Consideration and Approval of the Construction Contract: with Standard Construction Company, Inc. in the amount of $7,140,688.18 for the Coconino Estates Improvements Phase II Project.

1. Approve the Construction Contract with Standard Construction Company, Inc. in the amount of $7,140,688.18, which includes a $301,122.75 Contract Allowance, with a Contract duration of 540-calendar days; and
2. Approve Administrative Change Order Authority to the City Manager in the amount of $683,956.54 (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 Standard Construction Company, Inc. in the amount of $7,140,688.18, which will authorize the construction of the Coconino Estates Improvements Phase II Project (the Project) in accordance with the approved public improvement plans prepared by The WLB Group. The Project can be generally described as utility and roadway improvements in the Coconino Estates neighborhood with multiple funding sources including the Road Repair and Street Safety Program, the Aging Water Infrastructure Replacement Program, and the Aging Sewer Infrastructure Replacement Program. The Project is located on Meade Ln., Crescent Dr., Navajo Dr., Talkington Dr., Elizabeth Dr., Hazel Way, Thelma Way, Davis Way, and Louise Way as seen in the attached context and vicinity maps. Improvements on these streets generally consist of replacing approximately 6,500 LF of water main, 135 water services, 20 fire hydrants, 6,400 LF of sewer main, 145 sewer services, 40 manholes, 3 storm drain inlets, 25,100 SY of asphalt structural section, 14,800 LF of curb and gutter, 6,000 SF of valley gutter, 1,900 SF of sidewalk, 26,700 SF of driveway, and other associated work.

After consulting with IT, we determined that the streets impacted by the Coconino Estates Improvements Phase II project are not included in IT’s Broadband Master Plan.  Specifically, the Master Plan shows that the broadband fiber will be located in Ft. Valley Road (US180) north of Meade Lane.  This alignment passes Coconino County-owned land, FUSD’s Sechrist School, the Pioneer Museum, and ultimately gets broadband to Fire Station #5.  The alignment on US180 stands to give the City the greatest chances of partnerships with other community stakeholders, both public and private.  Due to the rising cost of material, the project, presently designed without fiber conduit, came in approximately $800K over the engineer’s estimate.  Staff is committed to continuing to look for any and all opportunities to further the Community’s Broadband Master Plan and will bring those opportunities forward to Council as they come.

The temporary construction yard location has yet to be determined and will be proposed by Standard Construction Company, Inc. and approved by the City.  Approval will be based on new Temporary Use Permit requirements including neighborhood notifications, enhanced project signage, secured and screened fencing, and strict enforcement on approved types of uses on the site and operating hours. City staff has made it clear that the Thorpe Park Annex site (currently being utilized for the Coconino Estates Improvements Phase I Project) will not be allowed for the Coconino Estates Improvements Phase II Project.

Pending Council's approval, construction is anticipated to begin this Summer. The 540-calendar day duration will span over two construction seasons with the Project anticipated to be complete in the Fall of 2022.  

The Project is funded by three (3) funding sources consisting of a portion of the Road Repair and Street Safety Program (RR&SS) - Coconino Estates total appropriations of $12,950,191 for FY21 and FY 22 in Account (046-05-116-3371-6), the Aging Water Infrastructure Replacement Program (AWIR) total appropriations of $3,400,000 for FY22 and FY 23 in Account (202-08-370-3157-0), and the Aging Sewer Infrastructure Replacement Program (ASIR) total appropriations of $900,000 for FY22 in Account (203-08-375-3220-0).

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 – Coconino Estates, Aging Water Infrastructure Replacement, and Aging Sewer Infrastructure Replacement FY 2021 budgets.
• Council approved the Engineering Professional Services Contract for the design of the Project at the November 19, 2019, City Council Meeting.

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. 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. The sections of Crescent Dr. and Navajo Dr. 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 age, material, size, and or repeated maintenance.

Water Services had previously identified the utility improvements on Meade Ln., Talkington Dr., Elizabeth Dr., Hazel Way, Thelma Way, Davis Way, and Louise Way as future projects and recognized a potential costs savings by combining and delivering these projects with Crescent Dr. and Navajo Dr. given their proximity. These streets did not qualify to receive RR&SS funding.

On February 25, 2021, the City of Flagstaff’s Purchasing Section posted an Invitation for Bids (IFB) solicitation for the construction contract on the PlanetBid’s website and advertised the IFB in the Arizona Daily Sun on March 7 and 14, 2021. There were three (3) bids received and opened electronically on April 7, 2021. A summary of the bids received are identified in the Key Considerations section below. Standard Construction Company, Inc. was determined to be the lowest responsive and responsible bidder.

