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Information |
TITLE: |
Consideration and Approval of Contract: Construction Manager at Risk (CMAR) Service Agreement - GMP1 with Rummel Construction, Inc. for the Landfill Road Improvement Project. |
STAFF RECOMMENDED ACTION: |
- Approve the CMAR Construction Services Agreement - GMP 1 with Rummel Construction, Inc. for a Guaranteed Maximum Price (GMP1) in the amount of $4,887,944.86 and a contract duration period of 171-calendar days; and
- Approve an Owner's Contingency of $172,020.37, which is 4.25% of the GMP1; and
- Authorize the City Manager to execute the necessary documents.
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Executive Summary: |
Staff recommends approval of the CMAR Construction Services Agreement (Agreement) for a Guaranteed Maximum Price (GMP1) in the amount of $4,887,944.86 with an Owners Contingency of $172,020.37, for a Total Contract Price of $5,059,965.23, to Rummel Construction, Inc. (Rummel), per the attachment known as "GMP-Rummel Const., Inc". Approval will authorize construction of the Landfill Road Improvements (Project). The Project includes the improvements of the two-mile Forest Service road (FR 6010) from State Route 89 to Cinder Lake Landfill.
The scope of work consists of removal and replacement of new improvements per the approved construction plans, including:
- Clearing & Grubbing (includes tree removal);
- Provide all necessary traffic control, survey, and quality control measures;
- Installation of Stormwater Pollution Prevention control measures;
- Removal and savage of existing signage, fencing, and gates;
- Demolition of fencing, existing culverts, riprap, asphalt pavement and other miscellaneous items;
- Roadway excavation and embankment to realign and reconstruct the complete roadway;
- Install new drainage features (culverts, headwalls, riprap, and erosion control mats);
- Produce and place new aggregate base and asphalt pavement for the new roadway in accordance with approved design specifications;
- Install new and salvaged signage;
- Install new and salvaged fencing;
- Painting and roadway striping; and
- Any necessary coordination between the Coconino National Forest (National Forest), Coconino County, and the City of Flagstaff.
Pending Council’s approval, the Project is anticipated to begin in March 2024 and continue through September 2024. The 171-calendar-day duration is projected to cover the construction of the entire project. |
Financial Impact: |
The Landfill Road Improvement Project is funded by the total budget appropriations of $4.3 million from the Public Works-Solid Waste Capital Improvement line item (211-06-167-0631-0-4433) in FY2023-24 with additional appropriation of $1.0 million in FY2024-25 expected for total project budget of $5.3 million. Part of the funding source for this project is $2,440,000, dedicated from Coconino County (County) through an Intergovernmental Agreement (IGA).
Should any remaining costs be incurred (above $172,020.37) to cover the owner contingency, they will be split between the City and the County, per the Intergovernmental Agreement (IGA) presented by the Public Works Director in the Resolution, as referenced in this meeting's agenda. |
Policy Impact: |
Proper planning and program development results in good governance and efficient use of financial resources to improve community transportation infrastructure and promote the health, welfare, and safety of the residents of the City. |
Connection to PBB Priorities/Objectives, Carbon Neutrality Plan & Regional Plan: |
Priority Based Budget Key Community Priorities and Objectives
High Performance Governance
- Serve the public by providing high quality customer service
- Enhance the organizations fiscal stability & increase efficiency and effectiveness
Safe & Healthy Community
- Ensure the built environment is safe through the use of consistent standards, rules and regulations, and land use practices.
Sustainable, Innovative Infrastructure
- Utilize existing long-range plan(s) that identify the community's future infrastructure needs and all associated costs.
- Deliver outstanding services to residents through a healthy, well maintained infrastructure system.
Environmental Stewardship
- Promote, protect, & enhance a healthy, sustainable environment & its natural resources.
