Consideration and Approval of Contract:  Construction Manager at Risk Construction Contract for Street Maintenance Program 2015 (Approve agreement with C and E Paving and Grading, LLC).

1) Approve the Construction Manager at Risk Construction Contract with C and E Paving and Grading, LLC in an amount not to exceed $3,424,179.29 for Guaranteed Maximum Price (GMP) #1 (Overlay projects and annual airport crack seal), and an amount not to exceed $2,779,486.39 GMP #2 (Chip Seal projects).
2) Authorize Change Order Authority of 5% each for GMP #1 in the amount of $ 171,208.97, and for GMP #2 in the amount of $ 138,974.32 to cover potential costs associated with unanticipated or additional items of work.
3) Authorize the City Manager to execute the necessary documents.

Approval of this contract will allow the City to complete construction of the 2015 Street Maintenance Program. The Overlay portion of the program, which includes 16 streets (18.6 lane miles), is funded from the recently voter-approved Road Repair and Street Safety Initiative, which shows voters that we are keeping promises made during the campaign that we would begin projects right away. The Chip Seal portion of the program, which includes 126 streets (95.4 lane miles), is funded from the Street Maintenance Section's annual ongoing and one-time budget. This is the most chip sealing we have done in the last eight years. Last year we completed 18 lane miles of overlay and 20 lane miles of chip seal. This year's program is very extensive due to the voter-approved initiative and will impact many residents and businesses on the west side of town. We will do our best to inform the public and nearby residents and businesses of the areas we will be working in and mitigate as many impacts as possible during construction.

The Overlay GMP is approximately $3.42 Million and the Chip Seal GMP is approximately $2.78 Million. If the contract is approved as presented, we anticipate starting construction in mid-March. Approval of the contract will further demonstrate Council's commitment to maintaining City infrastructure through the annual budgeting process as well as improving infrastructure through the first project utilizing funding approved by voters last November.

 

Funding for the overlay portion of GMP #1 is to be provided by the 2014 voter approved sales tax increase in account 046-06-163-3321-6. We are also completing annual crack sealing at the airport which is budgeted in account 221-07-221-0884-0 in the amount of $21,000. The airport project is included in the total amount for GMP #1.  Funding for GMP #2 is provided by the annual Street Maintenance Program and is funded in account 040-06-162-3073-6 in FY15.

Yes. Council previously approved the design phase services contract on November 18, 2014.

1. Approve the Construction Manager at Risk Construction Phase Services Agreement as presented.
2. Reject the Agreement and direct staff to pursue traditional design-bid-build project delivery. This would delay progress on the project by two months.

The City has established an annual program to maintain existing street pavements.  This year, the program provides three major services: non-structural upgrades by overlay, ADA compliance and chip sealing. 

The overlay streets are selected after evaluation of the street condition using pavement management software owned by the City.  One half of the City street pavements are evaluated and ranked each year.  Each street pavement is assigned an overall condition index (OCI) based on the type and severity of the distress observed.  A pavement that has no distress is given an OCI of 100.  Each pavement distress such as cracking or roughness reduces the street’s OCI.  The street pavements are ranked by OCI and the pavements exhibiting the most severe distress are programmed for resurfacing with asphaltic concrete overlays as budget allows.

In recent years, the Arizona State Legislature has authorized 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.  The enabling legislation also allows for provision of multiple Guaranteed Maximum Prices under a single procurement.   

On November 18, 2014, Council approved award of the Design Phase Services Contract for the 2015, 2016 and 2017 programs to C and E Paving and Grading, LLC. in the amount of $ 112,821.  Design Phase Services including program and budget evaluation, project scheduling, design document reviews, constructability reviews, detailed cost estimating, and preparation of final construction documents have now been completed.  Based upon the Design Phase Services, C and E Paving and Grading, LLC has provided a Guaranteed Maximum Price (GMP) to complete construction of the annual improvement project.  The GMP includes costs for construction, a CM at Risk contingency, construction fee, costs for General Conditions including bonds and insurance, and sales taxes.

The goal of the Street Maintenance Program is to use the available funds in the most efficient manner to lengthen the service life of the City street pavements and avoid costly pavement reconstruction.  The ADA improvements provide improved access for disabled citizens and visitors along existing streets and provide compliance with Federal requirements.  Chip seal work provides a cost effective pavement preservation treatment to maintain newer pavements in a good condition.

Funding for the overlay portion of the Street Maintenance Program (GMP #1) is to be provided by the 2014 voter approved sales tax increase.  Funding for the pavement preservation portion of the Street Improvement Program (GMP #2) is provided by the budget in FY 2014/2015 as well as other accounts (see Funding Summary below).  The contract includes an owner’s contingency of $ 50,000.00 for GMP # 1 and $ 50,000.00 for GMP # 2 to cover the potential cost of unanticipated or additional work which may be required during construction.

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The Street Maintenance Program provides surface treatments as required to preserve and maintain pavement condition on the 664 lane miles of asphalt City streets.  The ADA improvements provide improved access for disabled citizens and visitors along existing streets and provide compliance with Federal requirements.

Use of the Construction Manager at Risk method of project delivery eliminates the need for an advertisement/bid/award process and cuts approximately two months off the project development schedule.  In addition, value engineering, constructability reviews and design input conducted as part of this service agreement have the potential to realize significant construction cost savings over the traditional design-bid-build delivery method.

 

Inform - The Public Works Division will prepare weekly news releases that are distributed to the local media outlets describing the location of the street construction and any traffic restrictions planned for the week.  The contractor will distribute written notices to all the adjacent businesses and residents in advance of the construction. In addition, site maps of the streets planned for construction activities will be provided on the City's website.