Consideration and Approval of the Construction Contract: with Mountain High Excavating, LLC for the West Flag Improvements - Canyon Terrace Project in the amount of $1,030,031.00.

1. Approve the Construction Contract with Mountain High Excavating, LLC. in the amount of $1,030,031.00, which includes a $71,000.00 Contract Allowance, with a contract duration of 235-calendar days; and
2. Approve Administrative Change Order Authority to the City Manager in the amount of $95,903.00 (10% of the Contract Amount, less the Contract Allowance); and
3. Authorize the City Manager to execute the necessary documents.

Staff recommends the approval and award of the Construction Contract with Mountain High Excavating, LLC. in the amount of $1,030,031.00, which will authorize the construction of the West Flag Improvements - Canyon Terrace Project (the Project) in accordance with the approved public improvement plans prepared by Peak Engineering, Inc. The Project can be generally described as a utility and roadway improvements Project on N. Canyon Terrace Drive from the south end of N. Canyon Terrace Drive to N. Switzer Canyon Drive. Please refer to the attached context and vicinity maps.  The improvements consist of replacing approximately 1,500 LF of water main, 26 water services, 2 fire hydrants, 1,000 LF of sewer main, 26 sewer services, 8 manholes, 3,700 SY of roadway pavement, select edge improvements, and other associated work. Pending Councils approval, construction is anticipated to begin in April 2021 and is anticipated to be complete in November 2021.

The Project will be funded by the total budget appropriations of $5,024,822 (includes FY 2020-2021 budget through FY 2021-2022 proposed), in Account Number 046-05-116-3346-6, from the West Flag budget line item under the Road Repair and Street Safety (RR&SS) – Utility Replacements and Overlays.

Priority Based Budget Key Community Priorities and Objectives
Regional Plan

• 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 – West Flag 2021 budget.

1. Approve the award as recommended. Approval will allow work to move forward in calendar year 2021; or,
2. Reject approval of the award as recommended. This action would delay the Project.
   1. If rejection occurs, possible options include:
      1. Direct Staff to re-advertise the Project; or
      2. Consider another delivery method (CMAR or Design/Build); or
      3. 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 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. Canyon Terrace Drive qualified to receive pavement and utility improvements due to its existing pavement overall condition index (scale of 100-0) being at or below 50 and its existing utilities needing repair or replacement due to age, material, size, and or repeated maintenance.
 
The Project originally included David Drive and Hutcheson Drive and was bid as one large project in the spring of 2020 but was pulled at the end of the bidding process given the economic uncertainties and the effects the COVID-19 Pandemic would have on the revenues funding the Project.  It was decided to split the larger project into two separate projects consisting of David & Hutcheson and Canyon Terrace and re-advertise in the winter of FY20/21.
 
On December 17, 2020, the City of Flagstaff’s Purchasing Section posted an Invitation for Bids (IFB) solicitation for construction on the PlanetBid’s website and advertised the IFB in the Arizona Daily Sun on December 20 and 27, 2020. There were four (4) bids received and opened electronically on January 22, 2021.  A summary of the bids received is identified in the Key Considerations section below. Mountain High Excavation, LLC was determined to be the lowest responsive and responsible bidder.



 

The four (4) bids received for the Project are as follows:
 

Mountain High Excavating, LLC	$959,031.00
Capital Improvements, LLC.	$1,154,838.00
Sellers and Sons, Inc.	$1,211,773.25
Kinney Construction, LLC.	$1,367,459.00

The Engineer’s Estimate (without the Contract Allowance) was $1,202,870.00.
 
After bidding process, the Contract Allowance is established to address certain unforeseen items of work where details cannot be determined at the time of contracting and may be included in the Contract Amount per the City of Flagstaff’s Procurement Code Manual. The $71,000.00 Contract Allowance is approximately 7.5% (rounded down to the nearest $1,000) of the low bid amount, which does not include a Contract Allowance. The Contract Allowance is used only at the City’s discretion as outlined in the City of Flagstaff’s Procurement Code Manual.
 
Administrative Change Order Authority is established to address inevitable differing field conditions usually becoming time-sensitive major construction issues resulting in unforeseen costs that are more than the Contract Amount. Change Order Authority provides the City Manager, on behalf of the Council, the administrative authority to amend the Contract Amount up to an established dollar amount (10% of the Contract Amount, less the Contract Allowance) and is only utilized if the Contract Allowance is or would become exhausted.

The Project will be funded by the total budget appropriations of $5,024,822 (includes FY 2020-2021 budget through FY 2021-2022 proposed), in Account Number 046-05-116-3346-6, from the West Flag budget line item under the Road Repair and Street Safety (RR&SS) – Utility Replacements and Overlays.

• Replacing and or abandoning aged and undersized existing water and sewer infrastructure, that is 54 years old, to meet current standards, minimizing the possibility of emergency repairs and associated service outages.
• Replacing aged and deteriorated asphalt that is no longer maintainable with a chip seal or overlay and improving the streets ride quality and longevity.
• Replacing defective edge improvements such as existing curb and gutter that impedes stormwater flow.
• Reducing required maintenance of existing infrastructure by replacing it with new infrastructure.

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.
• Since 2015 the Project has been listed as a proposed project in the interactive map on the Road Repair and Street Safety section of the City of Flagstaff’s Website at: www.flagstaff.az.gov/roadsafety.   
• Updates to the Road Repair and Street Safety Program, which included the proposed Project, have been presented by the Capital Improvements Engineer at multiple Transportation Commission Meetings, Council Meetings, and Budget Meetings.
• In May 2019, Staff sent Public Meeting Invitations to the property owners along the Project.
• A public meeting was held on April 4, 2019 at City Hall where City Staff and Peak Engineering were in attendance to present the Project and hold discussions with residents from the neighborhood regarding the proposed Project.
• Staff has met with several individual property owners during design and will continue to do so through construction.
• Temporary entry permit requests will be sent to the residents adjacent to the Project prior to the start of construction.
• Construction notices will be sent to the residents adjacent to and in the area surrounding the Project prior to the start of construction.
• A Project website will be created to host Project information and post periodic updates to keep the Public informed during construction.
• Weekly updates consisting of schedule, sequence, and impacts will be provided through construction to residence that sign up to receive them.