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

Consideration and Approval of Construction Contract:  CMAR 2017 Street Maintenance Project - GMP #2 - Chip Seal
1) Approve the Construction Manager at Risk (CMAR) Construction Services Agreement (Agreement) with C and E Paving and Grading, LLC in an amount not to exceed $1,603,036 for Guaranteed Maximum Price (GMP) # 2.
2) Approve Change Order Authority to the City Manager in the amount of $160,303 (10% for GMP # 2), 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 (GMP 2) of the 2017 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. 
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:
Funding for GMP # 2 is to be provided by the 2014 voter approved sales tax increase in account 046-06-163-3321-6. 
Policy Impact:
No policy impacts are a result of this project.

By approving this Agreement, improvements to the City’s existing infrastructure will improve the health, welfare and safety of the residents of Flagstaff.
Connection to Council Goal, Regional Plan and/or TeamFlagstaff Strategic Plan:
Transportation and Other Public Infrastructure – Approval of this Agreement will preserve and improve the City's roadway assets.
Has There Been Previous Council Decision on This:
  • In January 2016, Council approved the design phase services contract with Plateau Engineering, Inc.
  •  In April 2016, Council approved the construction of a multiple phased roadway project (2016 Street Maintenance Project) with the same contractor for this Agreement, C and E Paving and Grading, LLC.
Options and Alternatives:
  1. Approve the CMAR Construction Phase Services Agreement as presented.
  2. Reject the CMAR Construction Phase Services Agreement and direct Staff to pursue traditional design-bid-build project delivery. This would negatively delay progress on the project by three to five months.

The City has established an annual Street Maintenance Program (Program) to maintain existing streets.  This year, the Program will provide three major services: non-structural upgrades by overlay, American's with Disabilities Act (ADA) compliance, and chip sealing. 

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 OCI of 100.  Each pavement distress such as cracking or roughness reduces the street’s OCI.  The street pavements are ranked by OCI and the pavements exhibiting the most severe distress are programmed for resurfacing with asphaltic concrete overlays as budget allows.

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, including CMAR, 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 GMPs under a single procurement.   

On August 31, 2014, a Request for Statements of Qualifications for CMAR services was published in the Arizona Daily Sun and posted on the City’s Purchasing web site.  On September 23, 2014, the City received five Statements of Qualifications from firms wishing to provide CMAR services for the project.  A selection committee of five members independently reviewed and evaluated those statements in accordance with guidelines established by the enabling legislation.  Based on numerical evaluation of the statements received, the firm of C and E Paving and Grading, LLC, received the highest ranking and was deemed the most qualified among those submitting proposals to provide the desired design phase services. 

On November 18, 2014, Council approved award of the CMAR Design Phase Services Contract for the 2015, 2016 and 2017 Programs to C and E Paving and Grading, LLC, in the amount of $112,821.00.  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 and Grading, LLC, has provided a GMP to complete construction of the annual improvement project.  The GMP will include costs for construction, a CMAR contingency, construction fee, costs for General Conditions including bonds and insurance, and sales taxes.
Key Considerations:
The goal of the 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.  In addition, 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 overlay portion of the Program is to be provided by the 2014 voter approved sales tax increase.  The Agreement includes a contingency for the City of up to $50,000.00 to cover the potential cost of unanticipated or additional work which may be required during construction.

Account Number: 046-06-163-3321-6
Community Benefits and Considerations:
The Program provides surface treatments as required to preserve and maintain pavement condition on the 664 lane miles of asphalt City streets.  The ADA improvements provide improved access for disabled citizens and visitors along existing streets and provide compliance with Federal requirements.
Previous Councils have approved programs in the 2015 and 2016 fiscal years which were a great success. These programs utilized 2014 voter approved sales tax funds (59 streets or 45 lane miles of overlay and 1 street or 1.2 miles of repaving). In addition to the sales tax funds, HURF funds were utilized (267 streets or 178 lane miles in chip sealing).

Use of the CMAR method of project delivery will eliminate the need for an advertisement/bid/award process and will cut 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 to be 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.
Expanded Options and Alternatives:
  1. Approve the CMAR Construction Phase Services Agreement.
  2. Reject approval of the CMAR Construction Phase Services Agreement and direct staff to pursue traditional design-bid-build project delivery.  This would effectively delay progress on the project by three to five months.

CMAR Contract - Overlay


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