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

Consideration and Approval of Construction Contract:  2017 Street Maintenance Project - GMP #1 - Overlay
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 $2,695,631.29 for Guaranteed Maximum Price (GMP) #1 - Chip Seal projects.
 2) Approve Change Order Authority to the City Manager in the amount of $ 269,563  (10% for GMP # 1), 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 Agreement will allow the City to complete construction of Phase 2 of the 2017 Street Maintenance Program (Program). Phase 2 will consist of chip seals of various roadways utilizing monies from the Highway User Revenue Fund (HURF) funding (the 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 Agreement will further demonstrate Council's commitment to maintaining City infrastructure through the annual budgeting process as well as improving infrastructure by utilizing funding approved by voters in November 2014.
Financial Impact:
Funding for GMP #1 is provided by the HURF and Proposition 406 funded in account 040-06-162-3073-6-4443 in FY17.
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 – This Agreement will preserve and improve the community’s roadway assets.

Regional Plan goals that apply include:
 Goal LU.7. Provide for public services and infrastructure.
 Goal LU.10. Increase the proportion of urban neighborhoods to achieve walkable, compact growth.
 Goal T.1. Improve mobility and access throughout the region.
 Goal T.2. Improve transportation safety and efficiency for all modes.
 Goal T.8. Establish a functional, safe, and anesthetic hierarchy of roads and streets.
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) by 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 delay progress on the project by two to five months.
The City has established an annual Program to maintain existing streets.  This year, the Program will provide three major services: non-structural upgrades by overlay (Prop. 406 funding), Americans' with Disabilities Act (ADA) compliance (Prop. 406 funding), and chip sealing (HURF funding).
Improvements to the City’s 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 Overall Condition Index OCI of 100.  Each pavement distress such as cracking or roughness reduces the street’s OCI.  The street pavements are ranked by OCI’s and the pavements exhibiting the most severe distress are programmed for replacement. OCI’s that score within the middle range receive resurfacing with asphaltic concrete overlays as budget allows. Roadways with a higher OCI will receive a Chip seal work that provides a cost effective pavement preservation treatment to maintain newer pavements in a good condition.
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 of Flagstaff 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 an award of the CMAR Design Phase Services Contract for the 2015, 2016 and 2017 programs to C and E Paving & 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 & Grading, LLC, has provided a GMP to complete construction of the annual Program.  The GMP includes 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.  Chip seal work provides a cost effective pavement preservation treatment to maintain newer pavements in a good condition.
Expanded Financial Considerations:
Funding for the pavement preservation portion of the Program GMP #1 is provided by the budget in FY 2016/2017. The Agreement includes an owner’s contingency of $50,000.00 and $50,000.00 for contractor’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.
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. 
Use of the CMAR method of project delivery eases the need for a traditional advertisement/bid/award process and cuts 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. In addition, site maps of the streets planned for construction activities will be provided on the City's website.
Expanded Options and Alternatives:
1. Approve the CMAR Construction Phase Services Agreement as presented.
2. Reject the CMAR Agreement and direct staff to pursue traditional design-bid-build project delivery. This would delay progress on the project by two to five months.
CMAR Contract - Chip Seal


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