Consideration and Approval of Construction Manager at Risk Contract:  Pulliam Runway 3/21 Mill and Overlay Project; Phase II construction contract.

Executive Summary:

The Flagstaff Airport is a single runway airport that supports commercial air service, business, medical, military and general aviation traffic for Flagstaff and the Northern Arizona Region. The existing Pulliam Airport runway pavement is oxidized, distressed and has grade irregularities that may cause aircraft damage if not corrected.

This project will consist of the mill and overlay of the runway pavement, connecting taxiways A1 to A9, new asphalt shoulders, pavement sealing of the blast pads and pavement striping and needed markings. The project was segmented into two (2) phases. Phase I consists of the work needed to be complete prior to the paving (including multiple evening runway shutdowns). Phase II consists of the paving portion of the contract and will require a 7-day (consecutive) runway shutdown, scheduled for June 11th through June 17th.

The anticipated total construction cost for this project is approximately 9 million dollars, predominantly paid through FAA and ADOT grants. This project is critical to the goals of maintaining city infrastructure, as well as to the continued efforts for secondary air service and access.

Financial Impact:

This project is currently in the 5-year plan. This project is budgeted in FY 2017 account number 221-07-222-3332-0-4433 in the amount of $3,277,685 and $4,093,533 in FY 2018.  The remaining $1,293,931 needed to meet the total contract of $8,665,149 will be achieved by using budget appropriation in accounts 221-07-222-3352-0-4421 (Drainage Improvements) and 221-07-222-3140-4402 (AARF Truck) currently in FY2017 budget.

Connection to Council Goal and/or Regional Plan:

COUNCIL GOALS 2017-2019:

Economic Development - Grow an strengthen a more equitable and resilient economy.
Transportation and Public Infrastructure - Deliver quality community assets and continue to advocate and implement a highly performing multi-modal transportation system.

Has There Been Previous Council Decision on This:

Yes;
-  On 05/19/15 Council approved a Grant Agreement (AIP 38) for Design and approved the Consultant Contract with Kimley-Horn for Design Services.
-  On 12/20/16 Council approved the Construction Manager at Risk Design Phase Services with FANN Contracting, Inc.

Options and Alternatives:

• Approve the Construction Manager at Risk Construction Phase Services Agreement as presented for Phase II of the project.
• Reject the Agreement and direct staff to pursue traditional design-bid-build project delivery. This would negatively delay progress on the project by one year.

Background/History:

The Flagstaff Pulliam Airport has been at its current location since 1948.  It has one runway, 8,800 feet in length and 150 feet wide.  The runway was extended in 2007 from 6,999 feet to its current length to allow for larger aircraft to land.  It is constructed of asphalt to FAA AC 150/5300-13 standards.  The single runway handles over 40,000 operations a year, and over 130,000 passengers fly in and out of the airport. Pulliam provides air service for private, medical, military, emergency response aircraft and commercial carriers.

On October 9 and 16, 2016, a Request for Statements of Qualifications (RSOQ) for Construction Manager at Risk (CMAR) services was published in the Arizona Daily Sun.  It also was posted on the Purchasing PlanetBids web site on October 7, 2016. On November 3, 2016, the City of Flagstaff received two Statements of Qualifications that were responsive to the requirements of the RSOQ for providing CMAR services for this project. An evaluation committee of five members independently reviewed and evaluated those statements in accordance with the evaluative criteria established in the RSOQ. The evaluation committee consisted of four City staff and one local contractor. Based on numerical evaluation of the statements received, and interviews conducted with both firms, Fann Contracting, Inc. received the highest ranking and was deemed the most qualified among those submitting proposals to provide CMAR services.

On December 20, 2016, Council approved the award of the CMAR Design Phase services contract to Fann Contracting, Inc. The award of this contract enabled the contractor to begin preconstruction design work needed to determine a Guaranteed Maximum Price (GMP) for the CMAR Construction Phase services. On March 21, 2017, Council approved the award of the CMAR Construction Phase I contract to Fann Contracting, Inc.

Key Considerations:

This work is critical for the Flagstaff Airport. The existing open graded friction course is raveling in several locations, leaving loose aggregate that are dangerous debris for flight operations. This project will consist of the mill and overlay (2.5” in depth) of the runway pavement, connecting taxiways A1 to A9, new asphalt shoulders, pavement sealing of the blast pads and pavement striping and needed markings.
The project was segmented into two phases;

• Phase I consists of the work needed to be complete prior to the paving (including multiple evening runway shutdowns). Phase one (1) work is to include; Construction Management Services, Internal Engineering Administrative Oversight, and Construction Services which consist of mobilization, survey, quality assurance and control, runway shoulder rebuild, asphalt plant set-up, and aggregate production.
• Phase II consists of the paving portion of the contract and will require a 7-day (consecutive) runway shutdown, scheduled for June 11th through June 17th.

Expanded Financial Considerations:
The FAA Grant Offer in the amount of $7,890,485 will cover 91.06% of the cost, the City will provide a match of $387,332 (4.47%) and ADOT will provide a match of $387,332 (4.47%) for a total project cost of $8,665,149 for project.
 
Community Benefits and Considerations:

The airport supports the community with air service and medical flights.  It is an economic generator for Flagstaff and Northern Arizona. The maintenance of the runway is critical to continue support of the air service and medical users of the airport. Construction of the project will increase the utility and safety of operations at the airport. New pavement on the runway will provide a safer landing and takeoff area for the pilots.

Community Involvement:

Inform-
The project will require that tenants will not have access to the runway during construction. To minimize that inconvenience, the project will be constructed in seven (7) consecutive days to perform the runway paving operation. Tenants will be notified of the upcoming work by mail prior to construction. In addition, mass e-mails will be sent to all tenants advising of the upcoming work. During construction, weekly updates regarding progress and anticipated dates for reinstating runway access will be posted on the City website in order that tenants may be advised of construction progress

Expanded Options and Alternatives:

• Approve the Construction Manager at Risk Construction Phase Services Agreement as presented for Phase II of the project, understanding that use of the city’s current and previously saved entitlement funds and at least one additional year of entitlement funds will be used.
• Reject the Agreement and direct staff to pursue traditional design-bid-build project delivery. This would negatively delay progress on the project by one to two years.