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Information |
TITLE: |
Consideration and Approval of a Relocation Benefit Purchase: Purchase of a ready mix (cement) batch plant for Arizona Materials as a result of being displaced by the Lone Tree Overpass Project |
STAFF RECOMMENDED ACTION: |
Approve purchase of a Con-E-Co Lo-Pro Model Concrete Plant from Dave Humphreys, Inc., in an amount not to exceed $2.5 million, and authorize the City Attorney and Procurement Director to approve the final form of contract.
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Executive Summary: |
The City would pay for the purchase, delivery, and assembly of a batch plant for processing of ready mix (cement) materials, as a relocation benefit being provided to Arizona Materials ("AZM"). The new plant specifications have been approved by AZM as satisfactory to meet its needs. The product is: CON-E-CO LoPro-12HP Concrete Batch Plant.
The City retained its general contractor for the Lone Tree Overpass Project, Ames Construction Company ("Ames"), to acquire property and to help provide relocation benefits to residents and businesses displaced by the project. The determinations of benefits are being conducted pursuant to the standards set forth in the federal Uniform Relocation Assistance and Real Property Acquisition Act of 1970 ("the Uniform Relocation Act"). Fedeal regulations are found in 49 Code of Federal Regulations Part 24.
The City is offering to purchase a new replacement batch plant per the federal regulations, because it is not feasible to move the existing outdated plant. It is also not prudent or financially beneficial to purchase, deliver, and reassemble a used plant. CEI conducted an open, competitive search of both new and used plants and selected the quote that was responsible and responsive, and most advantageous to the City.
The proposed vendor had the most competitive pricing for a plant that meets AZM's needs. |
Financial Impact: |
The City will purchase the batch plant at a cost not to exceed $2.5 million, to include (estimated) shipping and installation.
The City is in the process of obtaining an updated quote and will provide that prior to December 19. The purchase price previously quoted at about $2.1 million does not include:
- Tax;
- Costs that exceed estimates;
- Any permitting, mechanical, piping, electrical, or concrete work;
- A variety items that the customer is supposed to provide, including an all-terrain forklift, manlift and crane;
- Clearing of the site;
- Cleanup of the site;
- Portable toilets and sanitary facilities onsite;
- All required permits;
- Anchor bolts or foundation base plates, detailed foundation engineering or design, erection or installation, certification of scales, water piping to meter, electrical connection to weatherhead, plant electrical field connections, plant field plumbing, startup admix dispensing equipment,
- O.S.H.A. items beyond those stated to be included, erection or erection supervision.
- There may be additional cost added due to the City of Flagstaff zoning and construction requirements such as the requirements for the four washout bays or a retaining wall required for the fuel tank.
A final Determination of Benefits will be presented to City Council including those additional costs, estimated at $1 million, will be presented for City Council consideration or ratification.
The Lone Tree Overpass Project is funded by a .23% local transaction privilege tax (TPT) approved by the voters. Relocation benefits are being paid for from the project budget. The Lone Tree Overpass Project is currently budgeted in FY2023-2024 in the amount of $30,573,259 in the Transportation Fund, Account Number 047-10-112-3054-6.
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Policy Impact: |
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Connection to PBB Priorities/Objectives, Carbon Neutrality Plan & Regional Plan: |
Priority Based Budget Key Community Priorities and Objectives
Safe and Healthy Community -
- Foster a safe, secure, and healthy community.
- Ensure the built environment is safe through the use of consistent standards, rules and regulations, and land use practices.
Inclusive and Engaged Community -
- Advance social equity and social justice in Flagstaff.
Sustainable, Innovative Infrastructure -
- Deliver outstanding services to residents through a healthy, well maintained infrastructure system.
- Utilize existing long-range plans that identify the community's future infrastructure needs and all associated costs.
- Identify smart traffic management, multi modal transportation, and alternative energy opportunities.
Environmental Stewardship -
- Implement sustainable building practices and alternative energy and transportation options.
- Implement, maintain and further the Climate Action and Adaptation Plan.
Regional Plan
- Improve transportation safety and efficiency for all modes.
