Budget Retreat/Special Meeting


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  4.       
Meeting Date: 04/26/2017  
From: Eli Reisner, Project Manager - ER

Information
TITLE:
Consideration and Approval of Construction Manager at Risk (CMAR) Construction Services Agreement: Phase 1 Utility Improvements of the Road Repair and Street Safety Program (RR&SS) Bundle #2 (Beaver/Dale) project to be awarded to Eagle Mountain Construction Inc. in the amount of $1,969,771.19.
RECOMMENDED ACTION:
1) Approve the Construction Manager at Risk Construction Services Agreement (Agreement) with Eagle Mountain Construction Inc. for a Contract Price of $1,969,771.19 and a contract time of 488 calendar days; and
2) Authorize the City Manager to execute the necessary documents.
Executive Summary:
Staff recommends a Construction Manager at Risk (CMAR) construction contract award of $1,969,771.19 to Eagle Mountain Construction, Inc. (EMC) to complete Phase 1 Utility Improvements of the RR&SS Bundle #2 (Beaver/Dale) project, which includes water main, water services, fire hydrants, sewer main, sewer services, underground traffic signal conduit, and street lights with underground electric.  Phase 2, the Roadway Improvements portion of the project, will be presented for Council’s consideration on June 20, 2017.  Pending Council's approval, construction is anticipated to begin May 2017 for Phase 1 and in July 2017 for Phase 2.  Both phases are to be completed by August 2018.  Please refer to attached context and vicinity maps.
Financial Impact:

The RR&SS Bundle #2 (Beaver/Dale) project is funded by the total budget appropriations of $9,144,212.00 (includes FY 17 budget and FY 18 proposed budget) from the Road Repair and Street Safety – Utility Replacements and Overlays Fund.  The other funding sources are $16,000.00 from NAIPTA for temporary bus stops, $100,000.00 from the Transportation Tax Fund for street lighting and conduit, and $100,000.00 from the Aging Water Infrastructure Replacement Fund (Account # 202-08-370-3157-0-4463) for new waterline infrastructure on Beaver St. south of Cherry Ave.

Contract Definitions per City of Flagstaff CMAR Construction Services Agreement.

Owners Contingency - A fund to cover cost growth during the project used at the discretion of the Owner usually for costs that result from Owner directed changes or unforeseen Site conditions.  The amount of the Owner’s contingency shall be set solely by the Owner and shall be in addition to the Project costs included in CMAR’s GMP packages.  Use and management of the Owner’s contingency is described in Section 5.3.3.

  • Section 5.3.3 - Owner’s Contingency are funds to be used at the sole discretion of the Owner to cover any increases in Project costs that result from Owner directed changes or unforeseen Site conditions.  Owner’s Contingency shall be added to the GMP amount provided by CMAR, the sum of which shall be the full Contract Price for construction.  At the time that Owner’s Contingency is used the appropriate markups shall be applied.

CMAR's Contingency - A fund to cover cost growth during the Project used at the discretion of CMAR usually for costs that result from Project circumstances.  The amount of CMAR’s Contingency shall be negotiated as a separate line item in each GMP package.  Use and management of CMAR’s Contingency is described in Subsections 5.3.1 and 5.3.2.

  • Section 5.3.1 - CMAR’s Contingency is an amount CMAR may use at its sole discretion for, an increase in the Cost of Work, and may use for increases in General Conditions Costs with written approval of the City.  CMAR’s Contingency is assumed to be a direct Project cost and all applicable markups shall be applied at the time of GMP submission.
  • Section 5.3.2 - When CMAR utilizes CMAR’s Contingency funds, CMAR shall make the appropriate changes to the Schedule of Values with the next regular progress payment request.  CMAR shall deduct the amount of CMAR’s Contingency funds used from CMAR’s Contingency line item and add the same amount to the line item on the Schedule of Values where the funds were used.  If CMAR’s contingency funds are used for a new line item that was not given with the original Schedule of Values, these shall be so indicated.
     
Policy Impact:
No Impact.
Connection to Council Goal, Regional Plan and/or TeamFlagstaff Strategic Plan:

COUNCIL GOALS:
Transportation and Other Public Infrastructure:

Deliver quality community assets and continue to advocate and implement a highly performing multi-modal transportation system.

  • Replacement of aging infrastructure

REGIONAL PLAN:
Goal T.8. Establish a functional, safe, and aesthetic hierarchy of roads and streets. 

TEAM FLAGSTAFF STRATEGIC PLAN:
Strategic priority #4: Work in partnership to enhance a safe and livable community

  1. Foster a safe, healthy, equitable and accessible community.
Has There Been Previous Council Decision on This:
  • Council previously approved the ballot language for the Road Repair and Street Safety Initiative (Prop. 406).
  • Council adopted the FY16 and FY17 budgets and these appropriations were included in those budgets.
  • Council approved the award of both Consultant Services and CMAR Design and Construction Phase Services contracts for the design of RR&SS Bundle #2 (Beaver/Dale) project to The WLB Group, Inc. (WLB) and to EMC, respectively, at the September 20, 2016 Council Meeting.
Options and Alternatives:
  1. Approve the award as recommended. Approval will allow work to move forward in calendar year 2017; or,
  2. Reject approval of the award as recommended.  This action would delay the project until next construction season.  If rejection occurs, possible options include:
             a.  Ask staff to re-evaluate the recommendation; or
             b.  Suspend or cancel the project completely.
Background/History:

On November 18, 2014, Council adopted the results of the General Election held on November 4, 2014.  In the General Election voters approved a dedicated sales tax increase, Proposition 406, which included funding for road repairs and street safety improvements throughout the City of Flagstaff.  Attached is the Road Repair and Street Safety Program Schedule for 2015 - 2022.  Beaver St. and Dale Ave. both qualified to receive pavement and utility improvements and their proximity made them ideal projects to combine into Bundle #2 of the Road Repair and Street Safety Program.

