Consideration and Approval of a Construction Manager at Risk (CMAR) Construction Services Agreement: to Eagle Mountain Construction in the amount of $6,588,283.00 for the Coconino Estates Improvements Phase I South Project.

1. Approve the CMAR Construction Services Agreement with Eagle Mountain Construction Inc. for a Guaranteed Maximum Price of $6,439,394.00 with a contract duration period of 900-calendar days; and
2. Approve an Owner's Contingency of $148,889.00, which is approximately 2.3% of the Guaranteed Maximum Price. 
3. Authorize the City Manager to execute the necessary documents.

Staff recommends a Construction Manager at Risk (CMAR) Construction Services Agreement (Agreement) award for a Total Contract Price of $6,588,283.00 to Eagle Mountain Construction, Inc. (EMC), which will authorize the construction of the southern portion of the Coconino Estates Improvements Phase I Project. The southern portion includes the improvements on Beal Road, Navajo Drive from Beal Road to Navajo Road, and Navajo Road. The northern portion will be presented for Council’s consideration this fall as an amendment to the original Agreement and includes improvements to the area of Navajo Drive north of Beal Road. Please refer to the attached context and vicinity maps.
 
The improvements on the streets shown in the vicinity map generally consist of replacing existing infrastructure with new, including water and sewer mains, water and sewer services, fire hydrants, storm drains, streetlights, the entire asphalt roadway, and defective select edge improvements (curb & gutter, sidewalk, etc.), except for Whipple Road which will only receive a new water main. There will also be new infrastructure added consisting of underground electric lines for streetlighting and sidewalk on both sides of the street where it does not currently exist on Beal Road, Navajo Drive south of Beal, and on Navajo Road. The decision to add a sidewalk to these particular sections of roadway was based on the results of a neighborhood survey performed by the Project Design Team.   
 
Pending Council’s approval, construction is anticipated to begin on the southern portion in May 2020 and in winter 2020 for the northern portion. The 900-calendar day duration will cover the construction of both southern and northern portions of the Project spanning over three construction seasons, with both portions completed by fall 2022.




 

The Coconino Estates Improvements Project is funded by the total budget appropriations of $13,495,023 (includes FY 2019-20 budget through FY 2021-2022 proposed) from the Coconino Estates budget line item under the Road Repair and Street Safety (RR&SS) – Utility Replacements and Overlay Funds. The other funding source is $500,000.00 from the General Improvements and Partnering Opportunity line item under the Transportation Tax Fund for the new underground electric lines and sidewalk where it does not currently exist.

Council Goal 2017 – 2019 Transportation and Other Public Infrastructure
Deliver quality community assets and continue to advocate and implement a highly performing multi-model transportation system.
 
Regional Plan – Goal T.2.
Improve transportation safety and efficiency for all modes.
 
Team Flagstaff Strategic Plan – Priority #3: Foster a resilient and economically prosperous City
2. Deliver outstanding services through a healthy environment, resources and infrastructure.

• Council previously approved the ballot language for the Road Repair and Street Safety Initiative (Prop. 406).
• Council approved and adopted the Road Repair and Street Safety - Utility Replacements and Overlays - Coconino Estates FY 2020 budget.
• Council approved both Contracts for Engineering Professional Services and CMAR Design Phase Services for the design of the Project at the May 7, 2019 Council Meeting.

1. Approve the award for the Agreement as recommended. Approval will allow work to move forward; or,
2. Reject approval of the award as recommended. This action would delay the Project
   1. If rejection occurs, possible options include:
      1. Ask staff to re-evaluate the recommendation; or
      2. Suspend or cancel the project completely.

On November 18, 2014, Council adopted the results of the General Election held on November 4, 2014. In the General Election voters approved a dedicated sales tax increase, Proposition 406, which included funding for road repairs and street safety improvements throughout the City of Flagstaff. Navajo Road, Navajo Drive, and Beal Road all qualified to receive pavement and utility improvements due to their existing pavement overall condition index (scale of 100-0) being at or below 50 and their existing utilities needing repair or replacement due to consistent maintenance or age. The proximity of these streets made them ideal projects to combine into the Coconino Estates Improvements Phase I Project.
 
