Consideration and Approval of Contract: Fixtures, Furnishings and Equipment, Video and Security System for the Innovation Mesa Business Accelerator and Secondary Emergency Operations Center (Approve construction contract with Electronic Security Concepts LLC in the amount of $234,202.00).

1) Approve the Construction Contract with Electronic Security Concepts LLC
in the amount of $234,202.00 and a 75 calendar day contract period;  and
2) Approve Change Order Authority to the City Manager in the amount of $23,420.00 (10% of contract amount) for unanticipated or additional items of work; and
3) Authorize the City Manager to execute the necessary documents

Approval of the contract will allow the coordinated installation of Fixtures, Furnishings and Equipment (FFE), Audio-Visual Equipment (AV) and Security components for the Innovation Mesa Business Accelerator and Secondary Emergency Operations Center prior to the issuance of the Certificate of Occupancy for use of the facility.  

• The total project cost is estimated to be $7,262,500
• Funding is broken down as follows:
  • $4,000,000 – US Department of Commerce, Economic Development Administration (EDA) Grant
  • $2,162,500 – City match via Bond Capacity
  • $1,100,000 – Northern Arizona University/Arizona Commerce Authority

 

• Voters approved bonds to be repaid by facility leases on May 18, 2004 for construction and/or renovation on USGS Campuses
• Council approved an EDA grant on November 6,  2012 for the Innovation Mesa Business Accelerator
• Council approved the award of the design contract on July 16, 2013
• Council approved the acceptance of the Intergovernmental Agreement with NAU for financial contribution from the Arizona Commerce Authority on July 16, 2013
• Council approved the facility construction contract on June 17, 2014
• Council approved the Service Provider Agreement and Master Lease on January 20, 2015

• Approve the Award as recommended
• Reject approval of the award, redesign the project and re-advertise for bids.  This option would have the affect of delaying the project by approximately 3 months and leaving the newly constructed facility without furniture, fixtures and equipment at the time of opening.

Innovation Mesa Business Accelerator and Secondary Emergency Operations Center (EOC) is intended to be the first of three buildings located adjacent to the USGS Campus and the business incubator (Phase 1), and will include a 28,000 square foot building featuring wet and dry labs/office space (80%) and light manufacturing space (20%), a conference room/alternate secondary EOC, and server facilities. The primary purpose of Phase 2 is to provide space for Tier 2 companies and graduates of Northern Arizona Center for Entrepreneurship and Technology (NACET), as well as grow business startups and advance entrepreneurship and economic gardening programs within the region, and to retain and expand existing businesses through the creation of 300 jobs.  The building will feature a secondary or alternate EOC (as part of the conference room) should disaster related circumstances arise and warrant the need by either City and/or County personnel.  
 
Staff intentionally did not bid the Fixtures, Furnishings and Equipment (FFE) or the Video and Security System components in the construction bid for the facility.  Staff wanted to delay the bid of these items in order to allow the operator, NACET (Northern Arizona Center for Entrepreneurship and Technology) to participate and advise on these elements as they develop client/tenant relationships to better serve their clients. In addition, as technology tends to evolve at a rapid pace, staff wished to take advantage of an approximate 10 month time period between bidding the facility and bidding the FFE , Video and Security System portion.
 
The bid solicitation #2015-43 for the FFE, Video and Security System contract was published four times; January 28^th , February 4th, February 11^th and February 18^th,  2015.  Three bids were received on March 3rd, 2015 at the office of the City Purchasing Agent.  A summary of bids received is shown below:
 

Bidder	Total
Architect Estimate	$348,158.00
Electronic Security Concepts	$290,842.00
FCI Constructors	$372,871.00
Woodruff Construction	$408,329.00

 
 
 
 
 
 

 

 

The bid items for the FFE in this contract include all office furniture for the conference, breakout rooms, kitchen and collaborative spaces.  Also included in the FFE bid are; UPS power backup , phone sets, air compressors, pallet jacks and idea paint.  The security section bid items includes interior and exterior cameras and the associated CCTV camera server, recorder and cabling. The bid items for the Audio Visual section includes a data protector, e-beam data capture, smart tables, flat screen monitors and TVs, audio system and associated racks, routers, cameras and cabling.  The total budget established for the entire bid package is $239,500.00.

The 10% City Manager's Change Order Authority ($23,420.00) as discussed in the Recommended Action section of this staff summary is intended to cover unanticipated changes in the contract.  If needed, the City Manager's Change Order Authority will be covered by EDA contingency funds designated for this use.

