Consideration and Approval of Contract:  Approve the construction contract with Sellers and Sons, Inc. in the amount of $727,880.27 for the Huntington Waterline Replacement Project.

1. Approve the Construction Contract with Sellers and Sons Inc. in the amount of $727,880.27, and a contract time of 160-calendar days: and
2. Approve a contract allowance of $41,200.77, which is 6% of the lowest responsive, responsible bid of $686,679.50;
3. Approve Change Order Authority to the City Manager in the amount of $68,667.95 (10% of the contract amount, less allowances)
4. Authorize the City Manager to execute the necessary documents.

The contract award of $727,880.27, which includes a contract allowance of $41,200.77, to Sellers and Sons, Inc. is proposed to complete the Huntington Waterline Replacement Project (the Project) in accordance with the approved public improvement plans prepared by Woodson Engineering & Surveying, Inc. The Project consists of installing 3,000 LF of new 16” ductile iron waterline, and associated roadway improvements.  Included will be new water services, fire hydrants, and air release valves.  This project is part of the City’s ongoing aging water infrastructure replacement program. Pending Councils' approval, construction is anticipated to begin in May 2021 and is anticipated to be complete in October 2021.

Engineering did consult with IT on whether fiber-optic (FO) conduit should be included in this project, in support of the Broadband Master Plan.  It was determined that since FO currently exists within the Huntington right-of-way, FO conduit would not need to be included in this waterline replacement project.  It was noted, however, that the old waterline will be abandoned in place and that a future FO conduit could be run through it if ever needed later on.

The Project will be funded by the total budget appropriations, $1,135,000, remaining in FY 21 account number 202-08-370-3376-0 and in the proposed FY 22 account number 202-08-370-3438-0.

Priority Based Budget Key Community Priorities and Objectives Regional Plan

The Project’s FY 22 proposed funding is being requested in the upcoming FY2022 Capital Improvement 5-Year Plan which will be presented to Council in April 2021.

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 January 20, 2021, the Purchasing Section posted an Invitation for Bids (IFB) solicitation for construction on the PlanetBids' website and advertised the IFB in the Arizona Daily Sun on January 24 and January 31, 2021. There were three (3) bids received and opened electronically on March 16, 2021. A summary of the bids received is identified in the Expanded Financial Considerations section below.  Sellers and Sons, Inc. was determined to be the lowest responsive and responsible bidder.  

The existing water main in this area was constructed approximately 60 years ago.  This existing water main is aging and needs replacement.  The City Water Services Division has approved funding for improvements to reduce maintenance costs and improve service to the community.

On March 16, 2021, bids were received to construct the Huntington Waterline Replacement Project. The summary results are listed below.
 
Engineer’s Estimate                                    $878,300.00
Sellers and Sons Inc.                                  $686,679.50
Summit Construction                                  $692,834.50
3-Hylan West                                              $740,696.00            
Allowance at 6% of lowest bid                      $41,200.77
 
After the 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 $41,200.77 Contract Allowance is approximately 6% of the low bid amount, which does not include a Contract Allowance. The Contract Allowance is used only at the City’s discretion.  See attached allowance justification form.
 
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 Community benefits of this Project include better service from the water distribution infrastructure.  Additional Project information and traffic restriction advisories will be provided during construction via local media and through the City Manager’s office as needed. The Project will replace old waterlines, reducing failures and maintenance costs over time, and provide the area with safe, consistent water delivery.