On November 8, 2018, Purchasing staff solicited a Request for Statement of Qualifications (RSOQ) solicitation for Construction Manager at Risk (CMAR) construction services and advertised the solicitation in the Arizona Daily Sun on November 11 and 18, 2018. On December 6, 2018, purchasing received 5 Statements of Qualifications (SOQs). A six-member selection committee consisting of 5 staff and one outside registered contractor executive, reviewed and evaluated the SOQs.The selection committee identified Eagle Mountain Construction as the most qualified contractor to perform the CMAR construction services. Staff began negotiations to finalize the scope of work and develop a Guaranteed Maximum Price (GMP).  The evaluation scores are as followed:

Eagle Mountain Construction     640
Kinney Construction                   579
Fann Contracting                       575
Tiffany Construction                  563
LPs Excavating                         157
 
Given the large scale of the Coconino Estates Improvements Phase I Project and the time it would take to both design and construct the Project, it was decided to take advantage of the flexibility provided by the CMAR project delivery method to expedite the design and construction of the Project by splitting the Project into a Northern and Southern Portion. This allowed the design of the Southern Portion to be completed first and for construction of the Southern Portion to begin in early 2020, while the design of the Northern Portion is completed and for the construction of the Northern Portion to roll into the Southern Portion as one continuous construction project, pending Councils approval.

The Project is in the Coconino Estates neighborhood. The Northern and Southern Portions of the Project depicted in the attached vicinity map consist of the following streets:

• Southern Portion
  • W. Navajo Road from N. Navajo Drive to N. Fort Valley Road
  • N. Navajo Drive from W. Navajo Road to W. Beal Road
  • W. Beal Road from N. Rockridge Road to N. Fort Valley Road
• Northern Portion
  • N. Navajo Drive from W. Beal Road to W. Murray Road.
  • W. Whipple Road from N. Navajo Drive to N. McMillan Road (only waterline improvements).

  
The improvements on the streets shown in the vicinity map generally consist of replacing existing infrastructure with new, including water and sewer mains, water and sewer services, fire hydrants, storm drains, streetlights, the entire asphalt roadway, and defective select edge improvements (curb & gutter, sidewalk, etc.), except for Whipple Road which will only receive a new water main. 
 
There will also be infrastructure added to the Project that does not currently exist consisting of new underground electric lines for streetlighting and new sidewalk on both sides of the street on Beal Road, Navajo Drive south of Beal, and on Navajo Road. Separate funding sources have been identified to pay for the new infrastructure being added to the Project since RR&SS funds can only be used to improve existing infrastructure. The decision to add a sidewalk to these roadway sections based on the results of a collaborative neighborhood survey conducted by the Project Team including City Staff, Peak Engineering, EMC, and a Professional Public Relations Firm Beta PR. The neighborhood survey results showed the majority of the neighborhood was in support of adding sidewalk to sections of roadway mentioned above but were not in support of adding a sidewalk to Navajo Drive between Beal Road and Murray Road and was therefore not added to the Project.
 
The design of the improvements was completed while keeping in mind property owner requests where practical and possible, this is a retrofit Project within an existing neighborhood, limiting impacts to driveway lengths and landscaping, and providing the necessary safety improvements of a complete roadway within budget. The improvements, including the addition of sidewalk where it does not currently exist, will be constructed within the City right-of-way of the existing neighborhood.   
 
The Construction Manager at Risk (CMAR) method of procurement was selected to expedite the design and construction schedule and to accommodate complex sequencing of construction activities for a complex Project within limits of an established neighborhood, near multiple schools, and on a NAIPTA bus route. The CMAR process is a collaborative effort, which allows for flexibility with delivering design and construction of the Project and an open dialog between City, Design Consultant, and Contractor on critical design and construction issues to minimize impacts to the community during construction.

The Coconino Estates Improvements Project is funded by the total budget appropriations of $13,495,023 (includes FY 2019-20 budget through FY 2021-2022 proposed) from the Coconino Estates budget line item under the Road Repair and Street Safety (RR&SS) – Utility Replacements and Overlays Funds. The other funding source is $500,000.00 from the General Improvements and Partnering Opportunity line item under the Transportation Tax Fund for the new underground electric lines and sidewalk where it does not currently exist.
 
The Guaranteed Maximum Price (GMP) is $6,439,394.00 plus a 2.3% Owner's Contingency of $148,889.00 which combined equals the Total Contract Price of $6,588,283.00. The City of Flagstaff is the Owner.
 
Owners Contingency – A fund to cover cost growth during the project used at the discretion of the Owner usually for costs that result from Owner directed changes or unforeseen site conditions. The amount of the Owner’s contingency shall be set solely by the Owner and shall be in addition to the Project costs included in CMAR’s GMP packages. The use and management of the Owner’s contingency is described in Section 5.3.3.

• Section 5.3.3 – Owner’s Contingency are funds to be used at the sole discretion of the Owner to cover any increases in Project costs that result from Owner directed changes or unforeseen Site conditions. Owner’s Contingency shall be added to the GMP amount provided by CMAR, the sum of which shall be the full Contract Price for construction. At the time that Owner’s Contingency is used the appropriate markups shall be applied.