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Has There Been Previous Council Decision on This: |
The Lone Tree Overpass has been a planned project for over a decade in the Flagstaff community. The Lone Tree Corridor and Overpass will connect the southern area of town with the Route 66 corridor and provides a option that reduces congestion on other roadway corridors.
In November 2018, the Flagstaff voters approved a ballot measure to fund the Overpass (Proposition
420) and a separate ballot measure to fund the Corridor Improvements (Proposition 419). Both propositions passed.
On February 2, 2021, City Council awarded a Design-Build Services Agreement for Phase I of the project development to Ames Construction.
On July 6, 2021, Council passed Ordinance 2021-15, authorizing acquisition of real property for the Project.
On October 5, 2021 the City Council adopted Resolution No. 2021-45 delegating authority to Ames to approve Determination of Benefits for relocations under the Uniform Relocation Act, for the LTO Project. Per the resolution, any contract exceeding $50,000 is to be presented to Council for consideration. |
Options and Alternatives: |
- Approve contract for purchase of batch plant. This action may help expedite relocation of AZM and help enable the LTO Project to proceed.
- Do not approve contract for purchase of batch plant, and direct staff to delay purchase or take other action.
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Background and History: |
There is a long lead time involved with purchasing a new batch plant, as the vendor needs to manufacture, ship, and assemble the plant at the selected delivery site. The entire process is expected to take more than one year.
Per the contract, the delivery site will be AZM property located on E. Huntington Drive. If AZM does not obtain a conditional use permit for operating its ready mix materials business at this site, then the City may direct that the equipment be delivered to a different site.
The City would like AZM to stay in business in Flagstaff. City has been working with AZM to find a suitable relocation site for over two years. Available sites considered were not acceptable to AZM because of size, location, hauling distance, or other reasons. The City of Flagstaff has very little land zoned for heavy industrial use (where a cement plant is permitted as of right), or zoned for light industrial use (where a cement plant is permitted with a conditional use permit). Sited located on the outskirts of Flagstaff result in higher transportation costs that make business operations less competitive.
An entity related to AZM, Outlander Enterprises, LLC, has purchased vacant land zoned for light industrial use on E. Huntington Drive in Flagstaff. However, there are still uncertainties as to whether this site is acceptable for operational purposes. In October 2023 AZM submitted a concept plan to the City. City provided comments, and in November 2023 AZM submitted revisions to the concept plan. City provided a second round of comments on December 5. In order to operate at the new location, AZM will need to obtain approval of a site plan, and a conditional use permit from the City.
The City has filed a condemnation proceeding to acquire the AZM property for the LTO Project, S0300CV2022-00548, City of Flagstaff vs. Arizona Materials Property, LLC. The City is seeking an order for immediate possession of the existing AZM property, but has delayed an evidentiary hearing on the matter in an effort to give AZM more time to relocate its business to the new location. Construction of the LTO Project has already begun. However, the City has been able to re-sequence work so that the City would not need to possession of the existing AZM property until the end of May 2024.
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Key Considerations: |
The City has already started construction of the LTO Project and needs to relocate AZM out of the path of the project. The City has agreed to provide relocation benefits to AZM, and one of the benefits consists of a new batch plant. AZM has agreed to accept the new batch plant as part of those benefits. |
Community Involvement: |
The Lone Tree Overpass will provide a new roadway corridor and bridge over the BNSF Railway and the future Rio de Flag Flood Control Project, providing connectivity between Butler Avenue and Route 66 in central Flagstaff. Multimodal transportation and alternative intersection design will be included in this project. |
Expanded Options and Alternatives: |
The community was consulted extensively in development of both the Overpass concept study and the Corridor Study in the late 2000s. The City conducted public outreach to inform the public about Proposition 419 and 420. The Flagstaff voters approved these propositions. At City Council meetings in 2021, 2022, and 2023 the project design has been discussed and/or presented. As part of its contract, Ames is required to conduct public participation meetings, neighborhood outreach, development of a website to provide information, project renderings to improve understanding of the proposed project elements, and general public coordination throughout the design and construction of the project. |
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