Consideration and Approval of Contract: Construction Manager at Risk (CMAR) Construction Phase Services Agreement - GMP with PCL Construction, Inc. for the Lake Mary Water Treatment Plant - Sedimentation Basin Improvements in an amount not to exceed $13,642,244.00, including fees and taxes.
 

1. Approve the CMAR Construction Phase Services Agreement - GMP with PCL Construction, Inc. for the Lake Mary Water Treatment Plant - Sedimentation Basin Improvements in an amount of $13,242,244.00;
2. Approve an Owner's Contingency amount of $400,000.00, for a total GMP amount not to exceed $13,642,244.00, including fees and taxes; and
3. Authorize the City Manager to execute the necessary documents.

The Lake Mary Water Treatment Plant treats up to 8 million gallons per day of surface water from Lake Mary and has been Flagstaff's primary potable water source since 1963. To address our aging water production infrastructure, the Construction Phase Services Agreement will see the rehabilitation of the Lake Mary Sedimentation Basins ("Project"). These two 1-million gallon basins are a critical step of the Lake Mary Water Treatment Plant's treatment process, responsible for clarifying and removing suspended solids and sediment in the water. These basins were constructed in 1963 and the equipment that operates in this harsh environment has been in service for over 60 years. The engineering firm Brown and Caldwell was hired to produce a design for this project and PCL Construction, Inc. was found to be the most qualified CMAR construction contractor to deliver this project.

Construction is expected to last for two years, and can be performed one basin at a time to keep continuity of operations and water production running with only minimal plant shutdowns scheduled. All the equipment in the basins will be replaced, including the flocculation mixers, the sedimentation rake assemblies and the discharge weirs. This Project also includes electrical and controls upgrades, in addition to water chemistry data sensors throughout the basins. PCL Construction, Inc. was able to complete a 100% GMP which provides significant detail on each of the parts of the construction. The document attached to the CMAR Construction Phase Contract - GMP is an Executive Summary which provides an accurate description of this Project without disclosing certain proprietary and confidential water infrastructure information.

Lake Mary Sedimentation Basins Rehabilitation Project
$13,642,244.00
Account Number Budgeted:  202-08-370-3372-0-4463
FY 2025-2026 Budgeted Amount: $7,000,000.00
FY 2026-2027 Current Budgeted Amount: $4,800,000.00.  During the FY2026-27 budget process, Water Services will re-prioritize funding to allocate the additional $1,842,244 needed to fund the remaining portion of this project.
Grant Funded: No
Funding Source:Water Services - Drinking Water Fund

Maintain, upgrade and repair water production facilities.

1. January 15, 2020, City Council entered into a Contract for Professional Services with Brown and Caldwell to provide the Lake Mary Treatment Plant Basin Engineering Design. On January 8, 2025, this contract was renewed to continue engineering design services.
2. February 4, 2025, City Council entered into a Construction Manager at Risk Design Phase Services Agreement with PCL Construction, Inc. to provide design phase services for the Lake Mary Treatment Plant Sedimentation Basin Improvements.

1. Approve CMAR Construction Phase Services Agreement - GMP in the total amount of $13,642,244.00, as recommended; or
2. Do not approve this CMAR Construction Phase Services Agreement - GMP and direct Staff to continue to utilize the existing basins and equipment for City water production.

The Lake Mary Water Treatment Plant was originally built in 1941 to supply the growing drinking water needs of early Flagstaff.  The Plant treats surface water from Lake Mary and pumps this water to our drinking water distribution system.  Over the years, the Plant has seen numerous upgrades and expansions to meet an ever-increasing water demand.  A major expansion in 1963 saw the installation of two 1-million gallon sedimentation and flocculation basins, expanding the treatment capacity of the Plant to 8 million gallons per day.  These basins are a critical step in the treatment process where suspended sedimentation in the raw water is removed through a process of flocculation and settling. Water from Upper Lake Mary is Flagsatff's most energy efficient source of potable water.

On August 27, 2024, Procurement staff posted a Request for Statements of Qualifications (RSOQ) solicitation for Construction Manager at Risk (CMAR) services on the PlanetBids electronic bidding website and advertised it in the Arizona Daily on Saturday August 31 and Tuesday September 7, 2024. On September 19, 2024, Procurement received three (3) Statements of Qualifications (SOQs) from contractors responding to the RSOQ. A Selection Committee of six members, including one member in professional services of engineering. The evaluation committee independently reviewed and evaluated the SOQs in accordance with guidelines established by the enabling legislation. After meeting to discuss the scoring, the committee decided based upon the numerical scoring of the written SOQs, the Committee identified the most qualified contractor to perform the CMAR services for the project and recommended commencing negotiations for a scope and fee proposal to be provided by PCL Construction Inc. Final scores of all firms are as follows:
PCL Construction - 699 Points
Schofield - 679 Points
KEAR - 675 Points

Connections to Priority Based Priorities and Objectives include:
Sustainable and Innovative Infrastructure — by building and maintaining our water production infrastructure, we are able to meet our communities' demands and provide for sustainable growth
Safe and Healthy Community -- providing safe, clean drinking water, we are contributing significantly to a safe and healthy community

Connections to the Regional Plan:
This project aligns with the goals of the Flagstaff Regional Plan by upgrading Public Facilities, continuing responsible use of Natural Resources, and being Energy minded with our water production.

Connection to Flagstaff's Carbon Neutrality Plan:
This project will contribute to surface water production capacity, our least energy intensive form of water production, as well as the City's water security.

N/A

The Water Services Division:
The installation and maintenance of new and existing infrastructure to meet Flagstaff's water demands