and E Paving & Grading, LLC             579
Combs Construction Company, Inc.       448
RTR Paving & Resurfacing, LLC            444 

Construction Manager at Risk (CMAR) design phase services are scheduled to begin immediately upon approval of the Agreement.  Once the Streets Maintenance Overlay and Chip Seal Program is developed a Guaranteed Maximum Price (GMP) contract will be presented to Council for further consideration and will define each seasons work program.  The actual construction is scheduled to begin in late Spring 2021 and will be completed in the Fall of 2021. 
Key Considerations:
The three-year award of the construction manager at risk method of project delivery will reduce the need for an annual advertisement/bid/award process and advances the project development schedule without the requirement of an annual solicitation. In addition, value engineering, constructability reviews and design input conducted as part of this service agreement have the potential to realize construction cost savings over the traditional design-bid-build delivery method. The award of this Agreement to the Construction Manager at Risk (CMAR) will allow the City to ensure that the projects are constructed within the allocated budget.
Community Benefits and Considerations:
High quality and thorough design-phase services will result in a well-planned and cost-effective annual Street Maintenance Program. The focus is to develop strong understanding, good cooperation and the use of as much of the dedicated funding as possible each year is essential to meeting the service expectations of the community.
Community Involvement:
Strong community support and a voter approved initiative have provided clear direction to maintain the transportation system.  Streets has a good working relationship with both internal and external partners and continues to improve and evolve based on best practices and the community feedback.

The Public Works Division will prepare periodic news releases in coordination with the Public Information Office of Communication that are distributed to the local media outlets describing the location of the street construction and any traffic restrictions planned.  Under the Agreement, the Construction Manager at Risk (CMAR) will distribute written notices to all the adjacent businesses and residents in advance of construction.
CMAR Design Phase Contract


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