Consideration and Approval of Contract: Approve the Construction Contract with Scholz Contracting, LLC for the East Route 66 and El Paso Waterline Extension Project in the amount of $1,392,689.55 (which is the sum of the Contractor’s bid amount of $1,326,371.00 and a Contract Allowance of $66,318.55).

1. Approve the Construction Contract with Scholz Contracting, LLC in the amount of $1,392,689.55 (which is the sum of the Contractor’s bid amount of $1,326,371.00 and a Contract Allowance of $66,318.55), and a contract time of 126-calendar days; 
2. Approve a contract allowance of $66,318.55 which is 5% of the lowest responsive and responsible bid;
3. Approve Change Order Authority to the City Manager in the amount of $132,637.10 (10% of the contract amount, less allowances); and
4. Authorize the City Manager to execute the necessary documents.

The contract award of $1,392,689.55 (which is the sum of the Contractor’s bid amount of $1,326,371.00 and a Contract Allowance of $66,318.55) to Scholz Contracting, LLC is proposed to complete the East Route 66 and El Paso Waterline Extension Project (the Project) in accordance with the approved public improvement plans prepared by Shephard Wesnitzer, Inc. The Project consists of installing 2,450 LF of new 12” ductile iron waterline and 1,600 LF of new 8” ductile iron waterline. Included will be the reconstruction and repaving of 5,400 square yards of North El Paso Road.  This Project is part of the City’s ongoing aging water infrastructure replacement program. Pending Council’s approval, construction is anticipated to begin in October 2021 and is anticipated to be complete by the end of 2021.

Engineering consulted with IT and determined that the East Route 66 and El Paso Waterline Extension Project is included in IT’s Broadband Master Plan. Staff is committed in promoting the Broadband Master Plan and has added to the Project 3,850 LF of conduits and five pull boxes within the Project limits.     

The Project will be funded by the total budget appropriations, $1,720,000, remaining in FY 22 account number 202-08-370-3338-0-4463, 202-08-370-3497-0-4464 and 203-08-375-3473-0-4466.

An award of this Construction Contract supports Water Services Strategic Plan Objective 5: Accelerate Infrastructure Maintenance and Replacement.

Priority Based Budget Key Community Priorities and Objectives
Safe & Healthy Community
Ensure the built environment is safe through the use of consistent standards, rules and regulations, and land use practices.
Sustainable, Innovative Infrastructure
Deliver outstanding services to residents through a healthy, well maintained infrastructure
 
Regional Plan
Goal WR.2.
Manage a coordinated system of water, wastewater, and reclaimed water utility service facilities and resources at the City level and identify funding to pay for new resources. Goal T.8.
Establish a functional, safe, and aesthetic hierarchy of roads and streets.

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

1. Approve the contract award as recommended. Approval will allow work to move forward in calendar year 2021; or,
2. Reject approval of the contract award. 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 July 19, 2021, the Purchasing Section posted a formal Invitation for Bids (IFB) solicitation for construction on the PlanetBids website and advertised the IFB in the Arizona Daily Sun on July 25, 2021, and August 1, 2021. There were five (5) bids received which were opened electronically on August 13, 2021. A summary of the bids received are identified in the Key Considerations section below.  Scholz Contracting, LLC was determined to be the lowest responsive and responsible bidder.  

The completion of this Project will provide a new looped system for water distribution customers in this area of the City.  The new water main will be an improvement and will meet the City Water Services Division overall distribution system needs and Capital Improvement Program. 

On August 13, 2021, bids to construct the East Route 66 and El Paso Waterline Extension Project were opened by the City. The summary results are listed below.
             Allowance at 5% of lowest bid             $     66,318.55
 
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 $66,318.55 Contract Allowance is 5% 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 which will reduce failures and maintenance costs over time and provide the area with safe, consistent water delivery.