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10.D.
City Council Meeting - DRAFT
Meeting Date:
03/22/2016
From:
Christine Cameron, Project Manager III

Information

TITLE:

Consideration and Approval of Contract:   With Sellers & Sons, Inc. in the amount of $1,914,238.50 for the Brannen Neighborhood Water and Sewer Improvement Project, Phase I.

RECOMMENDED ACTION:

1)  Approve the construction contract with Sellers & Sons, Inc. in the amount of $1,914,238.50 (includes a contract allowance in the amount of $89,605.00 and contract time of 200 days);  
2)  Approve Change Order Authority to the City Manager in the amount of $182,463.00 (10% of the contract amount, less allowance);
3)  Authorize the City Manager to execute the necessary documents.

Executive Summary:

Award of this contract to Sellers & Sons, Inc. will allow for construction of the Brannen Neighborhood Water and Sewer Improvement Project, Phase I.  The apparent low bidder was deemed non-responsive and non-responsible and the award is recommended to the second low bidder. The scope of this project will replace deteriorated water, sewer, and surface infrastructure that dates back to 1909 in the downtown Flagstaff neighborhood. This project is scheduled in the Capital Five-Year plan, is funded by Utilities funds, and is within available budget authority. The contractor is required to dedicate a staff member to coordinate with the public to provide project updates and address project concerns.

Financial Impact:

This project is covered by FY 16 budget appropriation of $382,000 and anticipated FY17 budget appropriation of $2,400,000 in Utilities' Annual Waterline replacement account (202-08-370-3157-0-4463).

Connection to Council Goal and/or Regional Plan:

3. Provide sustainable and equitable public facilities, services, and infrastructure systems in an efficient and effective manner to serve all population areas and demographics. 
              - Maintain existing infrastructure by investing in ongoing maintenance and operations to get closer to target condition.

Has There Been Previous Council Decision on This:

There has been no previous Council decision on this item.

Options and Alternatives:

1. Approve the award as recommended. Approval will allow the project to be constructed in the summer/fall of 2016.
2. Reject approval of the award. This action would delay the project. If rejection occurs, possible options include:
  • Re-advertise the project and solicit new bids.
  • Suspend or cancel the project.

Background/History:

The Brannen Neighborhood Water and Sewer Improvement Project is located in downtown Flagstaff and the project area includes work on Phoenix Avenue, Cottage Avenue, Brannen Avenue, Agassiz Street, O'Leary Street, and Elden Street. The project scope includes replacement of water main and services, replacement of sewer main and services, street asphalt reconstruction, and limited curb/gutter and sidewalk replacement.  

Staff solicited for construction bids on January 28 and February 4, 2016. Ten bids were received by the opening date of February 9, and Sellers & Sons, Inc. were determined to be the lowest responsive and responsible bidder. One bidder was rejected due to non-responsiveness and non-responsibility. A tabulation of bids is summarized below in Expanded Financial Considerations.

Phase II of the project is currently under design and is planned for construction in summer 2017.

Key Considerations:

The existing utilities in the Brannen Neighborhood area are aging and are in need of replacement. The water main was constructed in 1906 and the sewer main was constructed in 1919. City Utilities Division has approved funding for improvements in order to reduce maintenance cost and improve service to the community. This project area also includes degraded roadway and portions of sidewalk, which will be replaced. 

Expanded Financial Considerations:

Below is a summary of the bids received:

Engineer's Estimate   $2,114,870
Capital Improvements, LLC (non-responsive/non-responsible)   $1,789,000
Sellers & Sons, Inc.   $1,914,238
Standard Construction   $1,922,064
KCS   $1,941,806
McDonald Brothers   $1,959,134
RTR Paving and Resurfacing   $1,968,105
Eagle Mountain Construction   $1,988,962
Kinkaid Civil Construction   $2,040,671
LP's Excavating   $2,155,282
Fann Construction   $2,223,690

Capital Improvements, LLC's bid was determined to be non-responsive due to submitting an incomplete bid package, and non-responsible due to past performance on a previous City project.  Capital Improvements, LLC has been advised of the City's determination that it was a non-responsive and non-responsible.  Staff recommends award to the second low bidder Sellers & Sons, Inc.

This project is covered by FY16 budget appropriation of $382,000 and anticipated FY 17 appropriation of $2,400,000 in Utilities account 202-08-370-3157-0.

Community Benefits and Considerations:

The Community benefits of this project include updated utility mains and services, and improved road and pedestrian facilities. 

Community Involvement:

Inform and Involve: In October 2015, city staff sent out an informational mailer describing the project and inviting the community to a Public Open House to learn about the project and provide feedback. Staff held the open house on November 16, 2015 in City Hall. City Capital staff has also been doing one-on-one contact throughout the community and will continue to coordinate the construction work and schedule throughout the duration of the project. The Contractor is required per the contract to have a dedicated staff member on site to work with the public and address any project concerns.

Expanded Options and Alternatives:

1) Approve the award as recommended. Approval will allow the project to be constructed in the summer/fall of 2016.
2) Reject approval of the award. This option would delay the construction start and likely cause the work to span to two construction seasons. This option would also increase project costs and delay needed improvements for the community. 
3)
Re-advertise the project and solicit new bids
4) Suspend or cancel the project.

Attachments