Consideration and Approval of Contract:  Waterline Reimbursement for Northern Arizona Healthcare

Approval of this agreement acknowledges that Northern Arizona Healthcare will construct new water lines necessary to serve their future development, and the City will pay for the incremental cost of oversizing/upsizing the water line from 8-inch to 16-inch to meet future development needs in the area. The City’s obligation is to reimburse Northern Arizona Healthcare for the difference of construction costs between an 8-inch water line and a 16-inch water line. 

The Water Services Division has $500,000 budgeted in the FY2019-20 Water Services Enterprise Fund in account #202-08-370-3429-0-4421 for reimbursing Northern Arizona Healthcare for upsizing and installing this public water infrastructure.  Please note that the attached agreement with NAHC has intentionally left out the cost of the waterline upsizing.  Bids for this project are due to be received by the City on April 29, 2020.  Staff does anticipate the bid amounts to be well under the budgeted amount listed above.

COUNCIL GOALS: 3) provide sustainable and equitable public facilities, services, and infrastructure systems in an efficient and effective manner to serve all population areas and demographics. 

None.

1. Approve agreement and (confirm) reimbursement payment.
2. Approve the agreement with any City Council approved amendments.
3. Not approve the revised agreement and have staff continue negotiations.

This project is the first phase of installing a water line connection from Fort Tuthill wellsite to University Heights. Northern Arizona Healthcare requires an 8-inch water line extension to serve its proposed future Healthcare Campus development in southwest Flagstaff. The future needs of the City require a 16- inch transmission main connection in order to provide additional water supply from new Fort Tuthill well to the City distribution system. This line will support agreements made by the city with Fort Tuthill and/or Luke Air Force base to provide adequate water infrastructure and fire flows for this area.
 

This waterline construction will occur at the same time as the County sewer line improvement in an effort to minimize negative impacts on the City's Flagstaff Urban Trail System. By coordinating the water and sewer construction periods it will minimize the disruption to City residents who utilize the Flagstaff Urban Trail system in this area. 

The Water Services Division has $500,000 budgeted in the FY2019-20 Water Services Enterprise Fund in account #202-08-370-3429-0-4421 to reimburse Northern Arizona Healthcare for upsizing and installing this public water infrastructure. The contract will be awarded to the lowest responsible and responsive bidder for the project including upsizing. The actual cost of upsizing will be determined during the public bidding process and reconciliation of final project costs. Water Services anticipates the upsizing cost to be less than the $500,000 budgeted amount with the remaining funds to be used completion of the City's project to loop waterline. 

By approving this agreement, citizens will receive additional potable water resources and an improved water system availability for City residents in the southwestern portion of the City. This waterline construction will occur at the same time as the County sewer line improvement in an effort to minimize disruption to City residents who utilize the Flagstaff Urban Trail system in this area. 

Inform/Consult The  Fort Tuthill Waterline loop and the need for waterline oversizing was discussed during the FY2019-20 proposed budget and Capital Improvement program meetings with City Council members and Water Commission Board members.