The bid includes 6 deductive alternates. The deductive alternates are sequenced to eliminate the lowest project priority first, and the highest priorities last shown as follows:
 

Alternative No.	Description
6	Remove Video Conference Bridge Equipment, Software & Workstation (least desirable)
5	Remove Two Smart Tables
4	Remove Four Point of Use Air Compressors in Cabinet
3	Replace Tier 2 Fabric on Chairs-Task with Tier 1 Fabric
2	Replace Tier 2 Fabric on Chairs-Stackable with Tier 1 Fabric
1	Remove Two Rolling White Boards (most desirable)

  
The EDA grant requires that the deductive alternates be evaluated for all bids in the order presented.  Each deductive alternate is then subtracted from the base bid in the order listed until the total bid amount meets the project budget of $239,500.00.

Upon completion of the deductive evaluation, Electronic Security Concepts is recommended as the responsive and responsible bidder.  Two (2) deductive alternates were taken and deductive bid items # 4through #1 will be included for construction in the construction contract.
 
The contract period is 75 calendar days with anticipated construction completion by early-June 2015.  

 Project expenditures will be funded as follows:
- EDA Grant share of $4,000,000
- City Bond Capacity of $2,162,500 repaid through tenant leases in the facility
- Northern Arizona University contribution of $1,100,000
 
The project is currently funded in the amount of $7,228,509 in account No. 404-09-422-3274-4 for FY 15.   Staff is requesting $85,476 for FY 16 to cover project closeout, warranty and project administration.
 

 

Innovation Mesa Business Accelerator and Secondary Emergency Operations Center project will provide "soft landing" space for Tier 2 companies and graduates exiting NACET’s incubation program, and allows new companies wishing to enter the program to have space in Phase 1. This program is intended to create over 300 jobs and $20 million in private investment within the first three years of operation. The addition of wet and dry laboratories in this next phase is critical to expand and grow existing companies in the region as there is no known existing lab space for them to locate to. This project will allow our community to retain local businesses that may otherwise leave the region to seek these types of services and facilities.
 
Specifically, this project will benefit four groups:

• High technology and bioscience startups will result from technology transfer and commercialization of research conducted by NAU faculty and students
• Local entrepreneurs will become more competitive in the global market through the technical and business advice from NACET staff and their statewide mentors group
• Existing firms and new firms will locate facilities in Northern Arizona to take advantage of the Innovation Mesa’s facilities and to be near growing industry clusters. However, this facility is unlikely to compete with existing commercial facilities due to small lease areas, non-traditional finance terms, and filling a lack of lab space.
• Native American culturally specific businesses will be encouraged to expand their service areas through guidance from and access to NACET staff and business leaders serving on NACET's Advisory Committee

Lastly, the purpose of the project is twofold: It will enable the City of Flagstaff to create an environment to recapture job losses resulting from emergency disasters by providing a facility should business be displaced; and for Tier 2 companies and incubator graduates to expand and grow their businesses.    It also provides other agencies an alternate/secondary emergency operations center for first responders to efficiently deliver vital services to communities and tribal nations during natural disasters. The facility helps build economic resiliency through long term economic stability in the community.

Collaborate - This project is a shared vision with state, local, and private entities. This collaborative partnership involves the City of Flagstaff, Arizona Commerce Authority, Northern Arizona University, Economic Collaborative of Northern Arizona, Northern Arizona Council of Governments, and Northern Arizona Center for Entrepreneurship and Technology. This collaborative partnership has already shown a proven ability to work together to advance the economic needs of the region.
 
Staff presented the project to the Northern Arizona Council of Governments in the spring of 2012 and received full support of the project. On June 12, 2012 staff presented the project to Council outlining the EDA grant and business pro forma.  In addition, on August 30, 2012, staff conducted a public meeting as part of the Public Participation Plan associated with a Rezoning Application for Innovation Mesa - Phase 2.  On July 16, 2013 Council awarded the design phase services contract to APMI Inc. for the preparation of the design documents and the acceptance of the IGA with NAU for the financial assistance contribution from ACA.
 

 

1.     Approve the award as recommended.
2.     Reject approval of the award, redesign the project and re-advertise for bids.  This option would have the effect of delaying the start of construction by approximately three months and leave the newly constructed facility without conference, office and kitchen furniture, security cameras/recorder, and audio-visual equipment at the time of opening.