City Council Meeting - FINAL

10.A.

Meeting Date:	04/18/2017
From:	Adam Miele, Senior Project Manager

Information

TITLE:

Consideration and Approval of Contract Amendment 1: Core Services Maintenance Facility – Guaranteed Maximum Price (GMP) #1 for the Phase I construction portion of Work.

RECOMMENDED ACTION:

1) Approve the Design-Build Contract GMP Amendment No. 1 with CORE Construction, Inc. for the construction phase services for the Phase 1 portion of Work in the amount of $9,485,884 and an extension to the current contract time of 245 calendar days, with substantial completion of 5/5/2018, and
2) Authorize the City Manager to execute the necessary documents.

Executive Summary:

Award of this Design-Build Contract GMP Amendment No. 1 to the fully executed Design-Build Agreement will authorize the construction phase services for the Phase 1 portion of Work of the new Core Services Maintenance Facility. The Phase 1 portion of Work will consist of bringing off-site utilities to the site, improvements (roadway widening) to Route 66, site grading and onsite wet utilities.

The new Core Services Maintenance Facility will bring together several core services (Streets, Solid Waste, Fleet and Public Works Administration) into one centralized location (currently these services are spread throughout two different facilities).

Financial Impact:

In the Fiscal Year 2017 budget, the City appropriated $21,280,899 in account no. 406-09-424-3276-3-4444 for the Core Services Maintenance Facility. The Utility Fund also has budgeted $1,400,000 in FY2017 and proposed FY2018 budget to fund a portion of the off site utilities and onsite wet utilities improvement in account no. 202-08-370-3350-0 and 203-08-375-3227-0.

Policy Impact:

Approval of this Design-Build Contract GMP Amendment No. 1 will ensure the level of service and programs offered to the community is maintained for the future.

Connection to Council Goal, Regional Plan and/or TeamFlagstaff Strategic Plan:

Transportation and other public infrastructure; Approval of the development of the new Core Services Maintenance Facility will provide support of the delivery of core City services and programs including: street maintenance, snow plowing and clearing operations, drainage maintenance, pot hole and side walk repair and street sweeping; residential and commercial trash and recycling collection, bulking trash collection; maintenance of all City vehicles and equipment, including fire, police, streets, solid waste, and water and wastewater department vehicles.

Has There Been Previous Council Decision on This:

Yes, on numerous occasions:

In 2016, Council approved the pre-construction / design phase services for the programing and preliminary design documents for the construction of the project;
In 2014, Council reinstated the $2.50 landfill fee to aid with the funding;
In 2012, the citizens of Flagstaff passed bond proposition 406 authorizing the City to issue up to $14,000,000 in general obligation bonds;
In 2010, Council extended the collection fee (suspended in 2012) and approved proceeding with bond initiative; and
In 2008, Staff provided Council with a list of alternative site locations, facility space needs, and a conceptual layout plan. Staff requested a renewal of the fee until the project could be completed. Council approved the extension of the $2.50 fee for another year instructing staff to produce 1) a property/location selection; 2) conceptual site plan development; and 3) preliminary cost estimate.

Options and Alternatives:

1. Authorize the acceptance of the Design-Build Contract Amendment and fee, for phase #1 construction of the Core Services Maintenance Facility from Core Construction.
2. Reject the acceptance of the Design-Build Contract Amendment and fee, for phase #1 construction of the Core Services Maintenance Facility from Core Construction.
3. Reject the DB Contract Amendment and continue existing operations in the existing facilities.

Background and History:

The existing facility is located at 419 N. Mogollon, Flagstaff, Arizona. This facility was originally built as a horse barn for the Army Corps of Engineers and was later purchased by the City and used as a Public Works yard. Over the years, there have been numerous structures built on this property, as growth dictated. The existing facility is not adequate to maintain the numerous vehicles and equipment necessary to provide core services. A new Core Services Maintenance Facility would also provide an indoor space for all fleet maintenance repairs, some of which are currently performed outdoors in inclement weather, including snow.

The City has needed a new Core Services Maintenance Facility for many years. The City has outgrown the existing facility and core service operations are scattered throughout the City. In 2010, Council approved a bond initiative to construct a new facility on McAllister Ranch located on West Rt. 66. The bond question was for a total dollar amount of $42 million to build the new facility, which included all new infrastructure (e.g., water, sewer, electricity, as well as Rt. 66 road improvements for traffic flow). The citizens of Flagstaff did not approve this bond measure. At the April 2012 Budget Retreat, the project was discussed and Council approved setting budget authority for the project. The Council, then, voted on July 17, 2012, to approve the measure for a November election through Resolution 2012-30. The citizens of Flagstaff approved a $14 million authorization to be repaid through secondary property taxes.

Key Considerations:

The City has developed preliminary construction documents that are consistent to findings through the programing portion of current needs for the new Core Services Maintenance Facility. Provisions have been made in the preliminary construction documents for expansion of the buildings in the future if needed.

The current scope of the project would relocate Streets, Solid Waste, Fleet and Public Works Administration..

Community Benefits and Considerations:

The City will be able to operate from a new Core Services Maintenance Facility in a more cost effective manner by providing City services and programs from a focused location on the west side of town where private and commercial development is currently extensive. The Agreement includes an owner'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.

Project funds will be provided through the issuance of general obligation debt repaid through secondary property tax ($14,000,000), revenue debt repaid through a dedicated landfill fee ($5,000,000), solid waste revenues and revenue transfers from other funds including General Fund, Transportation Fund, and Highway User Revenue Fund (totaling $4,000,000). As well as $1,400,000 from Water and Wastewater Utilities Fund for a portion of the onsite and offsite utility improvements.

Community Involvement:

The City will benefit in numerous ways with the completion of this project. There will be a consolidation of facility resources, and thus, efficiency in these services and programs the City can provide citizens. This new Core Services Maintenance Facility will increase the capacity for the following services: Streets, Parks and Facilities (equipment and materials storage) as well as consolidating the service personnel for Streets, Fleet Services, Solid Waste Collections and Public Works Administration.

Expanded Options and Alternatives:

Consult – The City has provided numerous work sessions and agendized Council sessions to discuss the progress in the development of the Core Services Maintenance Facility.

Empower - The citizens of Flagstaff approved the 2012 bond thereby authorizing $14 million dollars in funding to be used for this project.

Attachments
Contract Amendment 1
Amendment Exhibits A-D