Consideration and Approval of Contract: Award C and E Paving & Grading, LLC, the Construction Manager at Risk Construction Phase Services Agreement for the 2018 Street Maintenance Program.

In 2014, voters approved the Road Repair and Street Safety Initiative which provided funds for infrastructure maintenance. By awarding C and E Paving & Grading, LLC ("CMAR") the Construction Phase Services Agreement ("Agreement"), Council will demonstrate a continuing commitment to maintaining implementation of the Street Maintenance Program.

This award will utilize the funding approved by the voters in 2014 for the Road Repair and Street Safety Initiative. The Street Maintenance Program is budgeted in for FY 2018/2019 account 046-06-163-3321-6, account 040-06-162-3073-6 and 221-07-221-0884-0.

1. Transportation and other public infrastructure;
2. Provide sustainable and equitable public facilities, and services; and
3. Provide infrastructure systems in an efficient and effective manner to serve all population areas and demographics.

It is anticipated that Council will award a Construction Manager at Risk Design Services Agreement to C and E Paving & Grading, LLC in the regularly scheduled July 3, 2018, meeting of the Flagstaff City Council.
 

1. Award the Agreement as presented to allow timely initiation and completion of the 2018 Street Maintenance Program; or
2. Reject approval of the Agreement and direct staff to pursue traditional design-bid-build project delivery. This would delay progress on the projects by two to four months.

The City has established an annual program to maintain existing street pavements.  This year, the program provides three major services: non-structural upgrades by overlay, Americans with Disabilities Act 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 programed for resurfacing with asphaltic concrete overlays as budget allows.

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 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 Guaranteed Maximum Prices under a single procurement.   

On December 21, 2017, Purchasing staff posted a Request for Statements of Qualifications solicitation for Construction Manager at Risk services on the PlanetBids electronic bidding website, and advertised it in the Arizona Daily Sun on December 26, 2017 and January 3, 2018. 

On January 24, 2018, Purchasing received two Statements of Qualifications ("SOQs") from contractors wishing to provide CMAR services for the project.  A selection committee of seven members, including two members outside of City staff, independently reviewed and evaluated the SOQs in accordance with guidelines established by the enabling legislation.  Based on numerical evaluation of the statements received (see below), C and E Paving & Grading, LLC received the highest ranking and was deemed the most qualified by the evaluation committee to provide the desired services.

Contractor                                                  Score
C and E Paving & Grading, LLC.                  795
Eagle Mountain Construction                        695

It is anticipated that on July 3, 2018, Council will award the Design Phase Services Agreement for the 2018, 2019 and 2020 programs to C and E Paving & Grading, LLC, in the amount of $113,794.00.  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 calculations from the Design Phase Services Agreement to be voted on by Council on July 3, 2018, C and E Paving and Grading, LLC, has provided a GMP to complete construction of the 2018 Street Maintenance Program.  The GMP will include costs for construction, a CMAR contingency, construction fee, costs for General Conditions including bonds and insurance, and sales taxes.

Use of the Construction Manager at Risk method of project delivery will eliminate the need for an advertisement/bid/award process and will cut approximately two to four 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.

Funding for the overlay portion of the Street Maintenance Program is to be provided by the 2014 voter approved sales tax increase.  Funding for the pavement preservation portion of the Street Improvement Program is provided by the budget in FY 2018/2019 as well as other accounts.  The Agreement includes an owner’s contingency of $100,000.00 to cover the potential cost of unanticipated or additional work which may be required during construction.
 

ACCOUNT NUMBER	DESCRIPTION	BUDGET
046-06-163-3321-6	Pavement Overlay (budget + carry-forward)	$5,068,924
040-06-162-3073-6	Pavement Preservation	$5,772,713
221-07-221-0884-0	Airport Crack Seal	$10,000

The Street Maintenance Program provides surface treatments as required to preserve and maintain pavement condition on the 664 lane miles of asphalt City streets.  The goal 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.  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.

During construction, the Public Works Division will prepare weekly news releases that are distributed to the local media outlets describing the location of the street construction and any traffic restrictions planned for the week.  Under the Agreement, the CMAR will distributes written notices to all the adjacent businesses and residents in advance of construction.