 
CMAR’s Contingency – A fund to cover cost growth during the Project used at the discretion of CMAR usually for costs that result from Project circumstances. The amount of CMAR’s Contingency shall be negotiated as a separate line item in each GMP package. The use and management of CMAR’s Contingency is described in Subsection 5.3.1 and 5.3.2.

• Section 5.3.1 – CMAR’s Contingency is an amount CMAR may use at its sole discretion for, an increase in the Cost of Work, and may use for increases in General Conditions Costs with the written approval of the City. CMAR’s Contingency is assumed to be a direct Project cost and all applicable markups shall be applied at the time of GMP submission.
• Section 5.3.2 – When CMAR utilizes CMAR’s Contingency funds, CMAR shall make the appropriate changes to the Schedule of Values with the next regular progress payment request. CMAR shall deduct the amount of CMAR’s Contingency funds used from CMAR’s Contingency line item and add the same amount to the line item on the Schedule of Values where the funds were used. If CMAR’s contingency funds are used for a new line item that was not given with the original Schedule of Values, these shall be so indicated.

• Replacing and or abandoning aged and undersized existing water and sewer infrastructure, ranging from 35 – 72 years old, to meet current standards.
• Improving drainage issues and extending the life expectancy of the roadway by installing correctly sized storm drain infrastructure and eliminating low spots in the existing curb lines.
• Eliminating maintenance of overhead lines and the constant trimming of trees by installing underground electric lines to power streetlights.
• Improving intersection safety by reconfiguring the roadway geometry to increase sight distance.
• Replacing aging and deteriorated asphalt that is no longer maintainable with a chip seal or overlay and improving the streets ride quality and longevity.
• Creating safer streets by adding sidewalk, where it does not currently exist, to roadways with high volumes of traffic in proximity to local schools and regional parks.
• Replacing defective select edge improvements such as existing curb and gutter that impedes stormwater flow and existing sidewalk with tripping hazards.
• Reducing required maintenance with the construction of the new infrastructure.
• Coordinating construction on multiple streets to minimize inconveniences to the public and to reduce costs.

Inform, Involve, Empower:

• In November 2014, voters approved a dedicated sales tax increase to fund road repairs and street safety improvements throughout the City of Flagstaff.
• The Project is shown in the interactive map located under the Road Repair and Street Safety Updates on the City of Flagstaff’s Website at: www.flagstaff.az.gov/roadsafety   
• In May 2019, Staff sent Upcoming Project Notices to property owners along the Project scope.
• In June 2019, Beta PR, on behalf of the City, sent general Project information and invitations property owners in the neighborhood for the first Community Open House Meeting.
• In June 2019, the Project Design Team set up a booth with Project information and invitations to the Community Open House Meeting at Concerts in The Park held at the Jim Cullen Memorial Park in the Coconino Estates Neighborhood.
• In July 2019, Beta PR sent 548 Sidewalk Surveys to property owners in the neighborhood to gather input on support for sidewalk where it does not currently exist within the Project limits.
• In July 2019, Beta PR made multiple attempts to hand-deliver the Community Open House Meeting invitation and Sidewalk Survey to each stakeholder along the Project.
• On July 25, 2019, the first Community Open House Meeting was held at Marshall Elementary. The Project Design Team were in attendance. A six-minute video was played on a loop to provide an overview of the Project as attendees entered. The Design Team presented the Project information, held discussions, received feedback from the public, and provided an opportunity for the Sidewalk Survey to be filled out and submitted. A total of 88 attendees signed in at the welcome table.   
• Sidewalk Surveys were accepted up to the second week in August 2019, at which point 190 surveys were received.
• Beta PR established and will maintain a Project Hotline for interested parties to use as a resource for Project information, answers Project specific questions, and for contacting the Project Team throughout the duration of the Project, including construction.
• Beta PR gathered contact information to create a database and electronically distribute eNews articles to interested parties with Project updates and information throughout the duration of the Project, including construction.    
• In November 2019, Beta PR distributed the Sidewalk Survey Results and invitations to property owners in the neighborhood for the second Community Open House Meeting.
• On November 14, 2019, the second Community Open House Meeting was held at Marshall Elementary. The Project Design Team were in attendance. The Design Team presented the revisions to the Project based on feedback received at the first meeting, held discussions, and received feedback from the public. A total of 44 attendees signed in at the welcome table.
• Other Project Stakeholders including ADOT, FUSD, and NAIPTA were notified of the upcoming Project and were coordinated with on the traffic control and phasing plans during construction.
• All the Emergency and relevant Public Service organizations will be notified of the Project prior to construction.
• Staff has individually met with multiple property owners and will continue to do so through construction.
• The Contractor and Beta PR will be intimately involved with the coordination of construction activities and keeping the stakeholders informed on schedule, sequence, and impacts through construction.