|Consideration and Approval of Contract: Approve the Construction Contract with McDonald Brothers Construction in the amount of $1,637,898.50 for the Mike's Pike Water and Sewer Improvement Project (Project).
1) Approve the construction contract with McDonald Brothers Construction in the amount of $1,637,898.50 (includes construction total of $1,547,898.50 and contract allowance of $90,000.00), and a contract time of 180 calendar days;
2) Approve Change Order Authority to the City Manager in the amount of $154,789.85 (10% of the contract amount, less allowance of $90,000.00); and
3) Authorize the City Manager to execute the necessary documents.
|A contract award of $1,637,898.50 to McDonald Brothers Construction is proposed to construct the Mike's Pike Water and Sewer Improvement Project, which includes replacement of aging water and sewer mains and services, roadway pavement, curb, gutter, sidewalk, and street lights on Mike's Pike, Kendrick Street, Benton Avenue, and Phoenix Avenue. The Project is planned for construction from May to November 2017. Please see attached context and vicinity map.
|The Mike's Pike Improvement Project is funded by Utility Program budget appropriations in the amount of $100,000 for FY 2017 and anticipated FY 2018 funding in the amount of $2,250,000, Account #203-08-375-3367-0. Anticipated FY 18 funding will be covered by the Aging Sewer Replacement funds and Capacity fees. Core Campus, the developer of the HUB on Campus Flagstaff, will be providing funding to cover the development’s share of expenditures for utilities and roadway improvements along the frontage of their property.
|Total Bid Cost of all Construction Items
|Total Contract Award Request
|Administrative (City Manager's) Change Order Authority Approval Request
Contract Allowance and Administrative (City Manager) Change Order Authority Definitions per City of Flagstaff City Manager's Directive No. 2-021 dated 09/22/08:
Contract Allowance: Contract allowances of 5%, 7.5%, or 10% may be added to all design and construction contracts. The allowance is based on the Engineer's estimate and will be included in design contracts for recommendation of award by City Council. The allowance will also be included in the bid for construction contracts for recommendation of award by City Council.
|Over $1,000,000 in value
|Allowance of 5%
|From $999,999.99 to $250,000
|Allowance of 7.5%
|From $249,999.99 or lower
|Allowance of 10%
Administrative Change Orders (City Manager Change Order Authority): A ten-percent (10%) Administrative (City Manager) Change Order (ACO) amount may be included in all design and construction contracts to be considered by the City Council. The ACO amount is 10% of the total contract less the Contract Allowance amount. The ACO shall not exceed $500,000.
|Connection to Council Goal, Regional Plan and/or TeamFlagstaff Strategic Plan:
TRANSPORTATION AND OTHER PUBLIC INFRASTRUCTURE - Deliver quality community assets and continue to advocate and implement a highly performing multi-modal transportation system.
|Has There Been Previous Council Decision on This:
|Council approved the on-call consultant contract, through which a consultant services contract for the design of the Mike's Pike Improvement Project was established with The WLB Group, Inc.
|Options and Alternatives:
|1. Approve the award as recommended. Approval will allow work to move forward in calendar year 2017 or,
2. Reject all bids. This action would delay the Project. If rejection occurs, possible options Include:
a) Re-advertise the Project and open new bids;
b) Suspend or cancel the Project.
The Mike's Pike Improvement Project is located in downtown Flagstaff and includes work on Mike's Pike, Phoenix Avenue, Kendrick Street, and Benton Avenue. The Project scope includes replacement of aging water and sewer mains and services, street asphalt reconstruction, and new curb, gutter, sidewalk, driveways, and streetlights.
The Purchasing Section solicited for construction bids on March 6, 2017 on the City's website and on Purchasing's electronic bidding website, and the bid was advertised in the Arizona Daily Sun on March 12 and 19, 2017. Three bids were received by the opening date of March 29, 2017 and McDonald Brothers Construction was determined to be the lowest responsive and responsible bidder. A tabulation of bids is summarized below in Expanded Financial Considerations.
|The Project is planned and programmed in the Utilities' ten-year Capital expenditure program for aging infrastructure due to the age and condition of the facilities. The water main was constructed in 1906 and the sewer main was constructed in 1919. With the inception and development of the HUB on Campus Project, the Utilities Program investigated the opportunity to combine the projects to accomplish the work earlier during the HUB construction and cost share on the construction of the project. The City was able to advance the Mike's Pike infrastructure improvements in the planning schedule to coincide with the HUB project and expedite the utility and roadway construction during the building construction.
The Core Campus developer will be contributing funding for the new construction improvements along the frontage of the development. Funded construction items include water and sewer mains, services, manholes, asphalt roadway, sidewalk, curb, gutter, and driveways.
The future Rio de Flag Flood Control Project main line culvert is planned to be installed down Mike's Pike. Installation of the box structure will necessitate relocations of existing utilities that are in conflict with the future culvert. This Project will relocate the water and sewer mains ahead of the construction of the Rio de Flag Project.
There are several coordination items included in the construction contract due to the street traffic and nature of the businesses along Mike's Pike. The contractor is required to accommodate businesses during operating hours, keep a minimum one lane of traffic open at all times during normal business hours, and provide safe pedestrian access to buildings. Full road closures are only allowed from 10:30 pm to 6:00 am, which will keep NAIPTA transit in regular operation and reduce impacts. The City is aware that this project will impact the business and resident operations along the corridor and the Contractor and the City will work diligently to avoid and mitigate any issues that arise during construction.
Included in the contract amount will be an allowance of $90,000.00. The allowance will be used for items of work that were unanticipated but necessary to complete the Project. The Project Manager, Section Head and Division Head will have the authority to approve the use of the allowance.
Change Order Authority establishes a dollar amount of $154,789.85 (10% of the contract amount, less allowance of $90,000.00) to provide the City Manager, on behalf of the Council, authority to amend the contract amount in response to unforeseen costs that are more than the contracted amount and in excess of the contract allowance.
|Expanded Financial Considerations:
Below is a summary of bids received. Contractor totals include $90,000.00 contract allowance.
|McDonald Brothers Construction
|Kinkaid Civil Construction
The Mike's Pike Improvement Project is funded by Utility Program budget appropriations in the amount of $100,000 for FY 2017 and anticipated FY 2018 funding in the amount of $2,250,000. Account #203-08-375-3367-0. Anticipated FY 18 funding will be covered by the Aging Sewer Replacement funds and Capacity fees. Core Campus, the developer for the HUB on Campus Flagstaff will be providing funding to cover the development’s share of expenditures for utilities and roadway improvements along the frontage of their property.
|Community Benefits and Considerations:
|The community benefits of this project include the following:
- Updated utility mains and services
- New roadway and concrete improvements
- New pedestrian facilities
- New street lighting
- Early coordination of future Rio de Flag construction requirements
- Funding benefit from the Core Campus developer
|Inform/Involve - In December 2016, City staff mailed an informational flyer to the surrounding neighborhood describing the Project and inviting the community to a Public Open House to learn about the project and provide feed back. Staff held the open house on December 15 in City Hall. City Capital staff has also been conducting one-on-one contact through the neighborhood and will continue to coordinate the construction work and schedule throughout the duration of the Project. The City has held on-going meetings with NAIPTA to minimize the impact of construction to their transit routes.
|Expanded Options and Alternatives:
|1) Approve the award as recommended. This would allow the Project to be constructed in 2017.
2) Reject all bids. This option would delay the construction start and possibly cause the work to span two construction seasons, which would include a winter shutdown with temporary improvements in place. The residents and community at large could have a significantly longer duration of impact from construction activities.