The three (3) bids received for the Project are as follows:

Standard Construction Company, Inc.	$6,839,565.43
Kinney Construction, LLC.	$6,876,700.00
Haydon Companies. LLC.	$11,998,751.00

The Engineer’s Estimate (without the Contract Allowance) was $6,022,455.00.
 
Per the City of Flagstaff’s Procurement Code Manual, after the bidding process the Contract Allowance may be added to the Total Contract Amount and is based on the Engineer’s Estimates or the low bid amount, whichever is lowest. The $301,122.75 Contract Allowance is 5% of the Engineer’s Estimate. The Contract Allowance is used only at the City’s discretion to address certain unforeseen items of work that could not be determined at the time of contracting and may be included in the Total Contract Amount.
 
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.
 
Engineering did consult with Information Technology (IT) on whether fiber-optic conduit should be included in this Project, in support of the Broadband Master Plan. We determined that the streets impacted by the Coconino Estates Improvements Phase II project are not included on IT’s Broadband Master Plan.  Specifically, the Master Plan shows that the broadband fiber will be located in Ft. Valley Road (US180) north of Meade Lane.  This alignment passes Coconino County owned land, FUSD’s Sechrist School, Pioneer museum and ultimately Fire Station #5.  The alignment on US180 stands to give the City the greatest chances of partnerships with other community stakeholders, both public and private.  Due to the rising cost of material, the project, presently designed, is expected to come in approximately $800K over the engineer’s estimate. 

Staff is committed to continue to look for any and all opportunities to further the Community’s Broadband Master Plan, and will bring those opportunities forward to Council as they come.

The Temporary construction yard location has yet to be determined and will be proposed by Standard Construction Company, Inc. and approved by the City.  Approval will be based on new Temporary Use Permit requirements including neighborhood notification, project signage, screened fencing and strictly enforced operating hours. City staff have made it clear that the Thorpe Park Annex site (currently being utilized for the Coconino Estates Improvements Phase I Project) will not be allowed for the Coconino Estates Improvements Phase II Project.

The Project is funded by three (3) funding sources consisting of a portion of the Road Repair and Street Safety Program (RR&SS) - Coconino Estates total appropriations of $12,950,191 for FY21 and FY 22 in Account (046-05-116-3371-6), the Aging Water Infrastructure Replacement Program (AWIR) total appropriations of $3,400,000 for FY22 and FY 23 in Account (202-08-370-3157-0), and the Aging Sewer Infrastructure Replacement Program (ASIR) total appropriations of $900,000 for FY22 in Account (203-08-375-3220-0).  
 
The improvements on Crescent Dr. and Navajo Dr. will be funded by $4,700,000 of the Coconino Estates total appropriations of $12,950,191 for FY21 and FY22 as follows:

FY 21 - $1.0M of the $6.9M
FY 22 - $3.7M of the $5.9M
For a total of $4.7M from the Coconino Estates funds.
 
The improvements on Meade Ln., Talkington Dr., Elizabeth Dr., Hazel Way, Thelma Way, Davis Way, and Louise Way will be funded by the AWIR total appropriations of $3,400,000 for FY22 and FY 23 and the ASIR total appropriations of $900,000 for FY22 as follows:

FY 22 - $2.4M of the $2.4M in the AWIR; $900K of the $900K in the ASIR = $3.3M Total
FY 22 - $1.0M of the $1.0M in the AWIR = $1.0M Total
For a total of $4.3M from the AWIR and ASIR funds

• Replacing and or abandoning aged and undersized existing water and sewer infrastructure, ranging from 56 - 94 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.
• Improving drainage issues and extending the life expectancy of the roadway by eliminating low spots in the existing curb lines and by replacing the existing rolled curb with vertical curb to improve the stormwater capacity of the roadway.
• Replacing select sections of existing sidewalk with tripping hazards.
• Coordinating construction on multiple streets to minimize inconvenience 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.
• 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 October 2020, Beta PR, on behalf of the City, sent an Upcoming Project Notice that included information on how to view a virtual Project presentation located on the Project Website at www.coconinoestates.com, a Project hotline number, and how to sign up to receive regular Project updates by email.
• Beta PR established and will maintain the 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.
• Beta PR gathered contact information to create a database to electronically distribute eNews articles to interested parties with Project updates and information throughout the duration of the Project.
• Weekly updates consisting of schedule, sequence, and impacts will be provided throughout the Project to residents who sign up to receive them.
• Staff met with several individual property owners during design and will continue to do so throughout construction.
• All the Emergency and relevant Public Service organizations will be notified of the Project prior to 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.
• The Project Website will be updated to keep the Public informed during construction.