Consideration and Approval of Contract:  Change Order No. 2 with Eagle Mountain Construction, Inc. in the amount of $439,009.00 for The Wedge Phase 3, GMP 5, Amendment No. Five, as part of the Spruce Wash Flood Mitigation Suite of Projects
 

1. Approve Change Order No. 2 for The Wedge Phase 3 in an amount of $439,009.00; and
2. Authorize the City Manager to execute the necessary documents.

Staff recommends approval of Change Order No. 2, with Eagle Mountain Construction, Inc. (EMC), for the Spruce Wash Flood Mitigation Suite of Projects (the Suite).  Change Order No. 2 would increase the amount for GMP No. 5 (Wedge Phase 3) by $439,009.00 for a total GMP#5 amount of $8,598,243.61. 
 
The Wedge Phase 3 is part of the Spruce Wash Suite of Projects to address post-wildfire flood mitigation.  The project includes construction of a detention basin on a City-owned parcel in the northwest corner of West Street and Cedar Avenue.  The Wedge Phase 3 project is funded by a $7.0M U.S. Forest Service (USFS) grant, with a one to one City match, and by the November 2022 voter approved Proposition 441 Wildfire, Flood, and Wastewater Infrastructure Bond, which dedicated $26 million towards flood mitigation projects.
 
Council approved GMP No. 5 which includes The Wedge Phase 3 in the amount of $8,063,896.61.  After award, it was determined that a few key components of the project must meet the Buy American clause of the grant agreement. These components include the steel slide gate which controls flow into the basin, the steel fencing for basin safety and the electrical gear components.  To comply with the USFS grant agreement, materials must be sourced within the United States which increases the cost, specifically steel.

Change Order No. 2 will be funded from the Spruce Wash, The Wedge Phase 3 project, fund 410, account no. 410-08-385-3570-3 which includes a domestic grant award and Proposition 441 Funds from the FY 25 and FY26.

The approved FY25 budget is $4,541,809 and FY26 programmed budget is $7,184,474.

City Council previously approved Amendment No. Five with EMC for GMP No. 5, Wedge Phase 3, on November 12, 2024.

1. Approve Change Order No. 2 as recommended. Approval will allow work to comply with the grant provisions; or,
2. Reject approval of the award as recommended. This action could forfeit the grant funding.
   1. If rejection occurs, possible options include:
      1. Ask staff to re-evaluate the recommendation; or
      2. Suspend the project and seek an alternate funding source which is uncertain and would delay or jeopardize completion.

On July 21, 2019, the Museum Fire broke out in the Dry Lake Hills area just above Flagstaff within the Coconino National Forest. The fire charred 1,961 acres, including a significant portion of the Spruce Wash Watershed.  Throughout the summer of 2021, monsoon rain events on the Museum burn scar caused multiple flood events in Flagstaff neighborhoods.
 
In November 2022, voters approved Proposition 441 with support from 76% of Flagstaff voters. The Proposition invests $57 million in City of Flagstaff wildfire suppression, stormwater flood mitigation and wastewater treatment infrastructure. Specifically, $26 million of this funding will be used to fund stormwater infrastructure improvements in the Spruce Wash area to lessen the impacts of flooding in affected neighborhoods.
 
Engineering design commenced in 2022 for a suite of drainage improvements in the Museum flood areas of the Paradise, Grandview and Sunnyside neighborhoods.  The suite of 10 projects is shown on the Key Flood Projects.
 
In April 2023, the City awarded Eagle Mountain Construction the CMAR design and construction phase services contract for the suite of projects.   Construction commenced on the first project in the suite of projects soon after.   There have been multiple GMPs since construction commenced which has allowed construction to continue while design is completed, grant opportunities have been explored and property is being acquired.

• Safe & Healthy Community: Ensure the built environment is safe through the use of consistent standards, rules & regulations, & land use practices.
• Sustainable, Innovative Infrastructure: Deliver outstanding services to residents through a healthy, well maintained infrastructure system.

Goal WR.5: Manage watersheds and stormwater to address flooding concerns, water quality, environmental protections, and rainwater harvesting.
Goal T.21: Improve transportation safety and efficiency for all modes.

IR-2: Ensure equity, accessibility, and inclusion across all City of Flagstaff Parks and Recreation facilities, helping all members of the Flagstaff community to meet their health and wellness needs.
WS-1: Improve water infrastructure and expand water reuse.

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