Regional Plan
Goal PF.2 - Provide sustainable and equitable public facilities, service, and infrastructure systems in an efficient and effective manner to serve all population areas and demographics. |
Has There Been Previous Council Decision on This: |
This project has been presented to Council as a Capital Improvement item at past budget retreats and work sessions. On April 18, 2023 Council approved Ordinance/Resolution No. 2023-07: An ordinance of the Flagstaff City Council Authorizing the Acquisition of Real Property for the Cinder Lake Landfill Road Improvements Project. The ordinance allowed for the conveyance of portions of properties needed to safely redesign and reconstruct Landfill Road, while providing fair market value for such properties. |
Options and Alternatives: |
- Approve the award for the Agreement as recommended and delivery the road project
- Do not approve the award as proposed
a. If rejection occurs, possible direction may include:
i. Requesting staff to re-evaluate the recommendation; or
ii. Re-prioritize this project and provide preferred direction
iii. Advertise for new proposals and review at a later date
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Background and History: |
On February 22, 2023, Procurement staff posted a Request for Statements of Qualifications (RSOQ) solicitation for Construction Manager at Risk (CMAR) services on the PlanetBids electronic bidding website, and advertised it in the Arizona Daily Sun on March 5, 2023 and March 12, 2023. On March 22, 2023, Procurement received three Statements of Qualifications (SOQs) from contractors responding to the RSOQ. A Selection Committee of six members, including one member, a licensed contractor outside of City staff, independently reviewed and evaluated the SOQs in accordance with guidelines established by the enabling legislation. Based upon the numerical scoring of the written SOQs, the Selection Committee identified the most qualified Firm to perform the CMAR services for the Project and recommended to commence negotiations for a scope and fee proposal to be provided by FNF Construction, Inc. Final scores of all firms are as follows:
FNF, Inc. 594 Points
Rummel Construction Inc. 587 Points
C&E Paving and Grading 557 Points
Staff began working with FNF, Inc. (FNF) to develop the scope of work through a Design Phase Services Agreement. After meeting with staff and the design engineer, FNF submitted a Rough Order of Magnitude (ROM) estimate, which significantly exceeded the projected budget stated in the original solicitation, and FNF was unable to subsequently adjust the ROM to meet the budgetary needs of the Project. Consequently, Procurement provided a Notice to Terminate Negotiations to FNF. Staff then contacted the second most qualified contractor, Rummel, to proceed with a new Design Phase Services Agreement.
Working with staff and the design engineer over several months, Rummel submitted a GMP that both fits within the budget and meets the needs of the project. |
Key Considerations: |
Landfill Road (Road) has been under the jurisdiction of Coconino National Forest (U.S. Forest Service) since its inception. The 2-mile Road has been utilized for primary access to the Cinder Lake Landfill since 1965. The Road is currently in significant disrepair and needs to be reconstructed.
The previous Special Use Permit, issued by the Forest Service in 1963 (see attachment named Landfill Road-SUP), limited the ability of Cinder Lake Landfill to make improvements to the Road without detailed review and approval from the Forest Service. Therefore, in 2017 Forest Service staff implied conveyance of an easement to Cinder Lake Landfill would likely best serve the needs of Cinder Lake Landfill. Subsequently, staff coordinated the preparation of the necessary Environmental Assessments (EA) under the National Environmental Policy Act (NEPA). The review and approval of the EA was completed in October, 2022 (see attachment named "Nat. Forest-Decision Letter") and the easement was recorded in June, 2023 (see attachment named Landfill Road Easement). The easement now allows Cinder Lake Landfill to properly plan and coordinate the construction of this Project and plan for future maintenance needs.
Since the inception of the Cinder Lake Landfill in 1965, Coconino County has assumed responsibility for the maintenance of the Road. However, Cinder Lake Landfill has recently taken a more vested interest to ensure safe and convenient access to its customers for years to come. In 2017, previous City and County Leaders initiated discussions program a complete rebuild and better define the maintenance responsibilities once completed.
The award of the Construction Manager at Risk (CMAR) method of project delivery advances the project development schedule. In addition, value engineering, construction reviews, and design input conducted as part of this agreement have the potential to realize future construction cost savings over the traditional design-bid-build delivery method. |
Community Benefits and Considerations: |
Staff will program for regular maintenance of the Road in future budget years. The final maintenance obligations will be further defined in a separate joint maintenance agreement with Coconino County. |
Community Involvement: |
The intent of this project is to provide safe, reliable, and efficient access to the Landfill customers for many years to come. Reconstruction of the Road will also ensure access for the recreationalists that utilize the trails in the area. |
Expanded Options and Alternatives: |
None at this time. |
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