Consideration and Approval of Contract: Award Eagle Mountain Construction, Inc. the Construction Manager at Risk (CMAR) construction phase services agreement for Phase 2 of the Flagstaff Pulliam Airport Long-Term Parking project.

1. Award Eagle Mountain Construction, Inc. the Construction Manager at Risk (CMAR) construction phase services agreement in an amount not to exceed $487,335.37 for Phase 2 construction (final phase) which includes a Contractor's contingency of $10,000.00 and an Owner's contingency of $11,110.55.
2. Authorize the City Manager to execute any necessary documents.

This project is to construct a long-term parking lot in a currently undeveloped parcel of land at the Flagstaff Pulliam Airport. The project was divided into two phases for construction. Phase one consisted of immediate infrastructure within the parking lot and pedestrian pathway to the terminal. Phase two consists of the landscaping, fencing, incorporation of key infrastructure needed for the beautification / art enhancements (final plans are currently in development with Beautification) and the addition of an Electric Vehicle (EV) parking lot adjacent to the terminal. The EV parking portion of this request will fulfill the City’s obligations to install infrastructure as required through the accepted grant with APS (managed through the City’s Climate & Energy Coordinator – Ramone Alatorre).

This project is needed for the additional parking needs due to the additional air service incorporated into the overall facilities operations. With the completion of this project, the projected parking needs for the airport (as defined in the recently updated master plan) will be addressed.

Paid parking improvements are not part of this phase. Any proposed paid parking improvements will be presented to Council in the future.

Funding is available in the FY2021-2022 budget in the Airport Fund (account number: 221-07-222-0883-0-4433).  The City's General Fund will provide a short-term loan through a revenue transfer.  The airport will pay back the loan over the next two fiscal years with airport revenues.  

Priority Based Budget Key Community Priorities and Objectives

Yes. On April 21, 2020 staff presented design concepts of the parking lot for the Council to review and provide feedback. Staff was directed to continue with the design with a designated concept. Staff presented the Phase 1 GMP on March 16, 2021 and was approved to proceed into contract with the contractor.

1. Approve the Agreement and proceed with the completion of the project.
2. Reject approval of the Agreement and direct staff to place the project on hold.

The Flagstaff Airport has a free parking program with approximately 400 parking spaces in the existing terminal lot. This lot served the airport from 1993 to 2018, only exceeding capacity during holidays and summer peak months. In 2019, new air service to Denver and Dallas increased passenger counts by 78%. Year-to-date figures show enplanements are up 94%.  The increase has resulted in a daily average of over 500 cars parking at the airport. Airport Staff was tasked by the City Council and City Manager’s office to come up with a plan to meet the current and future needs for our airport parking.
 
When the City completed the Airport Master Plan in 2018, the plan identified a location for future parking expansion, and identified parking growth compared to passenger levels. The location, as well as the entire Airport Master Plan, was approved by the Federal Aviation Administration. The Plan identified 396 marked parking spaces, and a recommendation for long term parking needs to reach 962 public, employee, and rental car parking spaces.

State procurement laws authorize the use of Alternative Project Delivery Methods ("APDM") in lieu of the traditional Design-Bid-Build method of project delivery.  These alternative methods allow a contracting agency the opportunity to select a construction team utilizing a Qualifications Based Selection process to procure construction services from a firm deemed most qualified to perform the work. Staff is proposing to deliver this project through the Construction Manager at Risk (CMAR) delivery method.

The Construction Documents for the Contract are on file with the City Procurement Division and are available for inspection.

The City's General Fund is providing a short-term loan for this project.  By providing this internal funding, the airport project will not incur interest expense or closing cost saving approximately $50,000 for the fund.  

Implementing a paid parking program for airport parking will be critical to the ongoing operations of the fund.  Staff will be researching options and expect to bring this back to Council next fiscal year.  This will include adoption of parking rates for both parking lots.  

High quality and thorough input from the Construction Manager at Risk will allow the delivery of this project in the most cost effective and efficient manner. This work is anticipated to be completed within one construction season.

This project was presented to the Airport Commission and received high degree of support from the members. This project was also vetted through the most recent Airport Master Plan.