Phase 1 Utility Improvements consist of upgrading the existing water main and water services in Beaver St., upgrading the existing water services and extending stubbed out water mains in Dale Ave., upgrading select existing sections of sewer main, upgrading the existing sewer services, installing new underground traffic signal conduit in Beaver St., and installing new street lights with underground electric on Beaver St.

Phase 2 roadway improvements consist of upgrading the underground storm water system in Sullivan Ave. and Hunt Ave. from Beaver St. to Humphreys St. to improve drainage, re-building the roadway section on Beaver St., rebuilding portions of the roadway section on Dale Ave. to relieve the extreme cross slope, milling and overlaying the roadway on Dale Ave. where possible, replacing select curb and gutter, replacing select concrete sidewalk, replacing select sidewalk ramps, and resetting tree grates and select sidewalk brick in the downtown area on Beaver St.

The Purchasing Section solicited a Request for Statement of Qualifications (RSOQ) for a CMAR Contractor.  Statement of Qualifications were evaluated and EMC was selected to provide CMAR design and construction phase services.  EMC performed CMAR design phase services with the goal of developing a Guaranteed Maximum Price (GMP) for both Phase 1 and Phase 2.

Key Considerations:
Staff identified the following items, and associated costs, as not being eligible to be constructed with Road Repair and Street Safety funds:
  • New street lights, poles, and underground electric on Beaver St.
  • New traffic signal conduit in Beaver St.
  • New waterline (that does not currently exist) in Beaver St. from Cherry Ave. to Birch Ave. outside the original project limits.
Separate funding sources have been identified to pay or reimburse the costs for the above identified items.

The Construction Manager at Risk (CMAR) method of procurement was selected to expedite the design and construction schedule and to accommodate complex sequencing of construction activities for a complex project with limits in an established neighborhood and the downtown district.  Pending Councils approval of this contract, the CMAR method of procurement will potentially allow underground utility construction to begin two months ahead of the original schedule.  The CMAR process is a collaborative effort, which allows for open dialog between the City, the design consultant, and the contractor on critical design and construction issues to minimize impacts to the community during construction.  The contractor will be intimately involved with the coordination of construction activities and keeping the stakeholders informed on schedule, sequence, and impacts.  488 calendar days is for both Phase 1 and Phase 2 to be complete by end of August 2018.
 
Expanded Financial Considerations:
The Guaranteed Maximum Price (GMP) is $1,875,972.56 plus a 5% Owners Contingency of $93,798.63 which equals the total contract amount of $1,969,771.19.
The City of Flagstaff is the Owner.
Community Benefits and Considerations:
  • Replacement of aged water and sewer infrastructure, with some existing utilities dated 1919, to meet current standards.
  • Improving fire flows and increasing the water capacity in the downtown area to accommodate future growth by replacing the existing 8” water main with a 12” water main in Beaver St. from Columbus Ave. to Birch Ave.
  • Installation of new underground traffic signal conduit on Beaver St. for future traffic signal connections from Columbus Ave. to Birch Ave.
  • New Streetlights with underground electric on Beaver St. (Columbus to Cherry).
  • The project will reduce the infrastructure maintenance in the project area.
  • Construction coordination with two City projects to minimize inconveniences to the downtown area and the public.
  • Phase 2 - replacement of aging asphalt pavement that can no longer be maintained with a chip seal or pavement overlay.
Community Involvement:
Inform, Involve, Empower:
  • In November 2014, voters approved a dedicated sales tax increase to fund road repair and street safety improvements throughout the City of Flagstaff.
  • The City of Flagstaff notified the public of the upcoming project in the summer and winter 2016 Cityscape.
  • The project is shown in the interactive map located under the Road Repair and Street Safety Updates on the City of Flagstaff’s Website at: http://www.flagstaff.az.gov/index.aspx?nid=3210
  • In September 2016, staff sent temporary entry permit requests and project notices to approximately 80 property owners adjacent to the project.
  • The City of Flagstaff’s Capital Improvements Engineer presented an update of the Road Repair and Street Safety Program, which included the RR&SS Bundle #2 (Beaver/Dale) project, at the February 1, 2017 Transportation Commission Meeting.
  • The Project Stakeholders, ADOT, FUSD, NAIPTA, Flagstaff Medical Center, and all First Responders were notified of the upcoming project and were asked to provide their input and concerns with the project.  They were also consulted with during the development of the traffic control plan for the project.
  • A public meeting was held on March 30th, 2017 at City Hall.  City Staff, EMC, and WLB were in attendance.  City Staff presented the Project and held discussions with residents and business owners from the neighborhood.
  • Staff, EMC, and WLB met with the Downtown Business Alliance (DBA) Members to present and discuss the Project at the April 3rd DBA Meeting.
  • Staff has met with individual property/business owners and will continue to do so through construction.
     
Expanded Options and Alternatives:
  1. Approve the award as recommended. Approval will allow work to move forward in calendar year 2017; or,
  2. Reject approval of the award as recommended.  This action would delay the project until next construction season.  If rejection occurs, possible options include:
             a.  Ask staff to reevaluate the recommendation; or
             b.  Suspend or cancel the project completely.

Attachments
CMAR Contract
GMP
RR&SS Program Schedule
Context
Vicinity Map


    

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