Council Goal/Priority: Repair, Replace and Maintain Infrastructure.

Background & History: City of Flagstaff has operated the Materials Testing Program (MTP) since the mid ‘70s when the U.S. Army Corps of Engineers funded approximately $100,000 to establish a quality assurance program for construction of the Wildcat Wastewater Treatment Plant. At that time the lab was located in the Anderson Building on Phoenix Avenue. About four years later the lab was relocated to Utilities Division’s East Flagstaff Facility on Commerce Avenue and is still located there today. Over the years, the MTP had as many as 3½ staff (2008) and is currently staffed with two Materials Technicians. With a current increase in work load, the 2 FTE work group is not able to conduct the same level of field sampling and laboratory testing that had been performed in the past, resulting in a new business model where we are managing the permitted work based on staffing capacity and not conducting every test that might otherwise be required. Contractor education and an excelling Inspection & Testing team has allowed us to be successful with this business model without an increase in warranty issues or a decrease in long lasting infrastructure. As more projects are permitted (volume increase), we will continue to spend less time on each project, if staffing levels remain constant.

MTP staff ensure that permitted projects are constructed with quality, reliable infrastructure built with materials that are compliant with the Engineering Standards and they function as an integral part of the City Inspection team. Materials tested are soils, concrete and asphalt. Samples are taken in the field and then laboratory tests are performed in accordance with nationally recognized industry standards. Results are reported back to Inspectors, who in turn work with Contractors in order to proactively monitor quality of the work as it's being performed. Materials Technicians often times work directly with Contractors, on behalf of the Inspectors, if Inspectors are busy on other job sites.  This allows us to help Contractors efficiently obtain approval to proceed with their work. Our primary customers are Contractors who have been hired by either public (capital improvements) or private sector companies and include Franchise Utility companies. Outcome of this work is long- lasting, high performing infrastructure for Public Works and Utilities staff to operate and maintain as well as to provide safe and functioning water, sewer, drainage and transportation systems for use by our current and future residents.

Within the MTP work grouo of 2 FTEs, we have experienced a resignation and a retirement, although the retirement has been postponed. Combined with the City Manager's direction for the MTP to compete with the private sector in FY15, we were faced with the dilemma of hiring staff only to possibly let them go depending on the outcome of private sector competition.  So, we chose to initiate the Request for Information (RFI) from the private sector immediately and temporarily hire staff through the City's On-Call contract (Speedie and Associates) who works in conjunction with the staff member who has postponed retirement.

Working with Purchasing, we were advised it was not possible to seek bids or proposals from professional service providers as materials testing services are considered professional services and fall under the purview of a professional engineer. Therefore, we decided to use the RFI process to obtain pricing information from private sector service providers based on the annual volume of tests conducted (CY12) and to anticipate the potential of a three-year contract term. The results of the RFI are as follows (RFI as advertised and a detailed Information Tabulation are attached for reference):

Service Provider	Annual cost
Ninyo & Moore	$80,501.52
ATL, Inc.	$145,822.00
City Materials Testing Program	$153,285.00
Speedie & Associates	$157,400.00
Western Technologies, Inc.	$160,421.00
Speedie & Associates (alternate)	$225,274.00

FINANCIAL: The FY14 Budget for the Materials Testing Program is $153,774 which covers the cost of 2 FTEs, overtime allotment ($3,000), vehicles & gas, cell phones, rent at East Flagstaff Facility, lab equipment calibration/maintenance/repair, supplies and facility/vehicle maintenance.

In order to achieve 100% cost recovery for the Materials Testing Program, City Council recently established a materials testing permit fee of 2.15% of engineer's estimated construction subtotal that is expected to generate approximately $215,000 annually.

OPTIONS:

1) Maintain City Materials Testing Program. If Council elects this option staff will commence recruitment for the two vacant positions, continuing the hybrid staff/on-call work group until new employees begin employment.

2) Eliminate City Materials Testing Program and hire a private sector service provider. If Council elects this option, staff will commence a qualifications-based selection process, continuing the hybrid staff/on-call work group until Council awards a professional services contract. Under this option we would recommend eliminating the laboratory for good as we do not believe it is in the City’s best interest to maintain the lab until the three-year services contract expires in order to compete against private sector again. Therefore, we would propose sending all equipment to surplus auction and return nuclear densometers to the manufacturer. This would allow Utilities to expand their operations at the East Flagstaff Facility after the lab tenant improvements are removed.  However, this option would impose additional work load on an already under-staffed Inspection Program as they work with the private sector service providers.  We recommend that we increase the staffing level of the Inspection Program by 1 FTE based on current work load.

3) Continue hybrid staff/on-call work group. This option would result in redundant lab costs (City & private sector), but, would allow for continued discussion.

4) Eliminate City Materials Testing Program and transfer the materials testing responsibility to the permitted Contractor. If Council elects this option, staff will commence work on new Engineering Standards that would establish performance criteria for Contractors/Developers to self-perform materials testing (requiring Council approval by Ordinance). This option would impose additional work load on an already under-staffed Inspection Program as they work with the Contractor’s materials testing service provider. Unlike options listed above, this model will likely result in construction-related delays and increased accountability for Contractors to schedule activities.   This would also potentially create a situation that reduces construction quality and corresponding life of infrastructure. To mitigate delays and construction quality, it is recommended that we increase the staffing level of the Inspection Program.